Creativity and innovation are related but distinct concepts. Creativity involves generating novel ideas, while innovation structures ideas into commercially viable products and processes. Specifically: - Creativity leads to innovation by coming up with new ideas, but innovation further develops ideas into usable solutions. - Creativity tends to be spontaneous, while innovation is a structured process of screening, developing, and implementing ideas. - Most managers have trouble distinguishing between creativity and innovation, not realizing they involve different skills and processes.