HBS has an interesting Q&A exploring accidental innovation.
Artists think they develop a talent for causing good accidents. Equally or perhaps even more important, they believe they cultivate an ability to notice the value in interesting accidents. This is a non-trivial capability. Pasteur called it the "prepared mind." There's an interesting analogy to evolutionary models of creativity here. In 1960, a guy named [Donald] Campbell proposed that we think of creativity as "Random variation + Selective Retention." That is, we need two processes, one to generate things we can't think of in advance, and another to figure out which of the things we generate are valuable and are worth keeping and building upon.
Also be sure to check out their redesigned homepage.
I think W. Brian Arthur has some interesting things to say about innovation as well:
Article:
http://www.santafe.edu/research/publications/workingpapers/05-12-045.pdf
Abstract:
http://www.santafe.edu/research/publications/wpabstract/200512045
As far as a description of technological advantages, my favorite has been (and continues to be) George Basalla’s “The Evolution of Technology” – a bit dry in places, but absolutely fascinating stuff:
http://www.amazon.com/gp/product/0521296811/qid=1152237886/sr=2-1/ref=pd_bbs_b_2_1/102-9096032-6528917?s=books&v=glance&n=283155