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  1. 1. Contemporary Readings in Law and Social Justice Volume 4(1), 2012, pp. , ISSN 1948-9137 CREATIVE INTELLIGENCE AND ITS APPLICATION TO ENTREPRENEURIAL OPPORTUNITY AND ETHICS MURRAY HUNTER Centre for Communication & Entrepreneurship University Malaysia PerlisABSTRACT. This paper begins with a review of major issues facing society today,observing how difficult they are to solve. After a review of the nature of theenvironment, introducing the concepts of relatedness and influence of time andspace on innovation, thinking, cognition, intelligence, and creativity, the metaphoricconcept of creative intelligence is postulated. The elements of creative intelligenceare described along with other supporting elements like prior knowledge,imagination, energy, and awareness. The role of creative intelligence in developingentrepreneurial opportunities and solving ethical problems is then discussed.Keywords: Environment, relatedness, cognition, imagination, energy, intelligence,creativity, creative intelligence, awareness, entrepreneurial opportunity, ethics. “Hard imaginative thinking has not increased so as to keep pace with the expansion and complications of human societies and organizations” H.G. Wells11. IntroductionOn the face of current events one could be excused for thinking that we arefacing a crisis in creativity and original thinking.2 The absence of derivednew meanings from the environment is leading to a vacuum in theemergence of new philosophies. Generation Y appears to be on a sojourn ofself discovery for meaning. Technology has created a dual economy madeup of exploited unskilled assembly workers on one side and wealthyconsumers on the other. The North-South divide is as wide as ever. We arenot sure whether the economic downturns of late are a cyclic phenomena orwhether there is something structurally wrong with the system itself. Manydecisions institutions within society has made achieved counterintuitive 9
  2. 2. results, where the opposite to what was desired has occurred, i.e., therestriction of narcotics and enforcement has produced a large undergroundindustry with a high cost of enforcement. There are so many potential crisesin the world today without apparent solutions (see table 1.), highlighting agreat discrepancy between these issues and our ability to solve them. Some are calling upon our past growth paradigms to be re-evaluated dueto growing resource scarcity, our damaging effect upon the environment,and the inability of the economic system to make reallocation adjustmentsto account for rapid depletion of hydrocarbon resources.3 As we move fromelite to mass education, students primarily attend universities as a means togain a more lucrative career, rather than intellectual enrichment4, Our levelof knowledge is doubling every five years, yet our understanding about theworkings, interrelationships and co-dependence within the environment isstill apparently lacking. We think in predictable ways5 rationalized in one dimensionality6,where idea originality is scarce. Problems that don’t fit into our socio-political worldview are downplayed, ignored, or even abnegated existencebecause of our prevailing biases, vested interests and/or the fear of movingto new viewpoints and positions. Most often, politically embedded nationalagendas prescribe our solutions without giving the opportunity to reflect ordevelop new insights. For example, nationalist sentiment, strict bordercontrol, and immigration laws hinder the redistribution of labor migrationfrom areas where there are acute levels of poverty and unemployment toareas where there are chronic labor shortages. Positive thinking has becomea form of social control, where dissent is brushed aside and labeled aspessimism. Our optimistic outlook to the affairs of the world is a delusion ofwillful ignorance, reducing our vigilance, and contributing to the creation ofa blind and powerless society.7 Future solutions will depend upon theability of humans to escape this moral callousness and think creativelyoutside our existing patterning, and predisposed paradigms of thought.2. Domains, Reductionism and PathsIn the Victorian era scientists began to divide fields into narrow andprotected domains with their own vocabularies, hierarchies, and elites; thuscementing tightly bounded beliefs into respective disciplines. Thepredominating metaphor of these disciplines has been that of the machine,clockwork, precision, and predictability, reflected in the precision ofmathematics and quantitative theories. The goal of science was to reducethe world into understandable parts in order to reduce our sense ofuncertainty and anxiousness. The development of these academic domainswhere expert specialization takes place has led to little increased creativity 10
  3. 3. and original thinking. In fact specialization has seemed to hinderinnovation.8 Many massive engineering developments like the building of theHoover Dam, the development of the atomic bomb, and the space programwere not based on science as much as they have been based uponengineering reductionism.9 Potential new breakthroughs in specificdomains are often resisted by discipline centered experts committed toestablished reductionist views based on the models they work from. Somediscipline premises were totally incorrect. For example, economicspreached individualism and decentralized markets, yet our security andprosperity has been largely the result of collective action to eradicatedisease, promote science, develop critical infrastructure and, providewidespread education.10 The tools of trade are usually too selective to allowthe big picture to be seen, becoming the ‘rose colored glasses’ of perceptualand discipline-centric domain imprisonment.11 This can be very clearly seen in the parable of a king who invited agroup of blind men to identify an elephant shows that our understanding isbased on perspective. One feels the tail and says it is a rope. Another grabsthe leg and says it is a pillar. Another feels the side and says it’s a wall.Another felt the head and said it was a water jug, and so on. Real science and the development of new knowledge are based onsimple experiments to test hypotheses, more like creative art. As aconsequence the advancement of science is unpredictable. Gatheringintelligent individuals together is not the answer to creating breakthroughs.Without the element of creativity there is unlikely to be any majorbreakthroughs, as we see in so many organizations today.12 Reductionist tools like mathematics and geometry have great difficultyin explaining everyday occurrences like the operation of a steam value, atennis game, riding a bicycle, and catching a ball as there is the element ofchaos (not to be confused with crisis) and unpredictability in anyphenomenon. One can develop complex wave equations but never reallyknow exactly what is going to happen. Reductionism relies upon linearperfectionism which doesn’t exist. Even the earth’s rotation is not exact.Our perfectionist time systems must be regularly adjusted to account fornature’s imperfection.13 We try to think about the world in a linear waywhere the world really behaves in non-linear ways. Most events need tounfold along particular paths, something that cannot be controlled.Evolution is an unplanned process.Table 1. Some of the major complex problems facing the World todayAntibiotics European credit and Racism currency crisisChina-Taiwan relations Floods Rising food prices 11
  4. 4. Climate change and Guantanamo Rising unemploymentglobal warmingCorruption Hate Soil salinity and erosionCounterfeit medicine Labor shortages Spratly IslandsDecaying infrastructure Migration (Understanding) sustainability of agricultureDecline of biodiversity Ozone depletion within Urban sprawls the ionosphere (overdevelopment)Decline of coastal Population growth War and regional conflictfishery stocksEnergy Poverty Water scarcity and managementVery few humans tend to think far beyond their familiar geographicalterritory and immediate future. The majority of our everyday ‘thought flow’tends to be negative and could reasonably be described as ‘cognitivegarbage’, consisting of random thoughts that lack any substance to be ofany usefulness. We muddle through basing our thinking on unquestionedpatterning influenced by past behavior, beliefs shaped by myths and evensuperstitions we gather. Much of what we actually think and do is aprogression and culmination of a series of previous ideas that define thepathways we follow. Where original ideas were ‘poor ones’, all followingdecisions along the defined path will lead to less than ‘optimal’ situationsthat eventually accumulate and could lead to a disaster – metaphorically likedrifting into a dark tunnel with no way out. This is reflected in the way theworld economy is being managed, present approaches to povertyeradication, the history of abandoned medical practices found to beineffective, current unsustainable farming practices, poor resourcemanagement,14 and disastrous approaches to river irrigation, coastalfisheries management,15 and water sharing across major world waterways.16 The decisions we make are primarily dependent upon the context andcircumstances of a particular time and place. For example many countriesfocused on national development to promote domestic industries after theSecond World War and started their own automobile industries as an importreplacement strategy. Contemporary development theories at the timeadvocated import replacement strategies to assist a developing country saveforeign exchange and create employment17. However industry protectionmeasures over time created industrial inefficiency which led to highdomestic prices for automobiles, the inability to create sources ofcompetitive advantage, with little ability to compete with the rest of theworld. Firms in these import replacement industries struggled to survive andmany industries closed down completely. An import substitution policyinitially brought economic growth, but the industrial base it created becamea basis for economic rigidity and stagnation later on. Management theory 12
