Design
Design is the creation of a plan or convention for the construction of an object, system or measurable human interaction (as in architectural blueprints, engineering drawings, business processes, circuit diagrams, and sewing patterns). Design has different connotations in different fields (see design disciplines below). In some cases, the direct construction of an object (as in pottery, engineering, management, coding, and graphic design) is also considered to use design thinking.
Innovation
Innovation can be defined simply as a "new idea, device or method". However, innovation is often also viewed as the application of better solutions that meet new requirements, unarticulated needs, or existing market needs. Such innovation takes place through the provision of more-effective products, processes, services, technologies, or business models that are made available to markets, governments and society. The term "innovation" can be defined as something original and more effective and, as a consequence, new, that "breaks into" the market or society. Innovation is related to, but not the same as, invention, as innovation is more apt to involve the practical implementation of an invention (i.e. new/improved ability) to make a meaningful impact in the market or society, and not all innovations require an invention. Innovation often manifests itself via the engineering process, when the problem being solved is of a technical or scientific nature. The opposite of innovation is exnovation.
Design
As in poetry and music, even the unskilled ear may be offended by a mistake in measure, without discerning the cause, may not also a mistake in the harmony of dimensions unconsciously offend us in design?
Ernest Flagg, Small Houses: Their Economic Design and Construction (1922)
Design
I think so many of the objects we're surrounded by seem trivial. And I think that's because they're either trying to make a statement or trying to be overtly different. What we were trying to do was have a very honest approach and an exploration of materials and surface treatment. So much of what we try to do is get to a point where the solution seems inevitable: you know, you think 'of course it's that way, why would it be any other way?' It looks so obvious, but that sense of inevitability in the solution is really hard to achieve.
Jonathan Ive (2003), Designer of the iMac, iBook and iPod, in iconeye 004 (July/August 2003)