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This paper generates a network perspective of the development of new services. Service development within a network environment is at an early stage of understanding and has received little attention. The authors contribute to greater understanding of the new service development process by conceptually developing and integrating two themes: the development of new services and the innovation process within networks, rooted in the study of industrial networks. The conceptual discussion is further strengthened by a case study of network‐based new service development in the financial services sector.