Creativity and Innovation:

Concepts, Principles, Methods, and Tools

Víctor Tang
victang@alum.mit.edu

© v tang.
 Learning objectives

Goal
Improve your competence and confidence on creativity and
innovation

Key learning outcomes

• Become more creative and innovative
• Understand the meaning and causality among creativity,
invention, innovation, and entrepreneurship
Understand the creative process, its enablers and inhibitors
• Learn how to think with precision about scope and scale,
systematically using frameworks and methods
• Position appropriately the role of technology
• Initiate, review and critique, with competence, innovation
proposals and initiatives.

© v tang.
Assumptions

Not all creative ideas need be divinely inspired

nor necessarily lucky stochastic events.

… neither are consistently repeatable.

Goal: Systematically create and improve ideas. genius

Mathematical theorems are systematically derived

Engineering products are systematically invented
Therapeutic proteins are systematically created
Corpus of case law accrues systematically
and so on … and so on, therefore ...

Why not systematically create and improve ideas? But how?

© v tang.
Definitions

Creativity
Ability to produce work (under constraints) that is new, original,
surprising, and useful to a society, i.e. new and useful.

Everyone can be more creative.

Invention
First occurrence of a new idea embodied in a new product,
service, or process.
Sometimes patentable. Some are useless.

Innovation
First application of an invention that is both novel and useful.
It provides a meaningful social and/or economic need.
Once adopted, very difficult to revert to the “old way”.

© v tang. Do NOT copy or distribute 4

© v tang.
© v tang.
 A system view
creativity
assets

requirements for incentives

domain
expertise creative problem
solving
motivation
solution
development
no
keep trying satisficed?
yes

creative solution
new learning

no
is it innovative?
yes
It is innovative

source: v tang © v tang.

Motivation defined

We think of motivation as achievement behavior.

Motivation a psychological state that results in activities that are:

 intentional and goal directed,

 sustained and persistent,
 finally completed.

© v tang.
 Intrinsic motivation is key

Top 12
Personal-goal category
of inventors: Importance mastery
entertainment
of intrinsic motivation exploration
happiness
resource provision
intellectual creativity
task creativity
superiority
individuality
material gain
understanding
positive self-evaluation

intrinsic motivation
extrinsic motivation

Source: S.J. Henderson. 2004. Inventors: The Ordinary Genius Next Door.
Chapter 7 in Creativity, edited by Sternberg, Grigorenko, Singer. American Psychological Association. © v tang.
 A system view
creativity
assets

requirements for incentives

domain
expertise creative problem
solving
motivation
solution
development
no
keep trying satisficed?
yes

creative solution
new learning

no
is it innovative?
yes
It is innovative

source: v tang © v tang.

 Domain knowledge and expertise

“Creative talent is expressed in each evolved implicit

domain and is specific to its domain rather than general.

Individuals tend to have talent in one or sometimes

two related domains, but seldom across more than
two domains and never across all domains.”

Physical sciences Visual arts

Social sciences Psychology
Mathematics linguistics.
Music …… etc.
Everyone has expertise in something.

Source: G.J. Feist. 2004. Inventors: The evolved fluid specificity of human creative talent.
Chapter 5 in Creativity, edited by Sternberg, Grigorenko, Singer. American Psychological Association. © v tang.
 Levels of expertise

Novice One with minimal exposure to the field

Apprentice Has completed a course of study beyond

introductory material and is working in the
field under supervision

Journeyman Can perform routine work unsupervised

Expert One highly regarded by peers, has

remarkably accurate and reliable
judgment, whose performance
shows skill and economy of effort,
able to solve tough problems

Master Among elite group of experts whose judgments set

the ideals and standards in the field.

M.T.H. Chi. 2006. Two approaches to the study of experts’ characteristics. Chapter 2 in The Cambridge Handbook of expertise and Performance. Ed. K.A. Ericsson, N. Charness, P.J. Feltovich,
R.R. Hoffman, Cambridge U. Press. © v tang.
 We are poor judges of our abilities
Our ability to calibrate our abilities is poor.

