The issues of innovation in services, on the one hand, and sustainable development, on the other, are relatively recent concerns for economic theorists and public policymakers alike. Yet they have become key issues that now pose considerable academic, economic, and political challenges. However, these two questions, and the problems they raise, have evolved independently of each other. This article seeks to link them by considering innovation both in and by services as well as innovation-based entrepreneurship in services in terms of their relationship to sustainable development. It aims to tone down the industrialist, technologist, environmentalist, and curative concepts of sustainable development, which, paradoxically, remain dominant in our service economies. JEL: L80, L26, O30, Q01