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In mainstream marketing the full potential of customer involvement is still largely over-looked. Value is mainly seen as created by the firm, built into products and delivered or marketed to customers. Many product development processes reflect this by emphasizing in-house centered processes possible to monitor and control by management. Today, customers are to a higher extent involved throughout the development process and companies are starting to explore the benefits of opening up the in-house process and involve customers in a more dynamic way. However, it could be argued that the customer is still seen as yet another resource that should be utilized in an optimal way.In contrast to this in-house product development process is the service-dominant logic (S-D logic), which views customers as co-creators of value with the firm. This paper examines the mainstream logic of customer involvement in the product development process through the lens of S-D logic. A comparison between the two logics is made by highlighting the differences regarding: the role of the firm, opportunity instigator, drivers of development, knowledge & skills, role of customers, and role of management.Via a case from the automotive industry focusing on innovation diffusion problems, issues relating to immaterial rights, what happens when the client under-value the partner's know-how, and therefore is incorrect in their assessment and decisions are highlighted. The paper concludes by discussing both benefits and problems with implementing S-D logic in the product development process.