The article we're all commenting on talks about Microsoft's ill-fated Tablet computer, which premiered almost a decade before the iPad. Microsoft does many things which could be considered 'innovative,' except that they never achieve widespread market acceptance.
Also, when was the last time Microsoft won with the "non-innovative innovation model" you refer to? Sharepoint? SQL Server? I can't think of any instance where this has worked in years.
They win because they do things better with their resources.
MS has an innovation model. It's just that it is a very non-innovative innovation model.