HANDLING DESIGN SUPPORT PROGRAMMES COMPLEXITY an Interpretative Framework for Barriers and Drivers to Introducing Design Innovation Into Brazilian Msmes

HANDLING DESIGN SUPPORT PROGRAMMES COMPLEXITY An interpretative framework for barriers and drivers to introducing design innovation into Brazilian MSMEs

Mariana Fonseca Braga HANDLING DESIGN SUPPORT PROGRAMMES COMPLEXITY An interpretative framework for barriers and drivers to introducing design innovation into Brazilian MSMEs

Mariana Fonseca Braga, MSc

Supervisor Francesco P. Zurlo, PhD Vice-Dean, School of Design, Politecnico di Milano

Assistant supervisor Viviane dos Guimarães Alvim Nunes, PhD Dean, Faculdade de Arquitetura, Urbanismo e Design (FAUeD), Universidade Federal de Uberlândia (UFU)

Controrelatore Gisele Raulik-Murphy, PhD Partner, DUCO - Driving Design Strategies

Politecnico di Milano Department of Design PhD programme in Design 30th Cycle January 2019 ACKNOWLEDGEMENTS

This research was supported by the Brazilian National Council for Scientifc and Technological De- velopment (CNPq), which made it possible. I am grateful to CNPq for this opportunity. I am indebted to the amazing people, who surrounded me in the Design Department at Politecnico di Milano, especially Prof. Francesco Zurlo, the best supervisor I might have, and the Creative Industries Lab (Cilab) staff, particularly Prof. Arianna Vignati. I also thank Prof. Marzia Mortati, from the Design Policy Lab, for the meaningful advice she has provided throughout this investigation. In addition, I had especial support from Prof. Viviane dos Guimarães Alvim Nunes, Prof. Gisele Rau- lik-Murphy, and from my friend, Prof. Silvia Xavier. I am really glad for your voluntary contributions to this research. I also thank all interviewees who told me their project’s stories, without them this research would lack meaningful insights, and the non-proft private entity, which provided information about two of its projects. I dedicate this piece of work to my husband, Marcelo Manhago, and my son, César Braga Manhago, who have been standing for me throughout this research journey, leaving their lives oversea and being opened to this new rebuilding experience. I thank my beloved husband and son for their everlasting love, bravery, and patience. “NO MAN [WOMAN] EVER STEPS IN THE SAME RIVER TWICE, FOR IT’S NOT THE SAME RIVER AND HE[SHE]’S NOT THE SAME MAN [WOMAN].” HERACLITUS ABSTRACT

This dissertation looks at largely applied design support programmes which aim at introducing design innovation into Micro, Small and Medium-sized Enterprises (MSMEs) with little or no design experience in Brazilian traditional industries. The need to better understand how factors at diverse levels support the conditions and lever the decision to use design (as well as its intensity of use) or not to use design, making empirical barriers and drivers to design innovation evident, motivated this study. It can be of beneft to policy-makers, designers and consultants, MSMEs, and design scholars who deal with or are interested in design innovation, design policies and their related initiatives focused on MSMEs. The research approach is inductive, exploratory and qualitative. In the frst empirical cases’ analysis, a map that indicates the businesses’ engagement intensity and its impact on Acklin’s design capabilities indicators was proposed. The preconditions to better absorb design in those cases were also identifed. Businesses’ attitudes and conditions throughout projects’ implementation are generally overlooked in design management and design policy research, particularly regarding MSMEs with little or no design experience in less advanced economies. The second sample of cases enlarges the landscape of introducing design innovation into MSMEs through design support initiatives by analysing two polar types cases in which barriers and drivers to design innovation emerged and were explored at three levels: (1) actors, (2) organisational, and (3) ecosystem level. This second cases’ analysis aims at providing a holistic perspective on barriers and drivers to design innovation in the context of MSMEs, especially in Brazil, considering the main actors’ (policy-makers, consultants and benefciaries who took part in design support initiatives) point of view. Few barriers and drivers were new and distinguished from others in prior research only regarding the rationale used to address them by the interviewee or the lack of empirical evidence within design studies or regarding design support programmes. This analysis showed that barriers and drivers differ according to: (1) the context in which each project is embedded, including the economic and political priorities and orientation, as well as cultural aspects; (2) the way programmes and their projects are crafted, managed, implemented, and evaluated; (3) the background and mindset of key stakeholders who take part in these projects. The main contributions to the design policy feld are: (1) an interpretative framework at three levels to identify barriers and drivers to design innovation, contributing to underpinning strategies to harness drivers and to overcome barriers; and (2) a design support metamodel which aims at an experimental and participatory approach to tackling design support programmes’ craft, upgrade, and change.

Keywords: design support, design innovation, Brazilian MSMEs, barriers, drivers. CONTENTS

List of Figures 8 List of Tables 10

Introduction 11 Why design support? 13 Design besides designers 15 Research questions and goals 17 Research approach and methodology 18 Philosophical assumptions and implications for methodology 20 Brazilian context 22 The thesis chapter by chapter 24

Part I - Rationales and context 29

Section 1 - Rationales for harnessing design 30

Chapter 1 - The value of design: an issue of vision, creativity, and interpretation 31 Introduction 32 Design: defnitions, approaches, and potential 32 Value of design 40 The evolution and fragmentation of value concepts 40 The scenario of design value within companies: the management of design complexity 41 Why should companies and countries invest in design? 43 Discussion and conclusion 48 Dimensions and variables of the value of design 48 The value of design: an issue of vision, creativity, and interpretation 49 Limitations 52

Chapter 2 - Why are some enterprises and countries imitating (others)? 53

Chapter 3 - Design and MSMEs: a potential relationship 63 The context of Design Innovation in MSMEs 66 Section 2 - The research feld and context 67

Chapter 4 - Design policy: history, practice, and conceptualization 68 Design support 103 Rationales for design policies 118

Chapter 5 - Design in Brazil: a brief history and context 123 The Brazilian Design Innovation Ecosystem 129 Design support in Brazil 133

Part II - In search of empirical evidence 141

Chapter 6 - The choice of design: From businesses’ conditions to businesses’ attitudes 142 Introduction 143 The use of creativity resources: from conditions to attitudes 144 Key elements to understand the integration of design into MSMEs 146 Methods 148 Results 150 Discussion and conclusion 152 Limitations 153

Chapter 7 - Enlarging the landscape: barriers and drivers to introducing design innovation 154 into MSMEs at three levels Methodology 155 Barriers to introducing design innovation into MSMEs 161 Drivers to introducing design innovation into MSMEs 171 Acklin’s indicators limitations 181 Map of perceived businesses’ conditions and attitudes limitations 182 Part III - Learnings, fndings, and discussion 183

Chapter 8 - Recommendations on design support 184 A promising scenario to design innovation: What is next? 187 Implications for key stakeholders 188

Chapter 9 - Discussion 190 Other design policy’s matters 195 A brief reflection on Bonsiepe’s centre/periphery 198 Limitations and future research 199

Glossary 201 Communities of practice 201 Design capabilities 201 Design-centric company 201 Design-driven innovation 201 Design innovation 202 Design-intensive frm 202 Design-intensive industry 202 Design-led company 202 Design-oriented company 203 Developing x Emerging x Newly Industrialised Countries (NICs) 203 Effective design policies 203 Innovative culture 204

References 205

Appendix A - Elicitation process: Barriers to design innovation 222 Appendix B - Elicitation process: Drivers to design innovation 250 Appendix C - List of publications 272 Appendix D – Author’s short biography 274 LIST OF FIGURES

Figure 1: Research cycles 28 Figure 2: The inspiration flow: Top-down and bottom-up approaches to design 33 Figure 3: The design thinking process (IDEO, 2014, pp. 8-9) 34 Figure 4: Design thinking approach to innovation (IDEO, 2014, p. 6) 34 Figure 5: The design ladder (Danish Design Centre, 2007) 35 Figure 6: The Design Management Staircase (Kootstra, 2009) 36 Figure 7: The Public Sector Design Ladder (McNabola et al., 2013, p. 30) 39 Figure 8: The process of social innovation (Murray, Caulier-Grice & Mulgan, 2010, p. 11) 47 Figure 9: Qualitative and quantitative dimensions and variables of the value of design 48 Figure 10: Design policy timeline – 18th and 19th centuries 72 Figure 11: Design policy timeline – 20th century 73 Figure 12: Design policy timeline – 21st century 74 Figure 13: Heskett’s (2001c) model of government design policy’s dominant types 80

Figure 14: Policy design cycle adapted from Howlett and Ramesh (2003 cited in Junginger, 84 2014, p. 58) Figure 15: DeEP Policy Cycle (Maffei et al., 2014a, p. 44) 85 Figure 16: Raulik-Murphy’s (2010, p. 182) generic design policy process 86

Figure 17: Model 1 - Development and implementation of national design policy should be 92 led by national design centres (Choi et al., 2010, p. 68) Figure 18: Model 2 - Development and implementation of national design policy should be 92 led by a government department in collaboration with national design centres (Choi et al., 2010, p. 68) Figure 19: Model 3 - Development of national design policy should be led by a government 93 department and implemented by regional support agencies (Choi et al., 2010, p. 69) 104 Figure 20: Model 4 - Absence of national design policy; instead design NGOs’ activities 93 (Choi et al., 2010, p. 69) Figure 21: Raulik-Murphy’s (2010, p.109) schematic representation of the elements of a 94 National Design System and their defnitions Figure 22: Sun’s map of the role of diverse stakeholders in the design policy-making pro- 94 cess (Sun, 2010) Figure 23: Whicher’s and Walters’s (2014) Design Innovation Ecosystem framework 96 Figure 24: A Schematic Representation of Design Promotion and Support (Tether, 2006, p. 9) 97 Figure 25: Design Support Blueprint (Whicher et al., 2013, p. 4) 109 Figure 26: Programme Evaluation Wheel (Whicher et al., 2013, p. 5) 110 Figure 27: Brazilian design policy timeline – 19th century 124 Figure 28: Brazilian design policy timeline – 20th century 125 Figure 29: Brazilian design policy timeline – 21st century 127 Figure 30: The Brazilian Design Innovation Ecosystem 130 Figure 31: Design support programme’s on-demand model 137 Figure 32: Design support programme’s by-cluster model 138 Figure 33: Innovation call model - projects are selected by a panel of experts 139 Figure 34: Revised Design Management Absorption Model (Acklin, 2013) 147 Figure 35: Map of perceived business conditions and attitudes 151 Figure 36: Polar types cases 156 Figure 37: Serra da Canastra and Juruaia 157 Figure 38: An interpretative framework for barriers and drivers to design innovation at three 160 levels Figure 39: Policy-makers’ evaluation of Acklin’s indicators 181 Figure 40: Benefciaries’ evaluation of Acklin’s indicators 181 Figure 41: Consultants’ evaluation of Acklin’s indicators 182 Figure 42: Design support programmes’ metamodel 186 Figure 43: Barriers found at three levels 193 Figure 44: Drivers found at three levels 193 LIST OF TABLES

Table 1: Design management maturity grid (Kootstra, 2009, p. 15) 37 Table 2: Neoliberalisation’s implications for design based on Julier (2017) 46 Table 3: MSMEs criteria adopted by diverse institutions 64 Table 4: Er’s (1997, p. 301) Development Stages of Industrial Design in NICs model 83 Table 5: Major policies for the motor industry in each Five-Year Plan (Chung, 2015, p. 66) 88

Table 6: Categorisation of design policies (Design Policy Lab, 2018; Mortati, Villari, Maffei & 91 Arquilla, 2016, p. 38) Table 7: Tether’s models of design support programmes (Tether, 2006, p. 8) 104 Table 8: DeEP’s macro design indicators 112 Table 9: DeEP’s micro design indicators 113 Table 10: Creativity resources (Sternberg, 2006, 2012) 145

Table 11: Design support programmes and their projects of integration of design into MSMEs 149 considered Table 12: Projects’ characteristics 158 Table 13: Interviews and interviewees 159 Table 14: Barriers to design innovation at the actors level 162 Table 15: Barriers to design innovation at the organisational level 165 Table 16: Barriers to design innovation at the ecosystem level 167 Table 17: Drivers to design innovation at the actors’ level 172 Table 18: Drivers to design innovation at the organisational level 175 Table 19: Drivers to design innovation at the ecosystem level 178 Table 20: Soft metrics guidance on design programmes’ activities 191 INTRODUCTION

This dissertation focuses on the Brazilian creativity, problem solving and innovation (Ito & context, but the problematic which is addressed Howe, 2016; Verganti, 2016), we have seen the can be considered of global concern, as it is a emergence of social innovation, crowdfund- relevant issue in emerging and mature econo- ing, open innovation and grassroots initiatives. mies (see for instance Arquilla, Maffei, Mortati, However, we are still struggling to demonstrate Villari, 2015; Raulik-Murphy, 2010; Schneider, the value of design from the private to the public Gibet, Colomb, Orazem, Loesch, Kasparyan, sphere. What matters to bring or to consider de- Salminen, 2015). Micro, Small and Medium- sign in the core of organisations’ strategies? Is sized Enterprises (MSMEs) are important sourc- design for everyone, for every nation? This the- es of employment and contribute to decreasing sis contributes to taking a frst step towards an the impact of an economic crisis (Airaksinen, answer by analysing the barriers and drivers to Luomaranta, Alajääskö & Roodhuijzen, 2015; introducing design innovation in the context of Bell, 2015; Cawood, 1997; Madeuf & Estimé, design support programmes addressed to MS- 2000; Organisation for Economic Co-operation MEs with little or no design experience in Brazil. and Development [OECD], 2016a; Raulik-Mur- Usually, the literature, media and press focus on phy & Cawood, 2009b). The need for innovation successful design cases. ranging from businesses to regions and nations Here, cases that can be considered ordinary has been fully recognised (Bason, 2014; ECLAC, were explored, admitting the fact that few frms 2015, European Commission, 2015a; Galinari, use design strategically (Thomson & Koskinen, Teixeira Junior, & Morgado, 2013; Julier, 2017; 2012). Our tendency to ‘follow the crowd’ and Junginger, 2014; OECD, 2014; Raulik-Murphy, keep ourselves in the comfort zone as human 2010; Schneider et al., 2015; Silveira da Rosa, beings has not been overlooked (Sternberg, Correa, Lemos, & Barroso, 2007). Design as a 2006, 2012), as well as the fact that established way that leads innovation and humanizes tech- organisations present a resistance to change nologies, keeping people at the core throughout (Deserti & Rizzo, 2014). The external environ- its process, constitutes one path to promote ment influences are considered too. change at diverse levels: from micro (organizations, businesses) to macro (policies, territories, The lack of references in such contexts sur- industries, nations, ecosystems). The designer rounding the factors that facilitate and that “… is concerned with how things ought to be in block the design integration in those conditions order to attain goals, and to function” (Simon, keep the mystery of moving on the design lad- 1996, p. 4). This defnition is still appropriate der. Our main goal is to reduce this gap through nowadays with the expansion of the design an exploratory and qualitative approach to bet- feld. ter understand these factors and their implications on design support practices and key In a world overwhelmed by bottom-up ideas, stakeholders. Although there are many defnitions of de- policy development and innovation at diverse sign and no consensus for an accurate defni- levels of the public sector (Bason, 2014). tion that encompasses its whole meaning, in In the argument of design for policy, Jungin- this thesis, defnitions will appear throughout ger (2014) stresses policy as a matter of design. the text regarding each research moment and The design contribution should be to provide a needs. In practice, the activities held concerning proactive approach rather than a reactive ap- design in the analysed empirical cases present proach, such as problem-solving (Junginger, an approach at the project level, including: 2014). The author (Junginger, 2014) suggests − product and communication design, policy-making as designing1 in order to harness design potential towards desirable futures and − design process improvement by integrat- to make policies according to a future-oriented ing ergonomic criteria into product devel- approach. Policy-makers and public managers opment processes, anticipating prototyp- should be able to use design tools and methods ing activities, to develop and implement innovative policies − product adequacy to national norms (Junginger, 2014). There is little research into standards, this emerging feld within design studies (Kim- − training and workshops concerning prod- bell, 2016). uct development and branding, Design policies or policies for design − store (point of sales) design, and “… are government strategies that aim to develop national design resources and/or to − business model change, integrating a B2C encourage their effective use in the country. model to a B2B cluster. Part of these strategies is the creation of an Innovation is understood, in the context of this environment where design and creativity can study, as the transformation process of ideas fourish; where companies are encouraged to into products, services, experiences, and their develop their own products and services by making use of the expertise of design profes- introduction to the market. sionals; and where the public sector works Other key defnitions are used throughout the with designers in order to improve its process- thesis: policy, design for policy, design policy (or es and therefore provide good, accessible and policy for design), and design support. inclusive services to the population. The design policies determine a strategic vision and A policy can be understood as a set of prin- plan for the use of design in a country, which ciples, purpose, and procedures related to the are delivered through design promotion and intentions of a government or a corporation in a support programmes.” specifc topic (Heskett, 2001a). (Raulik-Murphy & Cawood, 2010, p. 121) Design for policy is defned by Bason (2014) One part of the aforementioned quotation as “a resource for government departments, (Raulik-Murphy & Cawood, 2010, p. 121): “… and public service organizations, and institutions, where the public sector works with designers universities, think tanks and consultants that in order to improve its processes and therefore are increasingly engaging with design as a tool provide good, accessible and inclusive services for public sector reform and innovation” (p. 3). to the population…” is nowadays considered It can be considered a design-led approach to within the scope of design for policy feld, being

1 an analogy to Boland and Collopy (2004) Managing as Designing, which explores how managers can beneft from design approach and mindset.

