Pi 2 Designandinnovation Lr

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UK/Brazil creative economy dialogues | Diálogos de economia criativa entre Brasil e Reino Unido

WHAT’S THE ROLE OF DESIGNIN INNOVATION POLICY?

QUAL O PAPEL DO DESIGN NAPOLÍTICA DE INOVAÇÃO?

POLICY INVESTIGATIONS UK/Brazil creative economy dialoguesINVESTIGANDO POLÍTICAS Diálogos de economia criativa entre Brasil e Reino Unido


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WHAT’S THE ROLE OF DESIGNIN INNOVATION POLICY?

QUAL O PAPEL DO DESIGN NAPOLÍTICA DE INOVAÇÃO?

POLICY INVESTIGATIONS UK/Brazil creative economy dialoguesINVESTIGANDO POLÍTICAS Diálogos de economia criativa entre Brasil e Reino Unido


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ENGLISH

© British Council 2014 Creative Economy UnitThe United Kingdom’s international organisationfor cultural relations and educational opportunities.A registered charity: 209131 (England and Wales)SCO37733 (Scotland)

© British Council 2014 Unidade de Economia CriativaO British Council é a organização internacional do ReinoUnido para oportunidades educacionais e relaçõesculturais, registrada sob os números 209131 (Inglaterrae País de Gales) e SCO37733 (Escócia)

British Council Creative Economy UnitPolicy Investigations series

Published by The British Council

London10 Spring Gardens, LondonSW1A 2BN, EnglandSão PauloRua Ferreira de Araújo741, Pinheiros, São Paulo, Brazilwww.britishcouncil.org

All rights reservedISBN 978-0-86355-733-0

Policy Investigations seriesCreative Economy Unit, British Council

Curation and coordinationLidia Goldenstein (Brazil)Pablo Rosselló (UK)Project coordinationFelipe Arruda (Brazil)EditorBell KranzTranslationZoë PerryJamille PinheiroAndrew BalladaGuilherme MirandaSoledad YungueMarcio PerezProofreadingJamille Pinheiro (Brazil)Charlie Tims (UK)Tom Astley (UK)Will Strong (UK)Publication designAlex ParrottPhoto creditsDivider images: UnsplashHeadshots: Roberta Dabdab, Estúdio X+X

British Council Unidade de Economia CriativaSérie Investigando Políticas

Publicado pelo British Council

London10 Spring Gardens, LondonSW1A 2BN, EnglandSão PauloRua Ferreira de Araújo741, Pinheiros, São Paulo, Brasilwww.britishcouncil.org

Todos os direitos reservadosISBN 978-0-86355-733-0

Série Investigando PolíticasUnidade de Economia Criativa, British Council

Curadoria e coordenação geralLidia Goldenstein (Brasil)Pablo Rosselló (UK)Coordenação de projetoFelipe Arruda (Brasil)EdiçãoBell KranzTraduçãoZoë PerryJamille PinheiroAndrew BalladaGuilherme MirandaSoledad YungueMarcio PerezRevisãoJamille Pinheiro (Brasil)Charlie Tims (UK)Tom Astley (UK)Will Strong (UK)Projeto gráficoAlex ParrottCrédito das fotosImagens dos capítulos: UnsplashRetratos: Roberta Dabdab, Estúdio X+X

http://www.britishcouncil.org/http://www.britishcouncil.org/http://www.britishcouncil.org/http://www.britishcouncil.org/


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INTRODUCTION


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12 POLICY INVE STIGATIONS | INVESTIGANDO POLÍTICAS 13UK/Brazil creative economy dialogues | Diálogos de economia criativa entre Brasil e Reino Unido

The creative economy has becomean important and growing part ofthe global economy. Governmentsand creative sectors across theworld are increasingly recognisingits importance as a generator of jobs,wealth and international trade. The UKhas been a leader in the developmentof this agenda, not just as a driver ofthe economy but also in promotingsocial inclusion, diversity and future

prosperity. In the past decade, a broadrange of local institutions have delvedinto the workings of the culturalsector in order to try to understandit in a more comprehensive way.Of particular interest have been itsoverall economic size, its specificeconomic characteristics, its resilienceto recession and capacity to generatenew jobs, its new skills’ needs,its relationship with technologicalinnovation (and indeed businessinnovation and competitiveness asa whole), its export-friendliness andpotential in an international tradescenario, etc.

The British Council’s Creative

Economy department is a networkof pioneering people, engagingin inspiring international andinterdisciplinary collaborations in arapidly changing world. Working withcreative practitioners, industry andacademics, we produce experiences,build confidence and share ideaswhich explore the frontiers betweenculture, enterprise and technology.We believe in a broader understandingof culture and its capacity to contributeto wider economic, social andtechnological development.

In recent years, and largely due tothe impact of the global economicrecession, public policy debate andsupport for the creative economyand the cultural sector has diminished.This publication series provides anopportunity to re-engage cultural playersand institutions in the UK and around theworld in multi-lateral discussions aroundwhat we believe to be a fundamentaleconomic agenda for countries’ future

prosperity. Through these dialogues,we aim to tell the story of the economicvalue of culture to organisations,policymakers and investors so that theycan better understand their value andhow to work with the sector.

This booklet (and the series it is partof) is a contribution to our sharedknowledge and expertise for thisemergent and valuable sector, and anexpression of our commitment to makeunique connections happen throughour networks and resources.

These UK/Brazil Creative EconomyDialogues are also part of BritishCouncil Transform 2012–16, a new

arts and creativity programme aimingto develop the artistic dialoguebetween the UK and Brazil for mutualbenefit and long term impact.The programme enables artists and professionals from the cultural sectorin both countries to share experiencesand collaborate to bring aboutsignificant creative and social changefor institutions, individualsand communities.

www.britishcouncil.org.br/transform www.britishcouncil.org/creativeconomy

POLICY INVESTIGATIONS

P A B L O R O S S E L L Ó

C R E A T I V E E C O N O M Y , B R I T I S H C O U N C I L

http://www.britishcouncil.org.br/transformhttp://www.britishcouncil.org/creativeconomyhttp://www.britishcouncil.org/creativeconomyhttp://www.britishcouncil.org.br/transform


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The United Kingdom is arguablythe global capital of creative economythinking. In recent years the UK hasdeveloped a comprehensive setof policies to support the creativeeconomy and has stimulated a globaldiscussion around its importance andneeds. Since 1997, when a taskforce ofpolicy makers and business leaders withan interest in the creative industries wasset up, various surveys and studies have

been carried out to map the potentialof this new economy.1 In this sameperiod, policies aimed at the sectorhave been identified, recommendedand implemented.

The UK is without a doubt one of thecountries where more progress hasbeen made around the promotionand development of public supportto the so-called ‘creative economy’.There has been a serious commitmentin the UK to further understand thisnew economic area. Several publicinstitutions, often in partnership withthe private sector, have turned theirattention to the sector in an attemptto understand it in depth: its size and

characteristics, its ability to create jobs, its employment patterns (age,education, etc.), the sector’s relationshipto technological innovation, its specialinternal dynamics, its ability togenerate exports and its impact onthe rest of the economy, its share ofthe GDP, its impact on competitiveness

and other sectors, etc. This largebody of research has often informedpublic strategies which deliver supportfor the sector through the work ofnumerous institutions and agencies,both public and private, as well asthrough public-private partnerships.

Governments (national and local),public bodies and entrepreneurs haveadopted a new economic strategy

based on this new paradigm whichfocuses on the economic importanceof culture, encouraging growth, job creation, exports and tourism.This ongoing reinvention of the UK’seconomy is comparable to the previousshift from an agricultural to an industrialeconomy, and it has been driven bythe realisation that the drift of muchof the UK’s traditional manufacturingbase to China and India could onlybe ‘compensated for’ through astrengthening of the economy basedon creativity and new technologies.

The proposed public policies wereaimed at transforming the creativeeconomy into an engine for

development, incorporating cultureinto the wider macroeconomic agendaand radically altering traditionalcultural policy models. Culture andcreativity were no longer consideredan outlier, secondary from an economicperspective, or merely as a vehicle forsocial inclusion.

SHARING PERSPECTIVES IN ORDERTO EXPAND THE DEBATE IN BRAZIL

L I D I A G O L D E N S T E I N

1 Some key documents include:

Staying Ahead: The Economic Performance of the UK’s Creative Industries (Work Foundation, 2007, http://twfold.theworkfoundation.com/research/publications/publicationdetail.aspx?oItemId=176 )

Creative Britain: New Talents for the New Economy (DCMS, 2008, http://www.agcas.org.uk/agcas_resources/62 -Creative-Britain-New-Talents-for-the-New-Economy)

A Dynamic Mapping of the Creative Industries (Nesta, 2012, http://www.nesta.org.uk/publications/dynamic -mapping-uks-creative-industries)

A Manifesto for the Creative Economy (Nesta, 2013, http://www.nesta.org.uk/publications/manifesto -creative-economy)

http://twfold.theworkfoundation.com/research/publications/publicationdetail.aspx?oItemId=176http://twfold.theworkfoundation.com/research/publications/publicationdetail.aspx?oItemId=176http://twfold.theworkfoundation.com/research/publications/publicationdetail.aspx?oItemId=176http://twfold.theworkfoundation.com/research/publications/publicationdetail.aspx?oItemId=176http://www.agcas.org.uk/agcas_resources/62http://www.nesta.org.uk/publications/dynamichttp://www.nesta.org.uk/publications/manifestohttp://www.nesta.org.uk/publications/manifestohttp://www.nesta.org.uk/publications/dynamichttp://www.agcas.org.uk/agcas_resources/62http://twfold.theworkfoundation.com/research/publications/publicationdetail.aspx?oItemId=176http://twfold.theworkfoundation.com/research/publications/publicationdetail.aspx?oItemId=176


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to become fashionable. However,it is often more style than substance,with the term often lazily associatedwith social or cultural policies aimedat low income earners.

