Literally nothing innovative about it. That is a word the gaming industry has no clue on the definition of but an overused buzzword. Most things are not innovative. That's not how it works. Few things are that's why they are. It's not even remotely like FF12. FF12 uses a turn-based MMO combat system. Xenoblade uses a more advanced form of something similar. FF7R is a fairly straightforward action combat system. Something other JRPG series has been doing for decades like Ys. Hell Trials of Mana remake battle system isn't that dissimilar to FF7R. A little watered down but similar. FF7R combat is a fairly standard action. Undertale used something entirely new. Tokyo Mirage Sessions while not inventing a new battle system is one of the most refined turn-based systems ever. Using the Grandia bar at the top of the screen and the sessions mechanics. Trails of Cold Steel kinda used something similar. FF7R also pulls from Crisis Core on PSP. FF7R does nothing new that has not been done in gaming. In order to be innovative, it has to be a brand new idea/concept. FF7R battle system been before. Slowing the action down to select something also been done.
I don't think you know what innovation means.
And lol at Xenoblade being a more advanced form of something similar FF XII's battle system.