We do live on money, but part of the process of "getting money" from customers involves creating things they actually wish to purchase, buy, and use. Over the long-term, a company with no eyes looking to the future that fails to innovate will suffer as their products stagnate in the marketplace, and will move on to a downward spiral once their products become useless because they're out of date--or are perceived that way in the market.

The overall point (that everybody should be responsible for innovating in some portion of their work-week) is a wise idea, even if dedicating 20% of every FTE to it isn't-as-wise of an idea.