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Profiting from service innovations can be challenging. It is not only a question of pricing and marketing the services appropriately, but also of keeping competitors from imitating them. The purpose of this paper is to discuss how service innovation differs from technology/product innovation in terms of protection, and how this shows in collaborative innovation activities.

The paper offers a literature review combining discussion related to service research and strategic management. Empirical evidence is provided in the form of a multifaceted case study illustrating some of the aspects of collaborative service innovation.

The results indicate that characteristics separating service innovations from product or process innovations influence the efficacy of protection. This, in turn, may make or break the subsequent value appropriation. Furthermore, as service innovation …