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The received concepts of innovation, and the measurement techniques based upon those concepts, are firmly rooted in the study of manufacturing innovation. Are they well suited to analysing innovation in economies in which service sectors and service functions play such a dominant role? Following this introduction, we outline the familiar facts concerning the scale and scope of the transformation of advanced economies created by the rise of'services'., We consider some alternative definitions and taxonomic approaches that have been used to capture the'peculiarities' of services and of service innovations.