12 also previously found within the scope of design Cawood, 2015, p. 14) support programmes. Activities of integration of design into busi- Design policies can be explicit or tacit2. Ex- nesses through a design policy, such as capac- plicit design policies ity building, dedicated advising and bespoke “refer to countries where design is ofcially support (Schneider et al., 2015, p.10) can be also integrated into national policy (this could be deemed as design support activities according innovation policy, smart specialisation strate- to the aforementioned defnitions (Raulik-Mur- gies, other policy domains or even a dedicated phy & Cawood, 2010, p. 121; Whicher, Swiatek, design policy) while tacit design policies refer Cawood, 2015, p. 14). to countries with government-funded design policy mechanisms (this could be design sup- In the Brazilian case, design support is de- port programmes, design promotion activities fned, developed and managed mainly by non- or design centres)” proft private entities. These entities are funded (Whicher, Swiatek, and Cawood, 2015, p. 24). through Brazilian Government’s tax paid by formal companies or registered frms in diverse in- In Brazil, the design support programmes are dustries. part of tacit design policies, not being ofcially addressed within other branches of national policies, and not pursuing a specifc dedicated national policy, strategy or plan. Why design support? Design support constitutes one of the ranges of design policy’s activities. There are diverse “… design creativity linked to technological defnitions of design support depending on the competence and entrepreneurial capability source (i.e. Raulik-Murphy, 2010; Schneider et can be a powerful means not only of resisting al., 2015; Sun, 2010; Schneider et al., 2015). the penetration of global companies in existing product markets, but enhancing a nation’s In this thesis, the Raulik-Murphy and Cawood competitiveness. Establishing clear concepts (2010) and Whicher, Swiatek, and Cawood’s of entrepreneurial approaches to design in (2015, p. 14) defnitions were considered appro- small companies should be at the heart of any priate to the Brazilian cases of design support, national design policy.” stating that: (Heskett, 1999, 2016, p. 232) “Design Support Programmes work directly Successful innovation and change towards with businesses and the public sector, provid- more innovative contexts are noticed in an en- ing advice and assisting them to make effec- vironment strongly supported by public policies tive use of design.” and funding, which can be observed in several (Raulik-Murphy & Cawood, 2010, p. 121) countries, such as the United States (Mazzuca- Whicher, Swiatek, and Cawood’s (p. 14, 2015) to, 2013), Korea (Chung, 1993, 2015; Kim, 1997), complement that: “Design support programmes Australia (Bentley, 2014), Singapore (Lerner, are a policy instrument for improving the use of 2010). Policy decisions regarding investment in design and can comprise of one-to-one men- innovation and national strategies by which in- toring ranging from light-touch to more spe- novation is led defne important changes in the cialised interventions, as well as subsidies, tax way these countries create value and become credits, and export schemes.” (Whicher, Swiatek,

2 Explicit design policy was also previously recognised as dedicated design policy (see for instance Bitard & Basset, 2008).

13 more competitive in the global arena. Julier ment the fact that perhaps they do not make the (2017, p. 144) stresses the public sector as “a difference to people and society they could” (p. major user and stimulant of design activities”, 1). Both claims (Vohnsen, 2011 cited in Bason, although this factor has been overlooked. 2014; Bason, 2014, p. 1) refect the policy-makers responsible position towards citizens. In Design innovation deserves attention and in- the Global Competitiveness Report 2017–2018, vestment at the national level of policy-making the World Economic Forum reinforces that “En- to promote required changes in order to make suring future economic growth will require solu- the country more competitive and prepared to tions that are more creative than any we have face international innovation standards that seen so far” (Schwab, Sala-i-Martín, & Samans, can consolidate economic growth in emerg- 2017, p. v). This matter has been discussed in ing economies (OECD, 2014; Economic Com- the design for policies domain. mission for Latin America and the Caribbean [ECLAC], 2015; European Commission, 2015a). Brazil ranks 137th, scoring 1.3 (from 1 [worst] to 7 [best]), regarding the low public trust in Design support is part of the design policies politicians within the institution pillar in the activities and is one of the ways largely em- Global Competitiveness Report 2017–2018 ployed in Brazil to introduce design innovation (Schwab, Sala-i-Martín, & Samans, 2017). This into MSMEs, being supported by public fund- is also a constraint to participatory policy- ing. Hence, design support initiatives should be making process that has emphasised the need better exploited and understood in order to at- to shift from traditional top-down approaches tain a promising scenario to design innovation. towards bottom-up approaches to policy-mak- SMEs representativeness in the economy leads ing (Chisholm, Cruickshank, Evans, & Cooper, to consider more strategic and entrepreneuri- 2013; Julier, 2017; Maffei, Mortati & Villari, al approaches to design at the core of design 2014c; Mortati et al., 2016; Whicher & Walters, policies (Heskett, 1999, 2016). Design support 2014; Whicher, 2015) albeit this aspect is not programmes are one of the means which crafts prescriptive across the literature (e.g. Whicher, these approaches to design. Thus, design sup- 2015). This shift requires confdence between port programmes might be critical to providing the various stakeholder groups. Besides mean- an appropriate approach to design in SMEs. ing investment in relationship building, it is also Furthermore, a worldwide concern has been resource and time intensive and may need a the fact that policy-makers have been exceed- long-term perspective (Chisholm et al., 2013). ingly dedicated to making paper about what Design support initiatives are one part of de- ought be done without doing3 (Vohnsen, 2011 sign policy interventions. In Brazil, they are cited in Bason, 2014, p. 1). In the case of design, funded by government tax rates and are vulner- in which doing is related to knowledge forma- able to the political climate, rationales of gov- tion, this fact constitutes a gap in the policy- ernance, and the regime in which they are im- making process regarding design support inter- mersed in. ventions. This thesis searches for solutions and rec- Bason (2014) explains that “policy-makers la-

3 It means that policy-makers have been overwhelmed by bureaucracy and planning, and that policy processes have traditionally separated planning from implementation. This creates a gap between the craft of policies and the recognition of the reality in which these policies will be implemented what might generate policies which do not correspond to citizens’ needs. 14 ommendations on design support towards a promising scenario to cultivate design innovation considering barriers and drivers to design Design besides designers innovation in a holistic perspective. However, “... the owner/founder of the company […] de- everything written here can be only useful in an termines whether design knowledge classifes environment where policy-makers are primarily as useful or not” (Acklin, 2013, p. 157) concerned with making a difference for citizens Silent design (Gorb & Dumas, 1987) was a and society, even though making paper (Bason, remarkable phenomenon evidenced through 2014) can be regarded as a global constraint design management research. It showed that and, throughout neoliberalisation approaches design relies on other functions than design- and processes, the outsourcing of public ser- ers. These other people contribute to meeting a vices tends to make service providers more good design, even though they do not perceive committed to investors than to the public (Ju- they are doing this. In the 1990s, Pilditch (1990) lier, 2017). emphasised the role of companies in reaching Junginger (2014) addresses this condition to a good design: “See good design and you see a use design at the policy-making level: “If the good client” (Pilditch, 1990, p. 14). Peters (2001) public sector is serious about its efforts to mod- uses the term design mindfulness to address ernize administrations, become more citizen- corporations (e.g. Sony, Apple, BMW) in which centred and transform governance, design will design is “the wellspring of the corporate culture have to become part of the curriculum of future (or “soul”) and of the “brand proposition” itself” policy-makers, civil servants and other public (Peters, 2001, p. 4) through their design aware managers” (p. 58). In the case of design sup- (and passionate) leadership (Peters, 2001). The port, the main concern can be described as be- relevant role of owners in MSMEs to introduce ing effective, promoting changes that enhance design innovation is still being emphasised small businesses’ conditions and capabilities (Acklin, 2013; Bruce, Cooper & Vazquez 1999), to face challenges and foresee opportunities though not defned in detail. through the use of design. On the other hand, Boland and Collopy (2004) Mortati et al. (2016) similarly reinforce the explore the way designers approach and mind- need for change in the public sector approach, set can be applied to management practices, which requires that public ofcers (or civil serv- and Michlewski (2008) defnes the infuence of ants) shall get closer to designers’ roles and designers’ professional cultures in design-led competencies in order to deal with the current organisations. Both present compelling visions complex (systemic and interconnected) chal- about designers’ contributions to other roles lenges faced by governments that cannot be within organisations. solved anymore by using pre-set answers, de- D’Ippolito, Miozzo and Consoli (2014) analyse manding experimentation typical of design ap- (at the micro and meso level) events that were proaches, crafting solutions/opportunities frst critical to learning and that spurred routinisa- in small scale to gradually increase the scale tion of design (product development) activities for the whole population. This reasoning is also within the Italian home furnishing industry in highlighted by Julier (2017). frms that are “well known for undertaking de-

15 sign activities on a regular basis” (D’Ippolito et You [designers] have to interact with other crea- al, 2014, p. 1339). They notice how technologi- tive parts”. The same reasoning is demonstrat- cal (e.g. new materials, technologies), organi- ed by Fiorella Villa (2017), from B&B Italia, when sational (e.g. general trends of developments in she says: “we [designers and company] must information and communication technologies work together” 4. Jay Osgerby5 , a designer who [ICTs] and globalisation), and institutional (e.g. has developed products for B&B, confrms this triennial events, Triennial Foundation, Com- need: “To make a son [new product] you need passo d’Oro award, Association for Industrial a mother and a father [company members and Design [ADI]) events spill over across frms and skills, and designer]. It is not just the designer sectors, leading to frms and industry practices’ who makes it.” changes (e.g. with development and acquisition However, the contribution and role of other of new skills). functions throughout the design process are in- The authors highlight the importance of frms’ quired but not defned in-depth in design stud- engagement with experts to increased profes- ies, particularly in the case of MSMEs with lit- sionalization and establishment of new profes- tle or no design experience in which design is sional roles, stressing the value of trial-and- fedgling, and in environments which are not error and prototyping practices from design favourable to design innovation. For instance, processes (carried out by diverse experts be- in which sort of characteristics a ‘good client’ sides designers) to new knowledge generation. or a small company owner (e.g. Acklin, 2013; D’Ippolito et al. (2014) call attention to design Pilditch, 1990), as well as companies’ best idiosyncrasies, such as the highly diversifed practices, can be recognised in this context. Al- set of skills and competencies required to the though the design attitude has been analysed formalisation of design knowledge in which so- (Boland and Collopy, 2004; Michlewski, 2008), lutions are drawn on a cumulative understand- the openness to designers and design in those ing and redefnition of problems, as well as new contexts is generally taken for granted. visions propositions to users. The environment Hence, in this thesis, the frst empirical cases within frms operate is considered favourable, analysis looks at companies’ engagement with providing feedback and support to diffuse novel designers and conditions to take in and lead practices (D’Ippolito et al., 2014). design throughout design support projects im- The importance of the integration of design- plementation. The analysis of the second group ers with other functions in companies is still be- of cases points out benefciaries’ (generally ing emphasised nowadays in companies’ prac- company owners in MSMEs) characteristics tices. Andrea Laurenza (2017), Head of Deloitte that contribute to or block the use of design Digital Italy, clearly demonstrates this need, in throughout projects. This attempt aims at con- his words: “We are looking for designers who tributing to flling in this gap in the contexts of are available to interact with other people […] introduction of design innovation into MSMEs

4 “dobbiamo lavorare a quattro mani”

5 In the occasion of the lecture led by Villa (2017) about B&B Italia, Jay Osgerby was presented in the B&B Italia institutional video and he referred to the importance of companies’ contribution to achieving a meaningful design solution. 16 with little or no design experience. Expanding on Boland and Collopy’s (2004) Research questions and goals main idea of ‘managing as designing’, and on design for policies grounds, policy-makers can This thesis aims at shedding light on what learn from designers’ practices and approach matters to introduce design innovation into not only to problem-solving but also to new Micro, Small and Medium-sized Enterprises opportunities identifcation, designing, and im- (MSMEs) with little or no design experience in plementing meaningful projects that make the mature or traditional industries through design difference to benefciaries, contributing to the support projects, programmes or initiatives design of desirable futures. This idea started to within a national context that might be seen as be developed by Junginger (2014). This process not favourable to design innovation. This issue is a two-way street; designers can also learn was translated into questions as follows: from benefciaries and policy-makers. This alignment will vary according to: (1) the skills − What are the barriers and drivers to in- and background of key stakeholders; (2) the en- troducing design innovation into MSMEs gagement between key stakeholders, or open- through design support? ness to one another, which also concerns trust − What are the new barriers and the new between them; (3) the awareness of the shared drivers found in these Brazilian cases? goal of improving benefciaries’ contexts; and − What are the meanings of these new bar- (4) policy-makers and benefciaries’ conditions riers and drivers attributed by key stake- and attitude towards design. holders? Schneider (2006) stresses the need for tools − Might we envision a promising scenario to and methods to evaluate companies’ capabili- cultivate design innovation? ties for innovation, including resources, strategy, and management but harnessing design − What are the challenges? goes beyond organisational factors. Therefore, − How can design support initiatives and the ecosystem level is also explored in the the- their main stakeholders contribute to sis, especially in the second group of cases an- building this promising scenario? alysed, shedding light on external factors that can hinder or lever the use of design. External These issues are analysed throughout the environment infuences in design are usually thesis at three levels: individual (actors), organ- overlooked (see, for instance, Julier, 2017), but isational (micro); and ecosystem (macro). they are fundamental to understand and to har- Other issues are set out, and suggest a refec- ness design. They work as spurs to design that tion on the research fndings rather than a de- shapes itself in response to external environ- fnitive answer: What matters when bringing or ment’s changes and challenges in a defned to considering design at the core of organisa- social, political, and economic context and time tions’ strategies? Is design for everyone (every (i.e. Julier, 2017), as well as design shapes the country)? world (e.g. Simon, 1996). So the familiarity of policy-makers with design becomes a key component to move towards favourable contexts to design innovation in order to better serve citizens’ real needs and build up better futures (see, for instance, Junginger, 2014).

17 ticipate in order to consider (a) other key stakeholders’ perspectives on the phenomena (be- Research approach yond designers’ representative), and (b) other and methodology factors at diverse levels that infuence to use or not to use design, in other words, the barriers and drivers to harnessing design innovation po- “… design knowledge is of and about the arti- tential according to aspects related to the indi- fcial world and how to contribute to the crea- viduals, to the organisation and to the external tion and maintenance of that world. Some of it is knowledge inherent in the activity of design- environment. ing, gained through engaging in and refecting Current fndings in the design management on that activity.” Cross (2001, p. 54) and design policy literature, such as: The nature of design knowledge is strongly re- − design results are more evident through- lated to its practice (Brown, 2009; Cross, 2001; out time relying on longtime strategies D’Ippolito, 2014; D’Ippolito et al., 2014). Design (Rae 2013, 2014), skills are generally gained in an approach ‘learn- − the identity of design at the organiza- ing by doing’ (e.g. design thinking approach). A tional level is not clear; design still is un- design culture emerges, is shaped, and nurtured defned in terms of responsibility, budget as a consequence of the adopted and evolved source, guidelines, and power, presenting design practices throughout time (i.e. Deserti & a non-clear form to manage (Acklin, 2013; Rizzo, 2014; D’Ippolito et al., 2014). The idea that D’Ippolito, 2014), “knowledge evolves as a by-product of practice is widely accepted” among innovation schol- − the company’s performance is not just ars, although the institutional mechanisms an outcome of design adoption (Chiva & which enable practical know-how diffusion are Alegre, 2009; Gemser & Leenders, 2001; still under-researched (D’Ippolito et al., 2014, Roy & Riedel, 1997) or design policy inter- p. 1335). Considering these assumptions, this vention (Raulik-Murphy, 2010), research uses an inductive reasoning, starting − design is very “integrated into the fabric” from empirical cases to identify the integration of design-led organizations (Westcott et of design’s problematic in the context of design al., 2013), policies, specifcally design support initiatives, when the benefciaries are MSMEs in mature in- − difculty in evaluating design impacts at dustries and have little or no design experience. the frm level (Cooper et al., 2016; Sch- neider et al., 2015; Westcott et al., 2013), The researcher’s background in design sup- as well as building a culture of evaluation ported interpretations and understanding of the at the design policy level (Arquilla et al., studied phenomenon. She took part as a de- 2015), signer in the implementation of several design support programmes’ projects in Brazil and the − the shortage of qualitative studies that issues that were discussed in the frst group look at design and management (Schnei- of analysed cases raised from these empirical der, et al, 2015); contexts when the projects were carried out, − the lack of a broader perspective, such as mainly based on primary sources through the macroeconomic or socio-economical ap- use of participant observation. proaches (Schneider et al., 2015); The second group of cases studied came from − the need for criteria that would assess in experiences in which the researcher did not par- a broad manner the innovation capacity of

18 businesses vs. evaluating the innovation The second sample of cases enlarges the in a given product or service (Maffei, Bi- landscape of introducing design innovation into anchini, & Mortati, 2014b; Schneider et al., MSMEs through design support initiatives ana- 2015); lysing two cases in which barriers and drivers to design innovation emerged and were explored − the failure in the selection of the design from the individual to the ecosystem level. This policies’ benefciaries suggesting that the second cases’ analysis aims at providing a ho- selective processes of benefciaries have listic viewpoint on barriers and drivers to design not achieved the ‘right companies’ with innovation in the context of MSMEs, especially the potential to innovate (Maffei, Bianchini in Brazil, as well as pointing out the perspectives & Mortati, 2014b); of the main actors (policy-makers, consultants, − the focus on quantitative aims (such as and benefciaries) that took part in design sup- number of supported SMEs), rather than port initiatives. The meaning of each barrier and on the quality of the approach, design each driver quoted by actors were explored in work and capacity building (Schneider et order to better grasp these barriers and drivers al., 2015); in those situations. New barriers and new driv- − the lack of studies addressing design ers were also identifed. strategy and management in less ad- Recommendations from these cases analysis vanced economies (Er, 1997; Heskett, were fnally pointed out in order to support the 2001b), process of surpassing the barriers and to build contributed to adopt a qualitative and explora- design support initiatives through a more sus- tory research approach. Most studies focus tainable approach to introducing design innova- on design-oriented contexts or on the relation- tion into the practices of MSMEs. A metamodel ship between design and economic benefts or for design support programmes is proposed companies’ performance, particularly exploring based on the learnings from the empirical cases successful cases in large enterprises and glob- and literature analysis. A promising scenario to al corporations’ contexts or are drawn from an design innovation is pointed out, defning chal- advanced economy perspective in which design lenges, as well as implications for design sup- has been built upon (see for instance Heskett, port and key stakeholders, in order to contribute 2001b). Little attention in the design manage- to attaining this scenario. ment feld has been devoted to how and why organisations move on the design ladder and what features/aspects contribute to the potential use of design, as well as the barriers in doing so, especially in the case of MSMEs with little or no design experience in emerging economies. The need to better understand how elements at diverse levels support the conditions and lever the decision to use (as well as its intensity of use) or not to use design towards more innovative contexts, evidencing empirical barriers and drivers at the micro level motivates the frst empirical cases analysis of this study and provides implications for key stakeholders.

