Design for innovation

Facts, figures and practical plans for growth A Council paper published to coincide with the Government’s Innovation and Research Strategy for Growth December 2011

Design Council

34 Bow Street, London WC2E 7DL Telephone +44 (0)20 7420 5200 Facsimile +44 (0)20 7420 5300 Email [email protected] www.designcouncil.org.uk

© Design Council 2011 Charity number 272099 DESIGN FOR INNOVATION | CONTENTS cONTENTS

Foreword

1. Innovation and growth 2

2. Defining design within innovation 4

3. The expansion of design 5

4. The UK design sector 7

5. Economic evidence on the role of design 8

6. A business innovation infrastructure with design inside 10

7. A public innovation infrastructure with design inside 12

8. Planning for the next generation of innovators 14

9. Design for Innovation policy priorities 15

10. Design for Innovation actions 16

End notes 20

About the Design Council

The Design Council places good design at the heart of social and economic renewal.

As a centre of new thinking and insight into the role of design in innovation, it is one of the world’s leading design organisations. For more than 60 years, it has sought to provide evidence and demonstrate how design can help build a stronger economy and improve everyday life through practical projects with industry, public services and education.

The Design Council is a charity, incorporated by Royal Charter, that promotes design and for the public good.

For more information please visit: www.designcouncil.org.uk DESIGN FOR INNOVATION | FOREWORD

FOrEword

“Design can help organisations transform The Design Council has produced this their performance, from business for Innovation plan to coincide innovation, to the commercialisation with the Innovation and Research Strategy of science and the delivery of public for Growth published in December 2011 services. That is why design forms which sets out how the government will boost an integral part of the Government’s business investment in innovation enabling plans for innovation and growth and greater success in the global economy. features strongly in our Innovation and Research Strategy for Growth. The purpose of this design plan is to bring the design elements of the Innovation and The UK has the potential to succeed Research Strategy together in one place and globally but to do so we must harness to communicate these as widely as possible our strengths. Design is undoubtedly an across design, industry, government and area where we are amongst the best in the education. Our aim is to provide a useful world, with potential to do even better.” strategic framework for organisations, institutions and individual businesses Rt Hon David Willetts MP, Minister with an interest in making design-led for Universities and Science innovation happen on the ground.

Throughout this plan we have tried to add value to what now sits within the government’s strategy. We have synthesised arguments, brought the underlying facts and evidence to the fore and set out the design priorities. In addition we have laid out the specific design initiatives and actions that the government is funding directly as part of its stimulus package in collaboration with the Design Council and other innovation partners.

This design plan has its origins in the Design for Growth Summit, hosted at the Design Council on 23 June 2011. A broad constituency of opinion-formers in areas of design, business, policy and education participated in the event and suggested ideas for swift practical action. We’d like to thank everyone who contributed.

David Kester, Chief Executive, Design Council

1 DESIGN FOR INNOVATION | 1 INNOVATION AND GROWTH

INNOVATION AND GROWTH 1

The Innovation and Research Strategy The government’s strategy is clear that for Growth sets out the government’s innovation, across the public and private approach to boosting business investment sectors, is the only pathway to sustainable in innovation and enabling UK success in economic growth, higher real incomes and the global economy. This section provides greater quality of life in the long term. a high- summary of the main themes of the government’s strategy. This is illustrated by research findings on the impact of innovation on business The Innovation and Research Strategy performance. For instance, NESTA’s is focused on overcoming the economic Innovation Index shows that companies that challenges facing the UK by stimulating introduced a new product between 2002 to growth and employment, rebalancing 2004 saw average employment growth of the economy and delivering effective 4.4% during the subsequent 3 years compared public services. to 2% for non-innovative businesses.

These goals have to be achieved in The Innovation and Research Strategy a challenging international context. sets out how the government’s support At the same time as the global economy will drive growth by addressing five is slowing, it is also becoming more critical areas: competitive. More countries are seeking to produce innovative products and services DISCOVERY AND DEVELOPMENT and to attract mobile investment capital and – fostering scientific and technological high value business activities. Global trends breakthroughs by prioritising investment in such as population growth, demographic areas that have wide application and where change, resource pressures and climate the UK has competitive strengths to exploit change are also presenting challenges emerging global markets. The government for societies all around the world. will back challenge-led innovation in those technology areas requiring interdisciplinary To thrive in the global economy, the UK collaboration to develop new business models must rise to the challenge of achieving products and services. It is also establishing prosperity through increasing innovation. an elite national network of technology and innovation centres, branded ‘Catapult Centres’, to support business innovation in technology areas where the UK is strong internationally. The capability to use design for commercialising technology will be integrated within the comprehensive support service that the Catapult Centres will provide to business.

