Abstract: Service innovation and industrial technology innovation have different characteristics. This paper establishes an evaluation system of innovation in services with service innovation input,service innovation environment and service innovation output on the basis of service innovation characteristics. After evaluating the data of 2008 of China,the conclusion is that the regional service innovation capacity is consistent with the level of economic development,showing that the service innovation index is high in eastern region,low in western region and middle in central region. However,eastern region has some disadvantages; central and western regions have some advantages in some respects. Therefore,all regions should enhance the capacity of service innovation through increasing innovation input,improving innovation environment,enhancing innovation output.