Since the 1980s a large number of innovations have radically transformed the production process in salmon aquaculture. Increased degree of control with the production process, increased scale of plants, and more intensive use of farm locations are some of the consequences. Until the mid 1990s the industry also experienced rapid productivity growth leading to production costs to be reduced to 1/3 of their initial levels in Norwegian salmon aquaculture. But thereafter productivity has been stagnant. This paper analyses the innovation process and productivity growth in the Norwegian salmon industry, and discusses the challenges for the future.