Strategy of Design Terminal

8/13/2019 Strategy of Design Terminal

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STRATEGY2014 2020


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In recognition of the growing economicimportance of the creative industries and

their role in the competitiveness of successfulcommunities, and acknowledging the workdone to date for the development of thesesectors by Design Terminal Nonpro t LLC(later Forum Hungaricum Nonprofit LLC),on 1st January 2014 the Ministry of PublicAdministration and Justice is establishingDesign Terminal National Centre for CreativeIndustries (hereinafter referred to as Design

Terminal NCCI), as a fully autonomous non-departmental public body.

Gergely Bszrmnyi NagyStrategy Director

Budapest, 10 November 2013

Design Terminal NCCI is a Hungarian publicbody for the development of the creative

industries. Its mission as described in itsArticles of Incorporation comprises thefollowing aims: to support the Hungariangovernments economic policy by stimulatingthe creative industries; to define theopportunities for country branding andeconomic policy development found inthe creative industries; and to enforce thestrategic interests of the Hungarian state in

the sectors mentioned above.

FOR THE HUNGARIANCREATIVE INDUSTRIES


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I. The Mission 4

II. Activities 8

III. Urban, regional, Europeanand global perspectives 24

IV. Transparency and sincerity 30

V. Strategic partnerships and volunteering 32

VI. International best practices 35

The building of Design Terminal as a former bus station in the 1960'


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THE MISSION

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The creative industries exist in businesssectors in which individual creative capacityforms the basis for activity. According to an -other de nition, they are those economic -

elds in which the creation of business valueinvolves the creation of cultural value. Thestimulation of the creative industries is notprimarily a cultural policy goal, however, as itis an economic policy challenge and a geo -political opportunity. It is an economic poli -cy challenge, because such activity is eitherimpossible or extremely dif cult to replace,being based on jobs largely incapable of be -ing outsourced; it is a geopolitical opportu -nity, because the creation of a critical massof entrepreneurs in the creative industri -es through sector-speci c, active culturalconsumers and creators contributes decisi-vely to a competitive national community, and

helps Hungary become a regional hub on theglobal map in those sectors which are highlysuitable for country branding and which havean increasingly important role in international

economy. Hence, the stimulation of the crea -tive industries, the identi cation and exploita-tion of opportunities in economic policy andcountry branding within the creative industri -es are in the strategic interest of the Hungari -an government of the day.

According to a recent estimate by theHungarian Intellectual Property Of ce, thecreative industries (direct or indirect) sha -re of the Hungarian GDP is between 5% and7%. In contrast to mass production basedon cheap labour, the EU considers the cre -ative industries characterized as they areby original and high-quality products and

SZILVESZTER KOVCSGeneral Director of the Hungarian State Opera

The state machine is necessarily slow, like a follower, a

few or even several steps behind the pace of the given age.

It is similar to the world of the opera, which tends to mark

time though for a different reason while it should be

renewed constantly. Design Terminal contributes to this

renewal and says by its existence: look, the state can be

smart and sensitive to change and youth.


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services to constitute a dynamic opportu-nity for the community; this outstanding va -lue has special importance in Hungary, evenmore than in other countries in Europe. It is

no coincidence that in the European Commis-sions 2014-2020 budget the single sector ofthe creative industries will receive 9% morethan in the 2007-2013 budget (under whichthis sector was divided into two parts: mediaand cultural).1 It is worth mentioning that ofall countries on the continent, Hungary is thebest-provided with regard to venture capitaland Jeremie funds (for nancing innovativestartups). Therefore, with appropriate initia-tives and coordination, the basic conditions

1 Commission Staff Working Paper Impact AssessmentAccompanying the document Regulation of the EuropeanParliament and of the Council establishing a CreativeEurope Framework Programmehttp://ec.europa.eu/culture/creative-europe/documents/ impact_en.pdf (8 October 2013)

for success are in place. So the timing of thefoundation of Design Terminal NCCI is ideal:now is the time for stimulation of the crea -tive industries to take its rightful place among

the other public commitments within the statebudget.

