The main ingredient that leads to innovation is freedom. Freedom to exchange, experiment, imagine, invest and fail. Freedom for the consumers to reward the innovations they like. Not freedom in the lawless sense, just the general idea that if something is not specifically prohibited, then the assumption should be that it must be allowed.
Freedom is why innovation cannot be easily planned because neither human wishes nor the means of their satisfaction are easy to anticipate. This is why nobody really knows how to cause innovation because no one can make people want something.