This chapter aim to explore the relationship between ICT and public innovation by looking by looking at a number of theoretical notions and empirical findings. A number of reasons is presented why the modernization of government is a returning issue and reflect on the nature of this modernization process. A necessary condition for modernization is innovation, but how innovative is the public sector. Some arguments for and against are given. We also distinguish several types of innovation. ICT innovations are very often used as incentives to modernize public administration. In order to understand the nature of these ICT driven innovations, it is important to question ICT itself as well as its added value.