Gruber outlines the difference between invention and innovation, and explains why both are important:

Some people — most people? — can’t get their heads around the idea that “innovation” doesn’t mean “creating something 100 percent new using never before seen technology, ideas, and concepts”. Yes, there were digital music players before the iPod. There were “smartphones” before the iPhone. But, I say, the differences between those products and Apple’s iPod and iPhone weren’t “tweaks”.

Everything at Daring Fireball is gold, but this article is worth a read if trying to understand Jobs, Apple or modern product development. Or emergent order, really.