Societies advance through innovation every bit as much as economies do.
A tablet replacing an exercise book is not innovation, it's just a different way to make notes.
The most dynamic cities have always been immersed in the critical innovations of their time.
Social innovation thrives on collaboration; on doing things with others, rather than just to them or for them: hence the great interest in new ways of using the web to 'crowdsource' ideas, or the many experiments involving users in designing services.