Self assessment of performance is a poor

predictor of actual performance. Experiments
show that predictions on test scores and actual
results have a correlation close to zero.

For example, performance ratings of peers with self-ratings of specialists

from internal medicine, pediatrics, and psychiatry show that …
 physicians whose peers placed them in the lowest quintiles rated
themselves 30-40% higher
 physicians whose peers placed them in the highest quintiles rated
themselves 30-40% lower

Poor performers had a higher opinion of themselves than they deserved;

Good performers had a lower opinion of themselves than they deserved.
x

R.V. Clark. 2008. Building Expertise. pp. 318-319. John Wiley and sons. New York. © v tang.
 So? Iterate, iterate, iterate, …

Experts iterate, novices jump to conclusions prematurely.

novice pattern expert pattern

read read
analysis analysis
explore explore
plan plan
implement implement
verify verify

© v tang.
 World-class performance takes years

Research shows that it takes 10,000 hours of deliberate practice.

Deliberate practice is not routine practice.

It requires activities specifically designed to be challenging in order to
improve performance under guidance of a coach, teacher, …

It also requires about 10 years to reach world-class performance.

This is the so-called “ten-year rule”.

Starting Years to international Age of peak

age performance performance
Tennis 6½ 10+ 18-20
Swimming 4½ 10 18-20
Piano 6 17 -
Chess 10 14 30-40

K.A. Ericsson, N. Charness, P.J. Feltovich, R.R. Hoffman, 2006. in The Cambridge Handbook of expertise and Performance Cambridge U. Press. © v tang.
 A system view
creativity
assets

requirements for incentives

domain
expertise creative problem
solving
motivation
solution
development
no
keep trying satisficed?
yes

creative solution
new learning

no
is it innovative?
yes
It is innovative

source: v tang © v tang.

 creativity (krē’ā tiv’ə tə)

ability to produce novel and useful artifacts*

* Sternberg and Lubart 1999, Simonton 2000, Sternberg et al 2002, Girotra et al. 2010, Jensen et al. 2009 © v tang.
 What is Creativity?
Creativity - ability to produce work (under constraints) that is novel
(original, and surprising to the creator, group, or organization); and
useful (Sternberg and Lubart 1999).and acceptable in a society (Nickerson
1999).

Requires abilities to:

 Escape constraints of conventional thinking to see problems
 Recognize which ideas, among many, are worth pursuing
 Convince others of the merits of an idea (Sternberger 1999)

 Acquire domain knowledge (Hayes 1989, Chase & Simon 1973)

 Learn/use processes and heuristics for generating novel ideas
 Sustain intrinsic motivation with concentrated effort (Amabile 1989)

 Everyone has creative potential (Runco 2004)

 This capacity is distributed within a population
 Everyone’s creativity can improve (Nickerson 1999)

© v tang.
 Creativity begins with ideas

ideation proof of concept diffusion

generate
tests of creativity test of innovation
ideas

novel $
market

not
useful useful

not novel © v tang.

 Creativity begins with ideas

ideation proof of concept diffusion

generate
tests of creativity test of innovation
ideas

novel $
market

not useful
useful

not novel © v tang.

 Creative thinking ability

1. Cope with complexity.2

Make non-obvious mental connections.2

See problems in ways that escape

constraints of conventional thinking.1

Uncomplicate complexity.4

2. Knowledge of heuristics for idea generation and operating on the ideas.2

3. Recognize which ideas, among many, are worth pursuing.1

4. Convince others of the merits of an idea.1

5. Sustain intrinsic motivation combined with concentrated
effort and high energy.2

1. Sternberger 1999.
2. Amabile 1983
3. Fagerberg 2005.
4. Tang 2003 © v tang.
A generative approach to creativity

idea space operations space

existing represent ideas

ideas as matrices

idea algebraic operations

matrices of idea matrices

new idea algebraic operations

matrices of idea matrices

© v tang.
 Idea novelty-matrix - Nnm
Creativity ability to invent novel and useful artifacts
 novelty original and surprising
 usefulness endowed with utility and social significance

novelty 1 novelty 2 … novelty m-1 novelty m

feature 1
feature 2
… α ij
feature n

α ij intensity index, ε {0,1,2,…,10}

 features discriminate ideas  novelty is a characterization of features

 they give identity to an idea  novelty i = f(feature 1, … , feature n)

