The new global economy is driven by innovation and structured by networks. Older institutional forms and local structures are under pressure to accommodate this innovation-centred ideal. How can we understand innovation in the public sector in this world? Are networks a supplement to traditional democratic roles or are pathways created by networks more crucial for innovation? Drawing on a major quantitative and qualitative study, involving almost 800 actors and their networks, this book examines the different normative approaches politicians, bureaucrats and community actors use to frame the innovation puzzle, arguing that these create specific cultures of innovation. Combining public policy with social network analysis, the authors explore the role of formal institutions and informal networks in promoting and impeding governmental innovation. It shows conclusively that networks matter more than any other single attribute, shaping local cultures in governments and marking out differences in the way politicians and bureaucrats address innovation inside government.