One of the structural changes of the past decades is the growing role of the service sector. This can be demonstrated by the growing number of the persons employed in this sector as well as by its growing contribution to the GDP. In the meanwhile the outsourcing of service activities is becoming a more and more common practice. There are empirical evidences proving that Hungary is one of the most attractive destination countries in the Central European region. In order to exploit this opportunity, it is inevitable to better understand the role and nature of service and organisational innovations. The aim of the research is twofold: 1) to overview the latest international tendencies of the business services’ development,
2) to carry out a quantitative survey on the relation between the service and organisational innovation and the firms’ manpower and knowledge use.