You should outsource innovation if..., Jeffrey Phillips
Interesting look at some choices for companies who have good intentions and desire to innovate ... but just can't pull it off.  Great entry, I think the last paragraph sums up his points well:

The more I work with innovation, the more it becomes clear that some firms can innovate because it is simply part of their DNA, some firms can learn to be innovative, and some firms, while they want to be innovative, will have difficulty finding the time and the focus for innovation, even though they recognize it is important. Maybe the innovation industry should consider a new offering - not just a hosted software application, but a fully managed outsourced process and solution for innovation.

The path to innovation (Part 1), Denis Hauptly
A short entry by Denis Hauptly (author of "Something Really New: Three Simple Steps to Creating Truly Innovative Products") about innovation and the types of things people like paying for.  An interesting quote:

Unless you are in the home decor or entertainment business, what you are really selling at the end of the day is utility. You can dress it up as much as you want, but in the final analysis your customer is saying, “Will this make my life easier, or free up time, or reduce my costs?”

CBI report on service innovation, Erick Mohr
Discusses a new report out published by CBI titled Excellence in service innovation (pdf link).  It is 72 pages long, so you should read over Erick's short discussion of its contents before downloading it.  There are a lot of case studies in the report about several well known service companies in the UK.  An interesting quote from the report's concluding thoughts section (page 50):

Typically, service sector innovation success is not solely about overall levels of investment in R&D or new technology, but embraces broader aspects including how a company engages with its customers, markets and employees, how it builds brand awareness and trust, how it changes its processes and propositions with time, and how it works to create a customer experience that generates demand.

Innovation Series #5 - What is Entrepreneurship?, Harinath
A nicely written blog entry that looks at a definition of entrepreneurship and discusses creation, economic organization and risk and uncertainty as they apply to entrepreneurship and to some degree innovation.  The definition of entrepreneurship the author uses to build from:

Entrepreneurship is the creation of an innovative economic organization for the purpose of gain or growth under conditions of risk and uncertainty.

Exploiting the Market Under the Guise of Innovation, John Geyman
A look at some 'innovative' health insurance products that seem to be cherry picking healthier enrollees. After mentioning  a few different examples, there is a good quote:

... These examples make a mockery of AHIP's stated goals to "expand access to high quality, cost-effective health care", but they do succeed in meeting another of their goals -- "product flexibility and innovation".

Innovation in the cloud; raining blood, Feed My Pet Brain
This entry goes well with another entry on the same site: Innovation without permission, in which the author discusses some aspects of cloud computing and SAAS (software as a service).  I think the author gets to the point he is trying to make or discuss by the following interesting quote:

More and more it’s becoming clear that IT innovations…aren’t.  Your IT group is not a competitive advantage.  Even if you do IT well, you’re just maybe keeping up with the biggest names in the industry.