How do we know when an educational organization, process, or courseware tool is "innovative"? How do we define the processes that encourage change or the ways in which faculty "develop" new courseware "innovations"? The terms "innovation", "change", and "development" have been overused in so many contexts that they now seem to have lost their meanings. A review of the literature on innovation and educational change offered no agreed up definitions or models. Prior studies that have considered innovations in educational technology have focused on the innovations themselves or the potential barriers to faculty adoptions of externally developed innovations. In this study of an educational technology services program that provides competitive grants for faculty-developed technology courseware projects at a large state research university, I shifted the focus to consider: what current and future higher education faculty consider to be an innovative courseware project, and how they conceive of processes for developing such innovations. Results suggested that when it is not reduced to a rhetorical device in a marketing campaign or department instructional technology vision plan, "innovation" that is defined locally by a community of practice can effectively transform teaching, learning, and the organizations that support these activities. (Contains 7 tables.)