consultaglobal has posted on innovation and its relationship to solving existing problems. The four-box diagram and related description is a keeper, really identifying the innovators from the followers (those looking forward versus those looking in the read-view mirror, in the post's metaphor).
Across the board, software development is about innovation. Without innovation, you are not differentiating yourself from the market. One of the product manager's responsibilities is to understand the market well enough to know what is innovative, but it isn't just the PM's responsibility. The PM needs to share that vision with the rest of the team, from the software developers and testers through the sales and services organizations to ensure the the innovative vision is maintained.
Everybody in the development cycle needs to feel like they understand what is innovative about their product. If you don't understand it, go find out. Talk to your boss, to the product manager, to the CTO. Talk to whomever you need to, but find out. It makes your job much more fun and far more fulfilling.