Presents a technical note with the aim of increasing innovation and the uptake of research in the building services industry by demonstrating what are good conditions for innovation and what are the barriers to it. Covers both process-type research and innovation, ie how construction is undertaken, and technology type research and innovation, ie the uptake of new systems and their method of application. Develops a picture of innovation in the building services industry under the section headings - Are we innovative? Why do we innovate? What innovations do we do? How to be more innovative. States that research for the project was restricted to consulting engineers, contractors plus clients and building operators. Some of the case studies that were developed as part of the research have been used through the text to illustrate key points. Gives brief conclusions on how the industry can become more innovative.