I’m paraphrasing James Dyson here: sustainability will cut out fraudulent design and lazy engineering that just calls itself sustainable. For example, designs which use massively thick walls of plastic just to be more durable over time. The kind of design that’s engineered to be radically efficient and doesn’t consume much materials will win. How it will look is hard to predict, but the function will certainly be a lot better.
As for innovation, a lot more interdisciplinary effort will be involved. The Irish government is doing a massive experiment in this kind of area - it’s funding intensive six month long courses to re-train unemployed engineers, designers, technicians and architects into IT-related areas such as Software Development and even User Experience. I can imagine how much better will software products become.