Google's model for developing innovative ideas is quite simple: it allows its engineers to spend 20% of their work time on projects outside their main job. It's a cultural thing. And that's why it seems to work so well because this mandated time ensures that middle managers do not eliminate the innovative process because they might not see the value of the work.
To get a better perspective of Google's approach, read BusinessWeek's interview with Google CEO Eric Schmidt (May 12, 2008). For other ideas on brainstorming, developing "WOW" ideas, and instilling an innovative sulture in your organization, watch for our third book, Retaining Success, which will be available Fall 2008. Section 1 on Growing Through Pulse Points examines these areas.