19 This research uses an interpretative, construc- tivist and phenomenological approach. The Philosophical assumptions and kind of generalization that this inquiry aims at implications for methodology is known as naturalistic generalization by Stake and Trumbull (Stake, 2000) where the readers The need for this holistic outlook and for the associate their experiences to the cases being analysis of diverse actors’ perspectives who told, adding, subtracting, reshaping the knowl- took part in the cases come from the research edge “in ways that leave it differently connected assumptions. The frst assumption refers to and more likely to be personally useful” (Stake, what Burrell and Morgan6 (1979) categorize as 2000, p. 442-443). human nature being associated with the on- Two research strategies were combined in or- tological7 and the epistemological8 issues de- der to accomplish this: case study and ground- spite separate from them, constituting a set ed theory. The case study is indicated when a of assumptions that concerns “the relation- contemporary phenomenon is inquired in a real ship between human beings and their environ- context where the boundaries between the con- ment” (Burrell & Morgan, 1979, p.2). This study text and the phenomenon are not clearly defned adopts a perspective in the range between that (Yin, 1994). It allows diverse research phases is not deterministic9 neither voluntarist10, which interaction throughout the research process, means that individuals can infuence their soci- which enables fexibility to better update and ety and environment and vice versa. Therefore, design the research according to the discover- the identifcation of barriers and drivers to de- ies about the phenomenon and the needs found sign at diverse levels and the analysis of actors’ out throughout the research process (Eisen- viewpoint become crucial to supporting the un- hardt, 1989). The grounded theory approach derstanding of the cases. enables evidencing the meanings from empiri-

6 Burrell and Morgan (1979, p.1) build on the idea that “theories of organisation are based upon a philosophy of science and theory of society”, hence, to grasp alternative viewpoints, the researcher should be fully aware of the assumption upon which his/her outlook is based.

7 Refer to the essence of the phenomena, one ontological question, for instance, is whether the ‘reality’ to be inquired is (a) external, pursuing an objective nature, given out there; or (b) is internal the individual, being a product of the individual cognition, product of one’s mind (Burrell & Morgan, 1979, p. 1).

8 Concern the grounds of knowledge, “how one might begin to understand the word and communicate this as knowledge to fellow human beings” (Burrell & Morgan, 1979, p. 1). The extreme epistemological visions regard knowledge “as being hard, real and capable to be transmitted in tangible form”, or as being “softer, more subjective… based on experience and insight of a unique and essentially personal nature” (Burrell & Morgan, 1979, p. 1-2).

9 Extreme view that sees human beings as subjects and objects of enquiry, being conditioned by their external circumstances, responding in a mechanistic or deterministic manner to situations in the external world (Burrell & Morgan, 1979, p. 2).

10 Opposite of the deterministic view, the voluntarist perspective sees the human being as creator of their environment, where ‘free will’ plays a defnitive role (Burrell & Morgan, 1979, p. 2). 20 cal data (Glaser & Strauss, 1967). phase), and participation as listener in events related to design policy, design for To support cases understanding and knowl- policy and design innovation; edge building, this study shows how the cases are like and unlike other cases concerning the − secondary data sources: desk research studied phenomena, describing and interpreting (data collection and analysis of papers, the meanings attributed by different actors to literature, brochures, documents, web- the barriers and drivers studied, and confront- sites of projects, institutions and compa- ing them to prior research, evidencing which nies). were the particular elements of these cases and The implications for policy-makers, consult- which were their ordinary features discussed in ants, and benefciaries are evidenced from the previous studies, clarifying the meanings given real-world environments. The fndings are not by the participants of this research, particularly statistically signifcant because the sample size in the second group of cases (Chapter 7 of this was very small, and it is difcult to statistically thesis) this emphasis was explored. defne enough participants since there is not Triangulation of methods was used, and enough data about design support and poli- methods were selected according to the differ- cies in Brazil (see for instance CBD, Apex-Brasil, ent needs that emerged during the research. Ei- MDIC, 2014). However, this is a typical feature senhardt (1989) defnes research as a dynamic of real contexts studies where the recruitment process in which learnings throughout research of participants is harder than in lab experiments stages enable diverse research phases inter- as pointed out by Paulus and his team who reaction and the update of the research design. search brainstorming practices and tested them Stake (2000, p. 435) emphasises understanding in the actual workplace (Paulus, Korde, Dickson, the case more than focusing on methods: Carmeli, Cohen-Meitar, 2015; Sneed, 2016). “By whatever methods, we choose to study the Then, the main contribution is related to the case. We could study it analytically or holisti- fact that the fndings were rooted in the real cally, entirely by repeated measures or her- context of design support initiatives including meneutically, organically or culturally, and by their conditions and forms of actions, consider- mixed methods – but we concentrate, at least ing the real people who joined those and their for the time being, on the case […] As a form of research, case study is defned by interest in perceptions. Readers can recognise similarities individual cases, not by the methods of inquiry and differences compared to other contexts and used.” (Stake, 2000, p. 435) evaluate the extent of the applicability (or not) of these fndings to their contexts. The contri- Hence, this methodology approach was drawn bution relies mainly on what can be learnt from from multiple data sources, which included: these cases as emphasised by Stake (2000, pp. − primary data sources: participant ob- 446-447): “Potential for learning is a different servation, semi-structured interviews and sometimes superior criterion to represent- (addressed to key stakeholders’ repre- ativeness”. The sample of this research was sentatives who take part in the design purposively selected according to the criteria policy-making processes, such as policy- specifed in each chapter of empirical cases. makers, advocates, designers and other The country selection considered the produc- consultants, and benefciaries), in-depth tivity gap that exists between MSMEs in Europe interviews (to get insights on specifc and in Latin America that indicates the need topics that emerged in the semi-struc- to enhance the production systems in Latin tured interviews), questionnaires (used America, which should move towards innova- to explore one specifc output of the frst 21 tion, improving skills to consolidate and keep Design-intensive industries (defnition in Ver- the economic growth (ECLAC, 2015; European ganti, 2003, p.35) are still presenting the ‘fol- Commission, 2015a; OECD, 2014). lowers’ behaviour (see for instance Galinari, Teixeira Junior, & Morgado, 2013; Silveira da Furthermore, methodology scrutiny of each Rosa, Correa, Lemos, & Barroso, 2007 about this research phase is provided as it was carried out context in the furniture industry) in Brazil. The at the time, being particularly described in the development of joint actions has been indicated chapters that focus on empirical cases. as a useful way to engage companies towards innovation but the lack of confdence between frms in Latin America clusters has blocked this kind of long-run action (Altemburg et al., 1999). Brazilian context Social inequalities, low quality of education, lack of management skills and knowledge Brazil is a developing country located in Latin are barriers to the consolidation of economic America. The research focuses on Brazil con- growth (ECLAC, 2015; OECD, 2014) despite the sidering its representativeness in Latin Ameri- high craft skills identifed in Latin America (Al- ca. Brazil, Mexico, and Argentina have the more tenburg et al, 1999). Manufacturing and servic- developed production structures in Latin Amer- es correspond to 20% of the productivity growth ica (ECLAC, 2015). Brazil has the biggest GDP in Brazil even though over 80% of the added val- (Gross Domestic Product) amongst Latin Amer- ue and employment are concentrated in these ica countries, ranking the seventh economy in sectors. The productivity growth in Brazil is as- the world in 2013 (World Bank, 2015). After the sociated with low added value sectors, agricul- ten-year economic growth, since 2010 Brazil ture, and mining, whereas in Asia the econom- has experienced the economic slowdown. ic growth is based on manufacturing (OECD, 2013a). By contrast, international design rank- Despite the argument of globalization as a ings show the predominance of big traditional means to shrink distances and empower de- industry nations (e.g. the USA, Germany, Japan) veloping countries (Friedman, 2005), there are as well as the attempt of Asian countries, such many constraints to be overcome in enterprises as India and China, to “move away from price from these countries in order to achieve inno- competition towards higher added value, quality vative behaviour, developing, and routinizing and brand-based competition” (European Com- design innovation practices. Latin America pre- mission, 2009, p. 41). South Korea stands out sents a different historical background, tech- regarding investment in design (European Com- nological approach, development, and macro- mission, 2009). On the other hand, the hetero- economic policy when compared to Europe and geneity of design is observed within European the USA, where most design approaches come countries where “new Member States — do not from. consider design in the context of innovation and The imitation of products previously manufac- competitiveness” (European Commission, 2009, tured by a pioneer is a way to survive in SMEs. p. 53). This behaviour can be noticed in clusters where Brazilian history is characterized by a late the creation of an SME is linked with a reaction forced industrialization that brought interna- to the unemployment condition in Latin Ameri- tional producers from North to South infu- ca, as well as the lack of some skills that have encing the development of a design culture in been considered crucial to innovation and re- Brazil (Moraes Junior, 2002). Although Brazil lated to its management (Altenburg et al., 1999). shows meaningful and authentic cultural ex-

22 pression, reports and research (Altenburg et al., adopt routes towards a more innovative envi- 1999; Galinari, Teixeira Junior, & Morgado, 2013; ronment (ECLAC, 2015; European Commission, OECD, 2013a; Silveira da Rosa, Correa, Lemos, 2015a; Galinari, Teixeira Junior, & Morgado, & Barroso, 2007) have expressed that Brazilian 2013; OECD, 2014; Silveira da Rosa et al., 2007). enterprises lack the capacity to absorb design Data and research on the use or on the man- culture and to foster innovation. For instance, agement of design in Brazil are scarce (CBD, frms in the furniture industry do not tend to Apex-Brasil, MDIC, 2014). Some institutions develop long-run strategies (Silveira da Rosa, have discussed design in the Brazilian indus- Correa, Lemos, & Barroso, 2007). The furniture tries (e.g. ABDI, BNDES, IEMI, FGV, SEBRAE). industry usually does not present an innovative These institutions emphasise the importance of attitude (Gemser and Leenders, 2001, Galinari et design to achieve innovation and to compete in al., 2013). However, behaving differently among the market but they do not point out how to use frms in the same industry has been recognised design aligned with the frms’ context or how to as better than behaving as a follower (Gemser integrate design into SMEs towards an innova- and Leenders, 2001, Roy and Riedel, 1997). On tive culture11. the other hand, design and innovation do not always achieve success and the way the com- Design teams face difculties in the design pany leads design and innovation is relevant to process to align with the enterprises’ expec- get good performance (see for instance Bruce tation. Designers tend to innovative solutions & Bessant, 2002; Chiva & Alegre, 2009; Gemser while the companies do not seem prepared to & Leenders, 2001; Roy & Reidel, 1997; Teece, adjust or to anticipate changes (see for instance 1986; Walsh, 1996). Schneider, 2006). Lack of job opportunities and the devaluation of the design activity are con- The rupture with its roots, such as traditional stant complaints among designers working in craftwork (Borges, 2011), along with other so- Brazil. Designers feel that companies are still cial conditions led Brazilian design to the iden- not recognising design as a strategic resource tity crisis (Moraes Junior, 2002). The need to or as an important way to innovate and create change this scenario has been reported in di- value despite all the emphasis design activity verse publications which show the urgency to has gained worldwide12.

11 An innovative organisational culture is based on the implementation of ideas (Kenny & Reedy, 2006, p. 119). Innovative cultures are risk-taking, engage all members promoting participation, encourage creativity, learning, share responsibilities, are committed to innovation (Kenny & Reedy, 2006; cited in Naranjo-Valencia, Jiménez- Jiménez, & Sanz-Valle, 2016), and can be measured by number of innovative services or products launched (Kenny & Reedy, 2006) and investment in innovation (Rao & Weintraub, 2013).

