AbstraksiAs with the private sector, public sector also faces a public or a variety of customers with varying needs, surrounded by dynamic and changing environment. It is necessary to respond to these new situations through innovation. The innovation process is complex; starting from an idea, innovation may be described as ‘a new idea is created, developed, implemented or reinvented’ (Aiken and Hage, 1971). Slightly different from invention; innovation means that something new has actually been applied (Bason, 2010). In addition, innovation is essential for competitive reasons in shaping organisation’s service and performance (Hartley, 2008). Unlike private sector, public sector deals with public spending and public budget which will bring consequences in accountability, so innovations should be introduced in a slightly different way. To support innovations in the public sector, government should build an ‘ecosystem of innovation’ which contain four key aspects of innovation, 4Cs; Courage, Consciousness, Co-creation and Capacity (Bason, 2010). My aims in this essay are to explain how innovation in public sector is relatively challenging in comparison to private sector, especially in a heavily bureaucratic system and how the limitation on public spending affects innovation, which made innovation particularly difficult. This contrast will drive us to an understanding of why, in practice, innovation sometimes faces lots of barriers within the public sector. To fulfill the aims, I will use related literatures which chosen with reference of authenticity and credibility. The main literature is written by Bason, a distinguished author of innovation in public sector.