Despite a near-daily plethora ofarticles, symposia, workshopsand events on the subject, Brazilcontinues to lag behind in thedebate. The concept has become

an empty catchphrase. We thereforeapproached the British Council to forma partnership which might enable theUK’s broad experience in this field tocontribute to the debate around thecreative economy.

The thought is that an exchangeof ideas from both countries helpsto widen the conversation in bothBrazil and the UK. We hope toengage different segments of societyand a variety of local partners inunderstanding the importance of thecreative economy and why it is anessential element of any sustainablemacroeconomic project. We hope todo this by exploring the international

progress made on this agenda,assessing what has been achievedin Brazil and the UK so far and whatbarriers still remain, whether in thearea of public policies, in the privatesector or through public-privatepartnerships.

We have chosen three themes ofrelevance within this agenda: creativeeconomy and macroeconomicpolicies; the role of design in innovationpolicymaking; and culture-led urbanregeneration projects. For each of

these topics we called upon expertsfrom the United Kingdom and Brazilto prepare an article that couldstimulate a discussion at a debate tobe held at a later date, and to includeother guest speakers with appropriateexpertise in this area.

Each publication will deal with oneof the three subjects and will offer therespective articles in full as well as the

most relevant excerpts from the guestspeakers’ arguments made during thedebate. We thus hope to contributeto a better understanding of theimportance of the creative economyin Brazil and engage in a long-termdialogue with the UK and othercountries around this increasinglyimportant agenda.

The governmental departmentsresponsible for culture, media,education, foreign trade and businessdevelopment/innovation aimed toexplore mainstreaming sectors thatmake up the creative economy,seeking to identify the connections,synergies and cross-sectorapplications it might achieve. Severalpublic, semi-autonomous and privateagencies were instrumental in carrying

out this process, including the DesignCouncil, Tate and Nesta, all of whichparticipate in this project.

These actions governed theimplementation of a wide rangeof public policies through anarsenal of tools including directpromotion, funding and/or subsidies,creation of venture capital funds,incentives of all kinds (tax exemptions,credit facilities, leasing of publicspaces, awards and allowances)and government procurement.

Despite the many criticisms andcurrent debate surrounding thesuccess of these policies, from a

Brazilian perspective they clearlyrepresent a major step forward inpositioning the sector amongstthose which are strategic for thecountry’s economic future.

The economic crisis that began in2008 led many analysts to defenda strategy of doubling the UK’s betson the sector, using the crisis in theshort-term to tackle and acceleratethe adjustments needed over the

long-term.2 According to thesespecialists, the UK had alreadybeen facing structural challengeseven before the crisis struck, in partbecause of the progress made bythe Asian economies – producers oflow value-added goods, manufacturedgoods made using cheap labour, as wellas products of increasing sophisticationand competitiveness – and in partbecause of the ever-increasing

emergence of new technologies andtheir impact on new products, newproduction methods, new businessmodels and new distribution channels.

These challenges can only be overcomethrough a strategy that strengthensinnovation and stimulates thoseinnovative sectors with the mostpotential for growth. Without this,any intervention by the governmentwould fall short of creating theconditions that would enable theUnited Kingdom to maintain its leadingrole on the international stage.

The United Kingdom is likely toemerge from the crisis with a more

innovative economy, one that is green,sustainable and diversified, innovativein its business dealings and capableof expanding into new sectors withdynamism to compensate for the lossof energy in the financial servicessector. To this end, governmentleadership and public financingare essential.

Meanwhile, in Brazil, the subject ofthe creative economy has started

Attacking the Recession: Setting the Agenda for a New Economy (Nesta, 2008, http://www.nesta.org.uk/publications/attacking -recession-setting-agenda-new-economy).

http://www.nesta.org.uk/publications/attackinghttp://www.nesta.org.uk/publications/attacking


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ARTICLES


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Design as a toolfor innovation

‘Design can help organisations transformtheir performance, from business productinnovation, to the commercialisationof science and the delivery of publicservices. That is why design formsan integral part of the Government’s

plans for innovation and growth andfeatures strongly in our Innovation andResearch Strategy for Growth. The UKhas the potential to succeed globally butto do so we must harness our strengths.Design is undoubtedly an area where weare amongst the best in the world, withpotential to do even better’.Rt Hon. David Willetts MP, UnitedKingdom Minister for Universitiesand Science, December 20111

The role of design in innovationThere are many definitions of design,and few of them truly incorporatethe range of disciplines and methodsthat make up the practice of design,both as an economic sector and as

a profession. The former Chairmanof the Design Council, Sir GeorgeCox, defined design in his 2005Review of Creativity in Business:

‘Design is what links creativity andinnovation. It shapes ideas to becomepractical and attractive propositionsfor users or customers. Design maybe described as creativity deployedto a specific end’.2

Design is a way of problem-solving,a way of working and thinking, and it isalso a set of tools and techniques thatmake this problem-solving possible.It is, after all, both a verb and a noun.Most importantly for our understandingof design’s role in innovation is theconsideration that design ensures thatinnovations work for people – eitherend users or those that deliver anyproduct or service. Much innovation

is focused on exploiting technologiesor creating better business models,and fails to ask whether these newideas work for people, or asks thequestion too late in a developmentprocess when money has been spent,or options have been narrowed.In short, focusing on end-user valueearly on in the process generatesmore value than merely makingthings aesthetically pleasing at theend. Design can add value, but usedproperly it can also create value.

Design is both one of the creativeindustries and an industry sector thatunderpins many other creative andnon-creative sectors. Design skills

and methods are widely used in othersectors to solve customers’ problems,to understand their (sometimeslatent) needs, to identify new marketopportunities, to bring new productsand services to market, and ultimatelyto drive innovation. To further elaborateon the adding/creating value pointabove, there is a recognised differencebetween products or services that areuseful, those that are usable, and those

DESIGN FOR INNOVATION.HOW THE DESIGN SECTOR SUPPORTSINNOVATION IN THE WIDER ECONOMY:

LESSONS FROM THE UK

A I L B H E M C N A B O L A

1 Quoted in Design Council (2011), Design for Innovation. Available at http://www.designcouncil.org.uk/Documents/Documents/OurWork/Insight/DesignForInnovation/DesignForInnovation_Dec2011.pdf

2 HM Treasury (2005), The Cox Review of Creativity in Business . Available at http://webarchive.nationalarchives.gov.uk /+/http:/www.hm-treasury.gov.uk/coxreview_index.htm

http://www.designcouncil.org.uk/Documents/Documents/OurWork/Insight/DesignForInnovation/DesignForInnovation_Dec2011.pdfhttp://www.designcouncil.org.uk/Documents/Documents/OurWork/Insight/DesignForInnovation/DesignForInnovation_Dec2011.pdfhttp://webarchive.nationalarchives.gov.uk/http://www.hm/http://www.hm/http://localhost/var/www/apps/conversion/tmp/scratch_4/-treasury.gov.uk/coxreview_index.htmhttp://localhost/var/www/apps/conversion/tmp/scratch_4/-treasury.gov.uk/coxreview_index.htmhttp://www.hm/http://www.hm/http://webarchive.nationalarchives.gov.uk/http://www.designcouncil.org.uk/Documents/Documents/OurWork/Insight/DesignForInnovation/DesignForInnovation_Dec2011.pdfhttp://www.designcouncil.org.uk/Documents/Documents/OurWork/Insight/DesignForInnovation/DesignForInnovation_Dec2011.pdf


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of design as a business asset is alsoreflected in business education. All themajor US business schools now offerMBA programmes that incorporatedesign within their teaching.

Design in policy,and policy for design

Design is a key component ofinnovation policyHistorically, when considering design,policymakers primarily thought ofindustrial design, and viewed designas a means to new product

development – an important pieceof the product development process,but limited to that sphere. In recentyears, the contribution of the designsector and design disciplines toinnovation is increasingly beingrecognised by commentators andpolicymakers. This is happening aspart of a paradigm shift in innovationtheory, to include non-technologicaland user-centred drivers of innovation,as governments around the world lookfor new ways to enhance national orregional innovation capabilities.