Design Terminal NCCI considers the sti-mulation of the creative industries to be aneconomic development challenge. Its missi -on is de ned as an institution contributing toeconomic policy. Instead of cultural entities,it considers the current and future players ofthe sectors ecosystem as corporate entitiescreating cultural assets..

IMRE HILDventure capitalist, founder of the businessaccelerator program iCatapult

Design Terminal has not only taken its place on Budapests

creative map, but has become a leader: a major player in the

effort to renew Hungary in terms of form and content. Today

the name Design Terminal means innovative and modern,

world-class youthful initiatives.


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Lecture at the conference of Prezi, LogMeIn and Ustream, held in Design Terminal, spring of 2013


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ACTIVITIES

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ATTILA COSOVANRed Dot Award-winning designer,teacher at Moholy-Nagy University of Art and Design

In todays Budapest, Design Terminal is the take-off and

landing eld of the design and creative industries. Those who

are willing to do something good and believe in the unlimited

nature of human creativity can use this as their departure

and arrival point. This place cannot produce bad work.

Local and foreign innovators at Design Terminal, spring of 2013


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In international literature there is nouniformly accepted de nition of the creativeindustries: there is no rule for the exhaustivelisting of its sectors. Beyond the institutional

assumption which defines a creativeindustry as an economic sector with parallelcultural and business value Design Terminaldoes not seek to enumerate the various sub-sectors. Instead, it selects their elds ofactivity based on three principles: it seeks tostimulate those sectors where: (1) Hungarypossesses an important tradition, andtherefore undisputed industry credibility; (2)there is evidence of contemporary potential,meaning a considerable number of talentedyoung individuals; and (3) effectiveness of a

sector (due to its international importance)could dramatically contribute to positivedevelopment of how the country is perceived.In 2012, while still a non-pro t organization,

Design Terminal identified the followingfields as conforming to these principles:(1) innovative technologies; (2) design andindustrial design; (3) fashion; (4) urbanismand urban planning. During the period 20142020 other elds could be added, should allthese criteria be met simultaneously. Withinthe context of the activities speci ed in itsArticles of Incorporation, and as an institutionwith (1) initiating, (2) supporting, and (3)hosting roles, in these elds Design TerminalNCCI performs the following tasks:

TAMS LISZKAIinventor, developer of the rst Hungarian 3D printer

As an engine of the Hungarian creative industry, Design

Terminal was the rst to unite and show to the public

the endevours of Hungarian 3D technology. Due to this

initiative, unprecedented attention was focused on

the emerging technologies and their Hungarian experts,

to the bene t of all participants


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Design Terminal NCCI establishes a Boardresponsible for investor relations, whosesole aim is building relationships betweenthe businesses in the Hungarian creativeindustries and investors either individualor institutional.

Design Terminal contributes to the entry to domestic

and international markets of startups in the creativeindustries, and to their successful business activity.

The Board offers pre-selected startups theopportunity to participate in regular localor international investors meetings, andcontribute to their appropriate participation ininternational expos and fairs. It also createsand operates a professional database on

SECTORS ENGAGEMENT

ACTIVITIES

INITIATOR

SUPPORT

HOST

Talent searching

Education and training

Event management

Public opinion-forming

Policyproposals

Entry to the market

Professional partnerships

Hosting institution

Innovative Technologies

Design andindustrial design

Fashion

Urbanism andurban planning


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competitive Hungarian businesses in thecreative industries, and investors and venturecapitalists potentially interested in this eld.In parallel, it gives well-edited and timely

information to both the creative industry

and the investment community. In additionit informs and advises creative industrystartups on the various competitions formingpart of the European Commissions Creative

Europe framework programme.

Talent searching is a sectorial incentive thatsimultaneously offers young entrepreneursdebut opportunities while meeting demandfor innovation from the general public including potential consumer target groups.It also establishes new role models and gives

investors an insight into the world of talentedindividuals from the latest generations.And last but not least it demonstratesthe states constructive engagement in thecreative industries.