  5. 5. over the years has also been value laden providing fixed paradigms thatbrought particular types of results, i.e., scientific management, Theory Y,TQM, Industrial democracy, Re-engineering and lean productiontechniques. A good decision at one time based on contemporary theories atthe time can become a poor decision at a later time. The contexts, situations,circumstances, and benchmarks for judging decisions change, thuscreativity is paramount to society to enable flexibility and dynamismaccording to changing economic structures and conditions, i.e., the ability tobreak out of rigid paradigms. Creativity embodies the concept of utility, one of the pillars of classicaleconomics,18 and is more important than ever before as traditional sourcesof growth and prosperity are drying up. From an integrated globalperspective, progress in the future will not be about crude wealth formation,but more about selected growth, redistribution, and stabilization in selectedregions around the globe, much more complex than fostering crude growth,requiring coordination on a global scale that has never seen before.3. Thinking, Creativity, and SocietyOur understanding of creativity and thinking has been drastically enhancedthrough emerging ideas within the biology, genetics, neuroscience, andevolutionary psychology disciplines. The advent of functional magneticresonance imaging (fMRI) and position-emission tomography (PET) whichcan measure cerebral blood flow in the brain through sensing magneticsignals or low level radiation respectively to determine brain activity levelshave greatly deepened our understanding of the cognitive processesinvolved.19 Quite remarkably, the cognitive process has many similaritieswith computer information processing steps of acquisition, storage,retrieval, processing, data organization and artificial intelligence structures20leading to the computer metaphor in the science of cognition. All our religious doctrines, political ideologies, economic philosophies,management theories, and technology applications are based on ourcollective beliefs and values. Political philosophies of the last century havebeen based upon our primal fears of elimination or aspirations about adefined image of what the future should be, and traditional religioustheologies brought hope of immortality through the promise of forgivenessof our guilt and an afterlife. We are part of the environment and define itthrough our experience, needs, beliefs, values, biases, and motivations. The paradigm of knowledge has shifted from something seen as factualand absolute, to a contextual nature. Philosophers and psychologists of the20th century changed our conceptuality of knowledge in a massive shiftfrom the predictable Newtonian order centered on absolute identities of the 13
  6. 6. past. Our metaphor of understanding and explaining the environment hastranscended from a detached to an embodied view. Knowledge is a relativeconstruction, where for example, a coastal foreshore area can be understoodas a hinterland of resources by a geologist, a backdrop for a landscape sceneby a painter, a potential location for settlement by explorers, a place forchildren to play, and a romantic place to walk by couples; all derivingmeaning through context, need, aspiration, and experience. There is nowacceptance that the environment embodies multiple realities where meaningis based upon the context of individual and society. The importance of creativity can be explained through the metaphor ofthe universe as a medium full of drifting matter where distribution and formchanges over time. The universe evolved from being a homogenousenvironment of dust particles to becoming a complex haphazardenvironment where matter has condensed to form galaxies, clusters, andsuper-clusters. Evolution is thus a series of time phased transitions from oneform of matter to another under the influence of energy,21 Therefore the keyto evolution is the ability to reconfigure new combinations of information tocreate new knowledge, enacted by energy (discussed later), within ouravailable resources and capabilities to fit what the environment will accept.This is creativity. Creativity and intelligence are two very different cognitive qualities.Intelligence is more a characteristic and promotes paradigm specificconvergent thinking. Creativity on the other hand is a process and operatesdivergently,22 more relevant in finding solutions to problems anddeveloping new ideas. Creative thinking through various thinking stylesconnecting and restructuring information is the process that develops newcombinations of knowledge that manifest new ideas, inventions, andinnovations,23 New ideas must be accepted by peers to catalyze the progression ofsociety. Sometimes the acceptance of new ideas may take a long period oftime. The delays in acceptance may occur because the significance of someideas may not be fully appreciated at the time. The theories of flight andaerodynamics were not understood until the Wright Brothers found meaningand significance through experimentation based upon trial and error.Moreover inventions like Dunlop’s tire may be lost to the world if there isno apparent immediate application. The tire was only reinvented when animmediate application (the bicycle and automobile) existed. What constitutes creativity and original thinking can be very subjective.There is great argument about whether new ideas and inventions constituteprogress and what simply advocate change for change’s sake or solvesproblems people never knew they had. The additional apps and featuresbuilt into new mobile phone models are probably not going to advancesociety in any way, but may appeal to consumer emotions. Creativity can be 14
  7. 7. distinguished from fad creation, where creativity should incorporate newvisions. The consequences of creativity may only be discovered some time in thefuture. The moving of polluting industries out of Europe to Asia in the1990s was originally seen as an advantageous move by Europeanmanufacturers in lowering production costs and escaping stringentenvironmental regulations within the EU,24 but the consequences of thiswere not fully appreciated by policy makers at the time. The absence ofthese industries has drastically eroded the EU’s tax base and contributed tohigher unemployment levels.25 The application of creativity is primarily concerned with adaption to achanging environment. Creativity is culturally, geographically, andemotionally bound. It is also situational, and time phased. Creativity andoriginal thinking is concerned with technology, organization, socialdisposition and the ethical aspects of our lives. This is an important trait fora firm to posses in order for it to survive within a dynamic environment.26The top companies on the “500-lists” in 2020 will most likely becompanies that we don’t even know today. Adaptation is grounded onadopting new understandings that lead to new meanings that turn theimagination into the explicit which can be acted upon to create value tosociety. Testimony to the failure to adapt is the number of firms that dropoff the “500-lists” into bankruptcy, and the number of firms that rise intimes of recession, replacing failed companies on the “500-lists”.27 Creativity facilitates change and enables evolution within society.Unlike analytical thinking, creativity and the resulting ideas are rarelyconstructed upon tangible evidence and information. It’s an intuitiveprocess and flourishes at the edge where there is the potential for change.Creativity is the very catalyst of new knowledge itself, resulting in a newideas, inventions, technologies, or business models that translate intochange of society. Creative thinking must therefore transcend the thoughtboundaries that society has defined; otherwise society will remain static.4. Complex Systems and Our Thinking ApproachesThe environment is part of a larger system, which is part of a larger system,which is part of a larger system constituting the ever changing ambiguousmedium that we are immersed within. W. Brian Arthur postulated thatcomplex systems have three important characteristics.28 Firstly complexsystems grow in co-evolutionary diversity where different entities competeand collaborate in ever diversified activities, some surviving, while othersperish. Secondly, complex systems are on a continual path of structuraldeepening where entities will increase in complexity, and thirdly complex 15
  8. 8. systems act as ‘capturing software’ where entities interact with otherentities giving birth to new entities, objects, and events. These threeprocesses work continuously creating new phenomena where actions are nottotally predictable, e.g., the equities market, human immune system, etc.Consequently the environment continually reorganizes itself to higherdegrees of complexity, capacity, and meaning, through independent butinterrelated actions, while each entity maintains its own identity andredefines itself according to the changing requirements of the environment. Opportunities can be recognized in the market through discovery,29 orconstructed through developing a concept over time30 through actions in thereal world.31 This approach sees opportunity creation much the same as theprocess of creating new knowledge, a social construction that makes senseout of the environment.32 The market system can metaphorically be compared to the ebb and flowof a tide. The market environment is a culmination of time, place,technology, society, government, suppliers, customers, and competitors. It’san emerging system where new entities, business models, inventions, andideas spin off the ‘ebb and flow’ of the possible.33 Entrepreneurialopportunities exist as rocks uncovered by the ‘ebb and flow’ of the tide. It isa dynamic construct, a result of the continually interacting elements of themarket system. One invention or innovation may provide a platform for ahost of other innovations to spring into existence just like the railways inAmerica catalyzed the potentiality of many new industries that fosteredeconomic growth in the late 1800s and the internet that did the same in thelate 1990s. Innovation drives emergence and maintains the sturdiness of themarket system, continually changing the market structure. The marketstructure being the skeleton of the market system could be metaphoricallydescribed as shifting sands along a coastline, regularly eroded by the tide,molded by the winds, and left with impressions of the footprints of animals,people, and tracks of vehicles that pass over it. The market structure consists of companies undertaking variousactivities, transport infrastructure, supply chains, distribution points,bookkeeping systems, money, institutions facilitating exchange, regulatorybodies, and consumers. The structure is a complex web of reciprocalrelationships where each part relies on the rest of the market structure forexistence; i.e., the market structure cannot exist without each componentand each component cannot exist without the market structure. Existence isrelative to the existence of other entities within the market structure, i.e.,products cannot exist without the means of exchange, transport, and viceversa. The concept of relatedness applies to everything. Man doesn’t have amasculine self identity until he is in proximity to a woman and vice versa.Without males and females being side by side together there is no gender 16
