Schools in Singapore are now tasked to develop the spirit of innovation and enterprise in their students. This is in line with the national vision of "Thinking Schools, Learning Nation". This policy initiative, which began in 2004, is set to change the fundamental nature of education in Singapore. This article discusses the innovation and enterprise (I&E) initiative, its major implications for schools in Singapore and the areas still to be addressed in the implementation of the policy. In particular, the article discusses the issues of teachers and school leaders as role models of I&E, I&E as an organic part of school business, the influence of the wider societal culture and values system, and the measurement of success of I&E. The challenge for schools is to go beyond the form of the initiative to bring real substantial and sustainable change through this movement.