The industry of service has been progressing rapidly in recent years. In face of the financial crisis, innovation is becoming one of the most important factors along with the development of service innovation. It is important to fully consider characteristics both from theoretical and empirical perspective when identifying service innovation. This article conducts a systematic review of literature on research process of service innovation. In this paper, the research status on concept and typology of service innovation are demonstrated and classified in the second and third section, and three stages are discussed in the following, In addition, the development process is highlighted from four aspects: The customer, new service development and new product development, theoretical and empirical. At last, a recommended list of measures is provided for future theoretical study and empirical research.