  9. 9. awareness. Although being male and female is biological, the gendered selfis determined learning in childhood and the feelings we develop over ourgrowth and development.34 Likewise Pluto was considered a planet until2006, an equal member alongside the other eight planets within our solarsystem until many other similar objects of similar magnitude to Pluto werediscovered within the Kuiper Belt. Pluto is now controversially described asa dwarf planet due to the new set of relationships known as Trans-Neptunian objects (see figure 1). The discovery of the trans-Neptunianobject Sedna in 2003 changed our understanding of the solar systemdramatically. Our knowledge is enhanced through new understandings ofrelatedness. Knowledge is not a static constant but rather an emergingdynamic phenomenon that continually changes our understandings. Ourknowledge is subject to what we know today, which can completely changetomorrow. This facilitates change. The ‘ebb and flow’ of the tide embraces complexity. It appears verysimple, but actually is the manifestation of complex interrelationships. Thetide isn’t an object in itself, but has so much influence on what is going on.The tide defines and shapes the landscape. The tide is invisible but theeffects are clearly visible. The force of a tide can vary in magnitude from asmall wave covering your feet as you walk along a beach to a massivetsunami that can wipe out coastlines on multiple continents during a singleevent like an earthquake. Tide is similar to the invisible effect that occurswithin the environment, appearing simple but with overly complex motions.The change we see appears simple but the forces behind it are extremelycomplex. Most phenomena are just so complex we just see the effects andcan only hypothesize the causes or the motions. The true nature of a tideisn’t the water as just the true nature of the environment isn’t the individualconstituents within it, i.e., infrastructure, objects, or activities. This is notsomething that can be grasped, touched, clearly defined, or truly understand.The fall of the Soviet Union, the Asian financial crisis, and the economiccrisis of 2008, and the Arab Spring all came with little warning. Ambiguityis invisible where only the manifestations can be seen, unable to becorrelated to any causes directly, and thus too complex to be understood – itcan only be known, i.e., we can see the effects of gravity, but not gravityitself.Figure 1. The concepts of context and relatedness are metaphoricallyillustrated by the two grey inner-circles which are both the same size.35 17
  10. 10. From a quantum perspective existence depends upon the relation betweenentities and objects. We cannot understand anything in isolation, but onlythrough what it does.36 The nature of the environment is both a bond(structure) and a flow (system) that embodies complexity. It is relationshipthat gives meaning and forms the tide of the environment – an extremelypowerful concept that gives our identities an existence. Each particle is amere abstraction in physics until the interactions with other particles areunderstood.37 We see the relationships between things which enable us tosee the ambiguity and contradictions.38 For example, we cannot make senseof, or understand human beings in isolation. We must focus on therelatedness, i.e., experience between our self and others. Even the conceptof “I” and “me’ is grounded in relatedness between people. All politics,diplomacy, economics, are based upon relatedness. The key tounderstanding is seeing the relationships and contradictions rather than thesingular entities. Connections can best be seen where contradictions are perceived;becoming a starting point for a new understanding of the possible. Newideas come from where there are errors, not perfections. Errors act as atrigger to force us to rethink our hypotheses and challenge ourpreconceptions. This opens up possibilities to ‘what could be’. BenjaminFranklin once said “Perhaps the history of the errors of mankind, is morevaluable and interesting than that of all the discoveries.” Seeing newconnections through relatedness is the basis of new creative insights thatlead to breakthroughs in new knowledge. We simplistically understand climate change as global warming,characterized by rising temperatures, changing weather patterns, meltingicecaps, and rising sea levels. We generally believe in the phenomenonprimarily because of greenhouse gases we as a society collectively emit intothe atmosphere. Anybody who argues against this would be labeled askeptic or non-believer, protecting vested interests. However a recent studysuggests the relationship between temperature change and higher CO2levels in the atmosphere are highly exaggerated where atmosphere is not assensitive to CO2 levels as was first thought.39 In addition the Arctic andAntarctic ice caps are growing, and not in decline as many believe,40leading to confusion, more debate, polarized positioning and evenskepticism.41 In complexity, truths are not absolutes. In the field of development economics there is little agreement aboutstrategy and what should be measured as success indicators. TheMillennium Village (MV) project founded by Professor Jeffrey Sachs andphilanthropist Ray Chambers was started with a host of objectives, desires,and hopes.42 Overwhelming successes were claimed.43 However, these werestrongly questioned from a number of perspectives, with some claiming 18
  11. 11. better results could have been obtained through other strategies.44 Truths arenot absolutes they are relative to what one believes. Any view we have isonly partially the truth. There are many truths – and it is important toacknowledge that.45 Reality rests upon these multiple truths whichaccommodate ambiguity. Creativity is about continually restructuring andevolving our worldviews to accommodate change and ambiguity. Withinthe quantum view one must accept uncertainty upon the premise that we cannever know everything. Instead of using mathematical formulas, we canonly assume probabilities that certain things may happen. Precision does notexist. Our lives and the environments we live within have become so complexthat it is exceeding our cognitive abilities to cope. Our brain has developedfrontal lobes over the last two million years making two significantcontributions to the way we think. If we return to the first scene “The dawnof man” in Stanley Kubrick’s epic 2001: A Space Odyssey, the beginning ofour species was sparked off by a moment of creativity – the great apegaining an insight on how to use a bone as a tool and weapon. Ourprefrontal cortex has given us the ability to make connections. Secondly ourprefrontal cortex gives us the ability to interact, to have empathy, toimagine, and to manipulate the social surround. Kubrick’s great apesdefended the group – a social action. However over time we have become preoccupied with our manmadesystems and ignored natural systems, becoming too logical and linearthinking. The great sociologist Max Weber called this the process ofrationalization. He characterized this rationalization as efficiency,predictability, calculability, and control over uncertainty, manifested byrigid bureaucracy,46 the prime means by which we organize our society.Author and psychiatrist Iain McGilchrist describes the phenomena as a lefthemisphere dominated society, where the left has no wisdom, just data andrepresentations, where for example money stands for values and objects,where maximum utility is sort, where there is need for control, in anenvironment where we comply to rules.47 What most don’t realize is that we actually have very little control overthe environment, just an illusion of control. We have developed structureslike bureaucracy and systems like ISO, Six Sigma, and TQM to give theappearance of order and control around us. But our science is not fact as wetend to assume. Science is made up of hypotheses about findingcorrelations, not necessarily cause and effect, not necessarily fact.Economics, management and sociology simply reflect our values,aspirations and fears at the time and thus impasse narrow perspectives uponenvironmental phenomena. This is clearly seen in academia today whereaccording to Tufts Professor Amar Bhídé, most of the big economicjournals today reflect right wing ideology,48 thus suppressing alternative 19
  12. 12. views. People beliefs, expectations, and values influence their views of theworld according to their respective perspectives.49 Change occurs through the development of new ideas, inventions, andinnovations. The environment is a self regulating system evolving throughthe trial and error, driven by creative thinkers who take action upon theirideas. This could be a morphic phenomenon where collective informationbecomes an enabler of new emergence, explaining why different groups indifferent parts of the world without knowledge of each other orcollaboration can invent the same thing. This drives what Schumpeter called‘creative destruction’ and what the systems theorists call ‘emergence’, andis where creative thinking originates. Creative thinking occurs out of thechaos rather than order of any environment. Creative thinking is also restricted through our bounding to time andspace.50 What is possible must have the right social, cultural, legal, andtechnological ideas, inventions, and innovations in place as prerequisites,before a new idea, invention, or innovation can exist through what StevenJohnson calls the ‘adjacent possible’.51 Numerous scientific discoveriesand technological improvements like the steam engine, automobile, orwinged flight, occurred after thousands of cumulative hours of thoughttranspired. No single person can be considered fully responsible for thesediscoveries or inventions.52 A single idea is a summary of all conceptswhich have been learned over the years of living. An idea must beexpressed for creativity to emerge, which is not restricted to any one form.It could be a narrative, a poem, a model, a picture, or a piece of art. Any original concept without all necessary ideas, inventions, andinnovations in place will be fantasy rather than something with immediatepotential reality, i.e., the absence of a small engine that could produceenough thrust over and above its own weight was one of the barriers toinventing powered flight. The idea of nano-sensors circulating within thebloodstream to diagnose human ailments currently lacks the ability tominiaturize such sensors, but will most probably become a reality when therequired nano-technology exists. All new ideas, inventions, and innovationsare created on the foundations of previous works – a summary of allprevious concepts that have been learned over previous years expressed asan idea, invention or innovation. For example, an automobile is a compilation of numerous previousinventions that enable the form of an automobile to exist. Without the ideasof steel, rubber, fuel, concepts of compression and combustion, electronics,tires, braking system, new alloys, hydraulic systems, road rules andcarriageways, the automobile cannot exist (see figure 2). The creation ofinventions that become automobiles is a continuous process. Incrementalimprovements to the whole idea advance the automobile. New compositepolymer materials and plastics make lighter frames without sacrificing 20
