This paper considers key factors which have an impact on the development and implementation of innovations in the public sector and explores how beneficial elements of private sector governance can be utilised and incorporated into approaches to support innovation in the public sector. It discusses a number of concepts which could be important for innovation in the public sector; these include overt and covert innovation, primary and secondary innovation and organisational equilibrium. The relationship between risk and trust is considered and the importance of accountability is addressed. The utilisation of special purpose vehicles is discussed, highlighting how private sector governance can be utilised to support innovation in the public sector. The value of this approach is supported by an example which has been in operation for seven years; the special purpose vehicle operates using private sector governance but is essentially owned by a group of large public sector organisations
