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The purpose of the paper is to discuss how the definitions of innovation must be extended in order to analyse innovation in a public service-institution and uncover the reality of innovation in such an institution. A case study of home-help for the elderly has been carried out. Interviews with top-management, middle management as well as nurses and home helpers have been conducted. The case-study shows that innovation is a core activity and that process-based concepts such as “ad hoc innovation” (Gallouj & Weinstein, 1997), “a posteriori recognition of innovation” (Toivonen et al., 2007) and “bricolage” (see e.g. Styhre, 2009) are highly relevant to understanding and analysing development processes in this context. These concepts point to a more process- and practise-based approach to innovation.JEL codes: L8, O3, H4