The nature of design – user-centred,interactive – means it is a means ofcreating or unlocking ‘user-driven

innovation’. Design policies orstrategies are often implementedat times of falling competitivenessand have been credited with helpingeconomies transition from a manufacturingto knowledge and skills base in Finland,Singapore and South Korea, forexample. This change in attitude canbe seen both in national innovationpolicies and in innovation measures.

So, where is this happening, and whatcan we learn from others?

that are delightful. Design – particularlywhen well-integrated with brand –helps ensure that innovations firstlyare truly useful to people (they aresomething that people would use anddo need), secondly that innovationsare usable (that they are easy to use,that the utility is accessible), and finallythat the innovation can delight the user(that it delivers value at a higher levelof meaning or experience than

its utility alone). World-beating,well-designed innovations typicallywork at all three levels.

Evidence for design’s added valuefor businessThe use of design is expandingthroughout all growth economies,where other areas of competitiveadvantage, such as the use oftechnology, quickly become contested.Businesses are using design as adifferentiator in the global market.Research has shown the positive impactof design on business performance.3 Businesses that use design see a directreturn on investment. Recent DesignCouncil research has shown that there

can be a return of over £4 in net profitfor every £1 invested,4 and internationalresearch has shown that whenbusinesses are more strategic in theiruse of design, the returns are highest.5

The design sector could be thoughtof as a collection of sub-sectors,and it is a wide church – containingmore art-intensive disciplines such asfashion or jewellery design, disciplinesthat are close to engineering andmanufacturing such as industrialdesign – but it is also a sector thatmoves quickly with the changes in themodern economy. The UK has a longheritage in design, underpinned by

a world-renowned design educationsystem, the main feature of which isa number of leading universities.6 These traditional design strengthsstill exist, but alongside them newdisciplines are growing – such asinteraction design, digital design andservice design – working with clients inthe private, and increasingly the public,sector in fields such as healthcare orin the manipulation and visualisationof Big Data’.7

This trend towards increasingunderstanding and use of designis part of a visible shift in modernknowledge economies. Businessinvestment in intangible assets,

such as design, has trebled in OECDcountries over the last 30 years.8 UK company spending on designalone is estimated in excess of £50bnannually.9 The growing recognition

Danish National Agency for Enterprise and Housing (2003), The Economic Effects of Design. http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=9&sqi=2&ved=0CF8QFjAI&url=http%3A%2F%2Ferhvervsstyrelsen.dk%2Ffile%2F1924%2F&ei=j5xVUvW_HKq04ASupIH4Aw&usg=AFQjCNGiT6_lOyqhtPErCAR1-YUg74-4Vg&bvm=bv.53760139,d.bGE

Eden Partners for the Design Council (2012), Design delivers for business: a summary of evidence from the Design Council’sLeadership Programme. http://www.designcouncil.org.uk/Documents/Documents/Publications/Design%20Leadership/Design%20Leadership%20-%20Business% 20briefing.pdf

Swedish Council of Industrial Design (2004), 10 Points: Attitudes, profitability and design maturity in Sw edish companies. Availableat http://www.svid.se/upload/English/About_design/Surveys %20and%20reports/Folder_10points.pdf

Livesey, F., Moultrie, J. for the Design Council (2009), International Design Scoreboard . http://www.designcouncil.org.uk/Documents/Documents/Publications/Research/InternationalDesignScoreboard.pdf

For an overview of the UK design sector see Appendix 1, p34.

Organisation for European Cooperation and Development (2010), Estimates for EU15 obtained from KLEMS database.

Livesey, F., Moultrie, J. for the Design Council (2009), Company Spending on Design 2008 , University of Cambridge. Available athttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/CompanySpendingOnDesign.pdf

http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=9&sqi=2&ved=0CF8QFjAI&url=http%3A%2F%2Ferhvervsstyrelsen.dk%2Ffile%2F1924%2F&ei=j5xVUvW_HKq04ASupIH4Aw&usg=AFQjCNGiT6_lOyqhtPErCAR1-YUg74-4Vg&bvm=bv.53760139,d.bGEhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=9&sqi=2&ved=0CF8QFjAI&url=http%3A%2F%2Ferhvervsstyrelsen.dk%2Ffile%2F1924%2F&ei=j5xVUvW_HKq04ASupIH4Aw&usg=AFQjCNGiT6_lOyqhtPErCAR1-YUg74-4Vg&bvm=bv.53760139,d.bGEhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=9&sqi=2&ved=0CF8QFjAI&url=http%3A%2F%2Ferhvervsstyrelsen.dk%2Ffile%2F1924%2F&ei=j5xVUvW_HKq04ASupIH4Aw&usg=AFQjCNGiT6_lOyqhtPErCAR1-YUg74-4Vg&bvm=bv.53760139,d.bGEhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Designhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Designhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Designhttp://localhost/var/www/apps/conversion/tmp/scratch_4/20briefing.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Designhttp://localhost/var/www/apps/conversion/tmp/scratch_4/20briefing.pdfhttp://www.svid.se/upload/English/About_design/Surveyshttp://www.svid.se/upload/English/About_design/Surveyshttp://localhost/var/www/apps/conversion/tmp/scratch_4/Folder_10points.pdfhttp://www.svid.se/upload/English/About_design/Surveyshttp://localhost/var/www/apps/conversion/tmp/scratch_4/Folder_10points.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/InternationalDesignScoreboard.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/InternationalDesignScoreboard.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/InternationalDesignScoreboard.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/InternationalDesignScoreboard.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/CompanySpendingOnDesign.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/CompanySpendingOnDesign.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/InternationalDesignScoreboard.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/InternationalDesignScoreboard.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/Folder_10points.pdfhttp://www.svid.se/upload/English/About_design/Surveyshttp://localhost/var/www/apps/conversion/tmp/scratch_4/20briefing.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Designhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=9&sqi=2&ved=0CF8QFjAI&url=http%3A%2F%2Ferhvervsstyrelsen.dk%2Ffile%2F1924%2F&ei=j5xVUvW_HKq04ASupIH4Aw&usg=AFQjCNGiT6_lOyqhtPErCAR1-YUg74-4Vg&bvm=bv.53760139,d.bGEhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=9&sqi=2&ved=0CF8QFjAI&url=http%3A%2F%2Ferhvervsstyrelsen.dk%2Ffile%2F1924%2F&ei=j5xVUvW_HKq04ASupIH4Aw&usg=AFQjCNGiT6_lOyqhtPErCAR1-YUg74-4Vg&bvm=bv.53760139,d.bGEhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=9&sqi=2&ved=0CF8QFjAI&url=http%3A%2F%2Ferhvervsstyrelsen.dk%2Ffile%2F1924%2F&ei=j5xVUvW_HKq04ASupIH4Aw&usg=AFQjCNGiT6_lOyqhtPErCAR1-YUg74-4Vg&bvm=bv.53760139,d.bGE


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‘Design is a tool for the realisation ofinnovation. It is the activity of conceivingand developing a plan for a new orsignificantly improved product, serviceor system that ensures the best interfacewith user needs, aspirations and abilities,and allows for aspects of economic,social and environmental sustainabilityto be taken into account’.15

Design in innovation policy in

the UKIn the case of the United Kingdom,design is recognised within the2011 Innovation and ResearchStrategy for Growth.16 The UKGovernment has supported theDesign Council since its creation in1944. Current policy measures toboost design’s contribution to UKinnovation include: support for smalland medium sized businesses (SMEs)to access design skills through theflagship national Design LeadershipProgramme;17 the integration ofdesign into science and technologysupport mechanisms, in particular forthe commercialisation of research;support for new research on

design and its economic andsocial impact; support for design-ledopen innovation competitionsto solve social challenges;18 andsupport for awareness raising onthe potential value of design to thepublic sector.

Overview of key policy measuresAcross Europe, and indeed globally,there are a number of key policymeasures that are commonlyimplemented in order to bolsternational innovation capacity. Whilst byno means a full review of all designpolicies and policy measures globally,the following list highlights someexamples known to the author.19 These are:

• The establishment of designatedpublic bodies or the use of existingnational design bodies to developand deliver design strategies andpolicies. These bodies become thelead delivery agencies for the majorityof the design and innovation supportmeasures, and they focus on demand(raising awareness of, and demand for,design) and supply (improving designeducation, showing leadership to thenational design sector). In Europe,15 of the 27 Member States have adesign centre, of which the UK DesignCouncil is perhaps the best known,and the fastest expansion in designcentres can be seen in Eastern

Europe. Globally, there is somemovement to follow this trend.India’s Design Council was establishedas part of the National Design Strategyin 2007. In Singapore the existingDesign Council is responsible foradministering the recent strategycalled Design Singapore. In South Korea,

Design in innovation policyacross EuropeAcross Europe, there has been a trendin recent years from innovation policiesbeing focused on the traditional driversof innovation (product development,technology and manufacturing)towards a broadening of theinnovation policy remit to include non-technological drivers, including design.

