The advancing globalization is increasing the pressure for innovation on economies, such as Germany, which have few natural resources and cannot benefit from favorable labor location factors. The significant entrepreneurial challenge of becoming more innovative raises the question for human capital management of whether there is a latent innovation potential in cultural diversity that has largely remained untapped or is absent in a predominantly monocultural organization. This study addresses this central question. The path to a solution begins with clarifying the relationships between culture and individual creativity, idea generation, and innovation capability. Furthermore, it examines how culturally conditioned, different mental models affect problem-solving.