Some examples of failed innovation at Google are Wave, Allo, Chat, Plus, etc. Having worked at Google, I can count way more product failures than successes that originated internally.
Some of the successful acquisitions (YouTube, Waze) were made at a time when they were already popular and had traction. YouTube wasn't the only video sharing site around at the time (there was even Google Video[1]) but it was obviously the most well-liked.
Arguably, YouTube, Android, Maps and Double Clicks have much more impressive market shares and revenue impact than Chrome and Gmail.
I know that you might think offering more storage for the same product is not innovative, but here's the thing: Yahoo (pretty much the largest competitor at that time) offered an email service with 4 MB of storage.
4 MB.