This study investigates resource allocation and innovation in Olabisi Onabanjo University health centre. It examines the effect of resource management on innovation; effect of innovation on service delivery and also determines the composite effect of resource management and innovation on service delivery in Olabisi Onabanjo University health centre. The study was anchored on Resource Dependency Theory and Theory of Constraint. Survey research design was adopted using questionnaire as the prime instrument to generate data. Eighty-five (85) employees were drawn health centre in the selected health care centre. Data generated was analysed using descriptive statistics such as simple percentage, Pearson Moment Correlation Coefficient Multiple and Regression Analysis. The findings from the reveals that there was a statistically significant relationship between resource management and innovation; there was also statistically significant relationship between innovation and service delivery. Lastly, there was statistically significant composite effect of resource management and innovation on service delivery of Olabisi Onabanjo University Health Centre. Among other recommendation is that the management of Health Centre in Nigeria should continue to practice the management function of resource allocation in order to continue to improve new services in health care setting. 

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Keywords: Resource allocation, Innovation, Service Delivery