The Investment Theory of Creativity

The Investment Theory of Creativity, developed by Robert Sternberg and Todd Lubart, posits that creativity is not just about intelligence or specialized knowledge, but also about a conscious decision to “buy low and sell high” in the world of ideas. This means identifying novel and undervalued ideas, investing effort in developing them, and then ultimately, reaping the rewards when the idea becomes recognized and accepted.

The theory breaks down creativity into six interconnected components:

• Intelligence: While not sufficient on its own, intelligence provides the foundation for creative thinking. It encompasses analytical intelligence (evaluating ideas), creative intelligence (generating ideas), and practical intelligence (applying ideas effectively).
• Knowledge: A deep understanding of a particular domain is crucial. It provides the raw material for generating new ideas and the context for evaluating their potential. However, excessive reliance on existing knowledge can also hinder creativity, leading to incremental improvements rather than radical innovations.
• Thinking Styles: A preference for thinking in novel ways, a willingness to challenge assumptions, and a tolerance for ambiguity are essential. Creative individuals are comfortable exploring uncharted territory and often adopt a legislative thinking style, preferring to formulate their own rules and approaches.
• Personality: Certain personality traits are strongly associated with creativity, including a willingness to take risks, perseverance in the face of obstacles, tolerance for ambiguity, and intrinsic motivation. Creative individuals are persistent and are willing to put in the hard work required to bring their ideas to fruition, even when faced with criticism or setbacks.
• Motivation: Intrinsic motivation – the drive to engage in an activity for its own sake – is a powerful predictor of creative output. When individuals are genuinely passionate about their work, they are more likely to invest the time and effort required to develop innovative ideas. Extrinsic motivation, while useful in certain contexts, can sometimes stifle creativity by focusing attention on external rewards rather than the inherent value of the creative process.
• Environment: A supportive environment that encourages experimentation, provides resources, and tolerates failure is crucial for fostering creativity. This includes a culture that values innovation, provides opportunities for collaboration, and recognizes and rewards creative contributions.

The “buy low, sell high” analogy is central to the investment aspect of the theory. Creative individuals are willing to invest time, effort, and resources in ideas that are initially unpopular or undervalued. They recognize the potential of these ideas and are willing to advocate for them, even in the face of resistance. Eventually, if the idea proves to be valuable, it will gain acceptance, and the creative individual will reap the rewards of their investment.

This theory emphasizes that creativity is not a fixed trait but a skill that can be developed through conscious effort and the cultivation of the six interconnected components. By embracing risk, persevering through challenges, and pursuing passions, individuals can unlock their creative potential and contribute to innovation in their respective fields.