In my opinion, when it comes to design everything has already been done. However, with some creativity the new design may come off as innovative.
I think creativity is taking something that already exists and improving/changing it slightly whereas innovation requires the idea to be original. Furthermore, I don't think you can have innovation without creativity but you can have creativity without innovation. I think to be a great designer you need to be not only creative but also innovative. You must be capable of generating new ideas.
Whenever I see the "New and Improved" tag it always cracks me up. How can something be new AND improved?! It has to be one or the other. It's such a creative marketing scheme!
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