Well the first 251 Pokemon where Ideas that came to the creators mind but after that they just got fan pictures basically where do you think the fake pictures come from and the way the Pokemon from Diamond and Pearl come from there running out ideas and they have a Hot-AirBaloon for god sakes!

I think Pokémon was originally created by Satoshi Tajiri when he was very young. Apparently, he loved bugs, and he loved to make them "battle", and thus the idea was born.

In my point of view, the Pokémon are based in natural concepts: the elements of the nature, the abiotic environment (like rocks), obviously animals and anything related to plants, and, more indirectly, interesting subjects related to the humankind's creations, like mythology, and other human studies. And, of course, there are those "filler-ups" that make the Pokémon universe more unique and individual, that are not related to anything outside the Pokémon reality itself, like Aruseusu (the creator of all Pokémon).

Regarding culture, for example, we have Magikarp and Gyarados, both based on the japanese legend that says carps needed to jump over waterfalls in order to turn into dragons and be able to go through a dragon gate in heaven, so they could be admitted to the heavenly court. Ninetales is based on the kitsune, a japanese nine-tailed fox with spiritual powers that could live for hundreds (or was that thousands?) of years. A bit less cultural, we have some fighting Pokémon for examples, like Medicham (apparently based on budhism?) and Hitmontop, which is based on the Capoeira.

I don't really thing the Pokémon company is running out of ideas. To be honest, I don't think they need to have obvious and logical sources of inspiration to create new monsters, like myths or nature. I think it is fine enough if the background information of a specific Pokémon is interesting and well-fitting in its category or whatever aspect it has. We can't just analyze the Pokémon individually, or simply by its looks: I think we also need to consider its "surroundings", like the generation it belongs to, and how it features in the show or games. That doesn't mean there won't be any "pathetic" Pokémon, though, but I can assure even the most ridiculous of all monsters has lots of fans (for reasons we might not find really amusing at first).

Well if your wondering who drew them it was Ken Sugimori and if your asking who made them probably Nintendo

Um...can't you just figure that out yourself? :/

It's not that hard to figure out they created Ratata from a rat, Pidgey from a pidgen(sp) etc.

Well, I can say for the first 151 Pokemon that they were designed by either taking an animal, plant, or an inanimate object or idea, or an element, or possibly both.

For example, Caterpie and its evolutions are based on the life cycle of the butterfly.
Geodude is an example of taking an abiotic object (in this case, a rock or geode) and giving it qualities and, in this case, arms.
Bulbasaur and its evolutions were created by taking a dinosaur (or a saurian, which in some mythologies are lizard people) and a blooming plant and smashing those two concepts together in a particle accelerator. (Well, not really, but you get my idea.)

Some other Pokemon are based on myths, as Galar stated, Magikarp, Ninetales, and Farfetch'd to name a few. I'm surprised nobody mentioned Farfetch'd so far. Check my Pokemon etymologies later in the post for more information.
Some are objects, like Onix (carved figurines were made from onix) and Magnemite.
Others, are taken from slightly more modern ideas, especially fighting Pokemon, as Galar stated. Hitmonchan and Hitmonlee get the last part of their names from Jackie Chan and Bruce Li (Or maybe Jet Li, I don't know), whom are both famous martial arts movie stars.

As for Pokemon name etymology (just for fun), they are usually made by modifying words or combining two words together.
Some are pretty straight forward. For example:
"Caterpie": caterpillar
"Geodude": geode+dude
"Graveler": gravel+er
"Ivysaur": ivy+(dino)saur or ivy+saur(ian). Read above (in my 2nd paragraph) for more info.
"Magikarp": magic+carp
"Hitmonchan": hit+(Poke)mon+Chan
"Horsea": a reversal of the two parts of "seahorse"
"Magmar": magma
"Ditto": guess...
Some a bit more complicated.
"Eevee": E.V., which is short of evolution, I guess
"Flareon": flare+eon (all three Eevee evolutions have the "eon," probably refering to eons as the amount of time it takes to evolve.)
"Jolteon": jolt+eon
"Vaporeon": vapor+eon
"Gastly": gas+ghastly
Some can have multiple meaning:
"Aerodactyl": Aero (as in "air")+dactyl. Dactyl is Greek for "finger," refering to the claws on its wings, and also based upon (and rhyming with) the close relative to the dinosaur, the pterodactyl, meaning wing-finger.
"Arcanine": arcane+canine or arson+canine. Judging by the fact that Arcanine is a ledgendary Pokemon, arcane seems like a better root for the name, but my friend reminded me that the "ar" can also refer to "arson."
"Farfetch'd": Possible far+fetch.
These are just cool (I'm including a few GSC Pokemon names, too):
"Articuno": Arctic+uno. If I remember correctly, "uno" is Spanish for "one." The one means that it is the first legendary Pokemon in Pokedex order.
"Zapdos": Zap+dos. "Dos" is "two" in Spanish.
"Moltres": Molt(en)+tres. "Tres" is "three" in Spanish. "Molt" could be a shortening of "molten" or that the bird's molt is fire.
"Clefairy": clef+fairy. "Clef" as in "bass clef" or "treble clef." Clefairy is known for its metronome, which it performs by singing.
"Clefable": clef+fable
"Cleffa": clef+fa. "Fa" is a musical note. When played in C Major, it is F Natural.
"Gyrados": I've heard from my friend that he read that there are two Japanese words that made up Gyrados' name, meaning mass-murder and hardship. If this is true, I'm guessing that the name comes from the fact that Gyrados is violent because of hardship from a Magikarp. (I remember the Pokemon TV show episode where James' Magikarp evolves.)
"Espeon": E.S.P.+eon. "E.S.P." stands for extra-sensory perception, meaning psychic.
"Girafarig": A palindrome-ized version of giraffe. (Sorry, aibohphobes) It's head and tail are both heads.

