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Service-dominant (S-D) logic has been recognized as a theoretical foundation for developing a science of service. As the field of service science advances the understanding of value cocreation in service systems, S-D logic continues to evolve as well. Recent updates and consolidation of the foundational premises establish five core axioms of S-D logic and outline a pathway for understanding the role of institutions in value cocreation in general, and innovation in particular. This chapter overviews the evolution of S-D logic and its service ecosystems view, which can contribute to the furthering the development of service science and advancing the study of innovation in service systems. Future research directions are proposed.