Innovation is a critical factor for long-term economic development, including in tourism. This chapter examines the processes that lead to new products and services in a tourism context. It does so based on two commonly referred to modes of innovation (Jensen et al., 2007); that is, two types of innovation processes: science, technology, and innovation (STI) and doing, using, and interacting (DUI). DUI appears to capture the essence of innovation in tourism enterprises better than STI because it acknowledges the intrinsic nature of services and the typical size and working modes of touristic actors. The case study of Icehotel illustrates how working in partnerships and in close cooperation with customers enhances the advantages of the DUI model. The handling of externally induced events and difficulties and the critical partnerships are better understood through the DUI than through the STI lens. The DUI framework leads to a more correct picture of tourism innovation and could also provide a better guidance for policy processes in the field.