Abstract. Beyond the role of public sector as driver of innovation in the economy, for the time being, we witness the necessity of boosting innovation in the public sector itself, in view to improve productivity, efficiency, as well as to enhance the creation of public value.

The new concept concerning the capacity for innovation of public administration reflects the synergy between the traditional instruments of administrative innovation (planning, strategy etc.) and the modern ones (ICT, e-governance, knowledge management in public administration).

The current paper is accomplishing an empirical analysis through operationalization of a conceptual model on the capacity for innovation of public administration. Thus, the paper analyses e-Governance, ICT and knowledge management in the Romanian Prefect institutions by identification, analysis and evaluation of the factors contributing to the improvement of public service quality, effectiveness, efficiency, transparency and citizen participation, strengthening trust and legality.

Keywords: e-Governance, ICT, knowledge management, innovation, public administration modernisation.