© v tang.
 Two businesses

Idea matrices for greeting card business and flower business

card business flower business

novelty N c53
message usefulness U c53 novelty N f53 usefulness U f53

message

message

message
Delivery
delivery

delivery

delivery
flowers

flowers
card

card

aesthetics 6 4 4 10 10 7 8 6 4 10 9 7
convenience 10 8 7 10 8 7 8 8 7 10 9 7
affordability 9 10 9 7 7 7 8 10 8 7 7 6
expressiveness 8 8 5 9 9 9 9 8 6 10 10 8
archivability* 10 10 1 1 8 1 1 10 1 1 1 1

*Archivability means that cards can be archived, but flowers cannot.

© v tang.
 Idea usefulness-matrix - Unm
Creativity ability to invent novel and useful artifacts
 novelty original and surprising
 usefulness endowed with utility and social significance

usefulness 1 usefulness 2 … usefulness m-1 usefulness m

feature 1
feature 2
… β nm
feature n

β nm intensity index, ε {0,1,2,…,10}

 usefulness is a characterization of features

usefulness i = f(feature 1, … , feature n)

© v tang.
 idea creativity matrix – C85

Novelty matrix N85 Idea matrices

Smart Cover®
Usefulness matrix U85
Creativity matrix C85=N85 U85 : Hadamard multiplication

Novelty N85 Usefulness U85 Creativity C85=U85N85

multi colors

multi colors

multi colors
3-level fold

3-level fold

3-level fold
magnetic

magnetic

magnetic

magnetic

magnetic

magnetic
front lid

front lid

front lid
closing

closing

closing
features
hinge

hinge

hinge
screen protection 7 2 0 2 0 9 0 1 2 0 63 0 0 4 0
thin covers 3 0 0 3 0 9 1 0 3 0 27 0 0 9 0
light weight 1 0 0 0 0 8 1 0 0 0 8 0 0 0 0
easy installation 2 5 2 0 0 9 9 2 0 0 18 45 4 0 0
hands-free reading 3 1 0 6 0 3 3 0 9 0 9 3 0 54 0
hands-on reading 1 1 0 6 0 1 1 0 0 0 1 1 0 0 0
sleep and wake up 0 0 7 3 0 0 0 9 4 0 0 0 63 12 0
looks attractive 1 1 0 4 4 7 2 2 1 4 7 2 0 4 16
© v tang.
 Ranking alternatives

33
1 6 5 2 4 8 6 5 3 8 5 5
I1 = 1 7 4 2 = 4 3 2 I3 = 3 3 2 I s = 4 7 4
I33
33 33 33
3 8 6 5 2 1 5 6 7 5 8 6

Frobenius Norm ‖ I s33 ‖= √ΣΣ33|a | ij

2 = creativity intensity

I233 I333 I133 I s33

10 11 12 13 14 15 16 17 18 19
‖ I233 ‖ = 11.9 ‖ I333 ‖ = 14.4 ‖ Is33 ‖ = 17.9
‖ I133 ‖ = 15.4
© v tang.
 Attacking The Negatives

33
1 6 5 2 4 8 6 5 3 8 5 5
I1 = 1 7 4 2 = 4 3 2 I3 = 3 3 2 I s = 4 7 4
I33
33 33 33
3 8 6 5 2 1 5 6 7 5 8 6

