WHY do some people reach their creative potential in business while other equally talented peers don’t?

After three decades of painstaking research, the Stanford psychologist Carol Dweck believes that the answer to the puzzle lies in how people think about intelligence and talent. Those who believe they were born with all the smarts and gifts they’re ever going to have approach life with what she calls a “fixed mind-set.” Those who believe that their own abilities can expand over time, however, live with a “growth mind-set.”

Guess which ones prove to be most innovative over time.

“Society is obsessed with the idea of talent and genius and people who are ‘naturals’ with innate ability,” says Ms. Dweck, who is known for research that crosses the boundaries of personal, social and developmental psychology.

“People who believe in the power of talent tend not to fulfill their potential because they’re so concerned with looking smart and not making mistakes. But people who believe that talent can be developed are the ones who really push, stretch, confront their own mistakes and learn from them.”