2 DESIGN FOR INNOVATION | 1 INNOVATION AND GROWTH

Innovative businesses Global collaboration – supporting business innovation across – responding to the international challenges all sectors of the economy. Technology- and opportunities of changing innovation based businesses are important but future geography. Innovation and research are economic growth also depends on businesses increasingly international endeavours. The across the economy investing in their own government will develop and support new forms of innovation. Design, managerial forms of international partnership and and organisational competencies, human collaboration. It will promote UK expertise resources and intellectual property are around the world including attracting inward increasingly important forms of innovation. investment and exploiting opportunities in The government’s strategy recognises the growth markets. As part of this approach, the transformational role of design in leading or strategy identifies the work the Design Council supporting product and process innovation will undertake with UKTI to promote the use across all businesses and announces the of the UK’s design strengths to support UK expansion of the Designing Demand business and to attract inward investment. mentoring programme to build greater design capability and understanding among SMEs. New innovation challenges The government will also work with the design – encouraging innovation in all parts of sector to raise awareness of the R&D Tax Credit. our society, with the government acting as an innovation leader as a customer Knowledge flows in the for new products and through delivering innovation ecosystem public services. The government can enable – encouraging high-impact collaborations innovation in a number of ways including between entrepreneurs, researchers and through mobilising resources and new experts in design, intellectual property, partnerships around big societal challenges, measurement and standards. The UK’s acting as a lead customer for innovative innovation ecosystem of institutions with goods and services, and through developing a worldwide reputation is a source of and promoting innovations that deliver competitive advantage. The government better and more efficient public services. The will build on this to provide incentives for government’s strategy recognises the success greater collaboration between businesses of design-led open innovation competitions and universities, remove barriers to cluster that address major societal challenges, and development and strengthen essential parts the important role that design can play in of the infrastructure. This will include strengthening the public sector’s capacity to be continuing support for the Design Council’s an intelligent customer delivering cost savings Innovate for Universities programme to help and improved efficiency. The integral role promote a greater understanding of how design that design has to play in each of these areas can help university Technology Transfer is explored in greater detail in the following Offices to commercialise academic research. sections of this paper and is reflected in the Design for Innovation Actions summarised in section 10.

3 DESIGN FOR INNOVATION | 2 DEFINING DESIGN WITHIN INNOVATION

Defining design within innovation 2

Good design is essential to good business. The common features of design are that it is: It turns new ideas into practical products, environments and services around the A creative and user-centred changing needs of users. This section approach to problem solving. describes design in the context of The idea of adopting design principles business innovation i. at the heart of business culture and management is linked to global business Creativity in business is the success stories such as at Apple, Dyson origination of new ideas. and Burberry. ‘’ builds Creative ideas that may result in innovation on theories around creative culture and come from multiple sources including front- thinking styles and deploys line staff within a business, specialists in within strategic business management ii. technological or scientific discovery that may be external to a business, and from the A management process for the engagement of citizens and consumers. development of new products and services. The design process is a highly defined Innovation in business turns ideas into value. series of actions and staged gateways that Innovation applies ideas and new knowledge guides and controls research, development to the production of goods and services and production in manufacturing and to improve product quality and process service businesses. The design process performance. It is driver of renewal and typically includes both technical design growth in an organisation and hence also (such as for manufacture) in the wider economy. and non-technical design (such as experience and identity). Design is the connection between creativity and innovation. A set of professions linked Design shapes ideas to become practical by a common discipline. and attractive propositions for users or Good design outcomes in business are customers. Design may be described as supported by professional and creativity deployed to a specific end. design managers, some who work in consultancy and others within client firms. The professions of design have developed over more than 150 years through the educational routes of art and design, engineering and architecture. They are closely linked and frequently taught within the same schools.

B latchford Chas A Blatchford & Sons’ has commented “when microprocessor-controlled amputees say they can walk knee, the Intelligent Prosthesis, nine miles without getting tired, led to the market accepting I’m satisfied we’re on the right electronic control of lower path”. Blatchford’s experience limbs. It was a major step in demonstrates the role of design changing amputees’ lives. Saeed as a creative, user-centred Zahedi OBE, the company’s approach to problem solving Technical Director and combining technical and shortlisted for the 2011 Prince customer experience aspects Philip Designers Prize, of product development.

4 DESIGN FOR INNOVATION | 3 THE EXPANSION OF DESIGN

The expansion of design 3

As areas for competitive advantage, such Company spending as the use of technology, become more Anecdotal case studies of an expansion of globally contested, design has become the design are supported by wider evidence of differentiator for business innovation. This business spending. UK firms cite design as section looks at the expansion of design in increasing in importance when combating policy, management and business education. the effects of recession iii. A 2008 report from Cambridge University’s Institute for Business case studies Manufacturing calculates The adage that if you can’t compete on cost design expenditure in the UK at around all you have is design has been exemplified £50bn annually iv. through powerful case-studies over the last decade. The turnaround of Apple from a loss- A rise in design for innovation spending is a key making computer company in the mid-90s aspect of a wider shift in business investment to the second biggest company in the world over the last thirty years away from tangibles is a consequence of a design-led approach to (such as plant and machinery) and towards innovation and a powerful partnership at the intangibles (such as knowledge-based services top of the business between the late CEO, Steve including design). OECD employment in Jobs, and the Senior Vice President of Design, knowledge-based services increased from 50 Jonathan Ive. Similar examples include the million in 1970 to over 150 million by 2005 v. turnaround of the clothes retailer Burberry to become a top performing company in the FTSE 100 over the last six years. In this case, business commentators credit the consistent growth to a similar style of partnership between CEO Angela Ahrends and Chief Creative Officer, Christopher Bailey. Leading UK manufacturers, such as Dyson, JCB and Jaguar all regard design as essential to their expansion in highly competitive global markets.