I3’ 6 5 4
improve attribute 2 of I333 to get: ‘ = 4 4 4
I333
33
5 6 7

I233 I333 I133 I s33

10 11 12 13 14 15 16 17 18 19

I3’33 result is > creativity

© v tang.
 Greeting card business and flower business

card flowers
business business

novelty N c53 usefulness Uc53 novelty N f53 usefulness U f53

message

message

message

message

delivery
flowers

flowers
delivery

delivery

delivery
card

aestheticsx 6 4 4 card
10 10 7 8 6 4 10 9 7
conveniencex 10 8 7 10 8 7 8 8 7 10 9 7
affordabilityx 9 10 9 7 7 7 8 10 8 7 7 6
expressivenessx 8 8 5 9 9 9 9 8 6 10 10 8
archivabilityx 10 10 1 1 8 1 1 10 1 1 1 1

∥N c53 ∥= 29.9 ∥Uc53 ∥= 30.0 ∥Cc53∥ = ∥Nc53Uc53∥= 232.8

∥N f53 ∥= 33.1 ∥U f53 ∥= 29.3 ∥Cf53 ∥ = ∥Nf53Uf53 ∥ = 226.6

© v tang.
 Greeting card business and flower business
novelty usefulness novelty usefulness
N c53 U c53 N f53 U f53

message

message

message

message
delivery

flowers

flowers
delivery

delivery

delivery
card

card
aesthetics 6 4 4 10 10 7 8 6 4 10 9 7
convenience 10 8 7 10 8 7 8 8 7 10 9 7
affordability 9 10 9 7 7 7 8 10 8 7 7 6
expressiveness 8 8 5 9 9 9 9 8 6 10 10 8
archivability 10 10 1 1 8 1 1 10 1 1 1 1

Cards and flowers can be

re-interpreted as “social expressions”.
35

usefulness
card
American Greetings Corporation*
30
presents itself as “engaged in …
25 flowers
social expression products”.
30 31 32
* American Greetings Corp. (2012) http://data.cnbc.com/quotes/AM/tab/4, Nov 5 2013. novelty © v tang.
 Evaluation of two competing ideas

ranking iPad Smart Cover ® Kindle Fire Folio ®

usefulness 0.73 screen protection 0.93 hands-free reading

C ipqC ipqt 0.39 hands-free reading 0.36 looks attractive
0.36 thin covers 0.02 screen protection
perron
0.34 easy installation 0 light weight covers
eigenvector
0.23 sleep and wake-up 0 sleep and wake-up
0.11 looks attractive 0 thin covers
λx = A˙x 0.09 light weight covers 0 hands on reading
0.01 hands on reading 0 easy installation

features 0.87 front lid 0.97 2-level folding

C ipqtC ipq 0.39 3-level folding 0.19 elastic strap
0.22 magnetic hinge 0.15 multiple colors
perron
0.21 magnetic closing 0 front lid
eigenvector
0.02 multiple colors 0 polycarbon back deck
© v tang.
 Idea operators

re-interpretation
attach new meaning to an existing idea by changing the mental models [1],
e.g. Starbucks as social spaces versus take-out places.

abstraction
seeing the simplicity of complexity; suppress non-essential features to reveal
structure in most frugal form [2]; reducing cognitive load [3]. e.g. Amazon is an
abstraction of a retail store, ebay  auction house

pattern creation
patterns are structured connections based on some working principle patterns
order and structure the world for us [4]. e.g. ice crystals’ hexagonal shape; the
principle is geometry physics is about patterns of nature; principles are the laws of
nature Ramanujan constants; principles of modular functions [5]

[1] Plucker and Beghetto 2004 . [2] Wilson 2003. [3] Spooner 2004, Davidson 2003. [4] Tang and Luo 2013, [5] Wolfram 2002.. © v tang.
 synthesis
synthesis combines existing ideas to trigger new ones [1]. Synthesis is a special
kind of combination; it produces emergence.
e.g. Maxwell’s equations, relativity, and the iphone® .

fractionation
fractionation decomposes an idea into parts, then using them selectively with or
without other ideas to create new ideas. fractionation is not random.
e.g. engineering fractionation is based on function, material, and energy flows to
build a modular product [2]. e.g. outsourcing in business function. Newtonian vs.
quantum mechanics. Services defined as non- physical products [3].

reversal
reversing the logic structure of an idea can lead to new ideas [4]
e.g. open source sw, Fedex, the active noise cancellation system. e.g. for car
engines, ½ of pistons move in one direction, other ½ in the opposite direction to
cancel vibrations. for longitudinal vibrations, new balancer-shafts rotate in the
opposite direction of the rotating pistons [5].