Policy support for design has oftenfocussed on bringing the designsector into contact with other sectors,particularly business, to sharecapabilities and drive growth in thoseother sectors. Denmark’s 2007 designpolicy stated this aim: ‘The objectivesof the Government’s design policy areexpressly: to generate growth in thedesign industry, and for design to boostgrowth in the rest of the corporatesector’.10 Increasingly, design isintegrated within innovation, industrialor economic policies rather thanthrough a separate design policy.In 2012, only one European countryhad a dedicated design policy(Estonia) – most countries feature

design within other policy areas.In 2012, 14 of the European MemberStates had design explicitly included innational policy, such as an innovationpolicy or economic growth strategy:

Belgium, the Czech Republic, Denmark,Estonia, Finland, France, Italy, Latvia,Poland, Portugal, Romania, Sweden,Slovenia, and the UK. And even wheredesign is not written into innovationor industrial policies, other Europeancountries and regions with strongdesign traditions, such as Germany andthe Netherlands, have active designprogrammes and design centres.11

Recently, innovation measurementexperts are looking at the measurementof design within innovation datasets,notably the European Union’s innovationstatistics (the Community InnovationSurvey)12 and Nesta’s InnovationIndex.13 In 2013, the OECD begandetailed discussions on the inclusionof design within innovation measures.

European Commission policyon designIn October 2010, the EuropeanCommission included design for thefirst time as one of ten priorities intheir innovation policy, InnovationUnion – which is ‘the European Unionstrategy to create an innovation-friendly

environment that makes it easier forgreat ideas to be turned into productsand services that will bring oureconomy growth and jobs’.14 Within thisdocument, the Commission defined itsunderstanding of design:

0 The Danish Government (2007) DesignDenmark 2007-2009, p. 5. http://erhvervsstyrelsen.dk/file/7260/

1 Cawood, G., Walters, A., Whicher, A., (2012), Design Policy Monitor 2012, available here http://www.seeplatform.eu/docs/SEE %20Design%20Policy%20Monitor%202012.pdf

2 European Commission / Eurostat, The Community Innovation Survey . Available at http://epp.eurostat.ec.europa.eu/portal/page/portal/microdata/cis

3 National Endowment for Science, Technology and the Arts (2012), The Innovation Index 2012. Available at http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&sqi=2&ved=0CC0QFjAA&url=http%3A%2F%2Fwww.nesta.org.uk%2Fblogs%2Fassets%2Ffeatures%2Finnovation_index_2012&ei=k5dVUpyKKOny4QTmn4HYCw&usg=AFQjCNGTCSVNIIzf6onQCbZk5-JO-ach3Q&bvm=bv.53760139,d.bGE

4 European Commission (2010), Europe 2020 Flagship Initiative: Innovation Union . http://ec.europa.eu/research/innovation-union/pdf/innovation-union-communication_en.pdf #view=fit&pagemode=none

15 European Commission (2009), Results of the Public Consultation on Design as a Driver of User-Centred Innovation, p. 6 http://ec.europa.eu/enterprise/policies/innovation/files/results_design_consultation_en.pdf

16 Department for Business, Innovation and Skills (2011), Innovation and Research Strategy for Growth . Available at https://www.gov.uk/government/publications/government- innovation-and-research-strategy

17 See http://www.designcouncil.org.uk/our-work/leadership /

18 See http://www.designcouncil.org.uk/our-work/challenges /

19 This section presents examples known to the author plus much information drawn from the overview presented here: Cawood, G.,Walters, A., Whicher, A., (2012), Design Policy Monitor 2012, available here http://www.seeplatform.eu/docs/SEE %20Design%20Policy%20Monitor%202012.pdf

http://erhvervsstyrelsen.dk/file/7260http://localhost/var/www/apps/conversion/tmp/scratch_4/202012.pdfhttp://www.seeplatform.eu/docs/SEEhttp://localhost/var/www/apps/conversion/tmp/scratch_4/202012.pdfhttp://epp.eurostat.ec.europa.eu/portal/page/portal/microdata/cishttp://epp.eurostat.ec.europa.eu/portal/page/portal/microdata/cishttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&sqi=2&ved=0CC0QFjAA&url=http%3A%2F%2Fwww.nesta.org.uk%2Fblogs%2Fassets%2Ffeatures%2Finnovation_index_2012&ei=k5dVUpyKKOny4QTmn4HYCw&usg=AFQjCNGTCSVNIIzf6onQCbZk5-JO-ach3Q&bvm=bv.53760139,d.bGEhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&sqi=2&ved=0CC0QFjAA&url=http%3A%2F%2Fwww.nesta.org.uk%2Fblogs%2Fassets%2Ffeatures%2Finnovation_index_2012&ei=k5dVUpyKKOny4QTmn4HYCw&usg=AFQjCNGTCSVNIIzf6onQCbZk5-JO-ach3Q&bvm=bv.53760139,d.bGEhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&sqi=2&ved=0CC0QFjAA&url=http%3A%2F%2Fwww.nesta.org.uk%2Fblogs%2Fassets%2Ffeatures%2Finnovation_index_2012&ei=k5dVUpyKKOny4QTmn4HYCw&usg=AFQjCNGTCSVNIIzf6onQCbZk5-JO-ach3Q&bvm=bv.53760139,d.bGEhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&sqi=2&ved=0CC0QFjAA&url=http%3A%2F%2Fwww.nesta.org.uk%2Fblogs%2Fassets%2Ffeatures%2Finnovation_index_2012&ei=k5dVUpyKKOny4QTmn4HYCw&usg=AFQjCNGTCSVNIIzf6onQCbZk5-JO-ach3Q&bvm=bv.53760139,d.bGEhttp://ec.europa.eu/research/innovation-union/pdf/innovation-union-communication_en.pdfhttp://ec.europa.eu/research/innovation-union/pdf/innovation-union-communication_en.pdfhttp://ec.europa.eu/enterprise/policies/innovation/files/results_design_consultation_en.pdfhttp://ec.europa.eu/enterprise/policies/innovation/files/results_design_consultation_en.pdfhttp://ec.europa.eu/enterprise/policies/innovation/files/results_design_consultation_en.pdfhttp://ec.europa.eu/enterprise/policies/innovation/files/results_design_consultation_en.pdfhttps://www.gov.uk/government/publications/governmenthttps://www.gov.uk/government/publications/governmenthttps://www.gov.uk/government/publications/governmenthttp://www.designcouncil.org.uk/our-work/leadershiphttp://www.designcouncil.org.uk/our-work/challengeshttp://www.seeplatform.eu/docs/SEEhttp://localhost/var/www/apps/conversion/tmp/scratch_4/202012.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_4/202012.pdfhttp://www.seeplatform.eu/docs/SEEhttp://www.designcouncil.org.uk/our-work/challengeshttp://www.designcouncil.org.uk/our-work/leadershiphttps://www.gov.uk/government/publications/governmenthttps://www.gov.uk/government/publications/governmenthttp://ec.europa.eu/enterprise/policies/innovation/files/results_design_consultation_en.pdfhttp://ec.europa.eu/enterprise/policies/innovation/files/results_design_consultation_en.pdfhttp://ec.europa.eu/research/innovation-union/pdf/innovation-union-communication_en.pdfhttp://ec.europa.eu/research/innovation-union/pdf/innovation-union-communication_en.pdfhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&sqi=2&ved=0CC0QFjAA&url=http%3A%2F%2Fwww.nesta.org.uk%2Fblogs%2Fassets%2Ffeatures%2Finnovation_index_2012&ei=k5dVUpyKKOny4QTmn4HYCw&usg=AFQjCNGTCSVNIIzf6onQCbZk5-JO-ach3Q&bvm=bv.53760139,d.bGEhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&sqi=2&ved=0CC0QFjAA&url=http%3A%2F%2Fwww.nesta.org.uk%2Fblogs%2Fassets%2Ffeatures%2Finnovation_index_2012&ei=k5dVUpyKKOny4QTmn4HYCw&usg=AFQjCNGTCSVNIIzf6onQCbZk5-JO-ach3Q&bvm=bv.53760139,d.bGEhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&sqi=2&ved=0CC0QFjAA&url=http%3A%2F%2Fwww.nesta.org.uk%2Fblogs%2Fassets%2Ffeatures%2Finnovation_index_2012&ei=k5dVUpyKKOny4QTmn4HYCw&usg=AFQjCNGTCSVNIIzf6onQCbZk5-JO-ach3Q&bvm=bv.53760139,d.bGEhttp://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&sqi=2&ved=0CC0QFjAA&url=http%3A%2F%2Fwww.nesta.org.uk%2Fblogs%2Fassets%2Ffeatures%2Finnovation_index_2012&ei=k5dVUpyKKOny4QTmn4HYCw&usg=AFQjCNGTCSVNIIzf6onQCbZk5-JO-ach3Q&bvm=bv.53760139,d.bGEhttp://epp.eurostat.ec.europa.eu/portal/page/portal/microdata/cishttp://epp.eurostat.ec.europa.eu/portal/page/portal/microdata/cishttp://localhost/var/www/apps/conversion/tmp/scratch_4/202012.pdfhttp://www.seeplatform.eu/docs/SEEhttp://erhvervsstyrelsen.dk/file/7260


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a publicly-funded programme tointegrate service design into publicservice delivery at local and nationallevels. In Finland, as part of the WorldCapital of Design programme in 2012,service design projects were piloted.Similarly, one of the key objectivesof the Design Thinking & InnovationAcademy at the Singapore DesignCouncil is to promote design-ledinnovation and inform the public

sector about relevant methodologies.