12 Evidence of this feeling was demonstrated in August (2015) when Professor Marcos Breder from the Univer- sity of Minas Gerais Federation (Universidade do Estado de Minas Gerais [UEMG]) posted a question at the time for the design community (students, professors and professionals) on social media about the situation of design in Brazil, whether it is an issue of methodological inadequacies to the reality, whether the university was prepar- ing students for the market. Most designers showed discontentment about the market acceptance with comments, such as: “demand for product design is almost inexistent” emerged. Other comments mentioned that the methods are not coherent to the reality of most Brazilian companies that want immediate results, commercial products and do not recognize or value designers. A similar controversy is noticed by Schneider (2006) who notices the short-term results desired by companies in contrast with more future-oriented visions of designers. 23 This aspect had been previously observed in 3. Corruption the 1980s in Turkey by Er (2002) who points out 4. Inefcient government bureaucracy the rise of design students while “with the exception of a handful of design-conscious frms, 5. Inadequate supply of infrastructure industry was unaware of the possible contribu- 6. Policy instability tion of design in competitive performance, and reluctant to employ designers” (Er, 2002, p. 184), 7. Tax regulations which leads to unemployment. Er (2002) con- 8. Access to fnancing siders the Turkey situation similar to the one in 9. Government instability/coups Latin American countries. However, the discussion on social media did not raise the issue of 10. Inadequately educated workforce the Brazilian’s macro factors and policies that 11. Infation infuence design and designers conditions in Brazil. 12. Crime and theft Some explanations about this phenomenon 13. Insufcient capacity to innovate have been related to the macro level, such as 14. Poor work ethic in the national labour the historical, social, political and economic force factors (ECLAC, 2015; Er, 1997, 2002; Moraes Junior, 2002; OECD, 2014, 2013a) that shaped 15. Poor public health the enterprises’ behaviour and vision about de- 16. Foreign currency regulations sign as a cost and not as an investment (Silveira da Rosa et al., 2007), along with the context in Although overall improvements in education, which companies were born (Altenburg et al., and numbers of quality and extent of science, 1999) and compete (Er, 1997, 2002). The Brazil- technology, engineering, and mathematics ian domestic market competition is inward-fo- (STEM) graduates have doubled between 2000 cused and heavily protected from international and 2010, public and private sector investment competition (Araújo, 2016; Arnold, 2016; Gupta, in R&D is low, private economy has not exploited Weber, Peña, Shipp, & Healey, 2013). R&D resources to its beneft, and industry and academy are not integrated towards research The high cost of doing business in Brazil, application, lacking linkages between them known as ‘custo Brasil’ or ‘Brazil cost’, also dis- (Gupta et al., 2013). The low investment in inno- courages investment in innovation (Gupta et al., vation has been related to historical protection- 2013). The ‘Brazil cost’ refers to a “highly com- ist policies adopted by the government, and the plex tax system, poor infrastructure, an unpre- increase of local demand that do not push in- dictable regulatory and legal system and an industries towards more innovative paths (Gupta efcient bureaucracy” (World Economic Forum et al., 2013). The companies usually operate in [WEF], 2018, p. 6). According to the World Eco- vertical supply chains, not being well integrated nomic Forum (WEF) Brazil presents some char- into horizontally integrated supply chains of acteristics that discourages doing business and multinational corporations, which is considered innovation, and the top 16 problematic factors a disadvantage compared to Southeast Asian for doing business according to this survey are countries (Gupta et al., 2013). Hence, innovation ranked as follows (Schwab, Sala-i-Martín, & Sa- in the industry generally limits to the acquisition mans, 2017, p. 70): of foreign technologies which are adapted for 1. Tax rates local and regional markets (Gupta et al., 2013). 2. Restrictive labour regulations Design is not considered within industry and innovation policies documents and reports in 24 Brazil (see for instance Gupta et al., 2013; Maz- to approach this issue arose from practice. zucato & Pena, 2015; Patrocínio, 2013; Torres The idea is to evidence in a more ‘shareable’ Freire, Massami Maruyama & Polli, 2017). and ‘visual’ way the value of design and related studies and felds since it has been very difcult to assure benefts directly related to the use of design (and to its use intensity). Chapter 2 presents the counteracting (or sup- The thesis chapter by chapter porting – depending on the context) role of the copycat behaviour and the different reasons This dissertation is organised into three parts: that have been motivating frms, people and countries to ‘follow the crowd’ or imitate. In − Part I focuses on building the conceptu- some contexts, the copycat attitude works as al framework (Section 1), and describing an alternative to survive (e.g. Latin America) and analysing the context in which the and a means to innovate in the tech industry phenomena was inquired (Section 2); (e.g. China). Copy, imitation, and adaptation of − Part II concerns the empirical cases which original products have been carried out in dif- were divided into two stages; Chapter 6 ferent geographies and cultures, as well as in represents the frst empirical cases stud- diverse historical moments. ied and presents an approach more fo- Chapter 3 points out the MSMEs’ relevance for cused on the micro or organisational level a wealthy economy as well as briefy introduces of analysis that is closely related to the their relations to design innovation. top management and leadership attitude (generally represented by the owner of Chapter 4 focuses on the development of the the enterprise) in the context of MSMEs. feld of design policies, pointing out main stud- Chapter 7 enlarges the scope of analysis ies and historical events that were crucial to which was framed at three levels (actors, moving towards the consolidation of the feld, organisational, and ecosystem). frameworks, and actors that have been identifed and conceptualised to describe and visu- − Part III regards the fndings and learnings, alise contexts of design policies. Research contribution to the design policy feld, lim- which focuses on less advanced economies is itations, and future research issues. emphasised. Design support programmes’ best The frst part of this dissertation is divided practices are highlighted. into two sections. The frst section provides Chapter 5 introduces an overview of design rationales for the use of design (Chapters 1, 3), policies in Brazil, and the design status in Bra- as well as for imitation (Chapter 2) in the global zil, especially from a design management view- arena from a literature review, building the con- point. The Brazilian Design Innovation eco- ceptual framework. The second section looks at system is illustrated, applying the framework the context of this research (Chapters 4, 5). suggested by Whicher and Walters (2014), and Chapter 1 discusses the value of design. The analysed. Design support programmes in Brazil frst chapter attempts to clarify the motivations are further explored and the main mechanisms that lead organisations and countries to invest are discussed in the light of best practices. in design. The diverse value views that have In this frst part, a global perspective on top- been connected to design based on a literature ics which can be considered universal regarding review and analysis were conducted in order to design approach and practice is provided. This clarify the issue of the design value. The need outlook is convergent with Krippendorff, Ma- 25 ser, and Spitz (Bonsiepe, Krippendorff, Maser & interest for specifc cases was placed near the Spitz, 2015) thoughts on the universal character empirical cases they address in order to facili- of design. Krippendorff (Bonsiepe et al., 2015, p. tate the understanding of cases. All cases stud- 18) claims that “…design is a basic human abil- ied correspond to the most common models of ity to construct or improve on the construction design support initiatives applied across Brazil. of our world with responsibility to those affect- Chapter 6 explores a group of design support ed, directly or indirectly”, and although “… there cases joined by the researcher. These cases are cultural differences to be honoured… the are described and analysed looking at the mi- process of proposing responsible innovations cro level (enterprises’ level), concerning mainly is not explained by national boundaries”. Maser what goes on within MSMEs in order to con- (Bonsiepe et al., 2015, p.18) emphasises that tribute or block the use of design throughout “any distinction should rather be project-specif- design support projects implementation. ‘The ic and task-focused” relating to the feld of ap- choice of design: from businesses conditions plication, not to national labels. Spitz (Bonsiepe to businesses attitudes’ focuses on empirical et al., 2015, p.18) also addresses design as an cases in the furniture industry, emphasising the “international phenomenon” being historically role of frms’ conditions and attitudes during “a substantial part of industrialization”; in ad- the integration of design into their (not design- dition, she confrms her position stating that oriented) small businesses. This issue emerged “any national label would reduce design to its from the researcher’s practice and was one of superfcial aspects, to the style features of for- the gaps realised in chapter 1 on the value of de- mal aesthetics”. sign concerning the capacity to ‘absorb’ design. Moreover, studies on design policy (Er, 1997; Most design policies focused on the integration Raulik-Murphy, 2010) have stressed the com- of design into micro, small and medium-sized mon role of design as a competitive tool in in- enterprises (MSMEs) and studies on design dustries and frms (Er, 1997), and the similarity management ignore differences related to the of the pattern of design programmes (Raulik- decision to deploy creativity held by key stake- Murphy, 2010) in less advanced and advanced holders and its implications as, for example, the economies. lack of value to move on to the next level of the design ladder, and the mindset and experience Thus, in this study, design is considered a regarding design knowledge and practice. worldwide practice that can be embedded in diverse contexts, presenting certain common Although the topic of a design attitude was routines, ways of thinking and doing, and ex- previously explored in Michlewski’s (2008) expectations regarding change and future. On ploratory study, the attitude in the small busi- the other hand, the specifc context of emerg- ness with little or no design experience that ing countries can infuence design adoption or contributes to or undermines the use of design use. Hence, the particularities of Latin America has not been empirically inquired. This chapter and Brazil are pointed out throughout the text, addresses the use of creativity resources as a as well as studies that have addressed design decision at the micro level (enterprises’ level) in these contexts. using insights from the Sternberg and Lubart’s theory of investment (Sternberg, 2006, 2012) in The second part of this thesis concerns the the psychology feld, in order to better under- empirical cases analysis from where the overall stand empirical evidence of success and failure literature review was selected in order to provide in absorbing design management capabilities - a better understanding, even though one part of from Acklin’s (2011, 2013) proposed framework this literature is previously presented in the the- - through design policy projects of integration sis outline. Some literature review which is of 26 of design into MSMEs or design support pro- and recommendations on how design support grammes. The main methods used in this frst initiatives and key stakeholders can contribute research phase were the author’s participant to attaining this scenario, particularly improving observation and the literature review. The litera- design support processes, are pointed out. ture review included topics which were selected Chapter 9 includes the discussion on the main considering the potential to contribute to the thesis contribution to the research feld, espe- comprehension of empirical cases and the gaps cially to design policy. Limitations and future that surpass the lack of economic resources to research are defned, indicating challenges and promote the absorption of design capabilities in possible next steps to better grasp the issues MSMEs. proposed. Chapter 7 expands this outlook with new cas- In addition, a Glossary with few terms that es, in which the researcher did not take part in, have overlaps in literature, and others regard- looking at three levels of analysis ranging from ing the defnitions of specifc contexts quoted is human beings (related to individuals, actors) provided after Chapter 9. and organizations (micro) to the ecosystem (external environment infuences). A framework at three levels is proposed in order to support barriers’ and drivers’ visualisation and analysis. This chapter aims at broadening the framework of barriers and drivers that infuence the integration of design into MSMEs through design support programmes’ projects from the actors to the ecosystem level. The limitations of the map of perceived businesses conditions and attitudes, the output of the research frst sample of cases, were also pointed out and inquired in depth. The second sample of cases has also the purpose to overcome some limitations faced in the frst phase of empirical cases analysis, such as the lack of the key stakeholders’ point of view and confrontation with other designers and consultants’ experiences when implementing design support projects. Two projects in which the researcher did not join were selected in collaboration with a non-proft private entity (that is the main design support agency for MSMEs in Brazil) in order to provide new inputs of empirical evidence into the research. The third part of the thesis concerns the learnings and the refections on the whole research pathway and outcomes. Chapter 8 sets out a promising scenario to cultivate design innovation based on critical factors to foster design capabilities development,

27 Figure 1: Research cycles 1: Research Figure

28 PART I RATIONALES AND CONTEXT SECTION 1 Rationales for harnessing design CHAPTER 1 The value of design: an issue of vision, creativity, and interpretation13

What is the value of design? Why should frms and countries invest in design? This chapter aims at clarifying the value of design, its dimensions and its variables (qualitative and quantitative) throughout a literature review and analysis. The premise is that frms invest in design to create value, and countries to boost productivity, competitiveness, economic growth, and wellbeing. Design has evolved, becoming closely related to innovation, and the need to clarify its dimensions and relationships to value within frms and society rise. Despite the global growing interest in design, generally, it is not fully understood how it brings benefts to companies and nations. The concept of value is found in a fragmented literature including economics, marketing, business, management, value engineering, design domains, social and environmental sustainability. In conclusion, the value of design still is under-researched and new dimensions emerge. It is shaped by designers’ and companies’ visions, creativity and interpretations, and adopted national strategies. Better cross-fertilization is required to identify the mechanisms of value creation by design.

Keywords: value of design, vision, creativity, cross-fertilization

13 This chapter was built upon the paper ‘The value of design: an issue of vision, creativity, and interpretation’ (Fonseca Braga, 2016). It was originally presented at DRS2016 Conference: Future-Focused Thinking, held at the College of Arts and Humanities of University of Brighton and other locations of the Brighton Dome Complex, Brighton, UK, 27-30 June 2016. An initial version of the paper was included in the Proceedings of the event. This is a reviewed version of the paper, improved with the contributions from the Conference, and further literature review mainly addressing systemic and macro aspects. Introduction Design: defnitions, approaches, Chapter 1 is organized in four sections in order and potential to provide a framework to develop the analysis “Design is all around you, everything man- that draws the answers to the questions and the made has been designed, whether conscious- conclusion. It starts pointing out design defni- ly or not” (Hunter, 2014) tions, and the evolution of the term and activity is provided in order to contribute to the under- The word design has its origin in the Latin standing of the relationships between value and term designare, which means “mark out, devise, design, as well as its enlargement. choose, designate, appoint,” where de- means “out” and signare means “to mark,” from signum The value of the design topic lies in clarifying “a mark, sign” (Online Etymology Dictionary). the concepts of value reported in several domains and their limitations referring to the de- Leonardo Da Vinci is considered the frst design perspective. The topic ‘Why should compa- signer, but his legacy refers more to invention nies and countries invest in design?’ elaborates (Bürdek, 2006). The beginning of the industrial on the motives to adopt design, describing era (XVII-XVIII) separates design and manu- some reported studies that have approached facturing in the company (Bürdek, 2006; Forty, the economic benefts generated by design in 2007). Design starts taking on a mediator role the companies and highlighting qualitative di- between producers and users to convey social mensions related to competitive advantage, aspirations to products’ designs in a European as well as the forefront of UK and Denmark, in perspective (Forty, 2007). evidencing design benefts and fostering design Two main streams of Design can be identifed: across the country. (1) the inclusive one, that considers the multi- The discussion and conclusion topics are pre- plicity of design regarding arts and craftwork sented in two parts. The frst part summarises and (2) the polytechnic culture, where design is the value of design dimensions and variables a branch of architecture and interacts with en- according to the different perspectives reported gineering, being called industrial design (Troc- that can be related to design. chianesi & Guglielmetti, 2012, p. 39). The second part emphasises the need to grasp The polytechnic culture is related to ap- design’s nature and practices to better achieve proaches that are close to product development cross-fertilization. In this sense, this chapter and product engineering involving product de- extends the Cross (2001), D’Ippolito (2014) and sign at the project level (e.g. Baxter, 1998; Pugh, Heskett (2009) concerns about the importance 1991; Ulrich & Eppinger, 1995). Baxter (1998) of understanding design practices and theories. defnes product design as the set of project ac- Design and its value are perceived as a question tivities, which can be overlapped, systematically of vision (Borja de Mozota, 2006; Danish Design planned, and managed to approach each pro- Centre, 2003; Heskett, 2009; Trueman & Jobber ject context. 1998; Walsh, 1996), creativity, and interpreta- The inclusive perspective can be observed in tion. the Italian cultura del progetto14 (Munari, 1981;

14 The term is not considered synonymous with design culture. 32 Paris, 2014), where the immersion in design is relationship established through product’s aes- part of the culture and history and emerges from thetics. diverse relationships framed in the company throughout its experience and its relationships to diverse stakeholders, generating meanings that are conveyed to and valued by people. The idea of design culture conceptualizes design as a mediator between the production and consumption worlds (Deserti & Rizzo, 2014; Forty, 2007). The designer is seen as an interpreter of social aspirations and serves as a means to convey values through products, services, experiences, and so on. Verganti (2008) introduces the concept of design-driven innovation, a top-down approach to design. Instead of a user-centred design approach, the strategy of design-driven innovation is used by design intensive frms based on their visions about possible new product meanings and languages that might spread in society (Verganti, 2008). The design intensive com- Figure 2: The inspiration fow: Top-down and bot- pany uses external interpreters to understand, tom-up approaches to design. anticipate, and infuence the emergence of new product meanings (Verganti, 2008). According Design thinking approach had its peak in the to Verganti (2008, p. 450), “this process is more 2000s. It is based on participatory methods that knowledge-based than creativity-based”. consider users early in the design process as Bottom-up (or user-centred) approaches, well as experts involvement, working with mul- such as design thinking (Brown, 2008) and emo- tidisciplinary teams. It is experimental in nature, tional design (Norman, 2008), were emergent in and uses prototyping as a good cost-beneft North-America, especially in the USA, where the tool for learning by doing in the early design focus on market and consumer-related needs process. Figure 3 illustrates the design thinking are perceived throughout their industrial design process model: history and culture (Paris, 2014). Norman (2008) describes the design expertise as the one responsible for discovering the users’ needs that they cannot express by themselves. Several ethnographic methods and the use of interdisciplinary teams have been suggested to achieve users’ needs through design thinking (Brown, 2008, 2009). Norman (2008) develops the argument that emotion plays a fundamental role in better products use; people feel more motivated to solve problems or to grasp products’ use as a consequence of the emotional

33 Figure 4: Design thinking approach to innovation (IDEO, 2014, p. 6)

of new ideas, strategies, services, brands and users’ experiences. The emphasis on innovation changes from technology, R&D (e.g. Clark & Wheelwright, 1993) to design principles: inspiration, ideation, and implementation (Brown, 2009). The International Council of Societies of In- dustrial Design (ICSID, 2015) acknowledges design as a fundamental means of innovation: “Industrial Design is a strategic problem-solving process that drives innovation, builds busi- Figure 3: The design thinking process (IDEO, 2014, ness success and leads to a better quality of life pp. 8-9) through innovative products, systems, services, and experiences.” The Design Council (2015) The innovation framework by IDEO represents broadly defnes design as: “a way of thinking the typical approach to innovation from a de- that helps large organisations, small and me- sign thinking perspective (Figure 4). dium-sized enterprises, social enterprises and charities change the way they work”. Top-down approaches emphasise designers as interpreters who bring the disruption, which Design Council (2015) defnition assumes that could not be imagined by users who are used design plays a fundamental organizational role to behave according to a referable context, pre- related to the human-resources evolvement senting difculty in creating breakthrough con- and its ability to change. Heskett (2009, p. 82) cepts. In this sense, top-down approaches have highlights the design activity as a source of in- been considered more useful to achieve disrup- novation, stressing the role of design to envi- tive (or radical) innovations, and bottom-up ap- sion change. proaches to incremental innovations or impro- The design potential has enlarged, as well as vements (Norman & Verganti, 2014). its defnition, being studied in several domains Design creates more than a tangible world and being considered as an important compe- composed of goods, driving the development tency to achieve innovation in enterprises (Bro- 34 wn, 2009; Design Council, 2007a, 2007b; ICSID, that the way design is led by the company is 2015; Maeda et al., 2015; Verganti, 2008) with a crucial issue along with resources invested its own ways, practices, knowledge, and lan- (Walsh, 1996). guage (Cross, 2001; Deserti & Rizzo, 2014; Zurlo The growing interest in design benefts for & Cautela, 2014). frms leads to the development of models and The complexity of evidencing design roles, tools, such as the design ladder tool develo- “modes of use” and benefts for organizations ped in 2001 by the Danish Design Centre (Da- becomes visible. Design management, busi- nish Design Centre [DDC], 2007) (Figure 5), and ness, design and competition are examples of the Design Management Staircase (Figure 6) felds that try to accomplish this clarifcation. model from the Design Management Europe survey (Kootstra, 2009) in order to grasp the Exploring the design role in business success, design phenomena in companies, according Walsh (1996) interpreted design as an activi- to the ways companies see, use, and manage ty which overlaps with R&D and technological innovation and can also contribute to the busi- design. ness of the company. She provides the insight

Figure 5: The Design Ladder (Danish Design Centre, 2007).

