Bloomberg provides a good example of the difference between invention and innovation. The article compares Amazon's Kindle DX and a 1990-s effort by Knight Ridder Inc to create an electronic newspaper reader:

In 1992, Knight Ridder Inc. set employees to work at a lab in Boulder, Colorado, to create its own portable newspaper-reading device to boost readership and revenue.

[they] spent about three years trying to create an electronic tablet that could download newspapers and magazines. With the death of James Batten, Knight Ridder’s chairman at the time, the project fizzled and the 10-person lab was shut down, according to Fidler.

On the 5-element Flag Diagram below, we can clearly see that the Knight Ridder team's solution was missing key system elements (P.Payload, Distribution, Control).

As for the amazon's solution, it has all the system elements in place and highly functional.