A lot of companies set up a dedicated innovation department, expect the world of it and then… get disappointed by the results.
The reason is simple: typically these departments are organised to work on business changing and money generation projects which tend to be… well large.
To make it very clear: they should be there and they should be filled with some of your best people, but innovation is more than only this. It is also about your team member having an idea on how to get your insights faster to the sales team, on how to save 1000 Euro by doing something different, on just testing out that new product tweak with a real customer (yes, he might be surprised, but he will not kill you for it), on trying to use a new tool to get organised better, on sharing that one thing you learned from that book/blog you read.
Innovation is about going out their, alone or with your team and challenge the status-quo of your day to day operations.