Abstract Innovation has been widely studied in the context of for-profit organizations. Less attention has been paid in business literature to innovation in non-profit organizations. This paper lays out a model for comparison and then explores the differences between the two types of organizations. Using these data, predictions are made as to how these differences will impact the innovative behaviour of non-profit organizations and theories are proposed about the methods of innovation most suited to a non-profit organization. A theoretical model is presented which incorporates differences in vision, in strategic constraints, and in financial constraints.
Hull et al. (2006) studied this question.