I've been reviewing leadership and innovation. I see fear and creativity are inversely proportional. Creativity is critical for innovation.
This reminded me of a Steven Covey story (from "7 Habits..."). A group of execs, are asked how to best motivate their staff. One quipped "hand grenades". I'm sure it's meant to be clever. However, that really captured a mind-set I've seen in stifling, bureaucratic environments. Fear, autocracy and micromanagement are the dominate tools. That's the realm of uber-short term thinking, and the antithesis of innovation culture. You can get mindless efficiency: no more. You'll get no creativity, no innovation, thus no agility. One can't bully your way into a culture of innovation and leadership.