diff --git a/src/compile/render-dom/Block.ts b/src/compile/render-dom/Block.ts
index 35d3f87a25..8e229ae298 100644
--- a/src/compile/render-dom/Block.ts
+++ b/src/compile/render-dom/Block.ts
@@ -110,6 +110,8 @@ export default class Block {
 		const dupes = new Set();
 
 		this.wrappers.forEach(wrapper => {
+			if (wrapper.parent && wrapper.parent.canUseInnerHTML) return;
+
 			if (seen.has(wrapper.var)) {
 				dupes.add(wrapper.var);
 			}
@@ -121,7 +123,7 @@ export default class Block {
 
 		this.wrappers.forEach(wrapper => {
 			if (dupes.has(wrapper.var)) {
-				const i = counts.get(wrapper.var);
+				const i = counts.get(wrapper.var) || 0;
 				wrapper.var = this.getUniqueName(wrapper.var + i);
 				counts.set(wrapper.var, i + 1);
 			} else {
diff --git a/src/compile/render-dom/wrappers/Element/Attribute.ts b/src/compile/render-dom/wrappers/Element/Attribute.ts
index 4f3b0eb144..1a2549ce4e 100644
--- a/src/compile/render-dom/wrappers/Element/Attribute.ts
+++ b/src/compile/render-dom/wrappers/Element/Attribute.ts
@@ -10,21 +10,25 @@ export default class AttributeWrapper {
 	constructor(node: Attribute, parent: ElementWrapper) {
 		this.node = node;
 		this.parent = parent;
+
+		if (node.dependencies.size > 0) {
+			parent.cannotUseInnerHTML();
+		}
 	}
 
 	render(block: Block) {
 		const element = this.parent;
 		const name = fixAttributeCasing(this.node.name);
 
-		let metadata = element.namespace ? null : attributeLookup[name];
+		let metadata = element.node.namespace ? null : attributeLookup[name];
 		if (metadata && metadata.appliesTo && !~metadata.appliesTo.indexOf(element.node.name))
 			metadata = null;
 
 		const isIndirectlyBoundValue =
 			name === 'value' &&
-			(element.name === 'option' || // TODO check it's actually bound
-				(element.name === 'input' &&
-					element.bindings.find(
+			(element.node.name === 'option' || // TODO check it's actually bound
+				(element.node.name === 'input' &&
+					element.node.bindings.find(
 						(binding: Binding) =>
 							/checked|group/.test(binding.name)
 						)));
@@ -36,7 +40,7 @@ export default class AttributeWrapper {
 		// xlink is a special case... we could maybe extend this to generic
 		// namespaced attributes but I'm not sure that's applicable in
 		// HTML5?
-		const method = /-/.test(element.name)
+		const method = /-/.test(element.node.name)
 			? '@setCustomElementData'
 			: name.slice(0, 6) === 'xlink:'
 				? '@setXlinkAttribute'
@@ -44,7 +48,7 @@ export default class AttributeWrapper {
 
 		const isLegacyInputType = element.renderer.component.options.legacy && name === 'type' && this.parent.name === 'input';
 
-		const isDataSet = /^data-/.test(name) && !element.renderer.component.options.legacy && !element.namespace;
+		const isDataSet = /^data-/.test(name) && !element.renderer.component.options.legacy && !element.node.namespace;
 		const camelCaseName = isDataSet ? name.replace('data-', '').replace(/(-\w)/g, function (m) {
 			return m[1].toUpperCase();
 		}) : name;
@@ -75,7 +79,7 @@ export default class AttributeWrapper {
 			}
 
 			const isSelectValueAttribute =
-				name === 'value' && element.name === 'select';
+				name === 'value' && element.node.name === 'select';
 
 			const shouldCache = this.shouldCache || isSelectValueAttribute;
 
@@ -183,6 +187,19 @@ export default class AttributeWrapper {
 			if (this.node.isDynamic) block.builders.update.addLine(updateValue);
 		}
 	}
+
+	stringify() {
+		const value = this.node.chunks;
+
+		if (value === true) return '';
+		if (value.length === 0) return `=""`;
+
+		return `="${value.map(chunk => {
+			return chunk.type === 'Text'
+				? chunk.data.replace(/"/g, '\\"')
+				: `\${${chunk.snippet}}`
+		})}"`;
+	}
 }
 
