You can also consider organization life cycle(OLC) or product life cycle (PLC), more innovation is required for shorter life cycle.  Market Variability can be also considered

I would say that the most important determinant of innovation is dissatisfaction with the status quo. When there is no felt need to innovate, innovation is highly unlikely.

I would consider leadership as one of the most important determinants. Top management shapes the organizational culture and as long as the status quo is accepted and not changed by the C-level, innovation will not occur. Platforms for innovative idea sharing can help to generate more innovation - but again, need to be have management's blessing. 

I would say that environment support and encouragement could be the key determinant of innovation. It has been seen that many a time the novel ideas which otherwise could be immense use, get buried just due to environmental apathy. The innovation in fact may be considered as a multidimensional phenomenon where in the innovator work with "the heart demands more" philosophy and this exquisiteness leads to more and more innovations.   

I received for answers with four different innovation determinants. I conclude that innovation is the result of the combination of different factors.

Thank you for your contributions.

INNOVATION is improving what is in existence. This is a easy and lazy way out of the current constraint by not looking for new things, but just trying to patch up existing malfunction. If this is a tool for improvement, it requires little talent.

INVENTION is to look for new things that never before had been introduced. More talents and brain power or serious thinking are involved. Without an inventor there could be no innovator to copy and paste- - -with some improvements.

INNOVATIVE ECONOMY is nothing more than the continuing evolutionary process of the copy-cat economy. President Ronald Reagan once called such copycat "nations of thieves". R&D should focus on taking basic science to applied science and culminating into new products, not stealing existing products in the market, take it apart and add more features to it and called it innovation.

WHAT FACTOR IS DETERMINANT OF INNOVATION? Lack of inventive ideas. The talent in looking for quick fix by taking existing invention and perfect it or imorove it---is not much of talent. Such an approach has its social utility, but it should not be seen as the engine for growth or development. We should promote inventiveness.

SCIENCE IS ABOUT BUILDING NEW IDEAS BASED ON EXISTING IDEA, yes, but each advancement in science also introduces new invention and shows inventivenes in the process. If "innovation" is to be taken seriously, we will not see Sputnik, nor Apollo, etc. These spacecrafts may trace their ability to escape gravity to Isaac Newton, but what had been introduced after Neton were new development, not improvement.... invention, not innovation.

We need to train people to discover, not to fix. We need to produce engineers to build machines, not mechanics to fix them.

Article Thinking 'Outside the Box'