Joyce Wycoff is trying a new definition of innovation: Good Morning Thinkers!: Defining Innovation
People using new knowledge and understanding
To experiment with new possibilities
And using sound collaborative decision making tools
In order to choose and implement new concepts
That create new value
This version is an update in the comments with the italics being the new bit.
The people part is obvious. The new knowledge and understand is not so sure for me. Much of my understanding of innovation is the process of applying any knowledge in new ways. The addition of collaboration to the definition is critical to organizations that are trying to figure the innovation equation. Get your people working together intelligently.
And finally, in an organization, value has to be in mind to move forward, whether you are for profit or not.