Knox, Simon2008-08-262008-08-2619931 85905 032 8http://hdl.handle.net/1826/2952This paper sets out to identify how management can adopt a more creative approach to innovation through a new process of idea generation. Both proactive and reactive approaches to innovation strategy are discussed in the context of change factors and the sourcing of new ideas for innovation. Four loci of idea sourcing are identified and shown to vary in importance according to industry sector. Although evidence is presented to suggest that heuristic techniques are being used increasingly to enhance creativity, their use is limited both by the perception of their function and the strategic mode adopted by the organisation. The concept of the creative cell is introduced to counter these limiting factors. It is agrued that this cell should be multi-functional and marketing-led. So, as well as performing in this creative function, a more responsive and entrepreneurial atmosphere will emerge as horizontal relationships develop. With the development of successive creative cells within the organisation, a unified approach to creative innovation will evolve as the traditional proactive and reactive strategies merge.enWorking Paper