Do you think innovation should be managed by the line of business leaders or independent innovation teams?

It should be managed by an independent team with also a dedicated budget.

It depends on the culture of the company. Sometimes innovating from inside a BU is not easy due to the innovators dilemma, so need that different space to disrupt yourself. Overall, the close to the customer the better, again, culture matters in the choice imho.

The first problem with innovation is - you can’t demand it.

Creating a culture that supports and rewards innovation would have much better legs than assuming a person or group can drive it. This doesn’t mean you can’t have Chief Innovation Officer or equivalents, but their focus should be on helping shine a spot light on innovation opportunities and pushing them through.