Burberry Burberry, under Chief Creative In the final three months of Officer, Christopher Bailey 2010, Burberry enjoyed a 36 MBE, has used design-led per cent increase in global innovation to rejuvenate its retail sales, driven largely offer from a traditional by high-end consumers British clothes manufacturer in emerging markets, and into leading luxury brand in less posted record high share than a decade. The company prices in early 2011. The fully integrates the , company’s turnaround shows materials and process elements a UK business using design of their operations with the use to succeed in an increasingly of the latest communication competitive global market. tools, such as digital social media, to extend its brand reach and appeal to customers.

5 DESIGN FOR INNOVATION | 3 THE EXPANSION OF DESIGN

Design in policy The first so-called D-School was established As businesses seek to trade in high-value within Stanford in 2003. Now sited in the $35m goods and intellectual property, national Hasso Plattner Institute of Design, governments have thrown their weight behind it is one of 60 D-Schools in a growing efforts to strengthen and protect local design league table recorded and monitored by capabilities. Respective plans reflect the varying BusinessWeek. Design is now integrated characteristics of national innovation systems. into teaching at Harvard, MIT, Illinois Institute The EU launched a design innovation policy in of Technology, Carnegie Mellon 2010 with funding for projects that raise the and other leading US MBA schools. Some performance of SMEs. Most individual EU business schools, such as the Rotman member states have their own bespoke policies School of Management in Canada, have and plans. For instance, this year the Danish placed design at the centre of their pedagogy. Department of Construction and Enterprise published its Design Vision 2020 with a strong Design in business teaching has spread emphasis on challenge-led innovation and from the US to Europe and the Far East. public services. The Korean government In Germany the complete model of the credits the success of its manufacturing Stanford D-School has been exported to the industry, including global players Samsung University of Potsdam. The US educational and LG, to investment in design. In 2009 model is interdisciplinary with business China announced a strategy to shift from courses adapting to integrate design. ‘Made in China’ to ‘Designed in China’ as part of its plan to reduce dependency on low-value Since 2005, some UK universities have manufacturing and develop original products experimented in multidisciplinary programmes and . This has led to establishing strengthening links between business schools twenty-seven design zones with incubators, and design schools. At Imperial College prototyping and research capabilities. design has been incorporated in to the MBA as part of a long-standing relationship with Design in business education the Royal College of Art. Other examples Business schools have responded quickly to include Northumbria University which the rising demand for design teaching offers a Masters in Multi-disciplinary Design within their curricula. As companies seek Innovation run by the School of Design to integrate design and accelerate innovation, in collaboration with Newcastle Business the requirement for bespoke courses and School and the School of Computing, modules within MBAs has proliferated. Engineering and Information Sciences.

Folding plug South Korean-born Min-Kyu The original folding plug, shown Choi, an MA design graduate in the image, is now being from the Royal College of Art won developed by Made in Mind, a the Brit Insurance of the venture comprising of Choi and Year Award in 2010 for his folding London based businessman plug design concept. Folding flat Matthew Judkins rumoured for storage, the design reduced for release early 2012. The the overall plug size by over 70%, folding plug illustrates how folding down to just 10mm wide , combining — no thicker than a Macbook Air. appreciation of design with creative engineering, can lead to the development of products with strong commercial potential.

6 DESIGN FOR INNOVATION | 4 THE UK DESIGN SECTOR

The UK Design sector 4

Alongside strengths in science and Most UK design consultancies tend to be technology, the UK has a world-class design micro businesses selling their services industry. This section provides an overview nationally. A high proportion of the of the shape and nature of UK design. leading design firms, however, export their services around the world. Some UK design is a global success story and a of the top consultancies in areas such as powerful sector to help accelerate innovation and architecture now and growth. It is supported by one of the report few or even no UK clients. largest design education systems with some of the most highly sought-after colleges The UK design infrastructure is well-regarded globally. British art and design colleges have internationally and includes strong cultural developed over 150 years and continue to assets such as the Victoria and Albert educate some of the world’s leading designers, Museum and the , robust who in turn are sought internationally for trade and professional associations and their creativity and skill. Some of the best- strong local networks. The infrastructure known names in design are British and many is well positioned to engage in national of the world’s best brands, buildings and efforts for innovation and growth. products are designed from studios in the UK.

In 2010, the Design Council’s sector survey mapped the industry calculating its size at 230,000 designers, making it the largest design industry in Europe vi. Despite the recession the sector continues to expand. Since 2005 the design industry has grown 29% with earnings up by £3.4bn. Its turnover is calculated at £15bn including consultancy and in-house design teams.

