From my experience, there are two choices in how to fund innovation: invention or development. Invention means the actual genesis of the idea, usually through a concentrated effort or workshop using a proven method. Development is what you do with the ideas that have commercial merit. Both take time and money. The choice depends on whether you think spending the money to generate ideas will yield more than a pool of funds to invest the ideas that you already have.
Optimal innovation occurs when there is an equal mix of men and women using a systematic process. I have always believed this through my observation of many innovation exercises. When a predominately male group tries to innovate, results are less impressive. When a predominately female group tries to innovate, results are less impressive. Put them together and the results are amazing.