Page 18 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

11iill'AIN, SOCIet yt '. An innovation thus is a !cation

th.lt ha....iyouticant value.

I 11(..A. distinctions may seem superficial and academic, but
1110V a re not. This is so for several reasons, all of which are
related to the ultimate goal of innovation. First, you need to
learn how to tell whether the ideas you generate are creative
or merely original. Original ideas just aren't enough. Sec-
ond, to be innovative you need to go beyond merely being
creative. You need to know whether the ideas you generate
have the potential for significant value, that is, the potential
to become innovations. Finally, firms as well as individuals
must learn to turn creations into innovations. Unfortunately,
while U.S. firms and their employees are not nearly as cre-
ative as they should be, their performance record is even
worse when it comes to turning creations into innovations.
On average, only one idea in ten that is developed in a labo-
ratory ever gets to market.' As a result, the global competi-
tive positions of U.S. firms have eroded significantly in re-
cent years and will continue to do so unless those firms be-
come more innovative.

Moreover, in meeting the other strategic challenges and in
"doing business" every day, firms will not be as effective or
efficient as they should be if they cannot be innovative. Solv-
ing problems and pursuing opportunities require solutions,
many of which may be unique to the specific situation. There-
fore, creativity and the resultant innovation are fundamen-
tal to the survival and prosperity of the firm.

Creativity, the Springboard to

Innovation

Before we can have innovation, we must have creativity.

Expanding on our earlier definition, creativity, then, is the
skill to originate the new and to make the new valuable'
The new key word is skill. Creativity is a skill. It is not some-
thing mystical, available only to a few. It can be learned by any-
one. Everyone possesses an innate capacity for creativity. But the
development of this capacity into a skill has been thwarted, for the
most part by parents, teachers, and bosses who provide and enforce
rules about what is acceptable behavior and because only a few

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