  13. 13. strength, new engine power enhancing systems like turbochargers and fuelinjection systems contribute to the enhancement of car performance. Theautomobile is a system of ideas and also forms part of other ideas liketransport systems and city planning, etc. The potential reality is limited byknowledge and imagination. The inter-connectiveness of everything is so entangled that looking atthe separate parts of any system will tell us very little about the functioningof the whole. Anything without the context of the rest of the system haslittle meaning, i.e., tires, a braking system, or a chassis will tell us littleabout an automobile itself. Everything must exist in relation to other thingsin order to have meaning. To the inventor who is making connections,finding the related meanings between the different objects is the key toingenuity. It’s the new meaning that ingenuity provides that advancessociety. Automobile Chassis Engine Tires Control & Braking System Environment Management Systems Suspension Fuel Rubber Electronics Alloys Road Rules Systems Steel Compression Chemical Microprocessors Hydraulics Roads & & Processes carriageways Combustion Heat Engineering Plantations Transistor Laws of Fluids Horse & Processes principles BuggyFigure 2. Time and Space: It was the previous ideas and inventions thatexisted before an invention like the automobile was possible.The invention process is subject to multiple realities. Entrepreneurs developnew ideas upon their prior knowledge, existing technology and inventions.Any new invention is based on the past and is a projection into the future.Thus the entrepreneur stands on the origin of possibilities and projects his orher imagination along a new vector of reality of choosing. For example, 21
  14. 14. Anita Roddick’s holiday in America and visit to the Body Shop operated bysisters Peggy Short and Janet Saunders in Berkeley California, triggered herto imagine a new reality of ethically based retail outlets around the world.Without entrepreneurs standing at the origin of possibilities and envisaginga different future, society could never change. Had each entrepreneurchosen a different way to go, different realities to what was created wouldnow exist. An entrepreneur is the creator of new realities.5. Thought CognitionThe cognitive functioning of the mind is no longer a mysterious black box.Over the last fifty years we have developed a much deeper understandingabout how we think. With the work of Pierre Paul Broca and Karl Wernickein the 19th Century, the different functioning of the left and righthemispheres of the brain began to become vaguely understood. Thisunderstanding was greatly enhanced with the work of Michael Gazzanigaand Roger Wolcott Sperry on functional lateralization and how the twohemispheres communicate with each other when the corpus callosum thattransfers signals between the two hemispheres was severed with split-brainpatients.53 After further work by Robert E. Ornstein, a strong consensusdeveloped that the brain was fully conscious in both hemispheres carryingout perception, thinking, storing and retrieving memory simultaneously, butat the same time providing different and conflicting views of the world. Julian Jaynes hypothesized in his controversial book The Origin ofConsciousness in the Breakdown of the Bicameral Mind that the brain wasindeed divided with a dominant left part that spoke and a subservient rightthat obeyed – hence the bicameral mind.54 Although at the time Jaynes sawbicameralism as metaphoric, advances in cerebral imaging in the 1990sconfirmed his early predictions.55 Jaynes postulated that we have a schizoidtendency due to hemispherical conflict in the way each hemisphere thinks,which heavily influenced beliefs about consciousness at the time. Theseideas about split brain functioning were taken up by academics andpractitioners in the creativity and education fields. The functions of the brain was described as split into two hemisphereswhere the left side was believed to be sequential, concerned with facts,splitting the world into concrete and identifiable categories, logicalreasoning, linear thinking splitting things apart, mathematically orientated,and the centre of words and language. Thus the left hemisphere is able tobring narrow and sharply focused attention to detail. On the other side, theright looked at the environment in a holistic manner looking at the whole,visually and spatially orientated, seeking similarities through analogy, 22
  15. 15. thinking in images, and thus able to believe, be vigilant over theenvironment, and transform ideas. Our education system has been orientated towards developing generalintelligence and critical thinking, all left traits. This is probably due to beliefin the 1960’s that left side traits were more important in earning an income.This is clearly reflected in the learning taxonomy developed by BenjaminBloom in the 1950s. Edward De Bono brought predominating focus upon the righthemisphere of the brain as the centre of holistic or what he called lateralthinking, where creativity was thought to be derived.56 At that time it wasbelieved that the dominance of one side and corresponding thinking styleswould suit specific activities, i.e., left side dominance would suit activitieslike learning languages, mathematics, engineering, and reading, while rightside dominance would better suit activities like social science, educationand the visual arts57. From a gender perspective it was considered that rightdominance would enable superior interpersonal skills and would be morecommon in women and left hand dominance which promoted logicalreasoning would be more common in men.58,59 which supported AngloSaxon arguments about male dominance in the Victorian era and influencedvocational guidance right up to recent times. The divided brain paradigm was reinforced by medical schools wherestudents would examine brain anatomy to see the clear division of the braindown the centre. For many years child psychologists and educators wouldlook at children’s hand orientation as a rough indication of brainhemisphere dominance.60 As it was believed that the left hemisphere wasmost important to develop scholastically, most children were encouraged tobe right handed which was controlled by the left hand side of the brain. This belief in the way we thought was built upon by Ned Herrmann aphysicist who worked within the human resource department of GeneralElectric. After years of research in creativity of the human brain Hermanndeveloped a metaphorical model of how the four quadrants of the brain havespecialized functions.61 Herrmann believed the brain works as a coalition offour quadrants that carry out specialized functions. Quadrants A and B aresuperimposed over the left side of the brain which is sequential and time-bound and quadrants C and D are superimposed over the right hand side ofthe brain which is holistic and timeless. Quadrant A thinkers think in termsof words and numbers, logically and analytically. They are achievementorientated and most people are trained and educated in this way.62 QuadrantB thinkers are task-orientated and result driven in the way they organizefacts and plan. Quadrant C thinkers are intuitive and rely on interpersonalstimulations and quadrant D thinkers are conceptualizing, imaginative andholistic.63 The four quadrants are the basis of our thinking preferenceswhich determine how we prefer to learn, understand and express things in 23
  16. 16. what are called cognitive preferences or preferred modes of knowing.64People tend to think from different positions within the whole brainmetaphor. Each quadrant works in tandem in varying degrees withinindividuals. When faced with a situation or problem we use our preferredway of thinking to make sense and solve the problem. When people areanchored toward one mode, other modes of thinking are avoided. Thisgreatly affects our intake of information, comprehension of a situation andoverall learning capabilities.65 However this was not reflective upon how the brain really worked.Functions that were previously believed to only occur on one side of thebrain were found to actually occur on both sides, and it was found that thecorpus callosum played a very important coordinating role, which can varyfrom person to person.66 In addition, our whole understanding ofintelligence was beginning to be redefined both in terms of concept andapplication.67 Traditional general intelligence was not the only form wehave. We have many different forms of intelligence which vary inimportance according to the time, location and situation we exist within.The talents and abilities of a New York stockbroker differ from an Olympicmarathon runner, an advocating lawyer in a courtroom, a geologist, and anAustralian aboriginal living off the land in Central Australia. No one cansay which of these people are more intelligent as the necessary talents,abilities, and underlying intelligences differ just as the tasks, applications,and required outcomes differ. Our increasing understanding of the role of the prefrontal cortex throughboth cerebral imaging and examination of brain damaged patients indicatedthat it is the thinking processes that are of upmost importance in applyingintelligence to problems and challenges we face. The prefrontal cortex isthe centre where we are able to distinguish differences in people, objects,and events and develop premeditated time phased actions, choose betweenalternatives based on set criteria and values, override unacceptable actionpathways that the limbic system may bring attention to. Thus the prefrontalcortex is able to filter and inhibit inappropriate thought, emotions, anddistractions.68 The prefrontal cortex receives highly filtered data from the senses. Itcombines this data with selective memory recall69 to construct a map ofreality that enables us to see the world within our own context. This dividesour reality into, and connects past, present, future together through bothcross temporal and modal association and deliberate potential actions70 – atotally relational system. Consequently the prefrontal cortex is a top-down processor rather thanthe bottom up limbic system that encourages action through emotionalgeneration. The prefrontal cortex can also be seen as an integrator of thetwo hemispheres, limbic system, senses, and memory functions. Both 24