35 Figure 6: The Design Management Staircase (Kootstra, 2009)

The Design Management Staircase (DM Stair- (Kootstra, 2009, p. 13). Table 1 describes these case) considers fve factors that appear to de- factors according to each DM Staircase level or fne success and failure of design, “making to the design management maturity. them indicators for good design management”

36 Table 1: Design management maturity grid (Kootstra, 2009, p. 15)

37 Zurlo and Cautela (2014, p. 35) assume that design in the organization (Borja de Mozota, design can contribute to the company in several 2006; D’Ippolito et al., 2014; Heskett, 1999, 2016; ways and levels of innovation, from styling to Junginger, 2008). As reinforced by Junginger the change of ecosystems of product-services (2014, p. 57): “Where there is design, there is the and business models. potential for change”, and, even when considering only product development, design is inher- From the argument of design and competi- ent from change in organisations (see Jungin- tion, D’Ippolito (2014, p. 721) underpins that ger, 2008; Thenint, 2008): “design has the potential of bringing into the picture some non-technological dimensions of “In its essence, product development is all new products that frms had not considered be- about change… Today’s organizations value fore”, emphasising design as a creative activity product development for its ability to realign a and a social phenomenon that has been studied business with its external environments, consumers and markets… It has turned into the across various domains. corporate response to challenges posed by In the context of management and business, social trends, economic forces and technical design is considered a strategic resource (Bruce advances. As a result, organizations think of & Bessant, 2002; Celaschi et al., 2012; Dell’Era & product development when they think of ex- Verganti, 2007). Design adoption and its “mode ternal change.” (Junginger, 2008, p. 26) of use” are a question of enterprises’ behaviour, Design as an element of change from the ethos, or vision (Borja de Mozota, 2006; Cala- micro- to the macroeconomic context is also bretta et al., 2008; Danish Design Centre, 2003; stressed by Julier (2017) who expands on Jes- Verganti, 2008; Walsh, 1996). sop’s notion of economic imaginaries15: “Design Borja de Mozota (2006) introduces the con- shapes products, environments, or, images. It cept of the four powers of design in the manage- also makes ‘economic imaginaries” (p. 174). ment science. Two powers suggested by Borja And by Heskett (1999, 2016) who highlights de- de Mozota (2006) are of special interest in this sign as “a dynamic element in innovation and chapter’s discussion: design as an integrator, adaptation to change” (p. 232) also at the policy which undertakes design as a core competence, level, helping producers and users navigate pro- and design as a transformer, which brings the cesses of economic change, enabling cultures’ design contribution to the learning processes evolvement rather than repeating old patterns. and to the ability to deal with change in organi- On the other hand, the company’s vision about zations, creating new business opportunities. design (Borja de Mozota, 2006), its cultural im- Design potential depends on the individual peratives (Heskett, 2009), and the adopted de- creativity, talent, and experience of the designer sign strategy (Gemser & Leenders, 2001; Roy & (D’Ippolito, 2014; Gemser & Leenders, 2001). Riedel, 1997) or stage (Danish Design Centre, Besides the designers’ skills, the development 2003) defne the limitations of frms to harness of competencies and ability to deal with change design. are important levers which can be fostered by Another stream that design has strongly em-

15 The idea of economic imaginaries draws on the notion that practices and objects stand in for wider practices of economic change, particularly in the case of complex and unstructured change, such as contemporary capitalism usually is (Julier, 2017, p. 174).

38 braced refers to social and environmental issues Design has gained attention in the policy- (e.g. Bonsiepe, 2011; Manzini, 2007; Manzini & making world, especially in Europe, where de- Vezzoli, 2005). The interest in the social dimen- sign methods have been proposed in order to sion comes from the Bauhaus and Ulm schools, better accomplish citizens needs, modernise which started working on design and its social administrations and envision desirable futures contributions. Papanek (1972) introduced the (Bason, 2014; Junginger, 2014; McNabola, Mo- idea of design responsibility in his book Design seley, Reed, Bisgaard, Jossiasen, Melander, for the real world. Design starts exploring the Whicher, Hytönen, & Schultz, 2013). From these ways towards social responsibility throughout contexts, another tool emerges: the Public Sec- ecodesign, Design for Sustainability, and social tor Design Ladder (McNabola et al., 2013) (Fig- innovation. ure 7).

Figure 7: The Public Sector Design Ladder (McNabola et al., 2013, p. 30)

This tool builds on the idea that the higher the public sector body, the more value it can create understanding and integration of design into a (McNabola et al., 2013).

39 of-sale and the new economic concepts, such as value, should be elaborated from the design Value of design perspective. The Austrian School explores value concept closer to the marketing ideas in which the users’ behaviour plays an important role in The evolution and fragmentation of purchasing (Heskett, 2009, p. 75). value concepts Marketing concepts are related mainly to the idea of “customer-perceived quality” and “cus- Several domains have studied the value con- tomer satisfaction,” where the customer per- cept (Ulaga & Chacour, 2001). Among them, ceives benefts relative to perceived sacrifce, marketing (Kotler, 1972; Ravald & Grönroos, taking into consideration suppliers’ offers and 1996) and economics (Heskett, 2009; Smith, price (Ulaga & Chacour, 2001). In business-to- 1776) disciplines have stressed the importance business, value has also been related to psy- of value and presented a range of defnitions. chological benefts, such as risk reduction and In the modern economy, the value in exchange reputation (Hinterhuber, 2008). Hinterhuber comes from the concept of money, which arises (2008) highlights that the concept of value still because of the need to have a common element is an ill-defned and under-researched sub- and measure to exchange things among dif- ject, despite the importance of providing value ferent producers. It started as a question of a to customers to foster their loyalty. Ravald and commodity becoming “the universal instrument Grönroos (1996) emphasise that marketing of commerce” (Smith, 1776). perspective carries on the idea of value, adding that it can lead to adding technical products Smith (1776) suggests two different meanings improvements or increment of services that are for value: value in exchange and value in use. not perceived by the customers anymore. Scant things have a higher value in exchange and a lower value in use (e.g. diamond). Goods The value engineering (Csillag, 1991) and the which have a greater value in use (e.g. water) product design (Baxter, 1998) approaches to usually have no value or have a lower value in value are similar, stressing value in terms of exchange (Smith, 1776). Both concepts are re- money as an outcome of a combination of dif- stricted to the monetary value, to the idea of ferent types of value or functions, representing price defned by productive dimensions (labour how much money the consumer is willing to pay and capital), in the neoclassical theory. for functions in the market by comparison. Bax- ter (1998) considers two product design func- The concepts of value generated throughout tions: utility and esteem16. economic theory do not ft the design dimensions regarding the context of use, the role Krucken (2009) relates value to the perceived of products, communications, environments, product quality, suggesting different value di- services, and systems in the lives of people mensions, such as functional or practical value (Heskett, 2009). Heskett (2009) argues that the referred to the mode of use; emotional value economic theory generally stops at the point- related to subjective factors as feelings, user’s

16 Esteem function represents social, cultural and commercial effects throughout beauty, shape, appearance.

40 experience, memories; environmental value University et al., 2012; Barcelona Design Cen- represented by nature preservation; and sym- tre, 2014; Borja de Mozota, 2006; Danish Design bolic and cultural value expressed by the social Centre, 2003; Design Council, 2007b; Thomson identity. & Koskinen, 2012). The need to demonstrate design benefts for business has generated re- Borja de Mozota (2006) claims that value in ports and website platforms (e.g. SEE Platform) management science is achieved when a result to share design experiences and policies. Gov- superior to that of the competition has been ernments have focused attention on design as achieved and when a greater ratio between the policy for national economic growth and to fos- profts and the capital invested is realised. ter innovation. The Economic Value Added (EVA) comes from Despite all the emphasis that design has re- two types of value: substantial value based on cently received (Borja de Mozota, 2006; Brown, customer value, performance value, and stra- 2009; Bruce & Bessant, 2002; Danish Design tegic value; and fnancial value that is gotten Centre, 2003; Design Council 2007a, 2007b; through fnance, investment or mergers (Borja D’Ippolito, 2014; Gemser & Leenders, 2001; de Mozota, 2006). The substantial value in- Hunter, 2014; Maeda et al., 2015; Norman, 2008; cludes the value perceived by the market (com- Roy & Riedel, 1997; Verganti, 2008; Walsh, 1996), petitive rationality), and the value created and it is still considered an uncertain activity, of shared by human resources (process improve- which we cannot be sure of the results (Bessant, ment, individual creativity, knowledge manage- 2002; Trueman & Jobber, 1998). On the other ment, the performance of projects) that is re- hand, design management makes an effort to ferred to as organizational rationality by Borja explain how we can achieve better performance de Mozota (2006). by design in the frms throughout skills, organi- The perspective of value engineering and of zational, and managerial practices, to attain an product development narrow the design stra- effective design (Chiva & Alegre, 2009). tegic values related to the corporate image, Burns and Annable (2011) provide an inter- language and meanings, innovation, human re- esting interpretation of how to measure design sources, and possible social contributions. Mar- effectiveness within companies. Their frame- keting perspective binds the issue to a proft, work considers measurable outcomes related focusing on the customers’ viewpoint (Kotler, to three areas within the company: human re- 1972; Ravald & Grönroos, 1996; Ulaga & Chacour, sources, production and logistics, and sales 2001), presenting the shortcoming of an innova- and marketing. However, the difculty in distin- tive logic to achieve disruptive ideas or to deal guishing exactly if such benefts are directly re- with change. lated to design or to other factors and changes remains. The value creation by design can be regarded as a complex phenomenon. The intangible val- The scenario of design value within ues have strongly emerged and impacted frms companies: the management of in several ways. Brands have become more valuable than the physical and tangible aspects design complexity of a business. Creativity, knowledge, and ideas related to design are highlighted as sources of Design has been emphasised as an important value creation in organizations, improving com- factor for economic growth by several govern- petencies, and skills to deal with a change to- ments and institutions across Europe (Aalto wards innovation. Schneider (2006) points out 41 the unique contribution of design to shaping forming and is ripened by experiencing failures. changes through tangible scenarios and visions This reinforces the importance of trial and error of desirable companies’ futures. practices (Brown, 2009), and the critical ability of innovators to see the failure as a learning ex- Michlewski (2008) defnes a design attitude perience, and to look at innovation as a process that infuences companies. The author points that requires timing, patience, persistence, be- out 5 headlines that designers’ professional ing facilitated when people with diverse back- culture brings to design-led organisations. grounds participate (Poirier et al., 2017). Then These headlines and related characteristics are again, a design attitude can play a fundamental summarised as follows: role in innovation processes (Michlewski, 2008). 1. Consolidating multidimensional mean- Sachs (2017) stresses that the “more uncer- ings - Synthesising and analysing. Rec- tain an environment, the more we are forced to onciling different (e.g. technical, fnancial, rely on intuition while strict analysis loses rel- operational, emotional) objectives. evance, be that in an unstable home or rapidly 2. Creating, bringing to life - Making new evolving marketplace”. The advice for entrepre- ideas visible and tangible (e.g. prototyp- neurs is to constantly expose “themselves to ing). wide-ranging and relevant data, brain food for 3. Embracing discontinuity and open-end- their subconscious processes” in order to avoid edness - Freedom to think and behave false patterns that intuition can easily spot differently - ‘let’s see how it goes’. (Sachs, 2017). 4. Engaging polysensorial aesthetics - Abil- Ito and Howe (2016) point out new principles ity to capture ideas (not just create them) to innovate in a faster world considering tech- and visually represent what others think. nology and communication revolutions. Their Contributing to a dialogue. Enabling ‘im- proposed principles include typical features of mediate and unconsciously perception’. design practices and processes, such as the use of creativity to quickly change direction, 5. Engaging personal and commercial em- prototyping as a way to better face risks and pathy- Human-centred. Empathy and to learn by doing, the capacity of learning from deep connection with people, uncover- mistakes made as well as the use of intuition. ing customers’ hidden needs, recognis- All these aspects reinforce the value of design ing also market needs, and constraints of experimentation to innovation in an environ- businesses environment and commercial ment where accurate responses are quite ex- bounds. Refreshing the atmosphere and pansive and time consuming, which means that reducing tension, transmitting excitement when you achieve the ‘right’ answer, this would and inspiration through their everyday ex- be probably not required anymore in a changing perience and ideas, reinvigorating and in- and dynamic environment. spiring. In this scenario, design expertise contributes All of these designers’ attitudes (Michlews- to the company’s challenges that are related ki, 2008) contribute to dealing with innova- to open-ended issues and require more experi- tion and market dynamics that require quick mental approaches, but design is still consid- decision-making in uncertain and changing ered an uncertain practice and it is not grasped environments. Sachs (2017) advocates that at all in enterprises that use design according the intuition which enables quick and ‘right’ to their own visions and culture. The nature of decision-making is based on an unconscious design activity is tacit-based, relying on creativ- pattern recognition our brain is constantly per- ity to achieve unique solutions. Design is not a 42 science, design is a refective practice in a con- structivist paradigm where we do not expect something repeatable, although it can establish Why should companies and routines within organisations, can be seen as a countries invest in design? discipline, and can be studied as a phenomenon (Cross, 2001). Cooper, Hernandez, Murphy and Tether (2016), The design practice is related to subjective Gemser and Leenders (2001), and Roy and Rie- factors, such as empathy and intuition, pre- del (1997) show that more innovative design senting an experimental character of “trial and strategy leads to better results (e.g. market error” practice (Brown, 2009) despite methods share, turnover growth, and exports). However, and tools that can be systematically employed. frst-to-market innovation strategy does not al- To source a designer, for instance, companies ways lead to more success than using a follow- consider personal recommendations (Bruce, er strategy (see for instance Teece (1986) who Cooper, & Vazquez, 1999). In addition, looking at also describes ways in which some enterprises the identity of design at the organisational level, proft from others’ innovations). design still is undefned in terms of responsibil- Cooper, Hernandez, Murphy and Tether (2016) ity, budget source, guidelines, and power, pre- carried out a survey from the Innovate UK that senting a non-clear form to manage compared provided access to UK based companies. They to R&D or technology developments (D’Ippolito, received 165 usable survey responses and con- 2014). ducted 15 semi-structured interviews. They no- All the subjective dimensions make design ticed that better design benefts are identifed in difcult to grasp, and the risk of disruptive ideas frms that use design as process and as strategy is higher than improvements proposals enabled rather than the use of design as styling. The au- by market research17. Design is future-oriented thors point out the role of design in innovation and the future is uncertain, which leads to the being mainly related to moving into new mar- representation of customer value as a range of kets. Companies recognise design as a creative expected values, rather than a single (certain) process and an interface between technology number (Hinterhuber, 2008, p. 390). It seems and user needs, and as multifaceted (Cooper et more comfortable for the company to invest in al., 2016). The difculty in measuring the return things that are the ‘right things’, that are possi- of investments in design is observed, there are ble to forecast in terms of return on investment “difculties separating the contributions of de- and profts in short run strategies. On the other sign from other elements creating value in the hand, companies that acknowledge design as development process, not recognising design a source of innovation challenge forecasts and activities explicitly, and not knowing how to per- market research (which can be observed in the form this kind of measurement” (Cooper et al., history of Apple and Sony – e.g. iPad and the 2016, p.19). Sony Walkman).

