> "Creating [new/different] products the market actually wants" is a pretty reasonable definition of innovation.
No, it's at best cherry picking and at worst terrible redefinition of innovation. Innovation is defined as "the action or process of innovating" [1] and innovating is defined as "make changes in something established, especially by introducing new methods, ideas, or products" [2].
So, while creating new products is innovating, innovating is not necessarily creating new products. In fact, I'd argue that without new methods and ideas, you wouldn't be able to create new products. So, a new hypothesis, by definition, is absolutely innovation.
1. https://www.google.com/search?ei=ENJnWq_SO8zvzgKh8JOQAg&q=de...
2. https://www.google.com/search?ei=ENJnWq_SO8zvzgKh8JOQAg&q=de...