Apparently, Apple actually began the project earlier in the year. It is called "Blue Sky", and it allows employees to take two weeks to work on projects outside their normal responsibilities. Of course, Tim Cook doesn't want to completely change the culture of Apple just yet, and wants employees focused on Apple projects, so Blue Sky is only available to a select number of employees.
No word on which employees are given the new freedom, or if there are any new products that began life as a Blue Sky idea. Still, it should help to generate more innovation in Apple, and even better, it should keep employees in-house who would otherwise leave to work on these outside projects.