Starting in 2006, a group of leading California arts institutions set out to innovate with new ways of working in the 21st century. With support from the Arts Innovation Fund of The James Irvine Foundation, they approached the challenge of innovation in a variety of ways, with a wide range of objectives and results. Across the board, the experimentation process prompted organizational reflection and change. Most grantees developed new levels of adaptive capacity, an attribute that many thought leaders believe will be essential for arts organizations, and the arts sector as a whole, to thrive into the future. After a strategic qualitative review of the innovation projects pursued by organizations participating in the Arts Innovation Fund, the Slover Linett evaluation team offers the following report with its insights and recommendations.