In the face of limited resources, administrators and policy makers are urged to invest more in science, engineering, and technology programs; meanwhile, liberal arts colleges are on their way to becoming an endangered species. But what might look like an inevitable market trend could itself have negative economic effects. In this article, the author argues that the humanities play a determining role in producing not only the "right" kind of doctor, but also the entrepreneurs, engineers, and designers that make the American economy so productive. The reason, he suggests, is that the humanities provide students with the best opportunities for learning how to innovate.