British Pavilion at Shanghai Expo, 2010 The Shanghai Expo provided Awarded the Gold Medal at a platform for countries to the Expo, the Pavilion shows demonstrate their strengths, how design shapes ideas to identity and creative abilities. become practical and attractive The Heatherwick design studio propositions for users or and wider project team, rather customers that can break the than creating a conventional mould of traditional thinking. advertisement for the UK, The Pavilion was a powerful worked with Kew Gardens’ advertisement for UK design as Millennium Seedbank to design a global success story. the iconic ‘Seed Cathedral’.

7 DESIGN FOR INNOVATION | 5 ECONOMIC EVIDENCE ON THE ROLE OF DESIGN

Economic evidence on the role of design 5

The expansion of design into innovation The value of design in business management and economic strategy has There is, however, a body of research provided the research base used by policy- providing numeric data on the value of makers for insight and intervention. This design to business. The headline numbers section provides an overview of the economic demonstrate the potential of design for role of design. growth and innovation:

Design goes hand in hand with civilisation — The Design Council tracked public quoted as it is a manifestation of the human impetus firms that use design intensively over a to make things better. As such design cannot ten-year period between 1994 and 2004 be reduced to a set of economic metrics as and compared them to poorer design-users. its value must be understood on many levels The design intensive firms outperformed including socially and culturally. For instance, their peers by 200% through bull and a well-designed building or public , such bear marketsvii. as the new Olympic Park, may deliver civic pride, build social cohesion or improve health — 80% of UK businesses believe that outcomes, as well as providing jobs in the design will help them stay competitive construction and engineering industry. in the current economic climate. This figure rises to 97% among rapidly growing companies viii.

— An in-depth ‘Value of Design Survey’ of 503 businesses by the Design Council shows that every £100 a design alert business spends on design increases turnover by £225. The survey also reports businesses that see design as integral are more than twice as likely as others to see rapid growth ix.

— UK firms consider design to be the sixth most important factor driving business success — higher than R&D and marketing. The number one slot was quality of staff and the second was financial managementx .

Olympic Velodrome The 6,000-seat Olympic The Mayor of London, Boris Velodrome, built by the Olympic Johnson, commented that: Delivery Authority (ODA) “Not only does the Velodrome and designed by a team led by represent a fantastic investment Hopkins Architects, has been in sport, it’s a world-class awarded the Prime Minister’s achievement in British Better Public Building Award architecture and design”. The which recognises new buildings, Velodrome shows how good places and spaces that improve design can promote economic, the delivery of public services, environmental and social give a sense of identity, regeneration. community and local pride, and help build a sustainable future.

8 DESIGN FOR INNOVATION | 5 ECONOMIC EVIDENCE ON THE ROLE OF DESIGN

Economic impact on SMEs The survey underlines many inherent including hi-tech and start-ups weaknesses in the use of design by smaller Evidence from the Design Council and companies. The discrepancy between other international policy organisations large and small businesses commissioning identifies high potential returns from raising design reflects a broader issue around awareness of design with SMEs. Where small businesses redesigning products larger companies benefit from dedicated and innovating. For instance larger design managers, smaller companies businesses are almost twice as likely to frequently lack a strategic approach to commission design (61%) compared to micro- design in management, relevant design businesses who frequently view external process for product or service development, designers as high-risk and high cost. as well as the confidence and know-how to commission professional designers. Regional variations point to stronger know- how and access to design in the South East In the wake of the banking collapse in 2008, while in some areas, such as the North East the Design Council completed its ‘Design a relatively high proportion of firms (23%) in Britain’ survey of 1,500 UK firmsxi . This view design, worryingly, as having no role has been a longitudinal survey dating back in their business. Similarly in some sectors twenty years. Over the three-year period where innovation is traditionally viewed as since the previous survey the value firms weak, such as construction and agriculture, placed on design increased significantly: the value placed on design is half that in strong innovation sectors such as manufacturing. — the proportion of firms who regard This information may help policy-makers design as integral doubled to 30% optimise the advice and support given to SMEs, including the use of incentives such as — the use of the mix of design disciplines R&D Tax Credits and Innovation Vouchers. rose by 15%

— the majority of UK firms now believe design will help them stay competitive through the downturn.

Sugru Sugru is a new air-curing The Designing Demand rubber made by Jane ni programme helped Sugru Dhulchaointigh’s company, commercialise the product FormFormForm, in East starting with being clear on London. Sugru can be moulded what differentiated it within its into any shape, bonds like field. Sugru was listed as one a glue and cures at room of The 50 Best Inventions of temperature to a tough flexible 2010 by TIME magazine and silicone rubber. It has been demonstrates the importance of enthusiastically adopted raising the awareness of design by people looking to repair with start-ups and SMEs and and adapt their products supporting them to adopt a instead of buying new. strategic approach to design.

