Creativity is defined in this report as the production of new ideas that are fit for a particular business purpose. This sees creativity as the first stage in innovation. Creativity has a role in enhancing all aspects of business performance – from the design of new products and services to their production, marketing and distribution. It is not unusual to link creativity to certain industries such as film, music or design. But the challenge, as noted by the Chancellor, is ‘not just to encourage creative industries, our priority is to encourage all industries to be creative’. 2 Design is a structured creative process. Design is readily associated with industrial product.