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into and wrapped around products. This means that profit does not only occur at the point of sale of some goods, but continues as part of a revenue stream that comes from the provision of a range of related services (Giarini, 2002). Management and control within hybrid production systems is a new area that will require considerable further research. These four processes have important implications for the ways in which firms position their products and services in the marketplace and also for regional and national economic policy. The aim of this Trend Study is to explore the shift towards hybrid production systems and hybrid products. Further detailed research, however, is required in order to explore many of the management and policy implications that come from a shift away from the production of goods towards the creation of hybrid products. It is important to clarify the terminology that will be used in this Trend Study. Three terms are used in the analysis: good, service, hybrid product. The term good is used to describe a manufactured product that is tangible and has a physical presence, for example a car or a mobile phone. The term service is used to describe an intangible product or process, for example consultancy advice or software. The term hybrid product refers to a commodity that combines tangible and intangible elements. It is thus the result of a blending or hybridization of manufacturing and service functions or processes to produce something that only has use and exchange value when both elements are combined and working correctly. A good example is a computer which has no use value without correctly installed and functioning software. Software is continuously updated and some software, for example virus protection, only retains its use value through the provision of a constant stream of service up-dates.