9 DESIGN FOR INNOVATION | 6 A BUSINESS INNOVATION INFRASTRUCTURE WITH DESIGN INSIDE A business innovation INFRASTRUCTURE with design inside 6

The UK has a sophisticated ecosystem of The service deploys trained Design Associates organisations across the public, education to mentor the CEOs and management teams of and private sectors providing expertise SMEs providing up to 10 days of coaching and in such areas as research, design, quality peer-to-peer support. Typically the Associates assurance, technology development and help the management team understand how intellectual property. design can be used strategically to boost company performance. Together they identify Part of the government’s contribution opportunities, implement cultural and process towards the ecosystem is through its changes, and instigate projects including ‘innovation infrastructure’ made up of commissioning designers. specialist institutions such as the Design Council, Technology Strategy Board and An independent evaluation of the service in NESTA. This section provides evidence on 2011 showed that every £1 invested in a design the role of government in strengthening project from the service returned over £25 connections to design and how this supports within a two-year period. Typical benefits innovation in business and science. for participating firms have been accelerated business growth, increased market share and Designing Demand successful new product, service and brand Over the last four years the Design Council development xii. has provided high-level design coaching to over 2,300 SMEs through a programme called The priority for business support Designing Demand, one of the government’s programmes, such as Designing Demand, Solutions for Business products. The purpose is to maximise the impact of government of this BIS-funded programme has been to investment through targeting priority sectors counteract a lack of design capability and and incentivising businesses to contribute confidence in SMEs. It has provided further towards participation. As industry seeks evidence on the impact of design and also simple and easily navigable services, the onus the benefits of raising standards of design is on the providers to ensure that the diverse leadership at board level. offers, such as Business Coaching for Growth and the Manufacturing Advisory Service, are smartly linked and offer a flexible and interlinked mix of activities.

White Logistics White Logistics is a family The wider plan also addressed owned, medium sized haulage improved operational efficiency, business based in the West a more focused customer/sales Midlands. In 2010, with the strategy, and the development of support of the Design Council, their people. The transformation White’s developed a strategic of White Logistics demonstrates plan for a clear, sector-leading the role of design in areas identity that communicates that have traditionally been ambition and a distinctive seen as lacking in innovation brand promise. with little to differentiate one business from the other.

10 DESIGN FOR INNOVATION | 6 A BUSINESS INNOVATION INFRASTRUCTURE WITH DESIGN INSIDE

Commercialising science Targeting clusters The high ratio of impact to cost of the The lessons from Innovate for Universities Designing Demand approach lends itself well and Designing Demand re-enforce evidence to targeting clusters or sectors where there that technology intensive firms and start-ups is high-growth opportunity. For instance, benefit from strong embedded design skills. a version of the programme, called Innovate Mentoring is also an effective approach and for Universities, has helped universities can be incorporated into existing support to commercialise science research and mechanisms such as those to support technology. In this instance the transfer, including the new Associates are paired with programme Catapult technology and innovation centres, leaders in Technology Transfer Offices. and other forms of support such as Business Coaching for Growth. The design advice builds capability within research teams that tend to be strong on As well as targeting high-growth clusters, research, pure science and technology and the design coaching approach has proved weak on user-led design. Practical mentoring successful in sectors where low rates of has helped accelerate ventures to market. innovation and stubborn slow-growth are In the case of Oxford University the mentor prevalent. For instance, Designing Demand supported the university’s most successful has demonstrated high impacts in terms of spinout in recent years ultimately attracting profits and jobs in agriculture, haulage and over £4m towards the smart-metering low-technology manufacturing. technology. Typical benefits of bringing design to early science and technology include de- risking projects through prototyping, sorting usability issues through co-design with users, and attracting investment through visualisation and brand presentations.

Navetas Smart Meter The University of Oxford The Design Council’s Innovate developed a new process for for Universities programme measuring electricity usage helped the team to develop the but needed design support to product and identify market take it to a stage where they opportunities. The original could raise seed investment for spinout was bought by energy a spinout company and fund management firm, Navetas. the next stage of development. Further investment of £4m has been secured to enable the company to continue developing the product and run national trials with a major UK energy company.

11 DESIGN FOR INNOVATION | 7 A PUBLIC INNOVATION INFRASTRUCTURE WITH DESIGN INSIDE A public innovation infrastructure with design inside 7

To stimulate a culture of innovation, reform Many good examples of transformation and public services and meet the needs of public innovation within central and local authority policy challenges, government has a role delivery already exist. The redesign, for as lead commissioner and innovator. This instance, of the Passport Agency turned a section provides evidence on the role of service that was in crisis in 1999 to the UK’s design within public sector innovation. highest rated private or public service for three years in a row by 2006 xiii. However, evidence To meet the needs of public service reform from within and outside government points to and address the many urgent public policy long-term systemic issues around public sector challenges, government must lead as an innovation, including the need for culture innovator. From streamlining centralised change around risk and experimentation, services such as road taxation, improving broader staff and customer engagement in locally administered housing benefits, or innovation, and improved skills in engaging developing new solutions to the rising tide of the private sector. chronic disease and obesity, civil servants are charged with achieving the NAO description NESTA research points to public sector of public sector innovation — “new ideas that innovations happening despite — rather work at creating public value”. than because of — the organisational culture around them xiv. The tendency is for agencies to work in silos with new ideas failing to flow across departmental boundaries. According to government’s own research, the impact of design on public sector organisations has also been largely neglectedxv.