• The integration of design intotechnology and/or innovationsupport policies, and into theprogrammes of agencies ororganisations that exist to drivetechnological or other forms ofinnovation, such as the TechnologyStrategy Board in the UK.

• Unlocking the potential design for abroad range of policy areas. The UKand Denmark are moving forward touse design to tackle future challenges,such as Big Data, new technology,social and healthcare challenges, andperhaps most pressingly, public sector

innovation and public sector reform.

23

A recent publication brings togetherbest practice examples of design forpublic sector innovation from the UK,Denmark and Finland.24

To conclude, it is clear that design isnow firmly at the heart of innovationpolicies and that design fundingis regarded as part of the national‘innovation infrastructure’ in manycountries. The challenge, for the

UK as for other countries, is howto maximise the potential of designand raise awareness and intelligentuse of deign across the public andprivate sectors. We find that case studyexamples are a helpful way of illustratinghow design can support innovation ina very practical way. Included in thefollowing section are two case studiesthat illustrate how design tools andtechniques complemented private

and public sector expertise.

the Korea Institute of Design Promotion(KIDP), the national design organisationestablished by the government, isresponsible for the delivery of designpolicies and programmes.

• Measures to raise awareness anduse of design in the wider economy,often focussing on SME businesses,or on science and new technology.Businesses (or universities/

entrepreneurs and start-ups) areencouraged to use design throughfunding for pilot schemes, specialistmentoring bodies and networks. TheUK’s Design Leadership programme20 is the flagship example, with similarprogrammes now in operation in manycountries, including in 12 of the 27EU Member States.21 The funding ofthese programmes is often the mostsignificant design investment made bynational governments, usually via thedesign centres/bodies.22 Outside ofthe EU, South Korea aims to increasethe number of firms with in-housedesigners from 20,000 to 100,000,and the Singapore Design Council hasrecently established the Asian Insights

& Design Innovation (AIDI) to supportcompetitive businesses throughdesign. Following on from supportprogrammes, some countriesuse taxation to further incentivisebusinesses to use design. For example,in the UK, business spending on designqualifies for an R&D tax credit.

• To create the supply of designtalent to meet this demand, many

countries have put in place supportand awards for design businesses toincrease the size and capacity ofthe design sector. This mechanismis used in the UK, Denmark, India andSouth Korea (where the establishmentof foreign design agencies has beenencouraged ‘as a means of raising thequality of design locally’). At the sametime, a focus on design education is an almost universal policy measure,

and significant investment in designeducation is made in many countries.However, the important point here isnot investment in the education ofdesigners, but rather the integration ofdesign teaching within other subjectsand disciplines such as ITC, businessor management. Design events andbranding are also used by manycountries as a strategy for showcasingbusiness and innovation successand national qualities through designleadership (such as the ‘World Capitalof Design’ scheme).

• Going one step furtherIn the countries that have what wemight call the ‘basics’ in place, and

are looking to develop their designand innovation capabilities further,the following policy measures arecommonly seen:

• The funding of pilot projects for newerdesign subsectors such as ‘servicedesign’, particularly where the potentialof design for public service deliveryand business growth is recognised.In the UK, the Design Council delivers

0 See http://www.designcouncil.org.uk/our-work/leadership /

1 Refer to Design Policy Monitor for a more in-depth overview.

2 For example, in 2012, The Danish Design Centre spent €800,000, the Estonian Design Centre spent €240,000 and the UK DesignCouncil spent €1.3M on design support programmes.

23 See http://www.designcouncil.org.uk/our-work/challenges /

24 Aalto University, Danish Design Centre, Design Council, Design Wales, (2013), Design for Public Good , http://www.designcouncil.org.uk/Documents/Documents/Publications/Design_For_Public_Good_Web_Final.pdf

http://www.designcouncil.org.uk/our-work/leadershiphttp://www.designcouncil.org.uk/our-work/challengeshttp://www.designcouncil.org.uk/Documents/Documents/Publications/Design_For_Public_Good_Web_Final.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Design_For_Public_Good_Web_Final.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Design_For_Public_Good_Web_Final.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Design_For_Public_Good_Web_Final.pdfhttp://www.designcouncil.org.uk/our-work/challengeshttp://www.designcouncil.org.uk/our-work/leadership


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brochure and there was no coherentview of what we stood for. While ourquality was much improved, we hadto get to grips with our image’.

SolutionThe Design Council worked with thebusiness: the first step was a visitfrom a team of design and businessexperts, who looked for ways toimprove key areas such as strategy,

products, processes and branding.‘It was a wake-up call,’ says Naylor.Design Associate Jonathan Ball saysthe business lacked a systematicproduct development process and acoherent brand: ‘New ideas came fromall over the business, but they weren’tbeing managed. And we felt they weremissing an opportunity by not having astrategic approach to branding acrossthe business, particularly with theflower pots’.

Yorkshire Flowerpots became thefocus for tackling the issues. Naylorsays: ‘We had the germ of an ideabut, as engineers essentially makingfunctional products, we didn’t

know how to make it commerciallysuccessful. People said we couldn’tcompete on cost with imports fromcountries like China and Vietnam.But we felt we could compete on quality,if only we could get the brand right’.

To inject innovation into the emergingYorkshire Flowerpots brand, the businessformed a relationship with StaffordshireUniversity. Final year design studentswork with Naylor’s manufacturing andproduction experts on concepts for

new ranges. Edward Naylor explains:‘Bringing in an external influence isgreat. But we have to strike a carefulbalance between watching industrytrends and being innovative on theone hand and being mindful that thebrand audit made a lot of us beingtraditional and enduring’.

ImpactYorkshire Flowerpots sales have risen

from £500,000 in 2005 to £6m in 2008-09, with the business supplementing itsown range with imported products tocover different price points. Innovationhas rippled out through the rest of thebusiness. Over half Naylor’s sales comefrom products the business wasn’tmaking five years ago.

The process behind these newproducts is much more structured thanbefore, says Naylor: ‘It used to be veryunsystematic, but now we’re muchmore careful in making sure we havea full business case for developing anew product. We’re not just driftinginto developing products’.

Naylor’s design investment, whichEdward Naylor estimates in the ‘tensof thousands’ has been comparativelysmall, he says, but payback hasbeen ‘spectacular’. ‘If a designereffectively restructure your business,you’re spending a fraction of whatyou’d spend on, say, a managementconsultant. A consultant may or maynot diagnose an issue in the business,but the design professional will dothat and add some positive valuetoo’, says Naylor.

Case studyexamples: Designfor innovationin the private andpublic sectors

Design and private sectorinnovationThe following is an example ofhow design can drive innovationin non-design businesses.Many more examples can befound at the Design Council’sonline case study database.25

Naylor Industries has gonefrom the brink of ruin to £30mannual sales and recession-weathering performance byusing design to diversify fromclay pipes to flowerpots26

ProblemNaylor Industries began making claydrainage pipes in 1890. It addedplastic pipes around a century later,

and Naylor Concrete division suppliesthe construction sector with lintels.The business also started manufacturinggarden pots in the 1990s. It operatesfrom a headquarters and three plants.When Edward Naylor took over asChief Executive in 1993, the businesswas in trouble. He recalls: ‘We were indire straits. Sales were declining andwe had a bad reputation for productquality. Also, clay as a drainage materialwas under siege from plastic and themarket was shrinking. Clay pipes lastmuch longer but plastic is cheaperand that was a problem for us in keymarkets like construction, agricultureand utilities. We employed 375 peoplebut our sales were only £13m. We needed

better clay pipe products, moreautomation and new income streams’.

A decade of heavy investment in newplant, equipment, IT and diversificationput the business back on an even keelby 2005. But something was missing,says Naylor: ‘We lacked sparkle andself-confidence. We were competingagainst big corporates but saw ourselvesas second fiddle. Marketing was home-grown and we made it up as we wentalong – a cheap brochure was a good5 Available at http://www.designcouncil.org.uk/our-work/leadership/Case -studies/?p=1

6 Full text available at http://www.designcouncil.org.uk/our-work/leadership/Case-studies/Naylors /

http://www.designcouncil.org.uk/our-work/leadership/Casehttp://www.designcouncil.org.uk/our-work/leadership/Casehttp://www.designcouncil.org.uk/our-work/leadership/Case-studies/Naylorshttp://www.designcouncil.org.uk/our-work/leadership/Case-studies/Naylorshttp://www.designcouncil.org.uk/our-work/leadership/Case-studies/Naylorshttp://www.designcouncil.org.uk/our-work/leadership/Case-studies/Naylorshttp://www.designcouncil.org.uk/our-work/leadership/Casehttp://www.designcouncil.org.uk/our-work/leadership/Case


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SolutionWorking with the Design Council,Lewisham worked with an experiencedDesign Associate on a strategicservice review to identify areas forimprovement. Lewisham commissioneda design agency to train HousingOption’s staff in video ethnographicresearch techniques, giving themthe capability to better record,understand, share and get closer to

the barriers users were experiencing.Video material was used in anideas workshop to prompt serviceimprovement suggestions from staff.This session alone generated arounda hundred different ideas.

