Are “If-Then” rewards good for instilling creativity?

Dan Pink in his book “Drive” makes a mention of the fact that “if-then” rewards better known as carrot/stick awards can be detrimental when it comes to instilling creativity and doing right brain oriented tasks.

Hence these rewards must be used with caution mostly for the purpose of getting done “left brain” oriented mundane tasks by making use of an external driver e.g. money.