They yield different results but more importantly attract different talent.
Fear is what bosses use, inspiration is what leaders use. So to your question, if you use fear, you are a boss, not a leader.
Also people who are truly excellent at what they do will not stay in an environment of fear. They have options, why would they stay in a place that feel worried about pleasing you? The people who stay in an environment where fear rules tend to be more worried about there jobs because they think they are easy to replace and will have trouble finding another job.
In short, fear will drive away top talent, leadership will inspire top talent to follow and believe in you. It's up to you how you want to position yourself and the company and the kind of results it will have.