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From iA wiki
An innovation is an idea, technology, product or service which is meant to create an improved methodology for achieving particular feats. Innovations enable us not only to do things better but also to do things which could not be done before.
According to Joseph Schumpeter and others an innovation differs from an invention. While an invention is merely theoretical (even though it might have been filed at a patent office), an innovation is an invention that has been put into practice.
Innovative things have a specification or modification which is an improvement on what was previously used. Innovation often occur may come from artful study and experimentation or through the development of a marketing edge that drives customer adoption or new users to a software product.