IMO, the problem with Nokia or for that matter MS/Palm/etc is not a lack of innovation but rather a lack of confidence in their innovations.
The fact that Nintendo was confident it could sell more Wiis because theirs was more fun and Apple confident about iPhone because theirs was more usable. Nintendo revealing a DSi-esque 3DS when Sony is trying to make PSP more iPhone like etc
It is this confidence that developers want to see when they want to invest in developing for that platform. You cannot lead others when you can't even be confident in yourself.
When asked about how they felt about their rivals, Iwata responded
"... rather than trying to identify a specific rival and to think about how to fight against it, it is more important for our unique business to always ask ourselves, and try to answer, such questions like "What does it mean to make people interested in something?", "What is worth spending people's time and energy on?", or "What do people find amusement in?" We would be glad if you understand that, as the basis, we are not conscious of any certain rivals."
from here: http://www.nintendo.co.jp/ir/en/library/meeting/100629qa/02....
I don't know whether this is scripted or not, but it was certainly a good read.