Balan, P.Lindsay, N.O'Connor, A.2010-05-042010-05-042009Proceedings of the Sixth Annual AGSE International Entrepreneurship & Innovation Research Exchange, 2009: pp.93-1069780980332858http://hdl.handle.net/2440/58052Innovation Capability (IC) describes the ability of a firm to support the development of new products,services, processes, and systems. The few published studies of IC have tended to focus on the manufacturing sector and on product innovation. This exploratory research is the first stage of a larger study to investigate IC in the services sector with the Australian hotel sector as the case study.In-depth interviews were carried out with 51 hotel owner-managers across Australia, and thisresearch finds that the capabilities that influence innovation in a service industry are radicallydifferent to those that are common to the manufacturing sector.en© SwinburneConference paper002009635335129O'Connor, A. [0000-0003-1197-7805]