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Yes, there is a strong relationship between HRM and Innovation...the reason is in HRM a management has a free hand to make rules and policies for organization considering standards made by company.So, the management can think and implement as many innovative ideas for the benefits, happiness, satisfaction , disciplines and job retention of employees so that the employee could perform his activities more effectively and efficienctly within company's norms.
HR is the core function of the company where everyone refer to in regards to policies and procedures, but innovation is not a process or even written on a paper, it is the art of work.
Yes HR can assist organizations and direct them towards innovation, but the golden key is the talent itself within which will trigger innovation,