The biggest let down with firms trying to innovate is that they do not create the space for innovation to occur.
What happens when staff have new ideas? Who do they pitch to? Do they know who they should pitch to?
More often than not the ideas get squashed, as they threaten someone else.
To create a culture of innovation, ideas need to be open, shared, spared and rewarded.
Create a space for it to happen, have a Monday Ideas Post, a 12 hour startup day, a huge whiteboard in the middle of headquarters (like Google).
Once you have created that void, people will fill it and surprisingly fast.