New UK Passport In 1999, at least 500 holidays More recently, the UK Passport were cancelled because of poor has been redesigned and is performance at the UK Passport now one of the most secure and Agency with applications taking trusted documents in the world, up to 10 times longer than they meeting rigorous international were meant to. Yet in 2006, standards and providing a for the third year running, more efficient service for UK the agency ranked first for citizens travelling abroad. overall customer satisfaction in the CompariSat surveys of public and private sector organisations, with a 97% approval rate. This was achieved by prioritising customer relations and .

12 DESIGN FOR INNOVATION | 7 A PUBLIC INNOVATION INFRASTRUCTURE WITH DESIGN INSIDE

The Design Council’s demonstration projects Working frequently in collaboration with provide an action research base on the impact partners such as the Technology Strategy of design in the public sector. Board, the programmes have used design techniques to engage citizens, front-line staff Public Services by Design and specialists in bringing new ideas to market. The Public Services by Design programme, The emphasis has been on maximising the funded by BIS, has provided strategic early participation and investment of the support and mentoring to local and central private sector combining design, technology government projects including a local and producers. The consistent results have authority homelessness service and HMRC’s delivered rapid acceleration and uptake of company registration scheme. Results commercial ideas. Recent evaluation of two over two years with 30 agencies point to health projects identified over £25m of sales significant potential efficiencies and savings. within two years for SMEs who participated Independent evaluation estimates that for in the programme and forecast returns of £23 every £1 spent raising design capability, for every £1 spent by the public sector xvii. £26 has been saved by providersxvi. Lessons from these demonstrations point to Design Council Challenges significant benefits for the public sector in The Design Council Challenges programme achieving innovation at scale, as well as in has demonstrated the value of ‘open efficiency through increasing its capability innovation’ within the public sector. A key to use design as a strategic approach, embed focus has been around security with a Home design processes within leadership and Office programme identifying innovations to management and commissioning design Design Out Crime and a range of preventative professionals more effectively. healthcare challenges with the Department of Health, including infection control, patient dignity, assisted living for the ageing and dementia care.

Reducing Violence and Aggression in A&E NHS staff experience more This holistic design approach than 150 incidents of violence has identified solutions to and aggression every day with improve the patient experience, a financial cost that exceeds support frontline staff, and £69m annually. Working with inform and inspire key NHS the Department of Health, decision-makers. The solutions the Design Council has run are designed to give a clear a UK-wide open innovation return on investment both competition to tackle this issue. financial and in the experience of staff and patients.

13 DESIGN FOR INNOVATION | 8 PLANNING FOR THE NEXT GENERATION OF INNOVATORS

Planning for the next generation of innovators 8

As the dynamics of innovation change, There are good current examples of such government has a role in working with cross-curricular design activity that aim to industry to develop a workforce with relevant broaden access to design within primary and design skills and capabilities. This section secondary education. These include the reflects on the role of the education system. Sorrell Foundation’s National Art & Design Saturday Club which gives young people Applying the lessons in education aged 14–16 the opportunity to study art and Systemic issues of weak design capability design every Saturday morning at their local within organisational management could art and design college or university for free. potentially be addressed over a longer The Design Council’s Eco Design Challenge period through the education system. is a further example. This programme gives The siloed approach to design education in students the opportunity to make parts of schools results in many students lacking any their school more sustainable by working with understanding of the basic business facts designers to calculate the size of their school’s around design. For instance, current GCSE ecological footprint and then to create ways to studies in business and economics fail to address make it smaller. design for business competitiveness and innovation. A limited number of schools benefit These initiatives help inform the education from cross-curricular design programmes and career decisions young people take. In or have specialist status such as the JCB addition, they demonstrate that students Academy, where design and engineering are who do not pursue design and the related fully integrated into all subjects. disciplines further in their education and careers still benefit from the early development High quality Design & Technology teaching of decision-making and problem-solving in schools is also important to maintaining skills that design education brings, particularly and growing a pipeline of students entering with an interdisciplinary approach. design, architecture and engineering HE courses and on into the professions. Involving Further research is needed to appraise design and engineering practitioners in the impact that the development of schools brings Design & Technology to life for interdisciplinary approaches to school students and teachers, enhances the quality education could have on national innovation of teaching and learning and gives students capability. access to professional role-models that might encourage them to consider careers in design, architecture and engineering.

The JCB Academy The JCB Academy is a The Academy’s specialist University Technical College programmes benefit from for 14–19 year-old students close links with industry with a multidisciplinary — not just JCB, as the main approach to providing high- industry sponsor, but also quality engineering and other major engineering business education to develop, firms in the area including “the engineers and business Rolls-Royce and Toyota. This leaders for the future”. ensures that curriculum and teaching activities are embedded in real industrial practice and challenges.

