The closest thing to innovation I do is scope expansion. I like to take things that exist, and look for overlaps. If 2 products are 99% the same, even if they conceptually have totally different purposes, that's an opportunity to apply the DRY principle
I also enjoy sci-fi shows and often think "Ok that should really exist by now". Sometimes you see something that really is possible with current tech, but it's mostly just tedious UI work and nobody has actually made it practical yet.
Right now I'm working on open source CCTV software. I am also working on some basic VJ type functionality and adding QR support to an automation system. These are in fact the same project.
Non tech projects are different, but with tech I mostly focus on what existing things are out there.
Then I look for anything vaugely similar and see if it could ve extended to cover the use case.
If I'm absolutely sure a new app is needed, I look at what standards are used in slightly similar things, what tools exist to use those, and go from there.
Basically all my projects have just been FOSS things that already exist in the commercial space. I'm not sure I've ever really done anything innovative. I just use more software tricks to work around and hardware and put more effort into UI.
But ultimately, everything I do has been done a bazillion times. I just kind of pick up where the state of the art left off and add some nice to have features.
I really hate custom code and things I have to maintain by myself, so my first goal is always to make my project fit the larger ecosystem with as little originality as possible.
On a related note, old popular science type magazines have tech from 50 years ago that somehow still doesn't exist. If you want a real world changing project, I see zero reason a consumer level raman spectrometer couldn't be made.