The aim of our thesis is to explore the concept of organisational innovation in public organisations and to recommend how to strengthen innovation within such organisations.

The thesis is based on 20 qualitative interviews conducted in three different Danish public organisations: a Ministry; Integrationsministeriet, a Nursing Home; Egebjerg Plejehjem and an Incinerator Plant; Amagerforbrænding.

Five factors that influence organisational innovation are identified: Organisational structure, Organisational culture, Strategy and goals, Innovation process and Incentive structure. These factors are based on theories pertaining to organisational innovation in private firms and organisational theory in general.

The factors are tested and analysed in the three public organisations. The conclusion of the thesis is that there are challenges concerning the five factors that influence organisational innovation in the three public organisations.

Both similarities and differences are identified concerning the organisations’ ability to create innovation and it is argued that there in some areas concerning the five factors are tendencies that the closer the organisation is to the government, the greater the challenges concerning organisational innovation are.

Furthermore it is concluded that the theory in some areas has to be modified and encompass the fact that public organisations are operating under different circumstances which influence their ability to innovate.

To strengthen organisational innovation it is argued that public organisations have to:

• Identify a strategic aim with innovation

• Create an organisational structure that stimulates innovation and efficiency simultaneously

• Eliminate a culture that focuses on minimising faults at the cost of innovation, in areas where it is possible

• Put an end to the unwillingness to change

• Realise the creative potential in the organisation

• Acknowledge employee innovation

• Set goals that enable creativity and innovation,

• Encourage interdepartmental knowledge sharing and

• Focus more on capturing and screening of ideas.

The nine recommendations are based on the five theoretical factors adjusted to the empirical findings.