Therefore Design Terminal NCCI not onlycontinues the talent-searching activity itstarted while it was a non-pro t organization,but further develops it. Thematic talent

Through its talent-searching activities, DesignTerminal draws consumers and investors attentionto the most promising players in various sectorsof thecreative industries

competitions will cover all the creative eldsthat Design Terminal NCCI is involved in,targeting secondary school students andundergraduates; they will in all cases be opento Hungarians living beyond the borders, andwhere appropriate they may be open to other

Central European nationalities as well.Design Terminal NCCI establishes theCreative Entrepreneur of the Year Award, withan international jury and appropriate nancialresources; this is designed to recognizeindividuals achievements and positivelyimpact the whole creative industry sectorsability to attract talent and investment.


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TEDxBudapest conference on the future of the ci ty, held in Design Terminal, spring of 2013


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Design Terminal NCCI is developing anindependent educational portfolio with theaim of making the latest in sector-speci c,business-building knowledge availableto every Hungarian creative industryentrepreneur and enabling them to developtheir related skills and competences, whilepromoting the creative industries amongstyounger generations.

The following projects are included inthe educational portfolio: an accreditedcreative entrepreneurship training scheme incooperation with the Moholy-Nagy Universityof Art and Design (MOME); a Central Europeansummer university with internationalparticipants and lecturers aiming to give

basic knowledge and competences; anoptional course at the National Universityof Public Administration, where future civilservants can become acquainted with thecreative industries as an economic sector.

Through its education and training activity,Design Terminal contributes to the business skillsof the various players within the creative industries.

For the youngest members of its targetgroup, Design Terminal NCCI develops MiniTerminal its skills development atelierfounded in 2012 as well as its thematicsummer camp established within theErzsbet Program. For secondary studentsplanning their career choice, Design TerminalNCCI promotes the creative industries andvalue-added jobs based on creativity andentrepreneurship. Design Terminal NCCIsAdvisory Board will select four Hungarianuniversity students studying in the relatedfields to receive annual scholarships forthe most talented young creative industryprofessionals. Finally, Design TerminalNCCIs own annual internship programme

will provide four university students withexperience in the eld of project management,communication and international relations.


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Mentoring young graphic designers at Behance Portfolio Review, spring of 2013


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Education of future civilservants at the National

University of Public Service

Skill development forthe youngest generations

as part of the ErzsbetProgramme and

Mini Terminal

Design Terminalscholarships

for under-graduates

Creative industrybasics for

high-school students

Central Europeancreative industry

summer university

Accredited creativeentrepreneurship training

in cooperation withMoholy-Nagy University

of Art and Design

EDUCATION PORTFOLIO

Design Terminal NCCIs ambitions do notstop at the organization of international-leveltrade fairs, expos and conferences: in every

eld of its activities it wishes to establishCentral European flagship projects. It is

Through its event-management activities,Design Terminal establishes and operatescentral fairs, exhibitions and conferencesrelated to the creative industries.

important that Hungary act as an initiator atan international level, because as a result ofnew EU policy for the period of 2014-2020,restructuring and an exciting environment (aso-called buzz) is expected in the regions


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JUDIT OSVRTproject leader of Budapest Design Week

In just a few years Design Terminal has become a major

player in Hungary, as a result of its purposeful strategy

and its consistently executed communication. Design and

fashion are about talented individuals, and Design Terminalis able to communicate easily with these young people.

It speaks to them through those media and gives them the

assistance that they accept and are able to use. But all this

would be useless without the professionals in the background

managing Design Terminal with a business approach,

keeping in mind the needs of investors to help bring together

the creative industries various players.

creative industry. If the creative industriesmost important summits take place inHungary a win-win situation will occur.

In addition to its flagship events, as part

of its strategy Design Terminal NCCI aims tobring to Hungary the international creativeindustries most relevant license-events,which are already established in the worldsmost important intellectual centres.

The institution will undertake the task ofobtaining for Budapest by the end of thedecade the one-year designation of WorldDesign Capital; this will include all the

preparatory and application work with thecooperation of the industry.


