Innovation (as we see it) is nothing more and nothing less than the conversion of a new idea - as "wild and wacky" this idea may appear - into a bottom line profit.
The idea can be in any field - be this a marketing idea such as a new positioning of product, be this a completely novel product, or even product category, or a service, be this an improved product or an improved way for making or distributing a product.
However, in the end, there must be customer or consumer who is prepared to pay (at least) a fair price - and as this is rarely done for the abstract idea. Rather, the idea must "materialize" –, generally in the form of a project which aims at turning the idea into a product or service.
As a matter of life, profitable innovations activate imitators - and generally the imitators aim at reducing your "piece of the cake".
A fair way to protect your innovation from too fast "me-too-followers" is the protection at the "intellectual property" level.