As with any other term, academics continue to debate about what is the best definition of creativity; but for the rest of us there the terms creativity and innovation are fairly easy to define. Creativity refers a product, person, process or anything else that is considered to be new and useful in some way by a particular group. So what ever is to be judged as creative must be both new and useful. And who decides if that something is both new and useful? Well, that depends. It is usually a group of peers or experts in a particular field who are the best judges of creativity. I, for example, am not a big fan of opera or ballet, and would be a terrible judge of a performer’s creativity. However I do know a lot about baking bread, and can easily spot a creative recipe when I see one. So creativity has to be recognized by others to be deemed creative.
Innovation and creativity are often used synonymously by people who don’t know better. Innovation is applied creativity. It is the profitable side of creativity. Getting creativity on the market.
So a company can be very creative yet lack innovation and not be able to transform creativity into any products or services. A person can also be creative but not be able to practically use their creativeness. Innovation need creativity, but creativity doesn’t need innovation.