[1] Devereux and Costello 2004. [2] Otto and Wood 1991, Hölttä-Otto et al. 2003. [3] Tang and Zhou 2007
[4] Rothenberg 1996; Esters and Ward 2002. Active Noise Cancellation 2012 © v tang.
 Research based operators

(phone, email, computer, camera, …)  iphone

synthesis (debt, equity)  warrants, options
(programming, evolution)  genetic programming
(records, tapes)  itunes
(typing)  word processing
reinterpret
(auction place)  auction space, e.g. ebay
(solar system)  model of the atom
(learning curve)  BCG 2x2 growth-market matrix
patterns
(velocity elliptic orbits)  Kepler’s three laws
(in-house SW development)  open SW, e.g. LINUX
reverse
(engineering contradictions)  TRIZ
(vertical integration)  value-chain outsourcing
fractionate (monolithic products)  modular platform products
(Navier Stokes eq.)  hydrodynamics, aerodynamics
(propeller)  jet
transform
(bricks)  (clicks), e.g. Amazon

source: V Tang © v tang.

 Summary

Divinely inspired creativity and lucky

stochastic events are not consistently
repeatable.

We’ve sketched an approach to systematically improve ideas by

using a matrix representation of ideas, matrix algebra, and idea operators …

idea space operations space

existing ideas represent ideas as matrices

idea matrices algebraic operations of idea matrices

new idea matrices algebraic operations of idea matrices

© vic tang ©
& Jianxi luo
v tang.
 A system view
creativity
assets

requirements for incentives

domain
expertise creative problem
solving
motivation
solution
development
no
keep trying satisficed?
yes

creative solution
new learning

no
is it innovative?
yes
It is innovative

source: v tang © v tang.

 ¿Cómo reconecer una innovación?

Criterios necesarios y suficientes

1. Tiene la mayoría de las funciones y beneficios anteriores.

2. Funciones y beneficios que son nuevas y sorprendentes.
3. Cambia, mejora o revoluciona la tarea.
4. Ofrece beneficios nuevos o extraordinarios.
5. Muy difícil o imposible de volver a la manera anterior.

fuente: v tang © v tang.

Innovation

© v tang.
 Definiciones

Es una idea o práctica, o artefacto material percibido como pertinente

por el grupo que lo va adoptar.1

Partes afilada de una tijera; una es la necesidad económica en el

mercado y la otra es la necesidad de buscar una solución con la
tecnología.2

... aplicación de nuevas ideas, expresadas en productos, procesos,

servicios, o en la organización del trabajo, gestión, o sistemas
de marketing.3

Innovación es el resultado de las relaciones entre necesidad y

oportunidad, orden y desorden, continuación y descontinuación.4

El propio esfuerzo de una empresa enfocado en la promesa

económica y social.5

1. G. Zaltman, R. Duncan, and J. Holbeck. 1973. Innovations and Organizations.

2. J. Schmookler. 1996. Invention and Economic Growth.
3. M. Gibbons, C. Limoges, et al. 1994. The new production of knowledge. Stockholm, Sage. vtang
4. I. Nonaka. 1990. Redundant, Overlapping Organization: A Japanese Approach to Managing the Innovation Process.
5. P.R. Drucker. 1985. The Discipline of Innovation. © v tang.
 En fin … resultados del sistema

Es una idea o práctica, o artefacto material percibido como pertinente

por el grupo que lo va adoptar.1
resultados y interacciones
Partes filuda de una tijera; una es la necesidad economica en el
mercado y la otra es la necesidad de buscar una solución con la
technologia.2
entradas y interacciones
... aplicación de nuevas ideas, expresadas en productos, procesos,
servicios, o en la organisación del trabajo, gestión, o sistemas
de marketing.3
entradas y procesos
Innovación es el resultado de las relaciones entre necesidad y
oportunidad, orden y desorden, continuación y descontinuación.4
surge del entorno
El propio esfuerzo de una empresa enfocado en la promesa
economica y social.5 resultados social y económicos

