Companies that struggle with innovation often make up for it by adding features to existing products. They succumb to "feature creep" - the gradual and continuous addition of features and functions though nothing is truly new. While it may look improved, the added features make your product more complex, difficult to use, and more costly to produce. Over time, your core customers abandon you.
Here is an example - the Numi toilet by Kohler. At $6400, it is promoted as the top-of-the-line toilet with lots of high-tech bells and whistles: