ABSTRACT
The capability to innovate is explained as the attitude towards exploiting and taking advantage of new ideas successfully. It is described as an internal energy for generating and exploring new ideas, for experimenting with solutions, for finding the potential opportunity in the market and for developing these opportunities as marketable and effective innovations. Service innovation is explained as the merger of product innovation and process innovation. Product innovation is known as the development of a new product or having qualitative changes in existing products, whereas process innovation is the introduction of a new process for developing or delivering goods and services. The development of innovation capabilities is strongly associated with the strategic intention of the business to be innovative, that is, the desired strategy for innovation. In developed and developing economies such as the United States, India, China, Brazil, Canada and Germany, service innovation has occurred throughout the economy.
