Current theory and practice of social innovation and their impact on the formulation and implementation of policy in Australia and New Zealand are critically assessed. Three interrelated forms of social innovation—social enterprise, social finance, and social procurement—are examined to highlight the role they have played in promoting social innovation throughout the region. The focus is on market-led approaches: that is, methods of social innovation that are employed by companies in the private and not-for-profit sectors to effect social change. The chapter examines the particular challenges that these approaches pose to traditional public administration roles and practices. It concludes by suggesting various ways that socially innovative techniques might be more widely utilized in Australasia.