17 It is important to emphasize the difference between market research and design research. Market research is statistically valid and shows opportunities for improvements considering similar behaviour among groups. De- sign research tends to more innovative solutions starting from users and establishing relationships with cultural anthropology and sociology (as cited in Zurlo, 1999, p.35). 43 Gemser and Leenders (2001) suggest that − £71.7bn in gross value added (GVA), other qualitative aspects infuence competitive equivalent to 7.2% of the UK total GVA, re- performance, such as the designers’ reputation, fers to the design contribution to the UK experience, skills, and talent, and the market economy in 2013. segments a company tries to serve. − From 2009 to 2013, the design economy The Danish survey: The Economic Effects of GVA grew at a faster rate than the UK av- Design (Danish Design Centre, 2003) was a pio- erage. neer in studying the effects of design on nation- − Workers with a design element to their al and business economics. The study shows work were 41% more productive than the that companies that work systematically with average. Each delivers £47,400 in output design, using professionals internally or as con- (GVA per worker) compared with £33,600 sultants, have higher earnings and exports than across the rest of the economy companies that do not use design. Gross rev- enue performances and exports are higher the − The average output per employee is great- higher on the design ladder those companies er for those who invest in and use design rank (Danish Design Centre, 2003). However, strategically. the research does not identify the precise share The Design Economy report (Design Council, of the economic growth that can be directly re- 2015) also points out the need for more gender lated to design. equality among designers and the inclusion of After that, the United Kingdom has strived to a more diverse range of people. The study re- measure design impacts on companies. The inforces the UK position in striving to measure public policy has approached design as a fun- design benefts, evidencing design as a way to damental factor for economic growth. The De- boost productivity, competitiveness, balance sign Council (2007b) report contributes to show economy, and improve quality of life. the design impact on business performance. Borja de Mozota (2006, p.46) relates design to The report (Design Council, 2007b) states de- the competitive advantage, presenting multiple sign advantages in business, such as turnover interpretations to design by the frm, from de- growth and shares outperformance. sign as a differentiator when the company sees The recent Design Council (2015) publication, design in the context of reputation or brand to The Design Economy, demonstrates the design design as a core competence, or a resource- (or the creative economy) contribution to the based view difcult to imitate in terms of organ- fnancial performance of the business in the isational competencies. United Kingdom. The publication widened the Chiva and Alegre (2009) emphasize that the scope of design activities approaching a wide relationship between design investment and variety of industries, compared to their previous company performance is not unconditional. report. It identifes a concentration of design The authors describe the importance of design workers and design-intensive frms in London, management and its skills to achieve design ef- evidencing the fact that design is underused fectiveness and good results to the frm (Chiva and its benefts can be broadened in other loca- & Alegre, 2009). The way the company uses tions and across sectors. The main contribution design investment to obtain or improve design of this report was to consider the contribution management skills affects performance (Chiva and value of design across the whole UK econ- & Alegre, 2009). omy. The key fndings were (Design Council, 2015, p. 8): Most studies focus on the relationship between commercial success, competitive ad-

44 vantage, economic performance, and design to developed by Julier (2017) who relates the neo- demonstrate the benefts that design can gen- liberalisation or fundamental developments in erate for companies. However, the reasons to the Western capitalism to the worldwide growth invest in design are not reduced to commercial and visibility of design from the 1980s. Design success in frms. The development of unique has become more integrated with other profes- organisational competencies (Borja de Mozota, sional disciplines and new sub-sectors, spe- 2006) and of learning skills (Roy & Riedel, 1997) cialisms and approach have arisen in response are qualitative aspects that can drive the eco- to marketing and technological changes, which nomic value creation to strengthening the abil- make harder to distinguish designers from other ity to deal with change and innovation, generat- professional activities (Julier, 2017). The author ing competitive advantages (Borja de Mozota, stresses design and neoliberatisation more as 2006; Chiva & Alegre, 2009; Roy & Riedel, 1997). processes of change than as an end, in which Other limitations are that design economic per- design “has taken up a role not just in providing formance is more evident throughout time (Rae, goods and services to satisfy current require- 2013, 2014) and that disruptive ideas are not al- ments, but has increasingly functioned to indi- ways immediately successful in the market. cate sources of future value” (Julier, 2017, p. 6). In addition, design benefts have been evi- Neoliberalisation and its implications for de- denced at the national level, demonstrating that sign are explored through four features: deregu- design can be an important lever for economic lation, new economy, fnancialisation, and aus- growth. Another approach at the macro level is terity (Julier, 2017).

45 Table 2: Neoliberalisation’s implications for design based on Julier (2017)

Neoliberalisation Defnition and context Implications for design feature Deregulation Legal constrictions concerning fnance trade Response to global competition. and commerce become less strict. Deregula- Growth of fexible working and project-based tion waves were noticed from the 1980s in the employment. USA (Reaganomics) and Europe, especially in the UK (Thatcherism). Examples of phenomena which emerged are: progressive deregulations in global trade, privatisation of state industries and services.

New Economy New Economy practices have their core in the Emergence of design as a core company (derives from de- evolvement of digital information technology competence. regulation) networks, which had its emergence with the es- Changes in expectations and practices of tablishment of the World Wide Web in the 1990s, creative labour. and changed the supply ways (e.g. Amazon. com, eBay.com). The slogan ‘faster, better and cheaper’ summarises these practices, in which ‘faster’ meant supply chain contraction to deliver ‘mass specialisation’, ‘better’ meant that with more distributed and supple supply chains, enterprises could focus on their core capabilities through design, innovation, and brand building, ‘cheaper’ meant that Eastern Europe manufacturing and services bases provided cheaper labour and material costs.

Financialisation From the early 1970s, it was accelerated in the Design adds value to tangible resources. (emerges from New 1980s with the deregulation of banking and stock Design points towards sources of future Economy) market systems and intensifed in the 1990s value. and 2000. Financialisation is generally related Design is applied to systems and technolo- to strategies to keep the value of shares, brands, gies that ease fnancialisation process. real state or capital fows. It happens in three Design is used strategically to differentiate ways: the rise of shareholder value within corpo- and provide protection on assets through rate governance, the rise in proft through fnan- law (e.g. licensing out of designs for others). cial rather than commodity production systems, Design improves the value of real estate. and the rise of fnancial trading. Tangible and intangible assets are in continuous exchange.

Austerity Measures introduced by governments in the oc- Designers are affected by strong pressures (derives from fnan- casion of the 2007-8 global fnancial crisis. Falls as commercial operations reduce costs. cialisation) in assets’ value, rise in borrowing costs, and pro- Emergence of ‘social design’ programmes ductivity drops hinder the debts payment. This for collective beneft that presented two leads to fnancial crisis and economic recession. streams: the development of cheaper and Governments struggle to decrease their defcit more user-focused services in regional and and encourage the private sector by cutting their national governments, and the strengthening own spending. of politicised activist design practices which propose alternative economic and social frameworks to austerity.

46 These political and economic infuences sises the current value of design as a value in have spurred design responses to them. In this use, which means the value of design as a tool sense, Julier (2017) sheds light on how design towards innovation and of its methods. has shaped itself to create value, to adapt to and In this sense, one example of the value of de- to face challenges imposed by the environment sign in its process, addressing the complexity of in which it is placed, tracking the emergence of current problems and opportunities, rather than design disciplines and felds according to each immediate outcomes is shown through social feature of neoliberalisation, and providing ex- innovation process models. Figure 8 below il- amples in everyday life and in design (i.e. Julier, lustrates one of them: 2017, p. 12). The author (Julier, 2017) empha-

Figure 8: The process of social innovation (Murray, Caulier-Grice & Mulgan, 2010, p. 11)

47 that it is an ill-defned, under-researched, multifaceted, and complicated topic (Hinterhuber, Discussion and conclusion 2008; Ravald & Grönroos, 1996) where visions, interpretations, and new dimensions emerge, as well as new research domains. Furthermore, Dimensions and variables of the different approaches in the same area can pro- value of design vide quantitative and qualitative perspectives that are not fully explored in this framework. The value of design dimensions and variables Figure 9 demonstrates the dimensions and can be distinguished from the domains and ap- variables of the value which can be related to proaches studied. This is just an initial effort design according to the reported studies: considering the complexity of the subject and

Figure 9: Qualitative and quantitative dimensions and variables of the value of design according to the perspective of different stakeholders (users, companies, and society) and domains reported (economics, marketing, business, management, design)

48 Although there is a categorization of key The same discussion has emerged in the stakeholders from users to society in this public sector (Bason, 2014; Junginger, 2014; framework of design value, the benefts identi- McNabola et al., 2013). Nations have demon- fed can affect diverse categories. For instance, strated that design can become an axis for na- employment growth represents frm growth and tional productivity, competitiveness and wellbe- can have positive effects on society, a product ing (DDC, 2003; Design Council, 2007b, 2015). that builds on an emotional connection and has Some of them stand out, such as the UK and good quality and durability is likely to be kept by Denmark (DDC, 2003; Design Council, 2015). the user for a longer period, which can also con- In this sphere, the awareness and familiarity of tribute to the environment and, hence, society. policy-makers with design is crucial (McNabola et al., 2013; Raulik-Murphy, 2010) as well as Moreover, quantitative and qualitative ap- the country’s conditions and attitudes towards proaches can be found regarding the same design. For instance, the big traditional indus- variable that is considered in one way or an- try nations (e.g. the USA, Germany, Japan) pre- other depending on the research reasoning and vails in international design rankings (European methodology. Commission, 2009). Some emerging economies have moved towards higher added value through design (i.e. European Commission, 2009), and others are still associated with low added value sectors (see, for instance, OECD, 2013a). The value of design: an issue of Another constraint at the organisational level vision, creativity, and interpretation is the difculty in isolating design from other variables that impact the frms’ performance, The reasons that lead companies to explore because the company’s performance is not design potential have been related to the inter- just a result of design adoption (Chiva & Alegre, est in getting a competitive advantage at a prof- 2009; Gemser & Leenders, 2001; Roy & Riedel, it, increasing the focus on design relationships 1997) and design is very “integrated into the to competition, business, and management. The fabric” of design-led organizations (Westcott et will to demonstrate that design is a rewarding al., 2013). Moreover, the measurable results of activity for companies triggers several efforts design are more evident throughout time (Rae, to translate in numbers design outcomes. Then 2013, 2014). again, Gemser and Leenders (2001) suggest At the national level, the UK has carried out that good fnancial performance is not a pre- design measurements across its regions build- condition for design investment in frms. Fur- ing on a systematic approach (Design Council, thermore, this approach presents the limitation 2007b, 2015) that has evolved in the last dec- of binding design to an outcome, disregarding ade. its qualitative roles and benefts that lead to the results. In this sense, Borja de Mozota (2006) Design expertise and practice are still not draws a compelling perspective contributing to fully understood by people in organisations the establishment of a connection between the (D’Ippolito, 2014; Trueman & Jobber, 1998; qualitative aspects (e.g. design as a core com- Walsh, 1996), and governments or public bodies petence and as an agent that fosters the frm’s (Raulik-Murphy, 2010), despite the existence of ability to deal with change and creates new systematic processes and tools. At the national business opportunities), which are considered level, this leads to efforts to familiarize policy- the source of economic added value. makers with design (e.g. McNabola et al., 2013), reinforcing the need to provide better solutions 49 and futures to citizens. creativity appear inherent to each other (Cohen & Levinthal 1990, p. 130), and weighing which of This misunderstanding about design by non- them is more relevant to design seems incoher- design experts can be related to the idea that ent considering that design knowledge has its design is not a science and has its own logic own form of relying on engagement and refec- (Cross, 2001), and that design is future-ori- tion on design activity (Cross, 2001, p. 54) that ented; it deals with uncertain change, and, as is creative-based. To think of new languages pointed out by Julier (2017), it involves prob- and visions in an explorative manner requires lem-solving activities that seek for the most creativity to establish new linkages that em- effective and more appropriate response rather body sociocultural models making sense of than predefnes design outcomes in response new meanings. to a problem. In addition, the individual creative component and the tacit nature in which it oper- Individual creative reactions and the con- ates to build expertise through practice-based struction of an organisational culture that fos- know-how can also contribute to this (Cross, ters innovation are crucial factors to innovate by 2001; D’Ippolito, 2014, p.722). design. The design process is creative-oriented and its most powerful feature is to innovate. Assuring measurable outcomes for innovative Nevertheless, the design strategy supported design or innovation by design is an incoherent by the organisation (Gemser & Leenders, 2001; approach, and so is market behaviour forecast, Roy & Riedel, 1997), its vision about design or which is inappropriate to disruptive innovations its cultural imperatives (Borja de Mozota, 2006; that are unfamiliar to users or citizens. This kind Heskett, 2009) along with adopted approach to of risk-taking attitude requires long-term strat- design and design skills embraced by the or- egies and evaluations. ganisation binds the exploitation of the value Design as a process relies on creativity. From of design (concerning public bodies as well as the semiotics point of view, we are always inter- companies). preters regardless of our functions or positions. Design requires a diversity of competencies When a message is sent (e.g. an image, a text, a and each project is unique (Project Management product, a service, an experience) the relevance Institute, 2012). The difculty in demonstrating is the meaning that the ‘reader’ builds on it, the a “recipe for design” relies on the creative nature interpretation. Designers interpret society and of the activity and its diversity compared to ac- users employing technical information to cre- tivities that you can repeat and obtain the same ate. The knowledge used to achieve solutions result (e.g. manufacturing activities). Overlook- passes through a creative process where the ing the nature of design, its practice, and knowl- designer is also a ‘flter’ and interpreter, who edge can lead to a superfcial approach to the turns diverse subjective (e. g. social desires, role of creativity to innovate by design. aspirations, unknown users’ needs, individual know-how) and objective (e. g. manufacturing The way in which the frm leads design con- requirements, technologies, materials, econom- cerns design management that searches for ic resources) information into design (products, patterns or indications for ‘good’ design (e.g. services, experiences, communications, sys- Hertenstein, Platt, & Veryzer, 2012). The same tems). In this sense, creativity is the main power concern has been stated by public bodies where to innovation by design. design management has been stressed as an essential skill (European Commission, 2013), Verganti (2008, p. 450) claims that the design- and design methods as an instrument to policy driven innovation process “is more knowledge- innovation (Bason, 2014; Julier, 2017; Jungin- based than creativity-based”. Knowledge and ger, 2014). The limitation on a recipe for ‘good’ 50 design is also related to the unique competen- vours design embodiment) to create value, fos- cies, visions, change, innovation, breakthrough tering innovation. concepts and design context. In this sense, the The analogy to absorptive capacity18 (Cohen value of design is not just related to the results & Levinthal, 1990) suggested by Verganti (2008, but to the capability to create, interpret and vis- p. 447) regarding the company’s immersion in ualise worthy ideas in each context, forecasting design is a valuable insight, considering that novelty throughout time. design performs a mediator role between com- Some enterprises are future- and design- panies and users (outside knowledge). This oriented at the beginning of their foundations, can be extended nowadays to the role of de- which means that the stages in the design lad- sign between governments and society (outside der are useful references but the reality and the knowledge). Design can foster the evolvement dynamism of the companies to compete and to of the organisations’ human resources and innovate by design are not reduced to this gen- their learning skills (Borja de Mozota, 2006; Roy eral scale. & Riedel, 1997) depending on its management and top management commitment and mind- Some nations have built on design skills as a set. way to achieve better productivity, competitiveness, and wellbeing, which has been related to However, to better accomplish this cross- the stage of economic development, industry fertilization, it is necessary to clarify the par- history, policies, and governance. In this case, ticularities of design knowledge and practice the policy-maker mindset and commitment, (Cross, 2001; D’Ippolito, 2014; Heskett, 2009). as well as the national conditions (e.g. social For instance, what are the preconditions or the equality/inequality, access to education, health) prior knowledge in the design context to recog- and priorities (among other factors further ex- nise the value of new information, assimilate it, plored in Chapter 4 and 7), can ease or hinder and apply it to commercial ends? Another con- design innovation across a country. sideration discussed in this chapter is that the value of design is not restricted to commercial Furthermore, some studies have explored ends, but is built throughout the evolvement of organisational culture in design-centric frms unique competencies, visions, and interpreta- (Calabretta et al., 2008; Design Council, 2007a), tions that can lead to the creation of economic and the cultural change of perspective in climb- value and wellbeing. ing the design ladder (Doherty et al., 2014). However, it is not clear when and how a non- The implication of this discussion for research design-oriented company and country present in design innovation management is the need to a capacity to absorb design (or features that fa- develop new ways of dealing with the innova-

18 Cohen and Levinthal (1990, p. 128) notice that the ability to exploit external knowledge is a critical component of innovative capabilities: “We argue that the ability to evaluate and utilize outside knowledge is largely a function of the level of prior related knowledge. […] prior related knowledge confers an ability to recognize the value of new information, assimilate it, and apply it to commercial ends. These abilities collectively constitute what we call a frm’s “absorptive capacity”.” 51 tion by design issue besides the measurable and visible assets, frst focusing on the creative process and design knowledge formation in organisations in order to get insights related to the design core competencies and their roles in the companies changing processes, understanding what the preconditions to better develop innovation and create value by design are. This chapter sheds light on this issue emphasising design as a creative-oriented activity in which its value is shaped by companies’ and nations’ visions and interpretations.

Limitations

This chapter focuses on the value of design mainly at the organisational level. The framework proposed helps visualise benefts or values that can be related to design according to prior research; however, many of these benefts can also be led by other factors, and their achievement referred to design will depend on the way design is managed, so assessing the organisation ‘before’ and ‘after’ specifc design activities or interventions is suggested to support the understanding of the role design played in the achievements. Furthermore, harnessing design does not rely just on designers’ activities as it can be observed in the phenomenon of silent design (Gorb & Du- mas, 1987) and at the national level concerning policy-makers background and mindset. A set of conditions, attitudes, and activities inside and outside organisations infuence the design system (or the design innovation ecosystem), supporting or hindering value creation by design. Especially from Chapter 7, the barriers and drivers to design innovation from the actors to the ecosystem level, considering the diverse stakeholders’ viewpoints, are better explored.

