Is Trial and Error Really Error?

I ran across this quote from Thomas Edison: "I have not failed. I've just found 10,000 ways that won't work."

It made me think, is "trial and error" a misnomer? 

For quick starts (those folks who thrive on taking risks and challenging the status quo), failure is in many ways a form of success...it's a stepping stone to the true, viable solution. Error is necessary - a welcome part of the creative process. 

Are you discouraging error in your organization or are you embracing it as a means to innovation?