"In the Creative Economy, the most important intellectual property isn't software or music or movies. It's the stuff inside employees' heads. When assets were physical things like coalmines, shareholders truly owned them. But when the vital assets are people, there can be no true ownership. The best that corporations can do is to create an environment that makes the best people want to stay1- .
-----Cor Peter.
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An organization that stimulates creativity develops novel approaches to doing the work or unique solution to problems. Innovation is the process of taking a creative idea and turning it into a useful product, service, or method of operation. Thus, the innovative company is characterized by its ability to channel creativity into useful outcomes. When managers talk about changing an organization to make it more creative, they usually mean they want to stimulate innovation. Nevertheless, sometimes just have creative people is not enough. It takes the right environment for the innovation process to take hold and prosper. Robbins and Coulter (1999) have identified three sets of variables that have been found to stimulate innovation: the organization's structure, culture, and human resource practices2. .
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The importance of innovation in the textile industry has risen dramatically during the last few decades. "Innovate or lose- has increasingly become the rallying cry of today's managers. During the peak of the industrial era, a company could prosper from slowly developing and refining one single product or service. The increasing pace with which business now reshapes itself - propelled by the new capabilities offered by information technology, which places higher demand on the organizational members to be able to see, and grasp, new opportunities.