Google is good at innovating in computer science and computer engineering. Google is not particularly good at innovating product ideas. This makes sense given how they find and hire talent.
They create products but lack the leadership needed to follow through when the initial exciting moments are over. I'd say that if you can't follow through on your innovations then you aren't good at innovating. They can do it on the tech side, lots of successful projects there.
They just aren't staying around to collect the (relative to Google) meager profits. I wish more companies knew when to call it quits.