I have thought since I first read the Vargo and Lusch argument for a “new dominant logic of marketing” (JM 2004) that an obvious corollary to their declaration that “all marketing is service marketing” is that:

All New Product Development is Service Innovation.

A posting at BusinessWeek aimed at NPD managers seems to support this declaration:

 http://www.businessweek.com/managing/content/oct2008/ca2008107_013799.htm?chan=careers_managing+index+page_top+stories