To date implementations of Internet of Things architectures are confined to particular application areas and tailored to meet only the limited requirements of their narrow applications. The ICT workprogramme highlights the importance of interoperability between the silo solutions and different technologies used in these disjointed sectors. Sensors/objects that provide information or perform as actuators implementing actions in the real world are plentiful and the range of communication technologies, networking protocols, information types and data formats used to exchange information or control data is vast.To overcome technology & sector boundaries and therefore dynamically design and integrate new types of services and generate new business opportunities requires a dynamic service creation en-vironment that gathers and exploits data and information from sensors and actuators that use differ-ent communication technologies/formats. To accelerate the introduction of new IoT enabled business services (in short IoT services) an effective dynamic service creation environment architecture needs to provide:1.\tOrchestration, i.e. composition, of business services based on reusable IoT service com-ponents,2.\tSelf-management capable components for automated configuration and testing of services for "things",3.\tAbstraction of the heterogeneity of underlying technologies to ensure interoperability.IoT.est will develop a test-driven service creation environment (SCE) for Internet of Things enabled business services. The SCE will enable the acquisition of data and control/actuation of sensors, ob-jects and actuators. The project will provide the means and tools to define and instantiate IoT services that exploit data across domain boundaries and facilitate run-time monitoring which enables autono-mous service adaptation to environment/context and network parameter (e.g. QoS) changes. The pro-ject will prototype its major concepts and will evaluate the results for exploitation towards future IoT service creation, deployment and testing products.