52 CHAPTER 2

Why are some enterprises and countries imitating (others)?19

“when imitation is easy, markets don’t work well” (Teece, 1986, p. 285)

Competition amongst frms is frst focused on designs which are quite different from each other, and when a dominant design emerges it shifts to price (Teece, 1986, p. 288). Despite the responsibility of the innovator for fundamental breakthroughs and design, when imitation is easy, imitators compete and can proft from others’ innovations (Teece, 1986, p. 288). Looking at the history from the beginning of the Industrial Revolution, copying is a recognised pattern “with national economies industrialising initially on the basis of copying, poaching and appro- priating skills and governments seeking to protect their nascent industries and encouraging them to move up the value chain” (Heskett, 2010, p. 5). The USA, Europe and East Asia are examples of this pattern (Heskett, 2010). In the case of Britain, albeit a technological forefront, there was a dearth of skilled designers (Heskett, 2010, 2001a). Then, historically, it might be said that Americans copied Britain manufacturing that copied French designs (see Heskett, 2010). Germany had a late 19th century industrialisation and also based its products on copying at the outset before its economic policies pushed higher quality of products and production. A copy is seen as a quick way to learn in this process. Meanwhile, France was able to keep its competitive advantage in the luxury products market

19 The frst version of this topic was published as one part of the paper ‘Ceasing copycat behaviour: Developing product design identity through industry and handcraft interaction’ (Fonseca Braga, 2017). An initial version of the paper was published in the Brazilian journal: Gestão e Tecnologia de Projetos [Design Management and Technology] from University of San Paolo (Universidade de São Paulo [USP]), São Carlos, 12 (2), 21-40. This is the reviewed version of one part of the paper, improved with further literature review, particularly addressing the national contexts in which copy, imitation and products’ adaptations have taken place in diverse locations and historical moments. with the consolidation of a strong design edu- Pieters, 2013; Yang et al., 2014) to the market- cational system that encouraged to maintain ing, business (Teece, 1986), design manage- and to improve quality work in manufacturing, ment (Borja de Mozota, 2006; Dell’Era & Ver- though changes were related to decorative de- ganti, 2007; Deserti & Rizzo, 2014; Gemser & sign with limited innovativeness possibilities. Leenders, 2001; Heskett, 2009; Roy & Riedel, There was a time in which innovation was also 1997) were considered in this chapter. In addi- prevented by economic affairs’ rulers20 and tion, Er (1997) notices the reasoning of imitation considered dangerous, menacing existing skills in the Newly Industrialised Countries (NICs)21, and social stability (Heskett, 2001a, 2010). Julier (2017) addresses the issue in less advanced economies, and Altenburg and Meyer- The literature on imitation, copy and plagiarism Stamer (1999) contextualized the differences in is scarce (Satomura, Wedel, & Pieters, 2014). The the copy culture in Latin America. This behav- followers’ behaviour has been studied in felds, iour cannot be grasped by looking at only one such as marketing, economics, business, man- dimension or feld. agement, law, sociology, and psychology. There is a lack of literature in the product design feld The idea of copycat behaviour is linked to related to the copycat behaviour in companies. social learning that is frst related to the non- This issue leads to asking why enterprises are humans’ behaviour. When a “model” female copying design products from other companies chooses a “target” male from two males being despite the design advantages reported in the observed by other females, the latter are more last decades (e.g. Danish Design Centre, 2003; likely to prefer the target male chosen by the Design Council, 2007b, 2015; Gemser & Leend- model after watching the “model” female’s deci- ers, 2001; Rae, 2013; 2014; Roy & Riedel, 1997). sion (Little et al., 2011). This behaviour has also been observed in humans in a more complex In order to contribute to this discussion, di- manner in which social learning is a mechanism verse perspectives ranging from the social and to spread preferences for certain traits, but hu- psychological (Little et al., 2011; Van Horen &

20 e.g. Pharaohs of Egypt, Mogul shahs of northern India and the Chinese emperors ruling from the Forbidden City in Beijing (Heskett, 2010), and in early 1600s government inhibits innovation in England (Heskett, 2001a). 21 NICs are a sub-group of less advanced economies that include countries that ‘have attempted to gain design capabilities in parallel to their industrial development’ from about the 1970s though industrial design is still unknown in the less advanced economy practices (Er, 1997, p. 294), and have experienced high growth in the 1960s and 1970s generally but not necessarily on the basis of manufacturing exports (Er, 1997, p. 296-297). In spite of the absence of a consensus of the group of countries that compose NICs and existence of diverse criteria, Er (1997) considers in his study countries in less advanced economies in which manufacturing reached 20 or 25 per cent of gross domestic product, making an explicit effort to develop their economies on the basis of manufacturing. Examples of NICs are Latin American countries with an inward-oriented economy, such as Brazil, Mexico and Argentina, and Asian NICs with an exports-oriented economy, such as Korea, Taiwan, Hong Kong, Singapore and Malaysia; where India and Turkey have similar development experiences to Latin American countries (Er, 1997, p. 297). 54 man beings “preferentially copy the choices of (2007) analyse 2.000 products launched by 210 individuals with high status or better access to Italian frms and conclude that imitators tend critical information” (Little et al., 2011, p. 373). to present higher product variety while innovators limit new product languages in the market. Although copying is negatively evaluated by The authors deduce that imitators “miss the people (Van Horen & Pieters, 2012; Yang et al., capability to interpret the complex evolution of 2013), even by children from different cultures products signs and languages in the market” (Yang et al., 2013), it is noticed that the consum- (Dell’Era & Verganti, 2007, p. 597). The Danish er evaluation of copycats’ brands depends on Design Centre (2003), Gemser and Leenders circumstances. People dislike copycat brands (2001) and Roy and Riedel (1997) demonstrate when uncertainty about the products’ quality is that more innovative design strategy leads to low (they recognise the well-known brands and better results (e.g. turnover growth and exports). others available) but this preference changes when uncertainty is high (they do not know the Silveira da Rosa et al. (2007) notice that Bra- available brands) despite the recognition of imi- zilian enterprises in the furniture industry have tation (Van Horen & Pieters, 2013). Moreover, not established a product design strategy de- different kinds of imitation are identifed and spite the importance of design for competitive- have been differently evaluated by consumers ness in this industry that is not technology-in- (Van Horen & Pieters, 2013). tensive. Some reasons considered are related to structural problems. Italian enterprises are Despite the recognised importance of design considered references for the Brazilian furni- for enterprises (Borja de Mozota, 2006; Bruce ture design, and the ease of imitation avoids the & Bessant, 2002; Danish Design Centre, 2003; competition with Italian companies (Silveira da Dell’Era & Verganti, 2007; Design Council, 2007a, Rosa et al., 2007). 2007b; Gemser & Leenders, 2001; Teece, 1986) and even though investment in design exper- Heskett (2009, p. 75) points out that designs tise is considered low risk (Bessant, 2002), the are widely imitated by competitors because presence of a copy culture can be considered a some companies choose the “fast-followers” way to reduce risks and investments, especially strategy, producing successful innovations at in SMEs where the company’s foundation is a a low cost. In this sense, design is considered consequence of the unemployment condition something that can be easily acquired at no as in the case of Latin America (Altemburg & cost (Heskett, 2009, p. 75). On the other hand, Meyer-Stamer, 1999). In this context, the owner Dell’Era and Verganti (2007) evidence that imi- of the company is worried about survival, fears tators are not doing the “right” copies because unemployment, and does not think as an entre- they are not able to recognise the dominant de- preneur. The need for immediate results to sur- sign or language in advance. vive, and the lack of management skills to lead The imitation or product modifcation is the the business, drive the company to the copycat major role of industrial design in the context of behaviour (Altemburg & Meyer-Stamer, 1999). NICs where the generation of new products con- When the enterprise is immersed in a copycat cepts and identifcation of new market oppor- culture or imitation it is possible to imagine the tunities are barely considered, avoiding costs hypothesis that the company will decrease ef- related to users and market research (Er, 1997). forts in product development, focusing on de- Imitation does not mean the exact copy of the signs that have achieved success in the mar- original product that presents fnancial and ket, but this hypothesis has not been confrmed technological limitations in those local contexts (Dell’Era & Verganti, 2007; Gemser & Leenders, but the redesign or adaptation of those prod- 2001; Roy & Riedel, 1997). Dell’Era and Verganti ucts’ designs to the local manufacturing condi- 55 tion or to cost reduction (Er, 1997). Imitation in design management style. When copying, an those situations has different motivations de- individual follows a ‘model’. It is a way to avoid pending on the country. Export-oriented Asian making efforts, such as interpreting changes in NICs focus on cost reduction through the imi- people’s behaviour and needs, developing de- tation process, while in domestic-oriented Latin sign criteria, creating options, and making de- American countries, such as Brazil, the focus is cisions towards new directions. It can also be on adaptation of products to local needs, and related to the lack of vision to associate design it can also depend on the industry orientation with diverse company and stakeholders’ ben- whether it is export or domestic market-orient- efts or to the mindset of people (Poirier et al., ed, such as in the Turkish export-oriented elec- 2017) in charge of a small company’s top man- tronics, which modifes products for cost reduc- agement. tion and inward-oriented furniture industry that Design is not adopted as a strategic resource imitates to adapt products to different markets to create value in the Brazilian furniture industry (Er, 1997). Then, the orientation of the economy as it has been noticed in practice and sectoral re- or of the industry infuences the aim and scope ports although research (Fundação Getulio Var- of imitation or of the product modifcation (Er, gas, 2015) has suggested this intention based 1997). on the perspective of the companies’ repre- Amir (2002) identifes the diverse roles of in- sentatives on product design. This approach is dustrial design in Indonesia according to the questionable considering the lack of design ex- type of organisation. He observes that multi- perience, awareness and understanding usually national corporations and private local corpo- found in SMEs even in European contexts (e.g. rations use design to product adaptation to lo- Arquilla et al., 2015; Bruce, Cooper, & Vazquez, cal needs as it happens in Latin American NICs 1999; Cox, 2005; Filson & Lewis, 2000; Millward (Er, 1997). Private local corporations that do not & Lewis, 2005; Schneider et al., 2015), where hire a designer usually practice plagiarism “as design is considered a source of indigenous in- a means to minimize investment” since there is novation. Moreover, design at the strategic level no legal protection for industrial design which surpasses product design issues. Another way enables freely copying products in the market. In to better visualise the design landscape in this this context, product research and development industry could be looking at design leadership, is seen as costly and uncertain. On the other design investment and design intensity (Roper hand, SMEs consider product development, et al., 2009), which point out the level of impor- having also designers as owners, and state- tance of design within the company. owned corporations, that support technology in The distrust among local stakeholders is a high-tech-based industries where design plays recognized constraint in Latin America (Alten- a major role, seem to indirectly stimulate more burg & Meyer-Stamer, 1999). Prior research positions to designers (Amir, 2002). (Fonseca Braga, 2017a) in the Brazilian furni- The lack of skills identifed in different con- ture industry and SMEs context has evidenced texts (Altenburg et al., 1999; Dell’Era & Verganti, that this boundary can be overcome through 2007) leads to the copycat behaviour. Adopting the development of partnership and the ability a copycat behaviour seems cheaper (Heskett, to use external networks towards a shared goal. 2009) and easier than creating novelty or devel- This study (Fonseca Braga, 2017a) demon- oping new ways of thinking (see also Sternberg, strated the capacity for generating new visions 2006, 2012). Copying can be seen as a process connected to local communities’ potentialities, of social learning and has been noticed both in deviating from the external environment where relation to human instinct and in relation to a frms adopt, generally, a copycat behaviour. A 56 local social event, which helps connect people The introduction of a design culture requires from different sectors, and the entrepreneur’s long-run strategies and experience in design, mindset were key factors to introduce a new and the lack of an appropriate environment puts practice in the company culture. As claimed at risk the development, continuity or evolve- by Bruce, Cooper and Vazquez (1999), SMEs ment of this approach towards design inno- are managed in a personalized way, where the vation as a consolidated companies’ practice. experiences and skills of the individual (gen- Hence, the need for an appropriate infrastruc- erally the owner) become crucial. Despite an ture and effective design policies that support unfavourable environment to develop and im- design education and diffusion at diverse levels plement new ideas, the entrepreneur’s intrinsic (from micro to macro) are pointed out. motivation and mindset (see Poirier et al., 2017; The South Korea case (Kim, 1997) evidences Sternberg, 2006; 2012) can be drivers to sur- that imitation can lead to innovation depending pass the constraints, envisioning and deploying on the adopted strategy and investment. South new opportunities (Fonseca Braga, 2017a). Korea copied (Er, 1997), and formally learnt the However, some constraints hinder the sys- Japanese way of doing buying patents and tematisation or consolidation of design inno- evolved from this learning, creating its own in- vation processes (Fonseca Braga, 2017a). For novation paths (Kim, 1997). instance, the difculty of commercialization Similarly, Japan had previously evolved its can be considered a barrier, regarding the lack own technologies by appropriation of Ameri- of a structured and diffused design knowledge can ones, identifying the need to have its own throughout the frm’s members and processes design and technology development in order to from ideas to market implementation with the outstand in the global market (Margolin, 2007), participation of diverse stakeholders. Other changing its Original Equipment Manufacture constraints are related to the external environ- (OEM) position to Original Design Manufacture ment, such as the cost-oriented market that is (ODM), and having its national strategy ‘copied’ historically focused on the domestic market, the by other Asian countries as described by Mar- shortage of appropriate infrastructure, and the golin: lack of design awareness and knowledge diffusion among stakeholders (e.g. users, suppliers, “… countries that began by organising low- distributors, salesmen). wage production for foreign companies, understood that if they were to develop their local in- Brazil has broken up with its roots (Borges, dustries, they would need their own designers. 2011; Moraes Junior, 2002) and the copycat Japan was perhaps the frst country to under- behaviour is common among the furniture in- stand this and began in the late 19th century dustry frms. These aspects are not only related Meiji era to train its own designers for indus- to organizations’ culture, but to a range of dis- try. During the 1950s, the Japanese learned advantages, such as the lack of skills, quality to manufacture their own electronic products, adopting American technologies, such as the of education and other reported conditions to transistor before American companies did. By move towards more innovative contexts (Alten- the 1960s, the Japanese had just about de- burg & Meyer-Stamer, 1999; Economic Com- feated the American television industry, went mission for Latin America and The Caribbean on to market many original electronic devices, [ECLAC], 2015; European Commission, 2015a; and began to produce automobiles that were Galinari, Teixeira Junior, & Morgado, 2013; Or- of higher quality than most of their American ganisation for Economic Co-operation and De- counterparts. South Korea also began to fol- velopment [OECD], 2013, 2014; Silveira da Rosa low suit and by 1967 produced its own auto- et al., 2007). mobile, the Hyundai. Now India and China are also growing as industrial producers.” (Margo- 57 lin, 2007, p. 114) sions are the shanzhai phones that may also be loaded with TVs, lights and razors, and the two Julier (2017) explores design in informal and SIM slots incorporation into shanzhai phones alternative economies. The case of China (shan- that emerged from the needs of China’s migrant zhai), where the approach to intellectual proper- community, especially entrepreneurs who move ty is more fuid, particularly sheds light on how between Hong Kong, Taiwan and Shenzhen (Ju- innovation emerges from copying and adapting lier, 2017). Costs are kept down because taxes mainstream products. This attitude, especially (e.g. VAT, network license fees, sales tax, IP) are in Shenzhen, is related to Chinese cultural roots avoided in these processes. and folklore in which people operating outside the mainstream system broke the rules in the The transactions between companies are usu- service of other people’s needs or for a greater ally made in cash, hindering tracking of opera- good. Another cultural aspect regards the notion tions, and technical information is shared freely of creativity. In Western philosophical tradition, and widely (e.g. 52RD.com and PDA.cn web- creativity is related to originality and individual sites) between participants, constituting viscer- authorship; by contrast, in China, ‘to create’ in al open innovation processes which smooth the ancient Chinese texts means ‘to make’ or ‘to path towards innovation (Julier, 2017). Julier cultivate’, confrming a Confucian perspective sums up this design context: “… a fexible, open in which people “should mold themselves on ecosystem of design, components supply, pro- and reproduce patterns from nature”, hence, duction and distribution is achieved, based on creation is aligned with crafting and reproduc- informal procedures and relationships” (Julier, tion rather than originality (Keane, 2013 cited in 2017, p. 126). By contrast, DIY (do it yourself) Julier, 2017). Other factors also leveraged the shanzhai ethos has enabled original inventive mimicry: work with materials and technologies through open source, open innovation, makerspaces, − Shenzhen became part of China’s Special and hacker activities, adapting to rapid changes Economic Zone, which enabled more fex- in their availability and know-how (Julier, 2017). ibility in regional government and greater freedom in its market economy, Keane points out a trend for the shanzhai model from subcontractee of manufacture − Global electronics brands, such as Apple, or Original Equipment Manufacture (OEM) to Dell, Hewlett Packard, Nintendo and Sony shanzhai copying and development or Origi- based their manufacturing in Shenzhen nal Design Manufacture (ODM) to creating own where shanzhai producers are suppliers brand goods or Original Brand Manufacturer of these global brands, hence, the vast (OBM – post-shanzhai), forecasting implica- resource of components, knowledge, and tions and changes on products, strategy, Intel- materials in the formal economy were in- lectual Property and Research and Development troduced into the informal economy. throughout this ‘evolvement’ (Julier, 2017). The According to Julier “As a cultural movement, main idea explored is that shanzhai will move shanzhai in its contemporary usage mimics towards the mainstream economy through but also menaces” (Julier, 2017, p. 125). This open-source, makerspaces, and incubators means that, on the one hand, the copycat prod- which are supported by government or corpora- ucts practice is evident but, on the other, there tions (Julier, 2017). is the extension of capabilities by benchmark- Julier (2017) stresses the particularities of ing original Western forms and technologies shanzhai creativity mode that relies on other fea- in order to ft them in the local culture which tures than the ones present in Western creativ- boosts innovation. Examples of these exten- ity paradigm, such as: “inventive combinations 58 of pre-existing technologies and forms, clever lage ceramist) throughout the development networking between entrepreneurs across pro- to deliver an accessible solution to the Indian duction and distribution, openness in shar- population. On the other hand, frugal innova- ing discoveries and advances that are derived tion, also recognised in other emerging econo- through making, tinkering, trying out and unan- mies contexts, such as Brazil, China, Kenya and ticipated possibilities” (Julier, 2017, p. 130). The francophone Africa, is generally about tinkering author (Julier, 2017) emphasises the contrasts objects without a systematic process and eval- between neoliberalisation conceptions based uation regarding, for instance, the performance on individual property, individualism, free-trade, of objects, safety for users, and other risks (Ju- marketization, and the absence of state inter- lier, 2017). Hence, the limitation of this kind of vention, and the way China innovates which is approach is that these short-term solutions to bottom-up, diffused and shareable, involving a everyday challenges can perpetuate “the routine strong social fabric nurtured through gifts and practices that are part of the causes of poverty favours, close relationships between state and in the frst place” (Julier, 2017, p. 133). The con- entrepreneurs. All these factors suggest that clusion is that “a poor, illiterate and unhealthy China can move towards a different route than population is unlikely to provide much of a con- mainstream, capitalist practices. text where design may prosper. Systemic innovation may require systemic change before it In other words, imitation can also have a role can happen” (Julier, 2017, p. 134). towards innovation in contexts where learning comes from imitation that provides basic skills These short-term solutions or routine practic- and infrastructure for further developments. es are not causes of poverty but a consequence China challenges the Western vision of intel- of poverty, although, as noticed by Julier (2017), lectual property and creativity while shows that they can perpetuate the poor conditions in innovation can be accessed to and be dominat- which these people live. Thus, we cannot over- ed by everybody opposed to the domain of the look that countries which present and have kept ones who can afford it. huge social inequalities combined with illiteracy, lack of access to healthcare and education, high Another case in which design is not done from rates of informal labour and where a major part scratch come from India’s frugal innovation, of the population earns low wages and the pro- known as jugaad, where available resources ductivity is low, do not provide conditions to the were adapted to solve everyday problems and population in order to improve their own lives to satisfy immediate needs (Julier, 2017). Ju- or access useful knowledge to develop more lier (2017) analyses some Indian cases that sophisticated and global standard innovation achieved success, such as Mitticool, a ceram- or even to organise grassroots movements to- ic refrigerator that does not require electricity wards change, hence, these people undertake supply, which the author considers an exception what is possible in their actual conditions us- within frugal innovation cases since the process ing available resources that leads to frugal in- involved prototyping and tests through the ex- novation. The precariousness of this contexts perimentation of different clays, soils, and fridge can serve to keep the power in the hands of designs as well as was developed by a ceramist few people considered elite, then, this became who has the know-how regarding the applied a vicious cycle in which poverty is of interest to material and technology. The Indian ceramic those who hold the power (including the power, refrigerator is closer to indigenous innovation knowledge, tools and other resources to change (from that place/community) because it comes this situation). from an inspiration of traditional earthenware pots and uses the community know-how (vil- The importance of providing at least infra-

