Design driven innovation can be applied for both incremental and radical innovation but often the focus is on the first. Here the focus is on understanding (existing) customer needs,wants,problems etc. and coming up with innovative solutions to satisfy them.
"Coffee to go" is an example of incremental innovation where an existing customer need (lack of time) is addressed in a smart way.
To drive radical innovation you need to go beyond the existing and challenge the "meaning" of existing needs, wants and problems. Challenging the meaning of coffee from "a necessary evil to get you through the day" to a "a luxury product you enjoy for pleasure" is an example of radical innovation.
Drivning radical innovation does require fundamental knowledge of customers need and wants, but more importantly it requires vision, intuition and courage to challenge cultural practise..