DANIEL BIRKE

How do creativity and design enhance business performance?

The objective of this report is to review some of the literature on creativity, design and business performance, and to develop a structure to organise and interpret this literature. In addition to the economics of innovation, there are other relevant works in creativity, design management, R&D management and organisational studies. These disparate fields overlap to some degree, but also focus on different parts of the total picture. Taken together, these literatures recognise many different linkages between creativity, R&D, design, innovation, productivity, creative culture or creative climate and performance, with some of these link- ages operating in two directions. The overall picture is a challenging one to survey, but we believe that our framework is equal to this challenge.

The final part of our report shows how every component of this literature plays its part in understanding the intricate relationship between creativity and performance. We represent each linkage within a Leontief input- output model, and show that even some quite modest effects in each of the linkages can, when all taken together, lead to a substantial increase in the long-run effect of creativity on performance.

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