Inspiration in literature, and in other forms of art, is sometimes seen as a bad thing. Admiring and wanting to pay a tribute to something we enjoy might be interpreted as laziness or plagiarism.
Sadly, usually it is the case. Authors think that they are not skilled or talented enough to create a piece of work they want, which is nothing but a common feeling, but it should not be understood as a reason to steal somebody else's work. There is, also, a group of creators who do not care about their abilities, and more often than not, do not care about art and, most importantly, the work others put in creating their own - all they want is to be praised.
These are examples of plagiarism - an act completely different than inspiration. I think that Vincent van Gogh described it well: "It is good to love many things, for therein lies the true strength, and whosoever loves much performs much, and can accomplish much, and what is done in love is well done."
This is what I believe was going through John Tolkien's head when he wrote 'Hobbit'.
After the World War I has ended, the author, who used to serve in the army, decied to leave it, and started to look for a job related to writing.
Tolkien became a succesful translator. His interest in Middle English literature was very visible: a translation of 'Sir Gawain and The Green Kinght' was one of his most known pieces of work. He also translated 'Beowulf'; however, he never decided to show his translation to the world. It was published by a family member after his death.
Tolkien also told the story of Grendel in one of his poems, "The Lay of Beowulf".
"In October 1920 I went to Leeds as Reader in English Language" Tolkien says, "with a free commission to develop the linguistic side of a large and growing School of English Studies, in which no regular provision had as yet been made for the linguistic specialist." As a university professor, John Tolkien wrote a lecture where he discussed the matter of his previous translation, named "Beowulf: The Monsters and the Critics". In the lecture, he does not criticise the poem itself, but rather the way it is interpreted.
But it was not the end of Tolkien's fascination with the old english poem. In late 1930's, he published his two most famous books to date, "The Hobbit" (the second one being "The Lord of The Rings"), which was most likely based on the plot of "Beowulf". Similarities between characters can be found too.
At first it might seem, that Bilbo Baggins, the main character in "The Hobbit", does not have much in common with Beouwlf, except for the fact that their names begin with the same letter. While the son of Ecgtheow has always been courageous, Bilbo is described as loving paceful and simple life, and being cowardly. The author said: "Hobbits are an unobtrusive, but very ancient people, more numerous formerly than they are today; for they love peace and quiet and good tilled earth: a well-ordered and well-farmed countryside was their favourite haunt." Yet, the more difficulties and dangers the character has to face, the more he resembles Beowulf. He does not daydream of coming back his home anymore; instead, he displays strength and intelligence, the traits that can be found while studying the warrior from Geatland.
Additionaly, the biggest difference between the two characters is not the early dissimilatiry in personalities, but rather their fate: Tolkien allowed Bilbo to survive and even come back to his old life, whereas the author of Beowulf decided that the warrior would die.
Chain of events shows even more obvious examples of similarities. Both the poem, and the book, describe, obviously, mythological and supernatural creatures, one of them being the dragon. Tolkien himself said: "[...] real dragons, essential both to the machinery and the ideas of a poem or tale, are actually rare. In northern literature there are only two that are significant: we have but the dragon of the Völsungs, Fáfnir, and Beowulf's bane."
Both monsters, as the most popular image of dragon indicates, are huge and breath fire. Smaug, the dragon described in "The Hobbit" gaurds a magnificent treasure - and so does the dragon from "Beowulf". What I find most interesting is the fact, that neither Smaug, nor the second dragon, were killed by main characters themselves. "Beowulf"'s dragon dies defeated with the help of Wiglaf, who wounded the monster's throat, so that it could no longer attack with fire. The one who ended Smaug's life was Bard, a skilled archer. He shot Smaugh right in the heart.
What is also worth a note is that at the moment of defeating the dragon, Beowulf has been the king of the Geates for a few decades. The battle left him severely injured; just before his death, he adresses his last words to Wiglaf. In "The Hobbit", we can find Thorin - an old king, who died because of battle wounds, and who was also given a chance to speak before his death. Even though the meaning of what Beowulf and Thorin said on their deathbeds was slightly different, the causes of their death, and how they perished, do not differ much.
Comparing the book and the poem might led to a thought that "The Hobbit" is, in fact, Tolkien's version of Beowulf; that he simply changed what he didn't like in the story and presented the world his take on it. I would not agree with that. While the sories share many similarities, what I tried to present above, they also differ too much to call Tolkien's work a 'renewed' version of Beowulf.
To sum up, Tolkien's appreciation of Beowulf has clearly reflected itself in his own work, not in an obvious way, but rather making the reader think of their own cloues and possibilities about how much the world of Beowulf influenced the plot and characters of The Hobbit.