th a source of competitive advantage. They do not, however, address the management of the resulting complex value networks. 7.4 E-Service Development and Open Innovation How can innovations be developed in open, networked, and dynamic systems and markets such as those most electronic services are found in? Outside the core area of New Service Development a new research stream called open innovation is mak- ing progress (Chesbrough, 2003). The tools and methods proposed by open innova- tion seem to address the problems that are encountered when developing electronic services (e.g., fast development) and might also help to exploit the new opportuni- ties (e.g., transparent feedback). Three core process archetypes in open innovation have been identified: the outside-in process, the inside-out process, and the coupled process (Gassmann and Enkel, 2004). The outside-in process enriches a company's knowledge and innovation base through the integration of external knowledge sources, particularly the knowledge sources of customers and suppliers, to increase its innovativeness. The inside-out process exploits a company's unused inventions in different markets Service Innovation for Electronic Services and a managed trade of intellectual property, for example, through licensing. The coupled process is a combination of both the outside-in and the inside-out pro- cesses intended to maximize the benefits of both approaches. These three archetypes are achieved through various means of perspectives on opening the innovation and development including: (1) globalization of innova- tion, (2) outsourcing of R&D, (3) early supplier integration, (4) user innovation, and (5) external commercialization of innovations (Gassmann, 2006). These open innovation processes lead to inter-firm cooperation and development of ecosystems of networked firms sharing technology and trading intellectual property (West et al., 2006; Stathel et al., 2008). The benefits of customer integration, user-driven innovation and open innovation are well recogniz