Creativity can be defined as the identification of problems and the generation of ideas, while innovation can be defined as the selection, development and commercialization of ideas.

There are other useful definitions in this field, for example, creativity can be defined as a series of ideas, several diverse ideas, and several novel ideas.

There are different processes that improve problem identification and idea generation, and similarly, different processes that improve idea selection, development, and commercialization. While there is no sure path to commercial success, these processes improve the likelihood that good ideas will be generated and selected, and that investment in developing and commercializing those ideas will not be wasted.

money does not

Although material reward is an important motivating factor, it is not the whole story.

The Economist (2003c) points out a paradox: an individual who gets richer becomes happier, but when a society as a whole gets richer, no one seems happier. It is argued that people tend to compare their luck with that of others. In one striking example, students at Harvard University were asked whether they would prefer a) $50,000 a year while others got half of it or b) $100,000 a year while others got twice as much. A majority thing a). They were happy as long as they were better than the others. “Other studies confirm that people are often more concerned about their income relative to that of others than about their own absolute income.”

In addition, other motivating factors include feasibility of the task, distance from the ideal self, self-determination, etc.

These and other topics are covered in depth in the MBA dissertation on Managing Creativity and Innovation, which is available for purchase (along with an Innovation Management Bible, a DIY Audit on Creativity and Innovation, a software generator of good ideas and a Power Point presentation) at http://www.managing-creativity.com/

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Kal Bishop, MBA

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