Innovation is defined as creating new processes, ideas, or inventions. However being innovative can simply mean changing your business model, advertisement, or small aspects of the product itself. I think one persons ability to be innovative is simply another persons perception of whats changed or something new.
Entrepreneurship is the ability to create a business or product with ones own unique ideas. By being an entrepreneur, you are defined as someone who has successfully created a business, company, and or idea.
I personally think innovation is a huge component in entrepreneurship, due to the fact that without being innovative how could you become an entrepreneur. Being innovative gives you the creative aspects of being an entrepreneur. It allows you the ability to create new ideas, products, advertisement, etc. The two depend on each other to coexist. Without innovation you simply could not have entrepreneurship. It makes up the whole inter-workings of entrepreneurship.
In order to be successful as an entrepreneur you must be creative and be able to form original thoughts and ideas. You must be able to come up with something new that literally no one else has thought of, known, or came up with. The two concepts go hand in hand.