The key point that some fail to understand and many fail to stick to, is the fact that innovation should be driven by your customer's needs. The "need to innovate" is a stimuli that has to come from the market or your customers. For best results, the process of innovation has to start from the market and end in the market. The terms market and customers can be used interchangeably.
Here is what I use to explain this factor to everyone (including my customers) -
A 'Customer' to me, is like a Holy Cow. Just because I've invented a new shoe that uses the latest of technologies, does not mean that it would make the Holy Cow happy. I need to spend time and understand what this Holy Cow really needs. Technology is always secondary. It's the customer's need that actually drives my innovation
Stay focused and listen to your customers. That is where your future lies!