To put it simply, creativity is the ability to think of ideas and innovation is to take those ideas and execute. But creativity is an integral part of innovation. I just read an article, Digital Natives, Digital Immigrants where there are some good examples of this.
The article addresses the gap between the latest generation of students and their educators, more specifically on how Millennials learn and absorb information and how Baby Boomers (or Gen X) reach them. So for example, one company created software that trumped any other program they were currently using, but nobody took to it due to a new, unfamiliar design. One of the suggestions on how to better reach and adapt to the learning styles of Millenials was to create a video game that teaches them how to learn the software. That's exactly what they did and their product has been wildly successful and is used globally.
There was a problem that needed to be addressed from which they were able to come up with a solution (creativity). The Monkey Wrench Conspiracy was the solution (innovation).
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