This chapter examines the innovative evolution of Irelandís internationally traded services sector in the context of the increased significance of servicing international markets by foreign companies in Ireland. The policy adjustments made to ensure that Ireland continues to be a competitive location for such activity are enhanced by service innovations arising from the public sector. Some of the difficulties of understanding the innovative reconfiguration of multinational subsidiary activity involved in internationally traded services relates to traditional conceptualisations of services as being a distinct sector of activity mainly confined to a specific domestic economy. Ireland provides an interesting case study of growing involvement in internationally traded services, with multinational subsidiaries under increased pressure to be more innovative in servicing international markets through service innovations across borders. Innovative tax policies together with innovative managerial practices such as transfer pricing have enabled multinational subsidiaries in Ireland to evolve their operation more globally as well as remain profitable in a relatively high cost location.