Most NA companies are now very big and focused to producing AAA titles so there is a lack of innovation.

On the other hand European companies are smaller and are looking for their place in niche markets that are not covered by big brand titles. These are not indie, but medium sized companies.
One thing I like is that European developers still do games primarily for the PC and the other is that they still make all the genres that died out with AAA titles.

As for the games that I enjoyed, these aren't without fault but still more enjoyable then most AAA titles.
A couple of examples would be:
Amnesia
Arx Fatalis
Majesty 2
Alien Shooter games
Blood Bowl (Canadian)
Crysis
Dragon Knight Saga
Fantasy Wars & Elven Legacy
King's Bounty games
King Arthur: The Role Playing Wargame
Trine
The Witcher games

Oblivion? Not innovative. Morrowind was though.
Fallout 3? It was an Oblivion mod, come on!
Diablo 3: not out, and I'd bet it's not all that innovative.

The Euro ones I can't stalk much of, only having played Sacred 2, which was so-so on innovation.

This... blame the Publishers for wanting companies to keep churning out the same cookie cutter games. It's so hard to kick off a new franchise, especially when the Publishers are dumb enough to release it at the wrong time of year and use that to justify that it was a bad investment. (like poor old Enslaved, which was a great game and a little different but it was released around the same time as COD: Black Ops.)