ImpactThe support Lewisham receivedfrom Design Council had far-reachingbenefits. Staff morale improved,staff absences reduced, money wassaved and customers now enjoy amore efficient and appealing Housing

Options Service. Efficiency savingsof £368,000 have been identifiedagainst the borough’s design projectinvestment of £7,000. Work onthe prototypes is ongoing, withstoryboards in particular deliveringpromising results. However, the mostimportant change is cultural. Equippingstaff with research skills and involvingthem in co-design fostered strongengagement both with the project and

the broader aim of improving service.It helped staff empathise withcustomers and reflect on the parteach played in service provision.

Lindsey Grant, Transformationand Development Manager, says:‘Things like prototyping transformhow we work. It’s not just about jumping to a pilot phase. We canredefine things to make sure it’s rightbefore we start investing. Design willbe integrated into our methodologyas another tool for transformation’.

Design and public sectorinnovationIn recent years, policymakers anddesigners are recognising that thedesign methods that are of valueto the private sector are equallyrelevant for the public sector.The Design Council has undertakena study of design in the public sectoracross Europe,27 and the followingcase study example illustrates how

design techniques can help thepublic sector to connect with citizensand improve service del ivery.

Lewisham Council, HousingOptions Service:28 using ‘designthinking’, Lewisham Council inLondon transformed its servicesand embedded design skillsamong staff.

ProblemThe London Borough of Lewisham’sHousing Options Service providesinformation and advice for people

in need of emergency housing.Like every public sector department,it faces pressing challenges: increaseddemand from service users, reducedbudgets for service provision andgrowing pressure to move towardsgreater personalisation of services.The service’s Housing Options Centrewas often extremely busy and serviceusers could not always determinetheir entitlement to support quicklyor easily enough, causing stress forboth visitors and staff.

7 Design Council, Danish Design Centre, Aalto University, Design Wales (2013), Design for Public Good . Available at http://www.designcouncil.org.uk/Documents/Documents/Publications/Design_For_Public_Good_Web_Final.pdf

8 Full text available at www.designcouncil.org.uk/case -studies/lewisham-council

http://www.designcouncil.org.uk/Documents/Documents/Publications/Design_For_Public_Good_Web_Final.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Design_For_Public_Good_Web_Final.pdfhttp://www.designcouncil.org.uk/casehttp://www.designcouncil.org.uk/casehttp://www.designcouncil.org.uk/Documents/Documents/Publications/Design_For_Public_Good_Web_Final.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Design_For_Public_Good_Web_Final.pdf


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Failing early, in prototype testing,is much safer than failing late,when you are on the market andyou have invested all that youhave got.

Reflections forpolicymakers

Policymakers wishing to strengthentheir national innovation eco-systemand innovation capabilities will nodoubt be undertaking analysis andbenchmarking of their assets againstcomparator and competitor countries.

Within this sort of exercise, it isimportant, firstly, to recognise thecontribution of design to innovation,and to reflect that within innovationpolicy and strategy. Secondly,within the broader innovationcapability analysis, design strengthsand capabilities should be takeninto account and measures toboost design awareness amongthose who will drive innovation(small businesses, those developingnew technologies, entrepreneurs)built into funding programmesand policy measures.

It is also important to considermeasures to boost the supply of

design talent, alongside stimulatingdemand. The measures describedabove are a starting point for the kindof interventions and activities thatare commonly funded by nationalgovernments seeking to boost theirdesign-led innovation capabilities.

The areas of focus will be dependenton national economy strengths andstrategic aims, but it is more usual forgovernments to start with business –to focus on growth sectors and integratedesign into these non-design sectors.

Of course, over time this also meansthat design becomes a growth sectorin its own right, as part of a spectrumof strong creative industries.

However, depending on demographyand other factors, a focus on designfor the public sector can be equallyimportant for countries, especiallythose with ageing populations anda need to innovate in public service

delivery. For those that move quickly,there is an opportunity to exportexpertise in this area to othercountries in their geographicalor language regions.

Another potential area where designcan deliver value (or prevent a loss)to the public purse is the developmentof national infrastructure. London’sOlympic Park was strongly design-led in order to ensure that the Parkwould be viable and valuable afterthe Games, as well as during. Similarly,large-scale transport infrastructureprojects and housing strategies canbenefit from design input.

And finally, in whatever sector youwish to focus on, design should beproperly integrated from the start.This means integrating design intofunding programmes that supportparticular sectors, or the developmentof new technologies, so that thescientists, public administratorsand business people work withdesign-skilled individuals from earlyon in their innovation process.This means a better understandingof the customer and the market,and reduced risk of failure.


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Appendix 1:Overview of the UKdesign sector (2010)

EmploymentEstimated 232,000 designers workingin the UK:28% as freelance designers

36% working in design consultancies36% working in in-house design teams

Business size70% of UK design businesses employless than 4 people19% employ 5-0 people9% employ 10-49 people1% employ over 50 people

For more detailed information, refer tothe Design Council’s 2010 research.29

TurnoverOverall annual earnings of UK designbusinesses estimated at £15bn

ClientsDesign businesses work for private andpublic sectors:40% work for the business servicesand financial sector28% work for public administration,health and education sectors28% work for wholesale and retail sectors24% work for the manufacturing sector

28%15bn

232,000

36%

36%

28%

70%

19%

9% 1%

24%

40%

28%

Clients

Turnover

Employment

Business size

9 Design Council (2010), Design Industry Research, available at http://www.designcouncil.org.uk/Documents/Documents/Publications/Research/DesignIndustryResearch2010/DesignIndustryResearch2010_UKoverview.pdf

http://www.designcouncil.org.uk/Documents/Documents/Publications/Research/DesignIndustryResearch2010/DesignIndustryResearch2010_UKoverview.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/DesignIndustryResearch2010/DesignIndustryResearch2010_UKoverview.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/DesignIndustryResearch2010/DesignIndustryResearch2010_UKoverview.pdfhttp://www.designcouncil.org.uk/Documents/Documents/Publications/Research/DesignIndustryResearch2010/DesignIndustryResearch2010_UKoverview.pdf


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Thirty years after the creation of theworld’s first mass-produced mouse,designed by IDEO for Apple, the roleof design has changed radically.Designers used to get involved at theend of the value chain, giving shapeto an already-developed productfrom the engineering departmentor creating packaging and billboardsfrom concepts that were decided byad execs. Now they have evolved into

strategic decision makers. Their role,which used to be closer to that of anartist, giving colour and shape to thegrey messages of the corporate world,is today one of executive leadership,including within major organisations.In other words, the potential impact ofdesign and its capacity to create valuehave dramatically increased.

This development, however, has beenaccompanied by many challengesand it has taken place unevenlyacross countries, industries and evencompanies within the same sector.The transformation process began withIDEO’s own work in Silicon Valley, and forthis very reason, the consultancy firm

has become a major global referencewhen talking about design, not as amethod, but in the context of innovation.In the mid-eighties, David Kelley, who isan engineer by training, and one of theFounders of the company, noticed apattern in the way projects were beingconducted. This pattern was nothingmore than the work process used byproduct designers, which involvescreating numerous prototypes andholding multiple brainstorming sessionsto shape and refine these prototypes.This way of working, or even thinking,

contrasts with the more analyticalapproach of engineers, and producesunusual results which could have neverresulted from spreadsheets. PsychologistJane Fulton Suri’s arrival at IDEO roundedout the firm’s interdisciplinary approach,using ethnographic methods to imparta human-centred design practice.This collaborative strategy would extendlater to include food engineers, socialscientists and mathematicians, among

others. People began to stop thinkingof designers in terms of their artisticskills, and shifted to ‘design thinking’.

The impact of the discipline itself hasalso grown, as ‘design thinking’ is auniversal approach which can beapplied to solve much more complexissues – from social problems tothe challenges regularly faced bymajor corporations, such as thetransformation of internal culturesand behaviour change. Proof of ‘designthinking’s universal appeal is that IDEO’sCEO, Tim Brown, regularly participatesin the World Economic Forum in Davos,and firms around the world, includingBrazil, now offer services based on the

‘design thinking’ model.A more recent development, whichhas picked up steam over the last tenyears, is the emergence of start-ups.These companies, as defined by EricRies, author of Lean Startup, are notminiature versions of corporations.They are organisations that are able toadapt quickly to their environment andto the market, and are highly equippedto deal with risks and uncertainties.If designers have managed to playa significant role within large and

THE CHALLENGE OF INCREASINGDESIGN’S POTENTIAL FOR VALUE

CREATION IN BRAZIL

F A B R I C I O D O R E M A G A L H Ã E S


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website and start broadcasting newsabout one’s city, talk about sports orany other subject of interest to a singleperson, or to millions.