1. G. Zaltman, R. Duncan, and J. Holbeck. 1973. Innovations and Organizations.

2. J. Schmookler. 1996. Invention and Economic Growth.
3. M. Gibbons, C. Limoges, et al. 1994. The new production of knowledge. Stockholm, Sage.
4. I. Nonaka. 1990. Redundant, Overlapping Organization: A Japanese Approach to Managing the Innovation Process.
5. P.R. Drucker. 1985. The Discipline of Innovation.
6. Análisis de V. Tang 2008. © v tang.
 Innovation definitions

 An idea or practice, or material artifact perceived to be

relevant by the unit of adoption.1 output and interactions
 Blades of a pair of scissors; one is the economic and
market need … the other involves technical knowledge.2
inputs and their interactions
 Application of ideas that are new to the firm … embodied in
products, business processes, management systems,
procedures, and services.3 input and processes
 Result of the interactions between necessity and chance,
order and disorder, continuity and discontinuity.4
emergent from environment
 The effort to create purposeful, focused change in an
enterprise's economic and social potential.5
social economic output

1. G. Zaltman, R. Duncan, and J. Holbeck. 1973. Innovations and Organizations.

2. J. Schmookler. 1996. Invention and Economic Growth. 4. I. Nonaka. 1990. Redundnat, Overlapping Organization: A Japanese Approach to Managing the Innovation Process.
3. M. Gibbons, C. Limoges, et al. 1994. The New Production of Knowledge. Stockholm, SAGE. 5. P.R. Drucker. 1985. The Discipline of Innovation. © v tang.
 Innovación: resultados como productos o servicios
usos
nuevos Sorprendente
Nuevas funciones
Mercado establecido estrategia:
estrategia: inventar productos o procesos
crear nuevos mercados
desarollo de productos ocupar mercados conocidos
usuarios usuarios
establesidos nuevos

Conocido Conocido
Mercado establecido Mercados nuevos
estrategia: estrategia:
economía de escala mejorar todo continuamente
defender, extender el mercado desallorar mercados
usos
conocidos
©vvtang
© tang.
 Foco de proceso en cada espacio
usos
nuevos Producto sorprendente
Producto nuevas funciones
Mercado establecido
 inventar productos o procesos
 crear nuevos mercados
 desarrollar productos o procesos
 ocupar mercados conocidos

usuarios usuarios
establesidos nuevos

Producto conocido Producto conocido

Mercado establecido Mercados nuevos

 economía de escala  mejorar todo continuamente

 defender, extender el mercado  desallorar mercados

usos
conocidos

©vvtang
© tang.
 Categorías de innovaciones
usos
nuevos innovaciones
Producto sorprendente
Producto nuevas funciones radicales
innovaciones
Mercado establesido
prácticas  inventar productos o procesos
 crear nuevos mercados
 desarrollar productos o procesos
 ocupar mercados conocidos

usuarios usuarios
establesidos nuevos

Producto conocido
innovaciones Producto conocido
innovaciones
Mercado establesido Nuevos mercados
tácticas y defensivas incrementales
 economía de escala  mejorar todo continuamente
 defender, extender el mercado  desarrollar mercados

usos
conocidos

©
©vtang
v tang.
 Tecnologia es una herramienta eficaz
usos
nuevos innovaciones
Producto sorprendente
Producto nuevas funciones radicales
innovaciones
Mercado establesido
prácticas  inventar productos o procesos
 crear nuevos mercados
 desarrollar productos o procesos
 ocupar mercados conocidos

usuarios usuarios
establesidos nuevos

Producto conocido
innovaciones Producto conocido
innovaciones
Mercado establesido Nuevos mercados
tácticas y defensivas incrementales
 economía de escala  mejorar todo continuamente
 defender, extender el mercado  desarrollar mercados

usos
conocidos

©©vtang
v tang.
 Good idea. No diffusion, no innovation

1601. Capt. James Lancaster found that lemon

juice prevented scurvy and almost certain death.
In his “control group” 110 died out of 278 (40%).

