Well I don't think the idea that innovation is needed was not understood decades ago. It seems to be one of the typical refrains when people want to change - oh that old stuff was only about x and now we need to focus on Y.
I commented on this before: Fast Company Interview: Jeff Immelt
As to focusing only on measurable items: yeah that has been recognized as bad, again for decades.
I disagree. Managing processes is a good idea. You manage appropriately to the process, of course.
Google has a very well known management commitment to allowing engineering one day a week to work on personal projects:
You manage processes such as thinking up a new way to use computer technology than you a process to manufacture tires. But the idea that you don't manage and improve the process just because the process seems discontinuous is a mistake.
Some thoughts on managing innovation: