The rapid spread of the change, especially with the phenomenon of globalization, private management and public administration is forced to adapt new management techniques. It is seen that private organizations adapt to the changes more easily than public, while public institutions gradually evolved. Innovation has become a rising value in the management field for businesses, which aims to meet the demands of customers quickly and effectively and to achieve competitive advantage. Innovation exercises influence over the public administrations in recent years, as a result of citizen-centered management approach. In many countries, innovation-based approaches in development policies are encouraged and are tried to be made managerial principles for public institutions. The purpose of this study is to reveal the effects of innovation on public administration as an organizational change tool. In the study, based on literature research, it was identified that innovation is an important factor that can make a contribution to the efficiency in public administration and improve the citizen satisfaction by increasing quality of services. In addition to this, due to reasons of structural and functional features, it was found that public administrations have faced with many challenges and are implemented innovation policies in a controlled manner.