Cultural heritage institutions have been grappling with the accelerating pace of technology-driven changes in society since the 1990s. Cultural heritage institutions understand well the imperative to adapt and innovate. But what is innovation? Organizations often have a narrow view of innovation, often focusing on new technology or product development. Innovation touches on most aspects of an organization, including its offerings, audiences, processes, and its platforms and venues. This paper will explore the nature of innovation. It will review broader business models of the nature of innovation and how organizations innovate, and will explore how these models may be applied to a cultural institution. The paper will also explore concrete examples of fostering innovation within the Canada Science and Technology Museum Corporation, including the role of integrated strategic planning, process improvement, product development, and grass-roots participation. It will also look at specific mechanisms, such as an "Idea Bank" (in support of idea generation), and the internal use of Web 2.0 technologies such as wikis.