Cost, quality and technology leadership are no longer sufficient for businesses to secure critical advantage. Instead, differentiations are being provided through the supply of innovative services, which can rapidly develop into a firm’s unique selling proposition. However, although services can provide additional competitive advantage, the inherent differences between product and service can cause difficulty in the effective integration of the two processes. Services are dominated by intangible elements which can be difficult to perceive and quantify. Within the medical device industry, the growing focus on usability, patient safety and increasing regulatory requirements has further complicated the already complex development process. In order to meet regulations, development is undertaken within strict boundaries to produce tightly controlled outputs. It can be seen that there is an incongruity between the nature of medical device development and the service development processes. This paper explores the constraints and inhibitors of service creation within the context of the medical device industry. Service innovation and its application is discussed. Difficulties in the addition of a service element and their potential solution within a medical device context are explored.