Service innovation is often viewed as the main source of growth in the modern economy. There is a general agreement that service innovation can provide a positive change for the environment, creating new types of jobs and making consumers’ lives easier. In this chapter, we challenge the positive view and provide arguments against service innovation. While service innovation might seem positive, there are negative effects on the financial development, the social development, and the environment. Service innovations do not replace existing services, but create complementary services and as a consequence most positive effects do not appear, which results in increased use of resources and negative effects on the environment. The lack of critical studies on service innovation has resulted in a flawed and somewhat overpromising picture of service innovations and what they can do.