An invention means a new product or process involving an inventive step and capable of industrial application.
An Innovation means: The successful exploitation of new ideas in the form of a useful machinery or process, by any person, using own intellect is called as innovation.
Every innovation may not be patentable invention but every invention is an innovation. All the inventions are the innovations and are patentable, but all the innovations are not the patentable inventions
Capable of Industrial application means that the invention is capable of being made or used in an industry
However, inventions claiming substance intended for use, or capable of being used, as food or as medicine or drug or relating to substances prepared or produced by chemical processes (including alloys, optical glass, semiconductors and inter-metallic compounds) are not patentable. Only process claims are allowed in such cases.
Meaning of chemical process would also include the biochemical, biotechnological and microbiological process.