<p>Innovation utilizing IoT (Internet of Things) provides various opportunities not only for large companies but also for medium- and small-sized companies. However, its realization is not easy for them. Engineering design methodology for IoT innovation is required especially for non-ICT experts. In this article, the engineering design that realizes IoT innovation is called "innovation design", and its requirements and issues are discussed with related researches. In addition, this article introduces a concrete innovation design method and describes the future research agendas.</p>