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This paper provides empirical evidence on innovation in various tourism firms in the Balearic Islands. The main results from this pilot study are as follows. Innovation is common in Balearic tourism firms, especially in the lodging and accommodation sector. Process, delivery and organizational changes are the most frequent forms of innovation. Non-technological innovation is common, especially in the lodging and accommodation sector. Technological innovation relates mainly to information and communication technologies. FirmsThe authors are grateful to Enric Tortosa, Vincec, Tur and Marco A. Robledo for comments and suggestions. Also, two anonymous referees significantly improved the manuscript. This article is the outcome of research activities carried out within the Fundacion Cotec Project: 'Innovacion en el sectot tun'stico balear. Analisis prospectivo de tecnologias'.

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