Giving people permission to innovate requires a different mindset and, to some extent, an improved organisational structure. The temptation to micro-manage needs to be resisted by ensuring leaders have enough subordinates to ensure they can't just focus on a few people, reducing their freedom of action.
The leader needs to explain their intentions and provide resources rather than telling people how to do things. The outcome needs to be described, not the path to reach it. In this way, staff can decide their own way forward, exercising their initiative and being innovative.