Public organizations are essential parts of our daily lives such as they provide education, health, and security to citizens. They also contribute the highest shares of GDP around the globe. In this regard, a small innovation in public organizations may lead large savings and better outcomes (e.g. may increase quality of public services). However, a major limitation in the literature is how to measure innovation. To fill this gap, this study has two purposes. First, it explains why measuring innovative activities are crucial for public organizations. Second, it develops and discusses a comprehensive and strategic framework to measure public sector innovation in a holistic way: Rather than just measuring whether an innovation is implemented by an organization, this study also suggests to measure other innovative activities including conditions and drivers for innovation, sources of innovation (e.g. ideas emanating from politicians, managers, and citizens), innovation culture and climate, outcomes of innovation (e.g. whether an innovation reduces costs and increase user satisfaction), barriers to innovation, and innovation capacity in each organizations. It discusses why measuring each element is important and how to measure them.