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One cannot expect any player in the creativeindustries to engage in communicationoutside its own brand, product or service;none can give an overall picture of theeconomic, consumer, professional andinvesting opportunities in the creativeindustries, in addition to de ning the sectorsrole in Hungarys 21st century image. Thistask is the responsibility of the Hungarianstate, to be undertaken by its institution,Design Terminal NCCI. In the elds highlighted

in this strategy, Design Terminal NCCI leadsawareness-raising campaigns regardingselected products and services of theHungarian creative industries, customized toindividual and corporate target groups. Thesecampaigns increases consumers knowledgeand contribute to increased knowledge of themarket among those large Hungary-basedcompanies that require local creative industrysuppliers.

Through its awareness-raising marketing communicationactivity, Design Terminal increases domestic andinternational consumer confdence in the productsof the Hungarian creative industries.

As a professional partner, in 20122013Design Terminal Nonpro t LLC was alreadycontributing to the success of numerousinitiatives initiated by other institutions (forinstance Budapest Design Week, Hello Woodetc.); this involvement is worth pursuing.

The presence of Design Terminal NCCI, asa partner institution for the state in relevantprofessional initiatives for the creativecommunity, guarantees that in these sectors

the relevant economic policy viewpoints arerepresented, while reflecting the Hungarianstates intention for and engagement incollective action. Although as an autonomousnon-departmental public body, it doesntprovide simple support, Design Terminal NCCI

takes on sub-tasks and coordination tasks tobecome a constructive, effective player in thecreative industries non-pro t and businessprocesses.

As a professional partner, Design Terminal contributes to

other institutions high-quality initiatives, thus enhancingthe competitiveness of the Hungarian creative industries.


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Xmas fair of Hungarian designers at Design Terminal, winter of 2012


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The central location of Design TerminalNCCIs headquarters makes the institutionsuitable as a host, and thus sends a powerfulsymbolic message to members of thelocal creative sphere: the Hungarian statecontributes to their efforts and knows aboutand values their achievements. In line withDesign Terminal NCCIs guiding principle,according to its capacity, it will host thecreative industries community and publicinterest events free of charge. The institutionwill also welcome local sectorial players own

business events, such as product shows,exhibitions, press conferences and otherevents. In this case, Design Terminal NCCIprovides a discount from the normal rentalproportionate to the development phase ofthe company in question.

Design Terminal NCCIs various eventvenues are also available for hire by privateentities and institutions outside the creativesphere. A fee different from the list price canbe offered in special cases (for example basedon a sponsorship or supporting agreement).

As a hosting institution, Design Terminal providesa venue for the most important community eventsof the Hungarian creative industries.

Portraits of successful young entrepreneurs in the windows of empty shops, a joint campaign of Design Terminal and the capital in the autumn of 2013


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DESIGN TERMINAL'S AVAILABILITYNumber of days with event activities

PTER ZBOJIpresident, European Entrepreneurship Foundation

As a virtual market square, Design Terminal provides a home

for creative forces. As an increasingly powerful magnet,

it attracts those who want positive change, based not on

obligation, but on their own creativity.


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Design Terminal NCCI provides informationand policy proposals related to the creativeindustries to Hungarys governmental bodies,economic policy-makers and institutionsmeasuring the economys performance. Inaddition, it takes charge of the effectivecommunication of macro and sectorialeconomic objectives in the creative sphere.Design Terminal establishes partnership with

Design Terminal provides Hungarian economic policy-makers with timely and accurate information about thecreative industries and their performance.

the Ministry of National Economy, the StateSecretary for External Economic Relationsand Foreign Affairs at the Prime MinistersOf ce, and the Hungarian National Bank; inaddition it strengthens partnerships with theHungarian Intellectual Property Of ce, theBalassi Institute, the Hungarian Investmentand Trade Agency, the National Cultural Fundand the National Innovation Of ce.

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Central and South-East Europe nal of the talent searching competition of Singularity University, held in Design Terminal, spring of 2013


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URBAN,REGIONAL,EUROPEANAND GLOBALPERSPECTIVES

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Design Terminal NCCI is a nationalautonomous non-departmental public bodyof the Hungarian state, the activities of whichsupport the economic goals of the Hungariangovernment of the day.

