Good design is innovative. Innovative design can both be a break-through product or service, and a redesign of an existing product or service. A break-through product adds a before unseen value and function to the market and the user, while a redesign improves an existing product.
Good design is functional. Useful design fills its intended function – and likely both a primary and secondary function. A useful design solves problems and through its design it optimizes a given functionality.