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The public sector is under pressure to provide new public services with increasingly scarce resources. In response, practitioners and academics have called for more innovation in the public sector. Our understanding of sources of innovation within public sector organizations, however, is inadequate. Motivated by this gap, we develop a conceptual model of how push and pull sources enable innovation within public sector organizations. Key to our theory is that push and pull sources of innovation are enabled by innovation capabilities. Five hypotheses are tested using cross‐country survey data from European public sector organizations. Empirical analysis offers strong support for the central role played by innovation capability in enabling push and pull sources of innovation within public sector organizations. This article advances knowledge of the sources of innovation in the public sector and extends theorizing on push and pull mechanisms by examining their relevance to innovation in a public sector context.

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