To innovate, stop worrying about "failure" and start thinking of "learning." If you're an MBA-trained manager or executive, the odds are you were never, at any point in your educational or professional career given permission to fail, even on a "little bet." Your parents wanted you to achieve, achieve, achieve — in sports, the classroom, and scouting or work. Your teachers penalized you for having the "wrong" answers, or knocked your grades down if you were imperfect, according to however your adult figures defined perfection.
But entrepreneurs and designers think of failure the way most people think of learning.