  17. 17. reason and imagination originate from the prefrontal cortex where bothprocesses require all facets of the mind rather than being exclusivelydomiciled in any one hemisphere. The prefrontal cortex must integrate theleft hemisphere’s narrow focused and categorized view of the world whichlock us into particular patterns with the right hemisphere’s overall openview seeing the world more as a system – as the right hemisphere sees andthis needs to be made sense of by the left hemisphere which categorizeswhat the right sees. A mental map is constructed which will differ fromothers in the degree of balance between left and right hemispheredomination. The prefrontal cortex selects data that creates our mental maps filteredwith set patterns, values and beliefs contained within neurologicallyconstructed schemata stored within the memory. Where thoughts, desires,feelings, and ideas are not consistent with the values and beliefs withinthese schemata, feelings of confusion, puzzlement, surprise, guilt and/orremorse may emerge due to the conflicting way reality is interpreted.71These types of conflicts must be resolved through reason, imagination andemotion. Sometimes this leads to great new insights where new connectionsare made integrating into what could be called reasoned imagination. Therole of emotion is to draw attention to important triggers and keys in theprocess. Due to the empathic nature of the prefrontal cortex, we seerelationships between people, things and events. Creativity and originalthinking is about seeing these relationships. At other times emotions triggerthe initiation of any of a vast array of defense mechanisms that may lead tosome forms of dysfunctional thinking.72 From this point of view it could beargued that our conscious awareness resides within the prefrontal cortexand connected tracts leading to the rest of the brain.73 The world weexperience is as much a product of our mind as it is the environment. The brain is a self organizing system full of neural connections.Probably one of the closest explanations to how our brain processesinformation in the recognition process is the neural network model.74Information is broken up and stored in nodes that connects with other piecesof information through the dendrite of a neuron (a branched tree likestructure) to terminal buttons at the end of axons (thin branches of neuralcells), where the terminal buttons connect to the dendrites of other cells atthe synapse (junction between the terminal button of one neuron and thedendrite of another neuron). These neuron connections are numerouscreating (or arranging) our thoughts from a relational database ofinformation that can be assembled to form meaning when electricalimpulses go above a threshold that makes us aware of a piece ofinformation. Neural networks accommodate learning through changing the weights ofnode activation through excitatory or inhibitory actions. This improves the 25
  18. 18. efficiency of the network in making identifications through being able toprocess information in parallel, through both top-down and bottom-upprocessing. This enables a person to look, in the case of writing, either atthe word level, letter level, and feature level, which implies we can interpretincomplete words and sentences.75 The controlling mechanism ofcommunications (i.e., connections) between neurons is located within theprefrontal cortex.766. Memory and Prior KnowledgeOur memory stores information about people, objects, and events; insomething like a web of connections explained above. We are not exactlysure where memory is stored, but it is believed to be around areas of thebrain responsible for language, vision, and hearing, etc, connected throughmillions of complex synapses. The hippocampus performs the role as amediator in forming memory and as a coordinator in connecting therespective memory centers of the brain.77 Consequently information is notstored whole and divided into relational bits. Recent research has shownthat when new experiences occur, a gene activates within the hippocampusthat triggers modifications in neural connections by adjusting the strength ofthe synapses.78 Our life experiences, knowledge, knowhow, values, and beliefs are allstored within the neural systems within our memory. Prior knowledge isinformation and knowledge a person accumulates over their lifetime.79 Asone’s experience grows the mental matrix of prior knowledge becomesricher and more complex. However prior knowledge is not all truth, it ismade of perception, beliefs, and imagination which make up thecomponents of our memory (see figure 3) – our constructed reality. The content of prior knowledge can be demonstrated by thinking aboutLeonardo da Vinci’s mural Il Cenacola or The last Supper . In the picturemany people believe that a holy chalice is present. On viewing the paintingone will find there is actually no holy chalice on the table whatsoever(however there are cups). This is how our beliefs developed throughBiblical stories around the last supper shape and influence our mentalconstruction of what we would expect to see, i.e., how we construct ourreality. Our prior knowledge as well as being influenced by the worldaround us also influences our general perception of the world. 26
  19. 19. Memory Truth Knowledge Belief ImaginationFigure 3. Prior knowledge consists of truth, belief, knowledge, imagination, andmemory.We build up knowledge upon a pool of metaphors as a way to comprehendand construct meaning about the environment around us.80 The advantage ofmetaphor is that it can be loosely applied to contextual situations in aflexible manner to help clarify uncertainty through analogy. Metaphorsmake things more familiar to us and if they can explain new experiences toour satisfaction, our current schemata and emotions are reinforced. Throughthe use of metaphor, prior knowledge assists in problem solving byproviding simpler analogies where complex cause and effect cannot beeasily understood and evaluated. Metaphors help a person make sense oftheir experiences, perceptions, develop plans for the future, andcommunicate these ideas to others.81 For example, business strategy is oftenreferred to through sport and war analogies which make concepts easier tounderstand and visualize. In a similar manner, blood circulation is oftenexplained in pumping and pressure analysis. Metaphor is not restricted to narrative and relies very heavily uponmental imagery. Spatial based mental imagery is extremely important inconceptualizing and solving problems. Imagery is powerful in arousingemotion as we see when the majority of people are exposed to sexuallyexplicit and violent material. Mental imagery originates within the visualcortex located in the occipital lobe in the posterior of the brain, thus sharingthe same processing space with the visual perception area.82 Much of ourimagination is generated in the visual mode which is sometimes confusedwith reality.83 Imagery is a composite picture just like a mental map. We cannotreconstruct an entire image of a scene we can only make a compositesimulation, which is actually what we also do when we look at a scenethrough our eyes84 - remember the Last Supper example. What we see is the 27
  20. 20. composite we construct and not reality. Images cannot however serve asconcepts or ideas themselves, they can only serve as the meaning of wordslike a dictionary.85 Metaphorical language evolves into existing imagery and narrativeframeworks within prior knowledge, where ideas can be shared with others.If current metaphors cannot explain our interpretations of currentexperiences and solve particular problems, then new experiences need to beblended in with prior knowledge to create a modified schemata and newemotions. This overtime develops much more sophisticated and richermental models which assist us when issues and problems we considerbecome much more complex – the development of wisdom.86 Experience differs from knowledge in that it introduces feeling andemotion. For example one could read about snorkeling and diving but untilone has gone diving where they can feel the pressure and experience theundersea life, knowledge has no feeling. As individuals experience thingsdifferently, i.e., diving around the surface verses diving at the depth of 25feet and diving in clear tropical waters verses murky lake water. To a greatdegree knowledge is individually orientated. No one has the sameexperience of the same event and this adds to the concept of understandingas something relative rather than absolute. The enrichment andtransformation of our schemata over time occurs through learning andexperience.87 The key to our ability to continue learning is to be able tointegrate the knowledge we acquire with the knowledge we already have. The belief and imagination components of prior knowledge influenceour thinking and decision making processes. Our current beliefs are like ananchor that prevents us from thinking of new ideas. We are also stronglyinfluenced by the beliefs of others and emotions tied to similar pastexperiences.88 Prior knowledge manifests as stereotyping which assists a personcomprehend a story and judge its plausibility, bringing in judgments andbiases to our thinking.89 In addition, biases guide our decision pathways.Any first decisions we make on any matter creates a pathway upon whichfuture decisions will be guided. Biases tend to keep us on a consistent paththrough an “escalation of commitment”, even though we may know that theoriginal decision was wrong. We are also bound by culture. Culture has a strong bearing on our abilityto be creative both at a social and organizational level. For example, cultureinfluences how employees feel in a workplace; are people linked or workwithin a ranked hierarchy?, do people seek ideas through collaboration ortake on ‘top-down’ ideas?, are people empowered or controlled?, do peopleexist within an environment of ambiguity or certainty?, do people makedecisions spontaneously and intuitively or through formal processes andprocedures?, is the organization flexible and quick to act or inflexible and 28
  21. 21. slow to act?, and does management make work play or work under anenvironment of seriousness? Creativity and original thinking is about making new connections, i.e.,developing new neural networks. Thus our thinking is limited by theknowledge we already have within our memory and the process of how weintegrate new perceptions into existing prior knowledge. As perceptions areinfluenced by our beliefs and biases, new ideas are actually the result oflogical hindsight rather than foresight.90 Therefore creativity can be seen asbeing a restructuring of our knowledge to fit the elements of the problemswe face. In these cases the role of creativity is to find new ways to define aproblem so it can be solved with the knowledge we have. From thisperspective the mind’s self organizing system is restricted by the boundariesof environmental perception and our prior knowledge, placing limits on thescope of possible emerging ideas. Virtually no idea or invention has occurred in isolation. We learnthrough various methods from others i.e., James Watt used pre-existingknowledge to develop his version of the steam engine. New ideas andinventions tend to be incremental steps rather than breakthroughs outsidethe bounding of prior knowledge. Humans are social animals andcommunication is central to our evolving thinking. As our prior knowledgeincreases through social interaction, learning and experience, so does thenumber of potential possibilities for making new connections that lead tonew constructions, just as our ability to speak a foreign language increasesexponentially once we know the basic syntax rules and increase ourvocabulary. The way our cognition system is designed and the role prior knowledgeplays is extremely useful for people carrying out their work like doctorsmaking a diagnosis, mechanics inspecting an engine for faults, airline pilots,and farmers, etc., doing the routine parts of their jobs. Prior knowledgeguides them through a number of frames each representing pre-existingmental models through which they perceive – shaping our reasoning anddecision making process. This is also the basis of their specialist intuition.91Any new idea is anchored to our life experience, formally or informallyacquired knowledge and associated emotions attached to vision that enablesnew connections.92 The key to original thinking is reflection, plasticity andflexibility at both the neural and thinking levels.7. ImaginationImagination is the ability to form mental images, phonological passages,analogies, or narratives of something that is not perceived through oursenses. Imagination is a manifestation of our memory and enables us to 29
