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In this paper we explore the use of a novel governance form – internal contracts - in the Swedish public school system, in terms of its effect to promote intrapreneurship in the organization. We studied a public school that during the time period 2007-2010 was a test case, by performing interviews with management and staff and through a questionnaire measure entrepreneurial behaviour and other relevant aspects in this school and two control schools. The results show that the internal contract gave the school room to act entrepreneurially and that it is a promising organizational tool for renewing the public sector.
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