Abstract
Many have studied innovation, but usually within the context of bricks-and-mortar world. In this paper, we examine the innovation types and formation in cyberspace, and discuss how an appreciation of trust is critical to explaining such innovation activities. Two forms of innovation types are identified: technoservice innovation in Cyberspace (TIC) and institutional innovation in Cyberspace (IIC). Drawing perspectives from power, technopower spiral, transaction costs, and trust, we discuss the theoretical contents and implications for TIC and IIC respectively.