Human resources are vital to an organization’s success and are a driving force behind innovation processes. This study examines the influence of various employee characteristics and their effect on the innovation culture with public and nonprofit organizations (innovation climate). Using data collected from 1220 public and nonprofit employees, we evaluate the role of various elements such as work motivation, job flexibility, and financial motivation, and how they affect an innovation culture within organizations. Findings from a series of OLS regressions suggest that job flexibility, the quality and reputation of the organization, and importance placed on work are positively related to both public and nonprofit innovation climates. Personnel inflexibility negatively affects the innovation climate in both the public and nonprofit sectors, and the effects of other variables, including advancement motivation, vary by sector.