Today’s organizations must foster conditions that motivate employees to develop creative solutions that are both novel and useful. Yet product novelty and usefulness have been characterized by distinct, mutually exclusive motivational processes. The authors test theory on how learning and performance achievement goals can motivate individuals to develop products that are both novel and useful.In an experimental study (n = 189) using a product development task, a learning achievement goal enhanced novelty by increasing cognitive flexibility. A performance achievement goal enhanced usefulness by increasing cognitive closure. Furthermore, simultaneous inducement of learning and performance goals enhanced novelty and usefulness more than sequential inducement of each goal. Cognitive flexibility and closure mediated the effects of simultaneous goals on both creativity dimensions, with too much cognitive closure thwarting product novelty. The benefits of simultaneous over sequential goals were mitigated when individuals experienced negative affect. Implications for creativity in organizational settings are discussed.