Abstract
This paper discusses, from the view point of innovation management, what public organizations of Japan (POJs) should do in order to cope with the severe social and economic situations of the present time. Specifically, this paper suggests that POJs build up a system to realize 'total innovation', and also examines the validity of the suggestion using a case study on social welfare policy. In addition, this paper discusses the present systems for public reformation, "the special ward system" and "the sorting (shiwake) system" from the view point of innovation management.