Fear is a real innovation killer. Fear that someone will say "no" to a project request. Fear that those in charge will find out about a skunk works activity and kill it... or worse, fire you! Fear to even consider working with another department on an idea because there might be an issue of going outside the "boundary" to do good work for the betterment of the company... Scratch that, how about for the betterment of the customer!
This type of fear breeds an environment where any initiative or recognition of opportunity is muted. Unfortunately, recognition of opportunities and initiative to explore them is what companies need the most.