Okay, I think that's enough for today...

i ment that were hidden! or not to obvious!

Ninetales - the cat-o-nine-tailes the whip with nine whips instead of one because it has Ninetales

Golem - golems are huge gardians that are usually made of rock thus it is a rock pokemon

Onix - onyx is a black stone and onix is a rock pokemon like stone

Rapidash - Rapidash is a fast moving pokemon and rapid-dash

Dugtrio - it is obviosly three and must dig three and there are three diglets that make it up

What does Milotic mean. I know Feebas is Feeble seabass but what about Milotic.

I think Milotic as the name is supposed to be as in Venus de Milo, the beautiful statue of the Greek goddess.

Alot of Pokemon were derived from myths. Not only Japanese I remember some deriving from African myths. Alot of times their names are a mixture of 2 or three words.

For example: Roselia's name is a mixture of the words Rose, and Rosalia, which is a type of melody(hence the move Grasswhistle). Roselia's evolved form, which is a 4th generation Pokemon, Roserade, gets its name from the words Rose and the masquerade because it looks as if it is wearing a mask.

Another example: Staryu's name comes from the words Star because of its body, and probably "You" so that it follows the pattern of Starmie. Like "Me and You" "You and Me".

Wurmple: more like worm "mispelled".. don't know about the "ple" part
Snorlax: Snor refers to how much it sleeps and lax is how much it leisures


more can be found in wikipedia.com if you bother to look...
even some 4th generations...

Beautifly: beauti derived form beautiful, fly and be possibly refers to butterfly
Flygon: refers to how it fly and how it is like a draognfly
Dustox: refers to the toxic dust this moth pokemon can give out
Squirtle: refers to a turtle that squirts water
Wartortle: possibly a turtle that fights
Blastoise: more like a turtoise that blasts water
Onix: there is actually a rock onyx, but
Solrock: refers to Sol like solar, which means sun, and rock like a rock... O_o...
Lunatone: luna like lunar, which means moon and tones, quote wiki, like stone
Psyduck: psychic and duck
Seel: like Seal, misspelled
Dewgong: like Dugong, which means an animal... ^^

go find more in wikipedia

There is actually an "wikipedia like" site for Pokemon. Hers' the link.

http://bulbapedia.bulbagarden.net/wiki/Main_Page

Yanma's name is just an abbreviation of it's Japanese name Yanyanma.

Munchlax = Munch + Lax
Sandslash = Sand + Slash
Bonsly = Bonsai (a tree that grows in China, I guess) + slightly (that means Bonsly is slightly a bonsai tree)
Mime Jr = Mime (a short form to say "mimic") + Junior
Kyogre = Ogre + Kaiōsei (the Japanese name of the Greek god, Neptune)
Deoxys = A short form to write: "Deoxyribonucleotic acid", shortly DNA
Huntail = Hunt + Tail
Duskull = Dusk + Skull

The ones that I can remember.

it sounds more like bon-SLY when bonsly says its call on the anime. so...

bonsly: bon(from bonsai)+sly(synonym: stealth, meaning act of stealing, theft, and most thieves like to blend in with their surroundings, which bonslys and sudowoodos try to do).

Also, Mime Jr. is probably more to do with the idea of Mr. Mime's putting-his-hands-on-invisible-bits-of-wall, (which is knon as mime) so I'd imagine that's where that bit comes from.

abra kaadabra the magic words.

what he means is where did they get the idea of the pokemon not their names. moltres is obviously of the fire phoenix. porygon is from the famous lego system. anyway, how about the 3 regis? they look like a machine to me.