This article describes a number of innovation forms that are of special relevance to "rms in
the service industry. Not only technological innovations but also organizational innovations
have been distinguished. In the service industry organizational innovations seem to play
a signi"cant role. The literature on innovations makes little mention of neworganizational
arrangements in services. Based on the service management literature a scheme with three forms
of organizational innovation and one form of technological innovation is developed. This
scheme is illustrated and elaborated in ten case studies of "rms in various service industries. The
case studies shed some light on innovations in multi-unit forms, combinations of services and
co-operation with customers. On a basis of the service management literature and the case
studies some of the main processes supporting the (organizational) innovations are analysed.
2002 Elsevier Science Ltd. All rights reserved.