The Revenue Model :
The model where Innovation is directly linked to Revenue.. here the innovations are made to accelerate the companies growth and Innovation is purely driven by revenue model. E.g. Apple Innovations are driven always by a revenue model.. the Innovation comes on sale immediately after it is out.. Most of the time they are General.
In this model there is less scope of mistakes.. hence u see miniature bugs in Apple products (ignore the iPhone4) when they are launched.. of course no customer wants to pay for bugs..
The Trial and Error Model :
This model gives the Innovation to the word usually for free, initially maybe.. it is left to people for feedback and then once it matures based on community inputs and feedback it takes a better shapes.. I find most of the Open Source projects or even Google fitting into this model. See the examples of Google Wave , Orkut new UI , Buzz?
The Close to Object Model :
This model really drives company that Innovate only for there needs.. These innovations are more driven by internal needs than customer demands.. they are thoughts of 1 or more people who bring it to ease up jobs, they are no pure innovations but instead replicas to cater different needs.. Though these innovations have a certain value they don't have scope to become ultimate Innovations. I feel Yaawhoo falls under these category.. e.g is when Yaawhoo meme was introduced i feel it was a copy and not a Innovation. Yaawhoo Maps, Shopping etc
So what model does your company follow?