14 DESIGN FOR INNOVATION | 9 DESIGN FOR INNOVATION POLICY PRIORITIES

Design for Innovation policy priorities 9

The Innovation and Research Strategy for FOR Knowledge flows in the Growth provides a framework for investment innovation ecosystem in economic growth. This section reflects the Use design to strengthen connections government’s commitment to design as an between universities and the wider essential element of this process. innovation infrastructure. A greater understanding within universities For discovery and development of the use of will speed Strengthen the commercialisation of up the commercialisation process by scientific and technological breakthroughs helping identify market needs, making new through design. concepts viable and appealing, attracting new New investment in infrastructure, such as the investment and reducing risk. An expansion Catapult technology and innovation centres, of multidisciplinary approaches at post- provides opportunities to match design know- graduate level in design, business, science how and talent to where it’s most needed. and engineering education would strengthen Existing research funding and knowledge the role of universities in the innovation partnerships can be exploited to address gaps ecosystem. or provide new evidence on priorities that will have an impact on our capacity to innovate, For global collaboration such as the competitive global environment Use design to attract inward investment or the role of our design education system. and promote export opportunity. Initiatives such as Tech City UK provide an For innovative businesses opportunity to attract investment based on Strengthen design capabilities and the access to UK design and creative skills. access to design. The Olympics and wider programmes of Where government investment is being made the government and UKTI provide ongoing or sustained in new technologies government opportunities to establish connections for can provide the connections to tried and tested design firms and design-led businesses. The design advice and networks. Targeted support existing design sector infrastructure including for clusters and sectors through Designing events, cultural institutions and organisations Demand and other business support products, can help maximise trade and investment. including the Manufacturing Advisory Service and Business Coaching for Growth, For new innovation challenges provide opportunities to accelerate innovation Demonstrate in by using design and exploiting UK design commissioning services and public policy. capabilities. The uptake of design can also be The continued efforts to reform public incentivised through R&D Tax Credits and services provide an ongoing opportunity to Innovation Vouchers. engage design in achieving transformational change and in delivering efficiencies across the system. Design leadership and skills can be incorporated into broader management and leadership training. Open innovation design projects on new policy challenges can incentivise early engagement between government, technology and business.

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Design for Innovation ACTIONS 10

Design is a cross-cutting theme in the government’s Innovation and Research Strategy for Growth. This section lists agreed and funded design-related actions that the Design Council will take forward working with partners.

Action for discovery and development

Action 1: A stronger bridge will be built Each Catapult will be encouraged to work between design and technology through the out the best approach to fit their specific Catapult technology and innovation centres. circumstances. Examples of approaches they should consider include: The new Catapult network being established by the Technology Strategy Board will — offering a design mentoring service stimulate innovation, accelerate growth and tailored to meet the needs of their anchor high value development in the UK. technology and sector. The Designing The Catapults will provide access to the best Demand and the Innovate for Universities technical expertise, infrastructure, skills and programmes are good models to inform equipment — resources which companies, such tailored services; particularly small ones, need to innovate and grow. The use of design for commercialising — bringing together the design, technology technology will be integrated within the role and manufacturing communities to and mission of the Catapults. To support address particular major challenges the development of this approach, Catapults and opportunities. This approach could will have access to expert help and advice build on the TSB’s Innovation Platforms including, for example, high-level guidance programme by adding a specific design from a panel of design experts of international element; and standing which the Design Council will help establish. — participating in a design-based Knowledge Transfer Partnership (KTP) scheme. Informed by the established KTP programme, this could involve placing design graduates (KTP Design Associates) with Catapult business users. The business users would benefit from both the expertise of the Associate and the links he or she would bring to their ‘parent’ university or other research organisation.

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Action for innovative businesses Action for knowledge flows in the innovation ecosystem Action 2: Design will be made an integral element of support for potential high Action 3: The link between universities growth SMEs through expanding the and design will be strengthened by Designing Demand programme and building on the success of the Design delivering it in collaboration with other Council’s Innovate for Universities business support programmes. programme.

The Design Council is delivering Designing Funded by BIS, this programme has Demand, a BIS-funded mentoring programme, promoted a greater understanding of how to build greater design capability and design can be integrated into Technology understanding among SMEs. Building on the Transfer Office (TTO) projects and has success of this programme, the government is demonstrated how design can improve the increasing its funding for Designing Demand marketability of new products including to £1.3 million per annum. This expansion through spinout companies. Benefits include: of the Designing Demand programme will reducing risk in the commercialisation enable up to 100 SMEs to receive support process and maximising IP value, identifying each year. Delivering it in collaboration new market opportunities, increasing speed with other business support programmes of commercialisation, attracting new will help ensure that target businesses are investment, success with competitive funding provided with an enhanced, more joined-up applications, improving team collaboration service to help increase their productivity and and providing new skills and methods. BIS competitiveness including through increasing funding is allowing a further seven university innovation. The Design Council will work with TTOs around the UK to benefit from the the providers of Business Coaching for Growth mentoring programme in 2011/12. and the Manufacturing Advisory Service to achieve this. Action 4: The Design Council will work with the Arts and Humanities Research Council (AHRC) and other partners to develop an effective and consistent means of measuring the impact of design.

The Design Council and the AHRC will work together to develop a robust programme of university-led that will build on previous design metrics work to improve understanding of how design, creativity and innovation impact on economic performance and social value creation. This will inform existing national and European metrics leading to greater adoption of design in the innovation process.

