Long term growth and future jobs in society rely on that industry is able to realize new sustainable product ideas and develop these to profitable products in the market. This encompasses both short time-to-market and continuous development and adaption of existing products and processes to improve productivity. Innovative skills are required in both product/service development and in product/service introduction. Thus, there is a need for new innovative methods and models that supports and strengthens industry in generating new ideas and realizing these into successful products and improved processes. This paper discusses and compares engineering design, innovation, and design. The paper argues that there is a need to integrate the disciplines and work practices of innovation and design in the engineering design field and to build multi-disciplinary environments to be successful in research, education and in industry. A conceptual framework for innovation and design inspired product realization is presented in the paper.