1747. +150 years, the Royal Navy

decides to try the experiment, but
runs out of oranges and lemons!
The experiment ends.

1795. +48 years, the Royal Navy

makes drinking lemon juice a
standard practice.

1865. +100 years. British Board of Trade makes this a standard

practice.

Source: E.M. Rogers. Diffusion of Innovations. 2003. The Free Press. N.Y. © v tang.
 Creative, but no diffusion, no innovation

HMS Terrible

Cpt. Percy Scott  inventor: continuous firing mechanism

 improved accuracy by 3000% in 6 years

 Over 15 years, 13 reports

USN needs new firing mechanism
Prolonged WWI by six months
Loss 2.5M tons of shipping
USS Kentucky  To Bureau of Ordinance
 To senior officers of the fleet
Saga of Lieutenant W.S. Sims  To FDR
source: Men, Machines, and Modern Times. E.E. Morison © v tang.
 Innovators and entrepreneurs are maze bright
 Intense goal orientation
 Robust mental models
 Persistence
 Ability to navigate barriers
 Continuous learning
 Failures=Learning
* Kotler, P. & K. Keller. 2009. Marketing Management. 13 th edition. Prentice Hall.
TYPICAL OBJECTIONS*
 it won’t work here
 we have tried it before
 not the right time
 it can’t be done
 not the way we do things
 we are fine without it
 costs too much
 it needs more work
 come back in 3 months
© v tang.
 Diffusion of creativity = innovation

* Kotler, P. & K. Keller. 2009. Marketing Management. 13 th edition. Prentice Hall. © v tang.
 Users create the majority of the innovations.

Innovation Developed by
user manufacturer supplier other N
Scientific instruments 77% 23% 0% 0% 111
Semiconductor processes 67 . 21 . 0 . 0 . 49
Pultrusion process 90 . 10 . 0 . 0 . 10
Tractor-shovel related 6 . 94 . 0 . 0 . 11
Engineering plastics 10 . 90 . 0 . 0 . 5
Plastics additives 8 . 92 . 0 . 0 . 16
Industrial gas-using 42 . 17 . 33 . 8 . 12
Thermoplastics-using 43 . 14 . 36 . 7 . 14

Lead users
 first to face the needs that will be general in the market.
 first positioned first to reap the benefits of having a solution.

49
von Hippel.1988. The Sources of Innovation. Oxford University Press. © v tang.
Lead users are a leading indicator of markets

© v tang.
Factors the speed of diffusion

© v tang.
PC sales and Patent Litigation

© v tang.
Factors the speed of diffusion

© v tang.
Factors the speed of diffusion

© v tang.
 Innovation as a process

3. concept 6. diffusion
looks like- market
works like acceptance

domain
knowledge,
expertise

problems, creative inventive innovative innovation

needs, gaps attributes
• novelty
• usefulness

1. mental model 2. idea 4. embodiment 5. utility 7. economic

what’s going on, a better instance of it must & social value
sense-making way Idea, product be useful price
or a service

© v tang.
 Creativity and Innovation
 Creativity and innovation is hard work. They can be made into
repeatable processes.
Divine inspiration and stochastic luck are not repeatable.

 Creativity, invention, and innovation are related but distinct.

However, they all begin with ideas.

 It is unlikely that the first idea is a good one.

We have presented processes and tools to select a good idea from
a collection of ideas.
We have also presented a process on how to improve ideas.

 We have presented a matrix algebra approach to represent ideas.

We have also presented six idea-matrix creativity operators to
stimulate creative ideas.

 There is no innovation without diffusion into the market.

We have discussed how to foment diffusion and analyze the
process of diffusion.

vtang © v tang.
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Questions?

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