[toomuchtodo]

Okay, so turn into an incubator. Divest all of your groups except Adwords, and create a holding company for your cash for investing in startups.

The only way for Google to innovate now is through acquisitions and acquihires.

[niketdesai]

I think that's a viable option.

Also, it's perfectly acceptable to enter new markets through acquisitions and apply Google's innovations there. That is a form of innovation in my opinion.