"Open Innovation" author Henry Chesbrough makes a pointed distinction between the two terms. Invention is "the discovery of something new that we didn't know before", while innovation is "actually taking something into the marketplace and solving a real problem with it."
Sites devoted to technology transfer (from universities, for example) are liberally sprinkled with the word "innovation", but what they largely offer are inventions. Even an entrepreneur knowledgeable and experienced in a particular subject is hard pressed to imagine the possibilities hidden in the dry technical descriptions of these sites' catalogs. An innovative research organization could secure significant advantage with a modest investment that addresses this deficit.
Hear an interview with Chesbrough by forwarding 1:30 into this podcast.