David Bonderman and Jim Coulter of TPG (Texas Pacific Group) ultimately made ten times their money on the investment in a sagging Continental Airlines, but their profits were clearly a function of making the flying experience infinitely better for customers.
To be sure, innovation has thrived in these settings, but it has been the sort of process improvement innovation that makes existing industries functionbetter rather than the type that creates new markets, caters to new consumers, or pioneers new business models.