Innovation and creativity are related, but there is an important distinction between the two. Creativity focuses on the generation of new ideas, while innovation is the process of testing and iterating those ideas and ultimately making them into something useful. Being able to develop, adopt, and implement new ideas helps organizations stay relevant when the environment around them is constantly changing.
Research suggests that innovation is linked to both intrinsic and extrinsic motivation. In other words, fostering innovation in your organization is a blend of your people and their values as well as the environment that you create for them.