Teaching innovation begs two questions: what to teach and how to teach it. For me, innovation begins with the generation of new ideas, so I emphasize cognitive methods such as Systematic Inventive Thinking (SIT). I learned it from Amnon Levav and his colleagues while I was at Johnson & Johnson. It's superior to other methods I've tried, so I continue teaching and using it in practice.
What's the best way to teach it? To master innovation, you must experience it. I find Action Learning is the best instructional approach for innovation.