Design Terminal NCCI is an urban institution,

because global competition betweencreative ecosystems is mostly betweenmetropolises. The performance of citieswhich use appropriate tools to encourageemerging creative startups positively affectstheir countries competitiveness as a whole(for example Tel Aviv in Israel, Tallinn inEstonia or even Austin in Texas). Therefore,Design Terminal NCCI gives assistance to

decision-makers and institutions of theCity of Budapest to acquire the necessaryknowledge on the local creative ecosystemand to develop good practices. It is important,however, that creative urban ecosystemsconsciously build on educational, productionor any other creative capacities that arebased outside the city. Thus the aim ofDesign Terminal NCCI is to enhance mobility

between investment capital (key to an entryto the international market) and attentionlinked to Budapest and talented individualsor high-quality professionals from any areaof Hungary.

Design Terminal NCCI is a Central European

institution aiming to position Hungary asthe regions creative hub. As a non-pro torganization, Design Terminal has alreadydemonstrated that the expansion of nationalinitiatives to regional summits is a bene tboth for local talent and the countrys image.In addition, it develops cultural cooperationbetween CEE countries and puts the region onthe global map of creative decision-makers.

Hence, Design Terminal NCCIs objective isto achieve a regional character for all of itssuitable flagship projects.

Design Terminal NCCI is a Europeaninstitution that recognizes and promotes theEuropean Commissions 2014-2020 aimslinked to the development of the creativeindustries. Priorities I and II of the EconomicDevelopment and Innovation Operational

MIKLS KISSgraphic designer, award-winning identity designer

I have paid attention to Design Terminal since the beginning:

I have seen it day after day struggling for its existence.

I consider a very important institution, the work of which is

useful for every creative eld. Especially now when Budapest

has suddenly become a focus of interest and holds such

potential that its development requires such an institution.


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Programme (EDIOP) offers an especiallygood opportunity, aiming to establish asupporting business environment and toenhance research and development. Design

Terminal NCCI takes part in the planning andcoordination of the EU budgetary periodsnational projects related to the creativeindustries. It consciously uses communityfunds in its flagship projects. It seeks tocooperate with similar institutions in other EUMember States, and establish an appropriaterelationship with local representatives of the

European Commission and other Europeaninstitutions.

The main message of Design TerminalNCCIs stimulating activities is to emphasize

the direct availability of the internationalworld market for 21-century creative startupsbased in Hungary. Local talent does not needto leave the country even if the products andservices are targeting the global market(good examples are Prezi, Ustream or TiptonEyewear all globally successful companiesthat are based in Budapest).

WOJCIECH DZIEDZICHead of Department, School of Form(Pozna, Poland)

Initiatives of the Design Terminal create a platform for meeting

and exchange of ideas for Central European region. Exchange

of ideas promotes and encourages new initiatives helping

young talent. Well-structured international support helps to

gain broader perspective and awareness which in turn makes

designs more relevant and advanced. Cooperating with other

Central European institutions empowers the region and

promotes creativity which is engine for development.


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Tams szcsHead of Representation of the EuropeanCommission in Hungary

The European Unions growth strategy and new programme

called Creative Europe contribute to utilisation of the

industrys potential. One of its important elements is to

contribute to the creative sectors products reaching as

many countries as possible within the European international

market. Since its establishment, Design Terminal has

played an important role not only in the Hungarian, but

also in the Central European creative sphere: with its fresh,innovative projects, it contributes to the promotion of the

creative industries, to dialogue between the sectors players,

and to networking not only in Hungary but in the wider

region. This activity accords excellently with the European

Commissions objectives.


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Urbanism conference on the renewal of Budapest's public spaces, held in Design Terminal, winter of 2012


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TRANSPARENCYAND SINCERITY

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Design Terminal NCCI is committed tothe principles of rational, transparent andmeasurable operation. In the spirit ofrationalism, the institution simultaneously

avoids the duplication of other autonomousnon-departmental public bodies capacitiesand activities which already exist in anappropriate form in the private sector.

