The production and service functions in the innovation system emphasize producing new products. As any innovation system’s final output must ultimately produce new products and deliver new services, the considered function is essential in the innovation system. This study seeks to extract the challenges and give solutions to improve the production and deliver services in the innovation system. Producing and delivering services does not occur in a vacuum and should occur in a context called the supply chain (SC). In this paper, qualified experts were interviewed to discover the challenges and solutions to improve production. Fifteen elite researchers in the innovation field then discussed the results in focus sessions and refined practical solutions after an in-depth review of the extracted information. The role of responsible institutions was determined, and the necessary indicators were extracted to evaluate the factors of innovative production after providing the required infrastructure to achieve production promotion. One of the Fuzzy Multi-Attribute Decision Making (FMADM) techniques is also used to prioritize the discovered solutions based on the importance of influencing the producing promotion. Finally, a model is presented for improving the production and service functions in the innovation system. The results showed the main solution is to collaborate and create efficient integration at different SC levels.