This paper examines the concept of product innovation in the context of professional business services. In particular it assesses the respective roles of advances in information technology and organisational change as drivers of innovation. The growth of certain forms of PBS over the last decade and the emergence of new forms of PBS are viewed from the perspective of product innovation with changes in product characteristics and delivery mechanisms examined in terms of innovation drivers. The issues identified are then discussed in the context of real estate services with some tentative conclusion drawn on product innovation in the sector.

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