  22. 22. scrutinize our past and construct hypothetical future scenarios that do notyet, but could exist. Imagination also gives us the ability to see things fromother points of view and empathize with others. Imagination extends our experience and thoughts, enabling a personalconstruction of a world view that lowers our sense of uncertainty.93 In thisway our imagination fills in the gaps within our knowledge enabling us tocreate mental maps that make meaning out of the ambiguities of situationswe face where information is lacking,94 which is an important function ofour memory management. This partly explains why people react differentlyto what they see due to the unique interpretations they make based ondifferent prior knowledge and experience. Imagination enables us to createnew meanings from cognitive cues or stimuli within the environment, whichon occasions can lead to new insights. Our knowledge and personal goals are embedded within our imaginationwhich is at the heart of our existence, a cognitive quality that we would notbe human without.95 Imagination is the means novelists use to create theirstories.96 The Turkish Nobel Laureate Orhan Pamuk imagined a world heretreated into as a child where he was someone else, somewhere else increating the narrative and story of his novel “Istanbul”. Imagination isneeded in marketing to create new value sets to consumers that separatenew products from others. This requires originality to create innovation97.Imagination is the essence of marketing opportunity98 that conjures upimages and entices fantasy to consumers, allowing them to feel what itwould be like to live at Sanctuary Cove in Northern Queensland, Australia,receiving a Citibank loan, driving a Mercedes 500 SLK around town, orholidaying in Bali. Imagination aids our practical reasoning99 and opens upnew avenues of thinking, reflection, allowing a mentally reorganized world,to enable concepts of doing things differently. Imagination decomposeswhat already is, replacing it with what could be, and is the source of hopefear, enlightenment, and aspirations. Imagination is not a totally conscious process. New knowledge mayincubate subconsciously when a person has surplus attention to focus onrecombining memory and external stimuli into new meanings. Most peopletend to spend a great deal of time while they are awake “daydreaming”,where attention shifts away from the present mental tasks to an unfoldingsequence of private responses.100,101 This may be enough to activate ourdefault network, a web of autobiographical mental imagery, which mayprovide new connections and perspectives about a problem we have beenconcerned with. Recent research has shown that the brain periodically shiftsphase locking during a person’s consciousness,102 where neural networksactivate and these brief periods may be enough to allow the dominant lefthemisphere give way to the right hemisphere, enabling a person to see theenvironment, problem or issue from a new perspective.103 This has been 30
  23. 23. corroborated with research that found where people engage in mildlydemanding intellectually challenging tasks during breaks from work thatthey are doing, there is a higher probability of finding solutions to problemsthat they have been engaged within their primary activity.104 Theseprocesses originate from the prefrontal cortex where we imagine ourselvesand the feelings of others, the posterior cingulate cortex connecting ourpersonal memories throughout the brain, and the parietal cortex connectingthe hippocampus which is reported to store episodic memories.105 Unguided imagination (or what was once termed “free association”)through dreaming and “daydreaming” enables the gathering of informationfrom different parts of our memory, which may not be easy to accessconsciously. This information may come from a within a narrow domain ora much wider field. The more imagination takes account of the wider field,experience, and prior knowledge, the more likely these ideas createdthrough imagination will have some originality – through complexknowledge restructuring. Allen McConnell writing about Steve Jobs inPsychology Today postulated that the large array of fonts designed for theMacintosh computer were inspired from Job’s interest and knowledge abouttypography he learned while doing a calligraphy class at Reed.106 It wasJob’s imagination of seeing an array of fonts in the Macintosh that made itreality. There are very few serendipitous occurrences in creative insight.Most are the result of triggers and slow incubation periods that lead to arevelation.107 Marsh and Bower called the above types of insights inadvertentplagiarism.108 Most cases of insight were inspired by something in the past;although though imagery these new concepts may have been given newtypes of manifestations. It is through the imagery of analogies that manybreakthroughs in science have been achieved.109 Einstein developed hisinsight for the theory of relativity through imagining what would happen ifhe travelled at the speed of light, Faraday claimed to have visualized forcelines from electric and magnetic fields from a wood fire giving insight intothe theory of electromagnetic fields and kekulé reported that he gainedinsight into the shape of the benzene molecule after he imagined a snakecoiled up in a circle. Imagination is a multidimensional concept and encompasses a numberof different modes which can be described as follows;1. Effectuative imagination combines information together to synergizenew concepts and ideas. However these are often incomplete and need to beenhanced, modified, and/or elaborated upon as more information from theenvironment comes to attention and is reflected upon. Effectuativeimagination can be either guided or triggered by random thoughts, usuallystimulated by what a person experiences within the framework of their pastexperience. Effectuative imagination may also incubate from pondering 31
  24. 24. over a specific problem within the occasional attention of a person.Effectuative imagination is extremely flexible and allows for continuouschange. This is an important ingredient in entrepreneurial planning, strategycrafting, particularly in opportunity construction, development, andassembling all the necessary resources required to exploit anyopportunity.110 Effectuative imagination also leads to other forms ofimagination that assists in the construction of concepts, ideas, and actionscenarios. Effectuative imagination enables flexibility in our thinking.2. Intellectual (or constructive) imagination is utilized when consideringand developing hypotheses from different pieces of information orpondering over various issues of meaning say in the areas of philosophy,management, or politics, etc. Intellectual imagination originates from adefinite idea or plan and thus is guided imagination as it has a distinctpurpose which in the end must be articulated after a period of painstakingand sometimes meticulous endeavor. This can be very well illustrated withCharles Darwin’s work which resulted in the development of his hypothesisexplained in his book The Origin of Species which took almost two decadesto gestate and complete. Darwin collected information, analyzed it,evaluated and criticized the findings, and then reorganized all theinformation into new knowledge in the form of a hypothesis.111 This can bea long drawn out process, sometime decades long, with intermittent periodsof high intensity and other periods where very little thought is given to theproblem. Intellectual imagination is a very conscious process, although itmay slip into other forms of imagination that enable new insights.3. Imaginative fantasy creates and develops stories, pictures, poems,stage-plays, and the building of the esoteric, etc. This form of imaginationmay be based upon the inspiration of some fact or semi-autobiographicalexperiences (James Bond), extrapolated or analogized into new persona andevents (Star Trek) that conform to or stretch the realms of reality intomagic, supernatural mythology and folklore (The kane Chronicles, KingArthur). Imaginative fantasy may be structural with mythical people in realworld settings (The Planet of the Apes), past, present, or future, with realpeople in mythical settings (Lost in Space). Fantasy may totally disregardthe rules of society (The Wonderful Wizard of Oz), science and nature (TheTime Machine, Back to the Future), or extrapolate them into the future withscience fiction (2001: A Space Odyssey). Fantasy can also be based uponhuman emotions (Romeo and Juliet), distorted historical facts (The Patriot),historical times and political issues (Dr. Strangelove), take a theme andfantasize it (1984, Animal Farm), encapsulate dark fantasy (Wag the Dog),or evoke urban legend (The Stepford Wives, Dusk to Dawn). Imaginativefantasy can be a mixture of guided and unguided imagination and isimportant to artists, writers, dancers, and musicians, etc. 32
  25. 25. 4. Empathy is a capacity we have to connect to others and feel what theyare feeling. Empathy helps a person know emotionally what others areexperiencing from their frame and reference.112 Empathy allows our mind‘to detach itself from one’s self’ and see the world from someone else’sfeelings, emotions, pain, and reasoning.113 Empathy can assist us in seeingother realities, alternative meanings of situations, which may consist ofmany layers. Empathy shows us that there are no absolutes, just alternativemeanings to situations.114 Empathy links us to the larger community andthus important to human survival in enabling us to understand what isrequired to socially coexist with others. Empathy shows that realitiessometimes conflict. Seeing conflicting realities is a sign that we are startingto know. Howard Gardner postulates that the concept of empathy shouldalso include our empathy with nature and our place within it.115 High ego-centricity leads to reduced empathy and the inability to see otherviewpoints. However recent studies on narcissistic individuals has shownthat there are two types of empathy, affective empathy discussed above andcognitive empathy which involves the ability of people to see person’semotional state without being able to feel what they are feeling.116 Lack ofempathy can also be compensated by strategizing and spontaneousmentalizing to manipulate others to their advantage. These Machiavellianpersonalities don’t necessarily feel the same emotions as those withempathy receive, so don’t feel guilty when manipulating others.117 This typeof behavior can be seen in short-term mating strategies by males.118 Besidesbeing extremely important in interpersonal relationships, empathy is animportant tool for competitive strategy as it enables one to think about howour competitors would react to our moves and what they would do.Branding can also be considered a result of empathy as branding is designedto try and capture connections with potential customers by appealing totheir emotions, self identity and aspirations.5. Strategic imagination is concerned about vision of ‘what could be’, theability to recognize and evaluate opportunities by turning them into mentalscenarios, seeing the benefits, identifying the types and quantities ofresources required for taking particular actions, and the ability to weigh upall the issues in a strategic manner. A vision helps a person focus upon thetypes of opportunities suited to their disposition. This sense of vision isguided by a person’s assumptions, beliefs and values within the psych.Vision has varying strengths in different people depending upon their egocharacteristics and motivations. The ability to spot and evaluateopportunities is closely linked with a person’s imagination, creativethinking, propensity to action, and perceptions of their talents and availableskills. According to Bolton and Thompson entrepreneurs spot particularopportunities and extrapolate potential achievable scenarios within thelimits of their skills and ability to gather resources to exploit the 33
