If the officials responsible are unaware of innovation occurring in their services industries, they may not extend support to the non-technological innovation activities of services firms. Most research on innovation, and services innovation in particular, originates in developed economies, primarily the United States. Recently, however, there have been a series of national and regional studies of services innovation. Few services firms as yet manage innovation systematically or have formal service design processes. Half of the innovations launched are in the design of the service itself, with a quarter in delivery and a quarter in organizational support.
Customers are the primary source of innovative ideas.
The primary barrier to successful innovation is a lack of staff skills in design innovation and managing change. Innovative services are those that did not previously exist, or that have been substantially redesigned to meet customers needs more effectively. These innovations are the most obvious to the customer. The innovation may involve significant changes in the roles played by staff, strategic partners and customers. The most typical forms of innovation include increased accessibility for customers and changes in the amount of self-service required.