Strategic Innovation is the creation of growth strategies, new product categories, services, or business models that change the market and generate significant new value for consumers, customers, and the organization. The innovation process challenges an organization to look beyond its’ established business boundaries and mental models and to participate in an open minded, creative exploration of the realm of possibilities.

Source: http://www.improvementandinnovation.com/features/article/seven-dimensions-strategic-innovation/?isFeature=1