Aug 24, 2009
Distinguishing between Creativity and Innovation
Distinguishing between Creativity and Innovation
The production of something that is creative to a standard where it is usable involves a lot more than coming up with the idea (Amabile, 1987). Throughout the literature (Amabile, 1983; Basset-Jones, 2005; Butler et al., 1998; Rank et al., 2004; Tan, 1998; Van Gundy, 1987; Woodman et al., 1993) the terms ‘creativity’ and ‘innovation’ are used in reference to the innovation process in general, and idea creation in the specific, and sometimes interchangeably – this section outlines the two concepts.
Creativity is broadly defined as the process of generating ideas (e.g. Amabile et al., 1996; Gurteen, 1998; Stafford, 1998), while innovation is the “sifting, refining and most critically the implementation of those ideas” (Gurteen, 1998: 6).
In short, innovation is the creative idea brought to fruition (Amabile, 1996; Amabile et al., 1996; Ekvall, 1997; Rank et al, 2004).
For an act to be considered creative, the outcome of such an act must be unique, fit a purpose and have value.
Essentially, the concepts of creativity and innovation can be seen to go hand-in-hand; creativity without at least some form of development, refinement, realisation or implementation is almost worthless in a business environment (Boeddrich, 2004; Mathisen and Einarsen, 2004). On the other hand, without the nourishment of creativity, innovation would die; speaking of non-creative innovation is nonsense – creative synthesis is at the core of successful innovation (Amabile et al., 1996; Cannon, 1978; Van Gundy 1987).
The Idea
Defining creativity as the generation of ideas (Section 2.2.1) begs the definition of an idea. A new idea is an unrealised goal or product, an unproven insight or observation or an unproven concept (Gurteen 1998). It is an ‘elegant concept’ (Griffiths-Hemans and Grover, 2006) that is a possible solution to a problem, or a reaction to a perceived opportunity. New ideas begin with a spark in the individual’s mind (Griffiths-Hemans and Grover, 2006; Nonaka, 1994), interactions between individuals play a role in developing these ideas (Nonaka, 1994) and organisations can nurture and stimulate idea generation within the individual, or the flow of ideas from an entire staff, having a significant impact on the generation of ideas within its context (Amabile et al., 1996; Boeddrich, 2004; Griffiths-Hemans & Grover, 2006; Kelley, 2006; Kratzer et al., 2004; Leavy 2005) (see Sections 2.3.5 and 2.3.6).
Paul Romer sums up the importance of the ‘idea’:
“Ideas are the instructions that let us combine limited physical resources in arrangements that are ever more valuable” (cited in Davenport and Prusak, 2005: 315).
The Importance of Creativity and Innovation
The literature supports the link between innovation (as the production of new products, processes and knowledge with creativity at its heart) and competitive advantage (Carr, 1994, cited in McFadzean, 1998; Couger, 1995, cited in McFadzean, 1998; Groth and Peters, 1999; Kratzer et al., 2006; Leonard and Sensiper, 1998; McAdam and McClelland, 2002; Montuori and Purser, 1999; Stafford, 1998; Sundgren et al., 2005).
New product and service development is seen as a way to improve corporate viability (Cooper and Kleinschmidt, 1986; Hayhurst, 196 – every organisation and business, regardless of its size, profit motives or experience needs to harness ideas in order to diversify its product or service offerings (Kratzer et al., 2006) and thus achieve its objectives, or even survive – “innovate or perish” (Stafford, 1998: 159) puts it.
In the long term, such a process will serve to increase national prosperity (Goulding, 1983). Not only physical products, but other forms of innovative output also play a role in the continued viability and increasing prosperity of the firm, the organisation and society on a national, international and global level.
Furthermore, the role and importance of new products in company growth may be diminishing, as services, process and interactions become the new sources of competitiveness for companies. Thus, in addition to new products, the development of new services, markets (geographical or consumer segment), marketing and promotion initiatives, public works, technologies and organisational processes also play an important part in the creation of sustainable competitive advantage for the firm (Boeddrich, 2004; Goulding, 1983; Törnqvist, 2004).
Additionally, the creation of knowledge through innovation is one of the most important facets of a competitive organisation (e.g. Nonaka, 1994; Nonaka and Takeuchi, 1995).
Further, Boeddrich, in his (2004) discussion of the front end of the innovation process states that the results of such a process will be products, processes, technologies and new ways of collaboration that will lead to the better utilisation of human capital and key competencies, improving the climate in the company (Boeddrich, 2004) and thus increasing the sustainable competitiveness of the firm (McAdam and McClelland, 2002).
The generation of ideas (creativity), is becoming increasingly important for profit-driven firms, non-profit organisations and government institutions – thus, creative performance within these organisations will need to be taken seriously (McAdam and McClelland, 2002; Montuori and Purser 1999; Proctor, 1991). Kratzer et al., (2004) further stress this, positing that the ‘creating-creative’ organisation of the future will “move beyond the promises of the models of the ‘new’ organisations for the third millennium such as the ‘learning organization’, the ‘knowledge generating company’ or the ‘network-organization’” (Kratzer et al., 2004: 63).
The creative talents of individuals are an important resource that can be used to leverage human capital (Barron, 1988, cited in Proctor 1991; Groth and Peters, 1999) – the challenge facing organisations is to “create an organisation that allows activities to be effectively performed, while creativity and innovation are given opportunities to flourish to avoid stagnation” (Sundgren et al., 2005: 359).
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