Everyone thinks of the "change" part right away. It includes creativity, invention, etc. While that is certainly necessary, it is far from sufficient. Many people understand the effort needed in the "Action" part too. After all, change sucks and instigating change is quite difficult. But IMHO, the most important ingredient of innovation is the customer value part. You can invent a closet full of gadgets but if nobody wants to buy them, they will remain inventions and not innovations.