To measure project innovation in the eight departments studied, the following factors were selected as indicators of organizational innovativeness: (1) an organizational problem is confronted; (2) new policies and goals are developed for the organization; (3) the project encourages the use of new human resources; (4) the project redefines department activities or the method or process in which activities are conducted; (5) the project restructures relationships among and between positions in the organization; and (6) the project affects the organization's environmental linkages to individuals, groups, and other organizations. Each grant was examined and assigned an innovation score. The total of all innovation scores for all grants to a department was divided by the number of grants to obtain the innovation score. The average rate of innovation was 64.5 percent for all the grants. The Syracuse, Rochester, and Buffalo Police Departments (New York) were examined to determine local factors affecting innovation. The areas examined for each department were social, economic, and political environment; philosophical orientation of departments; each department's view of the purpose of LEAA funds; each department's perceived impact of LEAA funds; each locality's plan to assume the cost of LEAA-funded projects; organizational models and departmental efforts; each department's major administrative problem; managerial or leadership style of department chiefs; and internal and external planning functions. The Buffalo Police Department, with its extensive rigid structure, specialist selection system, lack of a research capability, and a labor force with numerous vested interests was in stark contrast to the other two departments regarding its failure to pursue innovative programs. The study shows that to a significant degree, LEAA's aim to accomplish innovative policing methods through its grant program is not being met. Further, Federal legislation cannot effect innovation apart from dealing with local factors obstructing innovation. An index of of grants awarded and supplementary study material are appended, and tabular data, footnotes, organizational charts, and over 100 references are provided.