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To stay ahead in today’s competitive landscape service firms must continually innovate their offerings and processes (Thakur and Hale 2013). Spurred by this focus on innovation, there has been a tremendous growth in service firms over the past decade. Service innovation has been recognized as the engine of renewal and reason for the growth of the services sector. Although the concept service innovation is gaining increased attention, the question of what a service innovation really is remains unanswered. Traditionally, research on service innovation has separated radical and incremental innovations (see e.g. Gallouj and Weinstein, 1997), and product and process innovations (Vaux Halliday and Trott, 2010). This suggests that there are different conceptualizations that can be used to categorize service innovation. The basis of this research is a literature review. This systematic literature review is based on 879 empirical and conceptual articles used in order to identify conceptualizations of categories of service innovation. In total, 43 categories of service innovation were identified. These conceptualizations were analyzed to show what the benefits and drawbacks are with the different categories. We identify five unique conceptualizations of categories that emphasize different traits of service innovation (1) degree of change in the offering, (2) type of change in the content of the offering, (3) degree of newness in the offering, (4) type of change in the organization and (5) alternative means to an innovative offering. Our review of categories of service innovation provides evidence that the research field is diverse and moving in a number of …