Everything has already been invented, says Ralph Osterhout, chief executive of the Osterhout Design Group that designs military equipment. Don't try to create something from scratch. Instead look for ideas and take inspiration from what has already been created, then shop for solutions.

"It's like baking a cake," he told DICE Summit attendees. You're just looking for all the right ingredients.

For instance, when the military was looking for an expendable tactical robot for disarming improvised explosive devices, Osterhout came up with a model that has near identical functionality of the $120K I-Robot, but it costs a mere $15K. The difference: many of the parts were inspired or taken straight from off-the-shelf components.

Another example is Remington's wireless surveillance ball that's used to map the interior of hostile buildings. That costs $8,000. Wowee makes a toy that does the same basic thing and it costs a mere $169.

"Creativity is a process," says Osterhout. It's about identifying the problems and creating solutions and substantive innovations. He ran through other examples--how he designed a portable four-pound integrated radio and global positioning system that cost $9,000 apiece that eliminates the need for the government's $9 billion contract with General Dynamics for the Land Warrior System.

The host of military examples led up to Osterhout's main point: Inspiration and innovation can be taken from anywhere; it's your job as creators to educate yourself on what's out there. From the military designs he worked on, he dreamed up two quick innovations for the gaming industry. One is using a device to map the interior of your room and then use the field imaging tech to project 3D images on walls. Suddenly you have a Holodeck that will allow virtual bombs to drop through a player's ceiling or ogres to come crashing through walls.

Another example was to take games to the streets. With a set of glasses, cell phone and a box no bigger than a pack of cigarettes, you could have bad guys appear behind corners on the street. All you'd have to do would be to look at them and press a button to take them out. You could have people all over the world fighting in the street.