The purpose of this study is to find out a more effective and functional way to apply management innovation, by analyzing the relationship between the innovation and leadership of a public enterprise CEO. To fulfill the purpose, a structured survey was executed with twenty one public enterprises those who have had management innovation before January, 2010. The proof of the research shows the leadership of public enterprises gives a big impact on each work group, operation structure innovation, and also individual innovation. Accordance with these conclusions, in order to create effective management innovation, the leadership of CEO should be very revolutionary rather than being conservative.