Abstract
This paper provides the conceptual mapping of service innovation to derive implications for service innovation indicators. A OECD's framework of service innovation, based on the Oslo manual, is extended to include non-technological organizational innovation. The focus of this paper is to put on use of IT in service innovation, since IT often plays an indispensable role, as is seen in on-line reservation system, home banking system, POS system etc. In addition to surveying the methodology of innovation indicators, based on the cost side information on innovation, such as R&D and IT investment, the possibility of developing new indicators, taking into account demand side factors, such as consumer surplus associated with service innovation, is investigated.
