Tie are actually based on cravats, which were popular neckwear among European aristocrats in the 18th and 19th centuries. Eventually, the trend went towards wearing thinner cravats with simpler knots, eventually becoming known as tie.
Cravats themselves were based upon scarves wore by Croatian mercenaries to show rank. Eventually, the French adopted them for fashion.
You did say you wanted to know whose idea it was, right?
Personally, I think a suit looks naked without some kind of neckwear, and even though I'm happy about the resurgence of bow ties, regular ties are the easiest to pull off for most people.
EDIT: and bolo ties just need to fuck off