 // source: https://developer.mozilla.org/en-US/docs/Web/HTML/Attributes
diff --git a/src/compile/render-dom/wrappers/Element/StyleAttribute.ts b/src/compile/render-dom/wrappers/Element/StyleAttribute.ts
index 8f22df279a..89bdd41c82 100644
--- a/src/compile/render-dom/wrappers/Element/StyleAttribute.ts
+++ b/src/compile/render-dom/wrappers/Element/StyleAttribute.ts
@@ -14,10 +14,6 @@ export default class StyleAttributeWrapper extends AttributeWrapper {
 	node: Attribute;
 	parent: ElementWrapper;
 
-	constructor(node: Attribute, parent: ElementWrapper) {
-		super(node, parent);
-	}
-
 	render(block: Block) {
 		const styleProps = optimizeStyle(this.node.chunks);
 		if (!styleProps) return super.render(block);
diff --git a/src/compile/render-dom/wrappers/Element/index.ts b/src/compile/render-dom/wrappers/Element/index.ts
index 331efaba92..4e2f2211ed 100644
--- a/src/compile/render-dom/wrappers/Element/index.ts
+++ b/src/compile/render-dom/wrappers/Element/index.ts
@@ -7,7 +7,7 @@ import { CompileOptions } from '../../../../interfaces';
 import { quotePropIfNecessary, quoteNameIfNecessary } from '../../../../utils/quoteIfNecessary';
 import isVoidElementName from '../../../../utils/isVoidElementName';
 import FragmentWrapper from '../Fragment';
-import { stringify, escapeHTML } from '../../../../utils/stringify';
+import { stringify, escapeHTML, escape } from '../../../../utils/stringify';
 import TextWrapper from '../Text';
 import fixAttributeCasing from '../../../../utils/fixAttributeCasing';
 import deindent from '../../../../utils/deindent';
@@ -108,7 +108,7 @@ export default class ElementWrapper extends Wrapper {
 				);
 			} else {
 				block.builders.create.addLine(
-					`${node}.innerHTML = ${stringify(this.fragment.nodes.map(toHTML).join(''))};`
+					`${node}.innerHTML = \`${escape(this.fragment.nodes.map(toHTML).join(''))}\`;`
 				);
 			}
 		} else {
@@ -193,8 +193,8 @@ export default class ElementWrapper extends Wrapper {
 
 			let open = `<${wrapper.node.name}`;
 
-			(<ElementWrapper>wrapper).node.attributes.forEach((attr: Node) => {
-				open += ` ${fixAttributeCasing(attr.name)}${stringifyAttributeValue(attr.chunks)}`
+			(<ElementWrapper>wrapper).attributes.forEach((attr: AttributeWrapper) => {
+				open += ` ${fixAttributeCasing(attr.node.name)}${attr.stringify()}`
 			});
 
 			if (isVoidElementName(wrapper.node.name)) return open + '>';
@@ -748,12 +748,4 @@ export default class ElementWrapper extends Wrapper {
 			);
 		}
 	}
-}
-
-function stringifyAttributeValue(value: Node[] | true) {
-	if (value === true) return '';
-	if (value.length === 0) return `=""`;
-
-	const data = value[0].data;
-	return `=${JSON.stringify(data)}`;
 }
\ No newline at end of file
diff --git a/src/compile/render-dom/wrappers/Text.ts b/src/compile/render-dom/wrappers/Text.ts
index 726f5cd74d..dbb9096b71 100644
--- a/src/compile/render-dom/wrappers/Text.ts
+++ b/src/compile/render-dom/wrappers/Text.ts
@@ -32,6 +32,7 @@ function shouldSkip(node: Text) {
 
 export default class TextWrapper extends Wrapper {
 	node: Text;
+	skip: boolean;
 	var: string;
 
 	constructor(
@@ -41,10 +42,14 @@ export default class TextWrapper extends Wrapper {
 		node: Text
 	) {
 		super(renderer, block, parent, node);
-		this.var = 'text';
+
+		this.skip = shouldSkip(this.node);
+		this.var = this.skip ? null : 'text';
 	}
 
 	render(block: Block, parentNode: string, parentNodes: string) {
+		if (this.skip) return;
+
 		block.addElement(
 			this.var,
 			`@createText(${stringify(this.node.data)})`,
diff --git a/test/runtime/index.js b/test/runtime/index.js
index c59aa72d54..559a57c33c 100644
--- a/test/runtime/index.js
+++ b/test/runtime/index.js
@@ -25,7 +25,7 @@ function getName(filename) {
 	return base[0].toUpperCase() + base.slice(1);
 }
 
-describe("runtime", () => {
+describe.only("runtime", () => {
 	before(() => {
 		svelte = loadSvelte(false);
 		svelte$ = loadSvelte(true);