According to the principle of transparency,Design Terminal NCCI will de ne individualindicators in order to measure the ef ciencyof their long-term activities. Based on these

indicators, it produces an annual reporton their effectiveness and professional,economic and material income. From 2014,Design Terminal NCCI produces an annual

Failure Report, signed by the general director,which includes a list and analysis of thosedecisions in the current scal year that weresubsequently proved to be wrong (from astrategic or professional point of view), inorder to draw lessons for the upcoming years.It will be the rst national autonomous non-departmental public body to do this.

The Deputy Mayor of Beijing and his business delegation at Design Terminal, winter of 2012


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STRATEGICPARTNERSHIPS ANDVOLUNTEERING

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Design Terminal NCCI is a communityinstitution. The concept of community isa key one for the success of entrepreneurs,employees, trendsetters and opinion-

makers in the creative industries. Althoughthey use their individual creativity in theiractivities, their effectiveness is enhancedby education, competition, cooperation,cultural environment and the energy of thecommunity. Therefore a community-basedapproach plays an important role in theleadership philosophy of Design TerminalNCCI. The institution con rms the strategicpartnerships it has agreed as a non-pro torganization, and will even agree new onesto contribute to the creation and constantstrengthening of a complex creative industryecosystem.

The institution maintains its small,interdisciplinary Advisory Board, which

already exited in its time as a non-pro torganization. The Board reviews DesignTerminal NCCIs strategic plan annually, andthe plans implementation on a quarterly

basis. In addition, it will share commentsregarding the institutions most importantissues.

Beyond its strategic partnerships, DesignTerminal NCCI would like to set an exampleto other autonomous non-departmentalpublic bodies through the charity side ofits activities and its employees voluntarywork. The institution con rms the strategicpartnership with Hungarian Interchurch Aid(HIA) that it agreed in 2013 as a non-pro torganization, and integrates social solidarityinto all suitable projects, in a way suggestedby HIA.

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Charity auction at Design Terminal, winter of 2012


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Photo: Istvn Kirly

Common project of Design Terminal and the Hungarian Interchurch Aid helping flood victims, summer of 2013


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Launching its operations on 1 January 2013,

this is an executive agency for the DutchGovernments policies. Its projects focus ondeveloping and showcasing a wide range ofinnovation-focused entrepreneurship. TheFunds main focus areas are architecture,urban design, landscape architecture,product design, graphic design, fashion ande-culture. Dutch Design Fashion Architecture(DutchDFA) is a four-year (2009-2012)strategic programme which was announcedin 2009, in close collaboration with the DutchCreative Council, the Federation of Dutch

Enterprise Estonia is one of the largestnational institutions, dealing with thesupport of start-up businesses. In additionto providing financial support, its remitincludes technical advice and training

can be used by the not-for-profit sectorequally. The importance of the institution isclearly highlighted, as its main task is themanagement and allocation of EU nancialassistance. In 2006 the City of Tallinn foundedits own institution for encouragementof the sector, known as Tallinn BusinessIncubator; this aims to support sustainablestart-up businesses. The organizationcurrently operates three incubators, and

Creative Industries and the NL Agency, with

the aim of building international partnershipsin order to reposition the focus areas of Dutchcreative industries (design, fashion andarchitecture). This successful programmehas been developed as the continuation ofa strategic concept, The Creative IndustriesInternationalization Programme (2013-2016),which continues to serve the internationalpromotion of particular areas within thecreative industry in the Netherlands, mainlyin architecture, design and e- culture.

its mission is to increase business andentrepreneurial competencies. The principlemeans of support are professional coaching,training, workshops, networking events andeducational panels. Tallinn Creative Hub

Development Centre operates in the capitalalso, aiming to build partnerships, promoteknowledge transfer and create synergyamong areas within the creative industries.The Tartu Centre for Creative Industries wasfounded in the city of Tartu in 2009. As thecoordinating body for the south of Estonia,it deals with tasks related to the promotionof the creative industries. Its principalactivities are providing information, training

The Netherlands Creative Industries Fund

Estonia

Enterprise Estonia, Tallinn Business Incubators,Tartu Centre for Creative Industries,Tallinn Creative Hub Development Centre


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Strategy of Design Terminal

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