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Action for global collaboration

Action 5: The Design Council will work Design support should be an integral part of closely with UKTI to promote the use of the the services offered to entrepreneurs setting UK’s design strengths to attract inward up and growing businesses in the area. To investment and increase exports. This will achieve this, the Design Council will: include ensuring design is an integral element of the support available for — work closely with UKTI’s Tech City businesses in established and emerging Investment Organisation to help overseas- clusters, such as Tech City UK, that provide based, early stage technology entrepreneurs concentrations of opportunity to build on and high growth innovative companies UK competitive strengths. first to locate or expand in East London and then to access practical support to help In taking this action forward, full advantage them scale; and will be taken of opportunities presented by the London Olympics including the associated UK — partner with the Technology Strategy Business Ambassadors initiative. Board and the UKTI to provide design support alongside the Tech City Launchpad The Tech City UK initiative in East London initiative to support and extend the existing provides a good example of an opportunity East London tech community. to build on an existing cluster of technology companies. The initiative aims to support the area to become the digital capital of Europe and location of choice for technology-based entrepreneurs and companies. As well as commitment and assistance from government, it has active support from major global technology companies including Cisco, Intel and Google.

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Action for new innovation challenges

Action 6: A toolkit and coaching programme Action 7: The Design Council will work will be developed to support government to with government departments and become a design leader in the commissioning partners to develop further design-led of services and public policy. open innovation competitions that address major societal challenges. In order to drive value for money in the current fiscal climate government must enlist The Design Council has developed and innovative solutions. The lessons learnt from run a number of successful design-led existing successful programmes now need open innovation competitions to address to be drawn together to develop a design/ major societal challenges such as crime, innovation-led approach to commissioning reducing the risk of infection in hospitals and that will be far more widely adopted across discouraging violence and aggression in A&E the public sector. The approach needs to departments. Building on this experience, the be embedded in the culture of senior civil Design Council will work with government servants so that they provide design and departments, innovation partners and the innovation leadership and can act as an design industry to identify further challenges ‘intelligent customer’. that would benefit from this approach. The aim will be to develop and test design-led Drawing from the success of their existing solutions, including those best developed programmes and working with BIS, the initially at a local level, that can be deployed Cabinet Office and innovation partners, at a scale that matches the scope and severity the Design Council will develop: of the major public challenge addressed.

— a design/innovation-led commissioning toolkit for adoption by government departments and more widely across the public sector; and

— a supporting coaching programme for senior civil servants. This could initially be aimed at the ‘Top 200’ group and potentially delivered in collaboration with the Institute for Government.

With the benefit of this support, the intention is that each government department with a major commissioning role will be encouraged to run at least one design/innovation-led commissioning ‘competition’ over the next 12 months.

19 DESIGN FOR INNOVATION | END NOTES AND ACKNOWLEDGEMENTS

END NOTES i Definition from HMT Cox Report on ix The Value of Design Factfinder Creativity in Business (2005) report, Design Council (2007) ii Design Thinking is a term developed x Design in Britain 2008, Design Council (2009) by Prof David Kelly and the xi Design in Britain 2008, Design Council (2009) consultancy IDEO at Stanford xii Independent evaluation of Designing iii Driving Recovery with Design, Demand, Eden Partners (2011) Design Council briefing (July 2009) xiii Design Council Magazine, Issue iv Livesey, F., Moultrie. J., Company spending 4, September 2008 on design: Exploratory survey of UK xiv Hughes, A., Moore, K., and Kataria, firms 2008, Cambridge: University of N. Innovation in Public Sector Cambridge/Design Council (2009) Organisations, NESTA (2010) v Hutton, Will. Design in the Knowledge xv Acha, V. ‘Open by Design: The Role of Economy 2020, Design Council (2010) Design in Open Innovation.’ DIUS (2008) vi Design Industry Research, xvi Independent evaluation of Public Services Design Council (2010) by Design, Centrifuge Consulting (2010) vii Multidisciplinary design education in xvii Independent evaluation of the UK: Report and recommendations Design Bugs Out, Ekosgen (2009) from Multidisciplinary Design Network, Design Council (2010) viii Design in Britain 2008, Design Council (2009)

ACKNowledgements

Image credits P.4 Endolite Foot Range 2011, P.8 Velodrome, designed by Hopkins Architects designed by Saeed Zahedi OBE Courtesy of the Olympic Delivery Authority Courtesy of Chas. A. Blatchford Photographed by David Poultney P.6 ISS12 finale and runway shots P.9 Sugru air-curing rubber, Courtesy of Burberry; designed by FormFormForm Folding plug Courtesy of Sugru Photographed by Ifeyinwa Onugha P.11 Navetas Smart Meter P.7 UK Pavilion, Seed Cathedral at the Shanghai Courtesy of Navetas Expo 2010, designed by Heatherwick Studio Photographed by Mike Oakes Photographed by Iwan Baan P.11 White Logistics Courtesy of Allotment Brand Design Photographed by Jonathan Oakes P.12 2011 UK Passport Courtesy of Home Office P.13 A&E full height panel slices Image by Pearson Lloyd P.14 Students at JCB Academy Courtesy of JCB Academy

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