Are the "innovations" in the Hadith "Indeed, the worst of matters are their innovations" restricted to matters of religion, or do they include worldly affairs, and how can one reconcile the prohibition of innovations with the command to ponder and keep pace with the times?

The innovations (muhdathat) referred to in the hadith, "The worst of affairs are their innovations (muhdathat), and every innovation (bid'ah) is misguidance," are innovations in matters of religion and worship. Every innovation in worship is a blameworthy bid'ah and a violation of the Muhammadan creed. This refers to anything that did not exist during the time of the Prophet, peace and blessings be upon him, or for which there was no indication from him, or that occurred after the Rightly Guided Caliphs, the Companions, and the Successors.

Religion was perfected with the passing of the Prophet, peace and blessings be upon him. Anything that has no basis in the Qur'an, Sunnah, Ijma' (consensus), Qiyas (analogy), or the practice of the Companions, is an innovation and misguidance, and it is not permissible to act upon it.