What does this quote tell us about the use of imagination? "Imagination is worth more than knowledge. For knowledge is limited to all we now know and understand while imagination embraces the entire world, and all there ever will be to know and understand." -Albert Einstein
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Einstein is making the point that there are limits to "knowledge." A person can think and study and learn and comprehend a given collection of facts, a specific body of understandings about a topic or topics. Some individuals accumulate knowledge with a very high degree of detail, involving a large amount of intellectual awareness and academic capability.
Imagination, on the other hand, is limited only by the creativity of the person doing the imagining. By being willing to try new connections between ideas or objects, by attempting different approaches, by thinking outside of usual patterns without fear of exploring the unknown, imagination can lead to new kinds of knowledge and to new discoveries about areas already known. Because of this capability to go further and to uncover more in new contents than is possible based solely on knowledge, imagination can expand to encompass "all there will ever be to know and understand."
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