Microsoft is the world's most innovative company? So says financial Web site.

What's the world's most innovative company? If you believe the financial Web site TheStreet, it's Microsoft, and not Apple, Google, or any lesser-known innovative company.

In its story 10 Top Innovative Companies, TheStreet.com calls Microsoft the most innovative company on the basis of the company's video game business. The site says:

anyone remotely associated with the video game industry knows that Microsoft is no longer playing around with its Xbox and Xbox Live stable of products.

It then goes on to cite various moves Microsoft has made with those products, including releasing the Kinect.

TheStreet put Apple at number two, saying:

For all of their smartphone, monitor and Mac advances this year, this will be remembered as the year iPad made people ask "What's a netbook?" and "Why do we need an eReader?" as they snapped up 7.5 million iPads in six months en route to a record $20.4 billion fourth quarter and a nearly 53% share price increase for Apple. With the rest of the tech world playing tablet catchup, Steve Jobs had good reason to smirk from his Infinite Loop stage this year.

Google came in at number three for a variety of products, most importantly because of Android.

To call Microsoft the world's most innovative company in a year in which the iPad changed the computing landscape, and Android surged to become the most popular smartphone operating system is bizarre, to put it mildly.

I think that as a general rule, people don't give Microsoft enough credit for its innovations --- the Kinect, for example, is a truly remarkable piece of hardware. Still, TheStreet's got it wrong. When it comes to innovation, Microsoft still lags behind Apple and Google.

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