This chapter provides an overview of the theoretical framework used to assess innovation skills and capabilities in Chile’s public sector and maps the institutional landscape for public sector innovation and human resource management. The analytical framework identifies three elements that public employees in Chile require: abilities, motivations and opportunities to contribute to innovation in their public organisations. Chile’s interest in building innovation capabilities in its public sector builds on decades of public sector modernisation initiatives. However, the complexity of governance challenges and low citizen trust in government institutions calls for new approaches to policy making and service delivery. The Laboratorio de Gobierno, along with the National Civil Service Directorate, are two important institutions with the potential to contribute to a more innovative Chilean public sector.