Common to all these changes isthe shift to a decentralised anduncontrolled communication modelbetween individuals that was madepossible with the mass adoption ofthe Internet. Traditional value chains

were built on centralised distributionstreams. Changing them meansremoving the support base of theirbusiness models, often representedby large organisations which,for many years, accumulated gainson an enormous scale. The ‘new order’forces these same companies to bemore attentive to the wishes anddesires of their customers, a hallmarkof the moment in which we live.The Internet also enables new valuechains and webs to be formed.They can be local and small-scale,serving specific niches, or global –in this case, for example, dozens oftimes faster than traditional TV contentdistribution networks.

This power to organise societycreates business opportunities forthose investing in the dialogue andunderstanding of consumer needs.Corporations that do not becomemore focused on their customersand build new value chains will havegreat difficulty operating in this newlandscape. A similar movement istaking place in many other industries,including financial services.

Leading companies in Brazil, such asWhirlpool, Itaú, Tecnisa3 and Natura,4 among others, currently have customer-centric innovation departments (alsoknown as user-centred innovation).In 2010 Itaú began a structured effortin forming departments of excellence,with the ability to execute projectsand influence organisational culture.The approach they have adopted isfocused on ‘design thinking’,

and professionals with training indesign or an MA background providecorporate innovation leadership,breaking with the paradigm of havingonly MBA executives direct the futureof a corporation.

Bruce Nussbaum, author of CreativeIntelligence, former editor of BusinessWeek, journalist at FastCompany anda Professor of Innovation and Designat Parsons School of Design in NewYork, has preached for many yearsthe need to replace the MBA culturewith an alternative managementtraining that is more appropriatefor the contemporary world. In anarticle published in Business Week

in 2009, he cites Ryan Jacoby,former director at IDEO New York,who was trained in engineering andholds an MBA from Stanford University.In his blog, Ryan describes, course-by-course, what a Master’s programmein business design should look like.The fact is that there is a growing need,especially in large organisations,for leadership which unites analyticaltools with design skills, and whichenable companies to empathise

inflexible corporations, imagine themin an environment more conduciveto experimentation and prototyping.In addition to the support that comesfrom approaches such as ‘designthinking’, designers are now startingto impact leadership and are evenfounding start-ups, exponentiallyincreasing their ability to create valuefor the economy and society.

There are few examples of this inBrazil, where start-up development hasbeen slow, but we are already seeingcutting-edge companies seekinginnovation through ‘design thinking’,trying to incorporate professionals withdifferent backgrounds rather than onlyMBA graduates. Whirlpool, an Americanhome appliance manufacturer, has putforth solid design-based innovationwork in Brazil for some years now.Since 2010, Itaú1 has followedWhirlpool’s lead, demonstrating notonly the commitment of corporationsof this calibre, but also the diversityof sectors in which we can witnessthe impact of design. There is agrowing interest in ‘design thinking’ in

the private sector, which is typicallyquicker in adopting innovativepractices. The same interest, however,is not yet visible in the public sector,where service design could radicallytransform user experiences withagencies such as DETRAN,2 or otherpublic organisations.

Challenges abound when it comes toleveraging the ability to create valuethrough design in Brazil. Here we will

address three critical and interrelatedthemes: the private sector, academiaand the economy.

Private sectorIn recent years, countless sectorshave suffered the impact of rapidtechnological advances. Since thelaunch of the music file-sharing siteNapster, the world has watched majorUS record labels struggle to survive.

The Apple iPod has revolutionised theway the world listens to music on thego, just as Sony’s Walkman did beforeit. Dozens of websites for Internetmusic consumption have emerged,such as Last.fm and, more recently,Spotify, a Swedish start-up that offers itssubscription service almost everywherearound the world, allowing users to listento as many songs as they like, wheneverand wherever they want.

In November 2007, Amazon launchedits first Kindle e-reader, sparking yetanother revolution within a traditionalcultural industry. In 2010, Apple launchedthe first iPad, consolidating, along withthe Kindle, a new consumer market

for digital book publishing, especiallyperiodicals, as well as films andtelevision series.

Around the same time, anothermovement occurred which radicallychanged the television production andbroadcasting industry, with audiencesstarting to watch TV, news and sportsbroadcasts on their computers.The distribution of online content isuncontrolled. Anyone can create a

One of Brazil’s largest banks.

State Traffic Department of São Paulo (similar to DVLA).

3 One of Brazil’s largest residential property developers.

4 Leading Brazilian cosmetics company.

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with clients and tolerate ambiguity,in order to better navigate dynamicmarkets. This new role for designers asexecutives is challenging, and requiresskills that are not part of the curriculumtoday in the design world. The impactof designers has not only grown inlarge companies, but also in start-ups.

Perhaps the best example of thisnew way of doing design in the world

of start-ups is Airbnb, founded byproduct designer Brian Chesky,a graduate of Rhode Island’s Schoolof Design. In 2007, Brian movedinto his friend Joe Gebbia’s flat, inSan Francisco. Upon his arrival, herealised that he did not have enoughmoney to cover his share of the rent.At the end of the following week, theannual meeting of the IDSA (IndustrialDesigners Society of America) wasscheduled to take place, so all hotelrooms in the city were booked.Both men decided to take advantageof the opportunity by offeringaccommodation to raise money tobe able to pay their rent. They had noextra beds, just three air mattresses,

but they decided to keep renting outspace in their flat, calling their initiativeAirbed and Breakfast. They chargedUS$ 80 a night, and even preparedbreakfasts and gave their visitorsinformation about the sights of thecity. They realised they had uncovereda business opportunity waiting to betapped: offering accommodation inprivate apartments which are emptyor have extra rooms.

Airbnb, as the company came tobe known, now offers roughly the

same number of beds as the Hiltonhotel chain but doesn’t own any ofthem. Enterprises like this show thedesigner’s role not only in executingan idea, but in having the strategicvision and know-how to turn ideasinto businesses. The company’swebsite and mobile app are graphicallywell-designed, but the secret is in theintegration of the business model witha user journey that is well laid out,

from start to finish.

Brian and other designers who havetaken the same path are known asdesigner founders. This term is also thename of a Silicon Valley venture capitalfirm that invests exclusively in start-upsfounded by designers.

AcademiaThere is a gulf between the designersthat the market – and the world –needs, and the designers being trainedin Brazilian universities. The ESDI(School of Industrial Design) was thefirst institution in Brazil to offer formaleducation in design. Currently, it isrecognised as the most prestigious

design school in Brazil. Founded in1962 in Lapa, in Rio de Janeiro’s citycentre, it followed the conceptualmodel and pedagogical structure ofGermany’s Hochschule fur Gestaltung (College of Fashion) in Ulm. In its earlyyears, the course was divided into twostages: two years of core studies andtwo years of specialisation in industrialdesign or visual communication.Although the programme now lastsfive years instead of four, training atESDI still consists of the general corecoursework, now followed by three

subsequent years in the same twospecialisation options since the sixties.

It may seem like an isolated example,but fifty years after it started, designeducation in Brazil has made littleprogress from concept to tooling.Every year, we put thousands of newdesigners on the job market withoutsound intellectual training and withtechnical skills of little value, such as

graphic design for printed matter.

There is another aspect of designeducation in Brazil which isgeared towards ‘strategic design’.Unfortunately, preparing professionalswho do not have the analytical trainingto think strategically is immenselychallenging. For the vast majority ofstudents, it is difficult to say whetheror not they could assist in a corporatedecision-making process. They end upbecoming designers without technicalskills and also with no knowledge onbusiness or management.

Industrial design and visualcommunication have been replaced

by interaction or digital design,focused either on the integrationbetween hardware and software, digitalvisual design and other areas whichhave emerged from a world overtakenby technology. From the creation ofinterfaces and products, to spaces andeven services and complex systems,design today is predominantly digital.The Brazilian education system stillfocuses on low-tech and artistictechniques. Meanwhile, new designersabroad are trained in digital design,

creation, analysis and prototypingof business models using theBusiness Model Canvas or in creatingexperience blueprints and user journeys. Brazilian students who aremore ambitious – and who can affordit – look to round out their educationat leading schools in the field, such asNYU ITP (US), Umeå Institute of Design(Sweden) or CIID (Denmark).

Following the example of the CIID,which is a school but also a start-upaccelerator and consulting firm,we need to follow the model ofinstitutions which are more flexible,and dramatically transform thecurriculum to include subjects onsoftware programming, business andmanagement. Technical skills are stillneeded, but they should revolve arounddigital technology and not just analogue.Above all, intellectual training shouldbe the objective of the instruction.In engineering, this training translatesinto high analytical ability. In design, aswell as analytical skills, practitioners mustexercise empathy, tolerance for risk,experimentation and implementation.

