Agile is both a structured method for rapid and effective software development and a philosophy of approaching product development and project management with innovative and Lean thinking. This paper examines the agile approach in three parts. First is a description of agile with history of its origin and information about a specific agile method, called SCRUM. Next is support for agile use for innovative software development, contrasting agile with traditional methods in process steps of definition, ideation, teamwork, product lifecycle, technology changes, implementation, and deployment. Finally agile is discussed within the realm of process improvement methodologies and put forth as an innovative approach for product development and general project management in applications with high levels of uncertainty and rapid rates of change.