  26. 26. opportunity.119 These extrapolations from opportunity to strategy requireboth visual/spatial and calculative thinking skills at a strategic rather thandetailed level. Adequate concentration is required in order to have astrategic outlook upon things. This requires focus in strategic thinking,creativity, a sense of vision, and empathy. Strategic (and also intellectual)imagination can be utilized through thought experiments, the process ofthinking through a scenario for the purpose of thinking through theconsequences. Too little focus will result in random jumping from potentialopportunity to opportunity without undertaking any diligent mentalevaluations. Too much focus may result in narrow mindedness and evenobsessive thinking which would result in either blindness to potentialopportunities or at the other end of the scale taking action without truly“objective” evaluation. Strategic imagination in some cases is a form ofwisdom.6. Emotional imagination is concerned with manifesting emotionaldispositions and extending them into emotional scenarios. Without anyimagination, emotion would not be able to emerge from our psych andmanifest as feelings, moods, and dispositions. Fear requires the imaginationof what is fearful, hate requires imagination about what is repulsive, andworry requires the imaginative generation of scenarios that make oneanxious. Through emotional imagination, beliefs are developed throughgiving weight to imaginative scenarios that generate further sets of higherorder emotions. Emotional imagination operates at the unconscious andsemi-unconscious level. People who show excessive emotional imaginationwould most probably be defined as exhibiting psychotic tendencies.Emotional imagination is one of the most powerful types of our imaginationand can easily dominate our thinking processes.7. Dreams are an unconscious form of imagination made up of images,ideas, emotions, and sensations that occur during certain stages of sleep.Dreams show that every concept in our mind has its own psychicassociations and that ideas we deal with in everyday life are by no means asprecise as we think.120 Our experiences become sublimed into our memorypassing into the unconscious where the factual characteristics can change,and can be reacquired at any time. According to Jung, dreams are theinvisible roots of our consciousness,121 and connect us to our unconscious.However the meaning of dreams is can only be based on our speculativeinterpretation. Some dreams are very straight forward, while others surreal,magical, melancholic, adventurous, and sexual where we are most of thetime not in control.8. Memory reconstruction is the process of retrieving our memory ofpeople, objects, and events. Our memory is made up of prior knowledgeconsisting of a mix of truth and belief, influenced by emotion. Recurringmemory therefore carries attitudes, values, and identity as most of our 34
  27. 27. memory is within the “I” or “me” paradigm. Memory is also reconstructedto fit into our current view of the world, so is very selective. The process ofmemory reconstruction occurs within our subconscious emerging into ourconsciousness without us being really being aware of the source elements,i.e., what is fact and what is belief. Memory reconstruction is assimilativeand can construct new knowledge out of random facts, beliefs andexperiences which may lead to insight. Each form of imagination outlined above certainly overlaps and mayoperate in tandem. Imaginative thinking provides the ability to movetowards objectives, and travel along selected paths. Imagination is muchmore divergent than logical thought, as imagination can move freely acrossfields and disciplines, while logical thinking is orientated along a narrowlyfocused path. From this perspective imagination is probably more importantthan knowledge as knowledge without application is useless. Imaginationenables us to apply knowledge. However imagination can also be dysfunctional. Personality disordersand the emerging emotion can dominate our imagination with fear, anxiety,paranoia, and/or narcissistic tendencies, etc.122 This may prevent a personfrom imagining new alternatives to their current goals and behavior, thusallowing their past fears and anxieties to dominate their thinking.123Imagination can consciously or unconsciously dissociate a person from thereality of their everyday life where they may fall into the life of fantasy.Abstract imagination can very quickly take a person away from realitywhere current problems are ignored in favor of fantasy.1248. EmotionCognition as a discipline has emerged over the last sixty years with thebrain as a computer metaphor, leaving the study of emotion to behavioralpsychology. But recent research has determined that our cognitiveprocessing has an emotional element, and is paramount for effectivefunctioning.125 Our thinking and decision making is influenced by twodistinct, yet interwoven processes. One involves conscious deliberation andanalysis through the prefrontal cortex where facts are considered andweighed, options generated and compared with reasoning to determine anoutcome. The second system is non-conscious rapid emoto-based patternrecognition with emotionally weighted biases.126 Emotion triggersmemories, and perceptions, and memories also trigger emotions whichdefine the nature of our existence relative to the past and future, and oursense of power over any situation. Emotions are part of our fundamental irrationality and unpredictabilityand thus an important influence in creativity and original thinking. Our 35
  28. 28. basic emotions come from inner extra-rational dynamics deep within ourpsych that are expressed as feelings, dreams, fantasies, and other imaginedaspects of our lives.127 Our more complex emotions like loyalty, sympathy,pride, confidence, achievement, embarrassment, indignation, bewilderment,pity, elation, satisfaction, boredom, shame, disgust, frustration, and surprise,etc, tend to be socially related and constructed.128 Everything we perceiveevokes some form of feeling and the process of creativity, innovation andinvention is always an emotional and even sensual experience in people asconcepts are translated into words, numbers, diagrams, or objects, leading tosomething inspirational.129 Emotions decide what we like, dislike, what isagreeable, disagreeable, giving meaning to our world. Emotions cansometimes help us see similar patterns across fields without consciousdeliberation and plays an important role in signaling preferences foropportunities by arousing positive emotions, kindling enthusiasm anddetermining our reactions to shocks and the behavioral trajectories we take. Our view of the world is filtered through emotions which guides our selfawareness to a past or future orientation. Our thinking is swayed by ourtime orientation within an emotion matrix depicted in figure 4. Any pastorientation will be full of stories which influence our sense of meaningabout the present. Some of the stories we remember will be full of regret forpast mistakes, disappointment for what was not done, or full of satisfactionand/or pride for what was achieved. The past influences our interpretationof the present. Positive and negative experiences influence what weperceive, contemplate and put our focus upon in the now. The positive andnegative memories of the past also guide our direction in the future. Positivememories guide us towards action where we have a high sense of selfefficacy and negative memories tend to make us averse to taking actionwhere we have a low sense of self efficacy. The future represents ourpositive hopes and aspirations, or negative fears and anxieties wherepositive emotions may lead to a sense of high self efficacy and becomepowerful motivators for action, while negative emotions may lead to senseof low self efficacy feasibility and take an averse attitude towards action.Extreme feelings of low or high self efficacy can lead to either recklessoverconfidence in a positive emotional state or an aversion from action outof fear and anxiety in a negative emotional state. The same feelings are notuniform across the all activities, where a person may feel a high sense ofself efficacy in some areas and low sense of self efficacy in other areas. 36
  29. 29. Imagination Heuristics Action adverse Reckless overconfidence Negative emotions Future Orientation Positive emotions Optimal drive Value sets Optimal learning Sense of Present Sense of low self high self efficacy Orientation efficacy Patterning Past Orientation Bad memories Good memories Memory Imagination Belief SystemFigure 4. The emotion matrixThere is a strong nexus between our experiences, prior knowledge andemotion. We see the world through the perspective of our own identityshaped by our emotions. The interaction of experience, prior knowledge andemotion leads to the formation of our beliefs, which lay the foundation ofour values and aspirations, expressed through patterning, and sets ofheuristics which guide our thinking and decision making. The abovedynamics fuels our imagination which translates our memory, into beliefs,aspirations, and emotions into scenarios that create feelings of self efficacy,motivation, energy, and drive. Our optimal position for learning is withinthe present orientation where the influence of future fears and hopes, pastdisappointments and successes are minimized and within our consciousawareness. Too much past or future orientation may lead to personaldelusion such as unrealistic hopes that an entrepreneurial opportunity reallyexists,130 or massive overconfidence in one’s ability to successfullyimplement a complex strategy in the field. Alternatively too much future orpast orientation may lead to undue pessimism where the feeling of selfefficacy and motivation is low, leading to states of anxiety and inaction.Orientation in the past will anchor one into previous patterns of success,which promote rigidity, while too much orientation into the future may lead 37
