The innovation process generates more bad ideas than good ideas. Challenge your people to innovate. Most employees welcome the opportunity if given the chance. Recognize a good idea. Acknowledge the idea at a business meeting, give a bonus, write up the idea in a newsletter, etc.
Recognition is a major part of promotion.
Set the example. If you do not care enough to get yourself out of a rut and 'dinosaur thinking' do not expect your people to innovate. If you are not open to new ideas, figure out why or get out of the business you are in. You will save yourself a lot of pain and probably get more return than if you let the competition starve you to death. I have designed a number of business strategies that 'starve the competition'.