This article investigates the innovation concept in two key welfare areas where the demands for innovation are substantial, namely vocational education and elder care. On the basis of ethnographic fieldwork and interviews on the collaboration between an educational institution and elder care services, the article develops a tripartite empirical model of innovation. The model suggests that innovation requires levers (understood as methods and management contexts) as well as craft (understood as professional skills and rootedness), if it is to be integrated into the core services of a specific context. The article also discusses how innovation's value-creating aspects should be understood in a public sector context. The proposed innovation model yields recommendations on issues that should be considered in establishing successful innovation in a public, cross-organizational context. (Contains 1 figure.)