  30. 30. to fantasy, thus leading to unrealistic objectives and the ability to considerrealistic scenarios.131 The impact of our past and future orientation and sense of self efficacyupon our behavior is strong. Emotion is embedded within our culture andforms part of our domicile outlook.132 Philip Zimbardo postulated thatpeople living in tropical climates where there is little change in the weatherand where a language has no future tense leads to an inept propensity foraction.133 Rural youth unemployment within developing and post industrialsocieties appear to be developing a generation of youth that feels little hopeabout the future, while societies in countries like Malaysia where sections ofthe population seek to cling to the order of the past may do little to preparefor the challenges of the future. Max Weber attributed the rise of capitalismin Europe to the present and future orientated Protestant work ethic and therelative backwardness of Catholic centered Europe to the past orientation ofCatholic doctrines.134 Our emotional orientation influences our pace of life,belief systems, aspirations and propensity for action.9. EnergyRecently, the concept of energy has been related to a person’s ability to becreative.135 However there is very little agreement on the definition ofenergy, what it really is, what it does and no way has been found to actuallymeasure it directly.136 A number of different types and terms for humanenergies have been cited, but probably out of these, three are of importanceand are somewhat interrelated. The first of three energies is our physical energy that is necessary to dophysical things like moving from place to place, running, sports, and anyother activity that requires kinesthetic movement. Our physical energy ismanaged by food for fuel, rest and exercise to build strength and discipline.The next energy is our emotional energy which enables the expression ofour general emotions like happiness, surprise, hate, envy, and jealousy, etc.Emotional energy helps to give us focus, interest and attention to differentthings we sense, encounter, or exposed to and is one of our primalmechanisms to keep us alert to danger in the environment.137 Finally there isour mental energy which fuels our ability to make calculations andundertake judgments. Sometimes emotional energy and intelligences arecalled psychic energy, but breaking them into two separate energies allowsus to understand the very different roles they play in our life. The level of energy we have either supports or inhibits our creativity andproblem solving abilities. These three energies are all interrelated, where forexample a physically tired person will not perform mental calculations well,or an emotionally tired person will not be able to undertake either physical 38
  31. 31. work or mental thinking very well. These different states show theinterconnection between our various types of energies. Our energy is chemo-electric in nature, where proteins, enzymes andother electrically sensitive chemicals produce and transfer electricitythrough our neuro-system to make us move, feel and think.138 Our energylinks our cognitive and kinetic systems together as one interdependentsystem something like the Chinese concept of Qi that governs our bodily,mental and emotional disposition.139 Energy is a dynamic force that fuels allour processes and like all energy behaves according to the first law ofthermodynamics where it can be stored, released, focused and drainedaccording to stimulation, demands, needs and distractions coming from theenvironment and within our self. Our physical energy is responsible for our kinesthetic movements.However, like nutrients, rest and training; our emotional energy also effectsour levels of physical energy. Take for example an athlete overly nervousbefore a race, feeling ‘butterflies in the stomach’. With extreme anxiousnessand fear (presumably an under-confidence bias and anxiety), the athlete’sphysical energy will begin to drain making the person feel lethargic, tiredand weak. This contrasts with the athlete who is ready to do their best,focused and determined to perform well and ready for the challenge withoutallowing doubts and anxiousness to drain his or her energy. Anotherexample is the inability to reason logically when one is in a state of angerand the tiredness one feels after being angry. Emotional energy helps a person deal with everyday frustrations,conflict and pressure. Our emotional energy is influenced by thesurrounding environment, people, objects and events. Emotions in the formof moods ebb and flow during the day, week, and month.140 We are mostlyunaware of our moods which tend to influence the way we think aboutthings141. Other emotions are triggered by a potential crisis, a crisis, ourhealth, our concern for something or general stress. A person with a highlevel of emotional energy will be able to cope with the normal stresses ofthe day while a person with a low level of emotional energy will quicklysuccumb to any crisis, becoming stressed, anxious and/or frustrated veryquickly. Under such situations a person losses focus, where their attentionbecomes diverted on other tasks that lower general energy levels. Emotional energy is a source of determination providing a person withthe emotional motivation to get on with a job whether it is physical ormentally orientated. Emotional energy provides our enthusiasm, drive andresilience to do things. This is fine in a person who has a clear mission toattend to, but where a person’s emotions are deluded with paranoia,compulsiveness, depression, or other forms of neurosis, their emotionalenergies are diverted into the fantasies these various pathologies mightgenerate142. For example, a paranoid person will spend all their emotional 39
  32. 32. and mental energies on suspecting conspiracies against them, leaving littleenergy available for creative or other problem solving issues facing them.These types of emotions lead to immense fatigue and inability to functionlogically. Emotional balance is very important so that both our physical andmental capacities are at their optimum. Mental energy is very important for creativity and supports two types ofcognitive operations. The first is the ability to make mental calculations anddraw inferences from logical and spatial relationships. The second is theability to make judgments, recognize similarities across different categoriesof information using induction and logical reasoning.143 We tend to slowdown in the ability to make quick and accurate mental calculations duringaging but on the contrary improve in our induction and logical reasoningwith age. Mental energy is created through our interest, desire, curiosity,passion and concern for something. Our mental energy levels can beaffected by drugs, food, sleep deprivation and various levels of health.144 The tension between a person’s current identity and future aspirationsmanifests as dissatisfaction. This dissatisfaction potentially creates theenergy and drive needed for action by an entrepreneur.145 The emotionsconnected with dissatisfaction create a form of cognitive dissonance aboutthe current situation and a desired future outcome, thus channeling energyand creating drive. It is an intensively emotional rather than rationalexperience that creates the physical, emotional and psychic energy that arerequired in new venture start ups and the pursuit of opportunity.10. IntelligenceThere is no conclusive agreement about what the concept of intelligencereally is. Some concepts of intelligence focused upon achievement, i.e., howmuch a person really knows relative to others in an age group, or aptitudeorientated, i.e., the person’s ability to learn.146 Traditionally intelligence hasbeen considered as a general trait “g” where people would differ in thelevel they possess. However as separate abilities (e.g. verbal, memory,perceptual, and arithmetic) were recognized as intelligence, the concept ofintelligence widened.147 Howard Gardner took an interest in Norman Geschwind’s researchconcerning what happens to normal or gifted individuals after themisfortune of a stroke or some other form of brain damage. Gardner wasamazed at how a patient, counter to logic would lose the ability to readwords, but could still read numbers, name objects, and write normally.148This suggested that different aspects of intelligence originate from differentparts of the brain. 40
  33. 33. Gardner synthesized his knowledge of the study of brain damage withhis study of cognitive development and believed that peoples’ endeavorswere not based upon any single type of intelligence, but rather a mix ofdifferent intelligences. Intelligence needs to be applied in various ways forsurvival in different environments and thus the abilities of a banker, medicaldoctor, and Eskimo looking for fish are situational specific, all requiringhigh levels of competence. Western society heavily values verbal,mathematical, and spatial competencies while other competencies may bemore important in other cultures. Intellectual competence must thereforeentail the possession of a set of skills that can enable someone to solveproblems, resolve difficulties they may find in day to day living, have thepotential to find problems, and have the ability to acquire new knowledgefrom their personal experiences.149 Every form of intelligence can be seenas a specific paradigm having its own symbols and logic that will define,enable evaluation, and solve problems. Gardner hypothesized the multiple intelligence theory in recognition thatbroad mental abilities are needed in society and that every person has aunique blend of different intelligences.150 Gardner initially listed seventypes of intelligence, body-kinesthetic, verbal-linguistic, logical-mathematical, visual-spatial, musical, interpersonal, and intrapersonalintelligence. Gardner also affirmed that our separate types of intelligencesmay not just be limited to the seven above and that others may also exist.Brilliance and achievement most often depend upon the individual findingthe right vocation in life that suits their intelligence mix. One of the other forms of intelligence that Gardner speculated about wasspiritual intelligence. Zohar and Marshall postulated that spiritualintelligence is a moral base enabling us to question issues of ‘what’ and‘why’ about things, and whether we should or shouldn’t be involved inparticular activities.151 Unlike general intelligence which is logical andrational, spiritual intelligence enables us to question, which is central to theconcept of creativity. Expanding upon Gardner’s concept of interpersonal intelligence is theconcept of emotional intelligence (EQ), which has become very popularover the last two decades. Emotional intelligence places emphasis on anumber of characteristics that are important for creativity within a group orsocial setting.152 However emotional intelligence may have a dark side. Some individualsare able to utilize only the perception traits of emotional intelligencewithout feeling the emotions of sympathy, compassion, and altruism. Theyare better able to manage and manipulate others emotions better than theirown.153 This ability to manipulate and deceive others, albeit creatively, hasbeen dubbed Machiavellian Intelligence by Andrew Whiten and Richard 41