Purpose - In professional services, innovation occurs in the delivery. The purpose of this paper is to provide a framework for classifying innovation in professional services by taking into account the strength of the relationship with the client in addition to the incremental-radical nature of innovation. Design/methodology/approach - Based on the framework provided, there are operational, experimental, tactical, and high-potential professional services, the characteristics of which are illustrated both conceptually and with a case example. Findings - Professional service goes through different stages during its lifespan. A high-potential service is a stage where the nature of the innovation is radical and the relationship with the client is strong. It is suggested that high-potential services create a future competitive advantage not only for the service provider, but also for the client. Research limitations/implications - A qualitative network approach with a focal actor perspective, in which the networks are illustrated from the supplier's point of view, is used. The characteristics of a high-potential service are connected to the development stage of the service. Practical implications - Classification of professional services is provided, and the importance of high-potential services is highlighted. Advice for managers is given for designing suitable management initiatives in professional services in all their stages: idea, development, and commercialization. Originality/value - The approach introduced in this paper addresses three gaps in the existing research: it helps to characterize and theorize the concept of innovation in professional services; it draws attention to the important role of the client in professional services, and it expands the management of innovation in professional services to include network relationships.
