I'd argue that depends on what you mean by "innovation" -- Google has been pretty busy, meaning specifically developers on their payroll, churning out more or less useful Web API implementations, certainly at a far more frantic pace than people traditionally _blamed_ browsers of yester-decade for. Nevermind that some of these APIs are more haphazardly designed than others, truth be told most of them are okay and are aptly designed so it's not a critical issue (for Web developers or Chrome's market share). Google co-authors most Web standards and implement them often _before_ the "standard" is published (for better and for worse; anti-trust allegations, I am looking at you). But they're not idle, one thing's for sure. Markedly different than how I remember Microsoft resting for months if not years on their IE laurels, like a CO2 blanket in a room that evacuated all the air.
So yeah, how would you describe this lack of innovation you're referring to?
There can always be more innovation that isn't of the sort I described above, but Web _is_ made of Web APIs -- if a website cannot "do" it, you as a user of the site, won't be able to experience it, is my crude opinion. But I'd love to hear examples to the contrary, illustrating innovation that isn't Web APIs.
Removing tab-based browsing (an anti-pattern if you ask me)? Optimizations (speed, size, etc)?