The EconomyThe fact that ESDI was founded inRio de Janeiro during the sixties wasnot a coincidence. The founders’recce trip to Germany was supportedby the government’s ambitions toindustrialise the economy. The latefifties in Brazil were characterisedby the ‘developmentalist’ policies ofthen-president Juscelino Kubitschek.5 Following Germany’s post-war recoverymodel, the government heavily invested

5 President of Brazil from 1956 to 1961.


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sector, it is common, even in themost successful firms, to use a‘method’ which, unfortunately,still works: attend the Milan FurnitureFair every year, identify ‘trends’ and‘tropicalise’ the solutions, sourcingthe required materials and finishesfrom local suppliers. After all, whywould local designers do anythingdifferent? Being ahead of competitorsis necessary; however, being very far

ahead could be a waste and may evencause a company to fail, dependingon the risk associated with R&D intechnology and design.

In terms of start-ups, despite therecent emergence of accelerators,mainly in Rio and São Paulo, thevast majority of proposals for newdevelopments are nothing morethan ‘tropical’ versions of existingsuccessful American models. One ofthe few locally conceived, successfulexamples which comes to my mindis Queremos.com.br, a ‘fan-funding’platform that invites users to invest inbringing gigs and concerts by theirfavourite artists to Brazil. The vast

majority, however, are copycats ofmodels that have already beentested abroad.

Brazil’s current economic situationis worrying. In addition to easing thefiscal measures which took us this far,we failed to prepare ourselves duringthe boom years for what may be a longeconomic winter for Brazil. We misseda great opportunity to make structuralchanges to ensure sustainable growth

in the coming years. Businesses todayare stifled by poor infrastructure,bureaucracy, labour shortages anda complex and archaic tax system,which prevent them from becomingmore competitive.

Why invest in design in a businessenvironment like this? Design is the tipof an enormous iceberg. Although weenvision a more contemporary design

practice in Brazil, this transformationwill not take place unless there is aprofound change in the economiclandscape and business environment.The future is also worrying, since wedo not see the government addressingthese problems. We are moving awayfrom core markets. The share ofBrazilian participation in internationaltrade is declining, and incentives forinnovation offered by BNDES9 arefocused on incremental technologicalinnovation. Loans for start-ups takeup to six months to get approved,making it unfeasible for this nicheof flexible and highly responsivebusinesses to launch in a short amountof time. To paraphrase Carlos Lessa,

Economist and Emeritus Professor ofEconomics and former Vice-Chancellorof UFRJ (Federal University of Rio deJaneiro), in order for Brazil to evolvesuccessfully into a first-tier supplier,the country must not only recogniseand accept its position as part of thelarger, yet globally peripheral, LatinAmerican economic bloc, but alsodevelop and discuss a new nationaleconomic plan. Brazil’s economyhas been buzzing in recent years,

in the training of young people inorder to make them capable industrialworkers and producers. In the yearsthat followed, however, we saw cautiouseconomic growth and an unexpectedtransformation in Brazil’s economytowards the third sector.

The size and strength of a local designlabour market is always related todemand of design by other sectors

of the local economy. This was thecase during the fifties and sixties inthe US, when designers producedhighly unusual objects with strongcommercial appeal in order toaccelerate sales, catering to the newmiddle class’ desire for consumption.Another, more recent, example ispost-industrial UK, where there hasbeen a boom in the emergenceof consultancy firms focused onservice design. Since the eighties,the UK experienced a processof deindustrialisation. Today,approximately 78% of the GDPcomes from services, while only21% is produced by industry,and 1% from agriculture.6

Brazil experienced some dark yearsfrom 1970 until the stabilisation of itseconomy during the government ofFernando Henrique Cardoso,7 with theadoption of the Plano Real (Real Plan).8 The three measures proposed bythe plan, including an inflation targetregime, floating exchange rate andprimary surpluses, were key to attaineconomic robustness and predictability

which, combined with the rising priceof commodities internationally,gave rise to sustained growth between2004 and 2010. This same robustnessand conservatism bolstered Brazilduring the global financial crisis of2008 and 2009.

The impact of predictability in businessis often underestimated, perhapsdue to the simplicity of the concept.

Equity holders and investors react tothe ‘rules of the game’ quite rationally.If the economy is stable and thereare signs of maintaining long-termconditions, the horizon stretches and itbecomes possible to plan years ahead.Planning and long-term investmentare central to the sustainable growthof companies and nations. Designdenotes planning for the future.If companies do not envision thatfuture, how can they invest increating it? In other words, designand innovation cannot prevail if thescenario is one of constant reactivity.Over the past two years, we have againencouraged the Brazilian businesscommunity to look for short-term

solutions and to maintain the flow ofcapital, reducing exposure to risk. Fordesign, this means no longer creatingsomething truly innovative, but insteadlooking for solutions which havealready been tested in the market.

Early in my career, I worked in whatis virtually the only industrial sectorin Rio de Janeiro’s economy besidesoil: the furniture industry. In this

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/271485/Growth_Dashboard_January_2014.pdf

President of Brazil from 1995 to 2003.

Economic stabilizati on plan, initiated in 1994, which successfully controlled the hyperinflation that plagued the country.

9 The Brazilian Development Bank, also known as the National Bank for Economic and Social Development, is a federal publiccompany associated with the Ministry of Development, Industry and Trade and is the primary provider of long-term financing forinvestments in all segments of the economy.

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but to claim Brazil is emerging when,structurally speaking, the country issubmerging ultimately does a greatdisservice to its economic potential.

ConclusionsFor design work to broaden its potentialfor impact and value creation in Brazil,coordinated actions will be requiredbetween companies, academia andgroups that determine economic

policies, such as the governmentand the Central Bank.

Initially, one must create a stablemacroeconomic environment whichis conducive to attracting long-terminvestments. In Brazil, this means areturn to conservatism and adherenceto the three goals of the Plano Real.It is important to tackle the problemsfacing infrastructure, bureaucracy,education and tax reform. Currently,we transfer approximately 40% ofall the wealth we produce in oureconomy’s most dynamic sector, theprivate sector, to the less productiveand less efficient government.

At the same time, and as we did inthe past, academia needs to radicallyrevise course curricula. Today wehave less need for technically skilleddesigners, and more need for thosewith an intellectual training whichenables them to think like designers.Curricula should include knowledgeof digital business, finance andmanagement. We need to bring designcourses up to date by focussing onnew careers, such as service designand organisation design. Consequently,with an environment conducive to

risk and a market with highly skilledprofessionals, businesses will naturallyinvest in innovation and hire designersto act not at the end, as is still thepractice in Brazil, but at the beginningof the value chain, amplifying theirpotential for impact.


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Design is perhaps the mostcomprehensive of all the differentsectors that comprise the creativeeconomy. It permeates every sector,including those that are not part of it.Design is an essential tool in creatingthe ‘breeding ground’ necessaryfor the development of the creativeeconomy, not only for its ability tomodernise and leverage sectors, bothtraditional and otherwise, but also to

encourage a new and more demandingperspective from consumers.

Design and creativity are almostalways related to matters of aesthetics,appearance and style, but they aremuch more than this. They are thetools required for manufacturinginnovative products and quality,valuable services.

Creativity cannot be viewed as a giftbelonging to the privileged few. It mustpermeate the rationale of all ventures,public or private. Consumers of goodsand services must demand it. To reachthis scale, however, a cultural shiftmust take place, relying heavily on

a modern educational system whichteaches students to think about theworld from a new angle.

Similarly, design’s wider potential asa tool for innovation, from strategyto production – in packaging, marketpositioning, communication, etc. –is not yet recognised in Brazil.

‘The big question is “Why does Brazilianindustry still invest so little in design?”’Why is design considered secondary,given the numerous other economic,

financial and macroeconomic problemsfacing companies and the country?

One explanation is the fact that Brazilwas a closed economy for a long time,which protected our industry fromcompetition and did not encourageinvestment, particularly in design.

This explanation made sense when theeconomy was first opened up, in the

nineties, but it is no longer sufficientto explain why our industry, after morethan twenty years and in the face ofenormous competitive challenges,continues to invest so little in thispowerful, internationally-recognisedcompetitive tool.

We know our economy’s struggles –it grows a little and stops, growsa little more and slows, but nevertakes off as expected. We know theenormous problems arising from theinstability of our infrastructure, fromlabour and fiscal costs and from highlevels of corruption. We also knowthat one moment exchange rates areovervalued, and the next they are

fluctuating wildly, and that high interestrates are another source of costs.Obviously, such a scenario does nothelp to stimulate investment.

The entire debate between officials,businesspeople and academicsrevolves around how to break thesebottlenecks. At no time, however,do matters arising from the majorstructural changes taking place in theworld (where innovation, creativity anddesign take on new proportions) enterthe discussion in a relevant way.

FACING OLD PROBLEMS ANDNEW CHALLENGES

L I D I A G O L D E N S T E I N


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To make matters worse, as analternative, critics of this view whoare stuck in the past fall into the sametrap by proposing strengtheningservice and agribusiness sectors andabandoning the industrial sector. Theyignore, amongst other things, the factthat a service sector with leadershippower and the capacity to generatebetter skilled and better paid jobsis based on new technologies and

creativity – i.e. through investmentin the creative economy.

These analysts also ignore that asector like this only flouri

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