59 structure conditions regarding education and even though citizens pay a tax concerning the healthcare in order to consider design dimen- garbage gathering and destination. sions was also evidenced in prior research In the case of the job done in the carpentry (Fonseca Braga, 2010) in Brazil, particularly in factory, two activities were analysed: the repro- an association of scavengers who were non- duction of designs from outside professionals formal employees and earn from selecting ma- made of recycled material bought in the market, terials from garbage and selling them to recy- and the reuse of materials and furniture donat- cler companies. Household waste does not go ed by citizens, playing an important role in the through a standard selective garbage collection city’s furniture destination. The frst process did in Brazil, thus, people exposed to social fragil- not require intensive creative effort and basi- ity, poverty, and vulnerability gather part of this cally was about taking up to scale small num- garbage before the city hall service does. bers of products from the same project. The At the time, the research aimed at analysing second required more creative effort since the more sustainable practices that could improve carpentry members had to design and recom- their conditions through design for sustainabil- bine different pieces from diverse furniture. The ity practices and understanding how environ- frst process was considered easier because of mental aspects were considered and how they the low level of complexity of projects that were could be considered to create a better value to repeated and the proft margin was lower. The their activity in a carpentry factory that was part second was harder because it needed unique of the association. by-project and by-product solutions to produce only one piece but spurred the development of Regarding environmental factors, it was no- creative skills and had the potential to provide ticed that materials in the selection process to better proft margins. sell to recyclers were prioritised according to their economic value since the everyday mon- However, the illiteracy of some (though they ey gotten was used to immediate needs, such usually have attended elementary school or as the daily feed. So it is not by chance that started high school, which evidences the low Brazil is among the biggest aluminium recy- quality of the Brazilian public education), regu- clers. The price of aluminium is usually higher larity in the attendance of members (who had than plastics, paper etc. Therefore, the Brazil- more than one informal job to survive), the lack ian aluminium recycling numbers do not refect of technical knowledge (e.g. some furniture environmental awareness but are an evident found was part of the history of the Brazilian consequence of the Brazilian social conditions. design but was not recognised by the carpentry Hence, how could environmental criteria be fol- factory members) and appropriate (and safe) lowed in those conditions? layout and training were some constraints to implement a more systematic way to reuse ma- First, people need the basics to be alive; then, terials by proposing new designs. prioritising aluminium sounds reasonable in these conditions. Second, the municipality The conclusion was that the furniture re- avoids high costs keeping this situation. It does use could provide better opportunities to cre- not need to provide a systematic solution to the ate economic value to products and to prepare city’s garbage, to pay wages and insurance, to people for labour market insertion or for entre- provide training and safety conditions to do that preneurship but the limitations aforementioned job or to subcontract a company to do it. At the should be overcome frst in order to move to- same time, the municipality can require the as- wards the creation of value by design from the sociation to follow safety rules and to ft in the reuse of furniture. compulsory standards to keep doing the job, 60 Thus, in these contexts, generally found in Different realities regarding the culture of citi- emerging economies the trend of copycat prod- zens’ participation in public decision-making ucts has its causes in economic, political and are noticed across Europe. For instance, Den- social conditions that people are exposed to, be- mark is traditionally used to involve citizens in ing more reactive in order to satisfy immediate these political processes, which makes its na- needs. Bottom-up and grassroots movements tional culture principles convergent with design and innovations also require skills in order to thinking and participatory methods. Meanwhile, organise and form communities that seek for in Italy, a democratic decision-making pro- change or really want to dedicate to a cause of cess is seen as a complex aim to be achieved change. Then, in critical contexts where social through its political and institutional processes inequality and poverty are extreme, some basic (Boeri, 2018). conditions should be considered for a better de- Design is a situated practice (Desert & Rizzo, velopment towards the systematisation of in- 2014; Julier, 2017), as well as its production and novation processes. In this case, it is up to peo- consumption (Julier, 2017). Thus, the contexts ple who hold the power, formal responsibility22, in which design takes place must be considered. and conditions to start doing something about This concern is highlighted by Julier as follows: it, and we will rely on the mindset, awareness, interest, and background of those. “It [design] is the product of specifc conjunc- tions of many features including material Meanwhile, in Europe, communities’ empow- constraints and opportunities both in terms erment is noticed. The power and resources of where and how design is done, available move to the citizens’ hands. In this context, re- technologies and knowledge, discursive and thinking the citizens’ motivations and attitude attitudinal makers among the design teams, in- towards change is crucial (Manzini, 2018), as teractions with external actors, such as clients, well as communities’ capabilities to solve prob- fnancial backers, supporting design practices lems and develop innovative solutions. These and other specialists. It is also subjected to varying frameworks, such as differing legal aspects suggest that a design culture (cultura parameters set by intellectual property law in del progetto) might be the next basic communi- different countries, environmental, health and ties’ competency - as literacy was in the past, safety standards or logistical questions.” (Ju- becoming a community’s patrimony (D’Elia, lier, 2017, p. 167) 2018). On the other hand, the need to bring design capabilities into policy-makers skills is Julier (2017) points out the quandaries of this also stressed (e.g. Bason, 2014; Julier, 2017; wave of policies fashioning which has rested Junginger, 2014; Mortati et al., 2016). on citizens’ engagement to solve public prob-

22 For instance, politicians and government members are formally in charge, earn high wages, have several benefts, have conditions to access knowledge. What should their role in these contexts be? What is the sense in keeping high government expenses in countries where poverty and social inequality prevail? What is the sense of stimulating grassroots movements or innovation from ‘nothing’, or from frightful conditions of life while citizens pay for an expensive government system? Moreover, scandals and corruption increment this scenario in Brazil, evidencing that individual interests surpass the public good. Julier (2017) emphasises from prior research data by Kar and Spanjers that nearly US$1 trillion were moved illicitly out of developing countries in 2014. 61 lems that have taken place since the 2000s. The idea that citizens, public servants, and organisations can form networks or communities and the state can manage those networks reinforcing interdependence of actors towards shared goals can be recognised as networked governance or new public governance (Julier, 2017). In this scenario, some limitations emerge regarding confict of interests, privileges of certain networks over others, inclusion or exclusion of individuals’ criteria, or, if these represented citizens can be considered representative of all citizens and public interest, as well as the focus on what ought to be without further concern with implementation aspects, possible and politically desirable outcomes and impacts (Ju- lier, 2017). Actually, these arrangements can be seen as “the relinquishment” of the state’s responsibility for the welfare and other public services (Julier, 2017, p. 155). In addition, if these developments result in public money saving has been “hotly debated” (Julier, 2017, p. 153). Therefore, even in advanced economies, where the welfare can be considered satisfac- tory compared to the aforementioned emerging economies contexts, the citizens’ willingness, motivation, and capabilities, as well as its representativeness to promote and implement changes, have been questioned in terms of required conditions, attitudes and criteria to better succeed towards a shared public interest. Meanwhile, policy-makers’ competencies have also been strongly taken into account in order to better solve citizens’ needs and move towards desirable futures. These citizens’ conditions and attitudes are connected to their life conditions (access to education, health, economic resources), and their country’s cultural, social, political, economic, and institutional aspects.

62 CHAPTER 3

Design and MSMEs: a potential relationship23

Micro, small and medium-sized enterprises (MSMEs) are considered important sources of economic growth, job creation, and social cohesion in advanced and emerging economies (Cawood, 1997; Bell, 2015; Madeuf & Estimé, 2000; OECD, 2016a; Raulik-Murphy & Cawood, 2009b). There is not a universal defnition of MSMEs. MSMEs are, generally, non-subsidiary frms and the criteria used to defne MSMEs are based on the number of employees, turnover and fnancial assets (OECD, 2006, 2016a). These numbers vary across countries (OECD, 2006, 2016a), as well as the defnition and rules applied to employees in each country (European Commission, 2015b). In Brazil, the Brazilian National Confederation of Industry (Confederação Nacional das Indústrias [CNI]) considers as MSMEs frms in industry sectors that have fewer than 250 employees (CNI, n.d.c). The Brazilian Mi- cro and Small Business Support Service (Serviço Brasileiro de Apoio às Micro e Pequenas Empresas [SEBRAE]) sets the limit at 99 employees for frms in the trade and services sectors (SEBRAE, 2014). Table 3 shows the values considered according to these institutions in Brazil (CNI, n.d.c; SEBRAE, 2014, n.d.a) and according to the European Commission in Europe (European Commission, 2015b).

23 This chapter contains text fragments of the manuscript ‘Introducing design-driven innovation into Brazil- ian MSMEs: Barriers and next challenges of design support’ (Fonseca Braga & Zurlo, 2018). It was originally presented at DRS2018 Conference: Catalyst, held at University of Limerick, Ireland, 25-28 June 2018. An initial version of the paper was included in the Proceedings of the event. This is one part of the reviewed version of the paper, improved with the contributions from the Conference, and further literature review. Table 3: MSMEs criteria adopted by diverse institutions

According to Enterprise Headcount Annual turnover Annual bal- category Annual Work ance sheet Unit (AWU) European Medium-sized <250 ≤ €50 million or ≤ €43 million Commission Small <50 ≤ €10 million or ≤ €10 million (2015b) Micro <10 ≤ €2 million or ≤ €2 million CNI (Brazil) Medium-sized <250 Industry Small <50 ≤ 3.6 million BRL Micro <10 ≤ 360 thousand BRL SEBRAE (Bra- Medium-sized <100 zil) Small <50 ≤ 3.6 million BRL Trade and Micro <10 ≤ 360 thousand BRL services

MSMEs generate four out of fve new posi- latter keeps the unemployment rate low (Airak- tions of formal jobs in emerging economies sinen, et al, 2015). (Bell, 2015). They contribute to 45 per cent of In Brazil, 99 per cent of businesses are MSEs, formal employment and 33 per cent of national generating 52 per cent of formal jobs (exclud- income (Gross Domestic Product [GDP]) (Bell, ing the agriculture sector) in 2013 (Serviço 2015). The World Bank estimates that there are Brasileiro de Apoio às Micro e Pequenas Em- between 365-445 million micro, small and me- presas [SEBRAE] & Departamento Intersindi- dium enterprises (MSMEs) in emerging econo- cal de Estatística e Estudos Socioeconômicos mies: 25-30 million are formal MSMEs; 55-70 [DIEESE], 2015) and contributed to 27 per cent million are formal micro-enterprises; and 285- of the Brazilian GVA in 2011 (SEBRAE, 2014). 345 million are informal enterprises (Bell, 2015). 600 million jobs will be needed before 2030 The need to reduce inequalities related to MS- to absorb the global growing workforce (Bell, MEs’ productivity between mature and emerg- 2015), which reinforces the need for innovation ing economies through innovation, education in MSMEs towards a more sustainable scenario and skills deployment is pointed out in order to for these businesses, considering their poten- consolidate the economic growth in developing tial contribution to creating jobs. countries (OECD, 2014; Economic Commission for Latin America and the Caribbean [ECLAC], In the European Union (EU), 99 per cent of 2015; European Commission, 2015a). companies are MSMEs. They contributed 57 per cent of value added in 2012 (Airaksinen, Despite the absence of a commonly agreed Luomaranta, Alajääskö, & Roodhuijzen, 2015). design defnition (see for instance Arquilla, Maf- Gross value added (GVA) and employment are fei, Mortati, & Villari, 2015; Fonseca Braga, 2016; the two main measures that have been used to Swann, 2010), design as: describe the MSMEs contribution to economies. − a way to transform a current situation into The frst makes economies wealthier, and the a preferred one (Simon, 1996);

64 − a tool that drives innovation24, competi- ing the use of design are found across Europe tiveness and national economic growth regarding frms’ sizes and sectors25, regions, (European Commission, 2016; Thomson & and countries (Bitard & Basset, 2008; European Koskinen, 2012); Commission, 2009; Thomson & Koskinen, 2012; Thenint, 2008), and the need to integrate design − a way to shape creativity towards innova- into small businesses is identifed in diverse tion (Cox, 2005); contexts. − a lever of non-technological innovations Compared to large enterprises, SMEs are con- (D’Ippolito, 2014; Thomson & Koskinen, sidered less affected by international business 2012; Verganti, 2008); cycles playing an important role in times of − a way to humanise technologies (Heskett, economic depression (cited in Airaksinen, et al, 2009); 2015). When large enterprises are accounted for is a potential instrument to drive change, inno- a sizeable portion of a country’s economic out- vation, productivity and economic growth at the put if the demand for their products falls, they micro and macro levels (from organisations to affect all their networks and the whole supply nations) as evidenced in several studies (Dan- chain across industries and countries (Airak- ish Design Centre [DDC], 2003; Design Council, sinen, et al, 2015). SMEs are less likely to secure 2007b; Design Council, 2015; European Com- bank loans than large frms, relying on internal mission, 2016; Julier, 2017; Junginger, 2008, funds to run their businesses (Bell, 2015). 2014; Rae, 2013, 2014; Thomson & Koskinen, The role of design for economic growth and 2012). competitiveness (Thomson & Koskinen, 2012), The huge gap between design leaders and as well as the importance of design innovation other regions suggests that only few, limited for SMEs, have been recognised in diverse stud- sectors of industry realise the design poten- ies (e.g. Lawlor, O’Donoghue, Wafer, & Commins tial in leveraging successful business in Europe 2015; Moultrie & Livesey, 2009; Kang, 2015). (Thomson & Koskinen, 2012, p. 23). There is a The use of design has been related to benefts, lack of design consultants in many regions and such as better competitiveness, exports, turno- pilot projects seem to fail in motivating other ver, and ROI in companies that present a coher- businesses to integrate design (Schneider, et al., ent approach to design management at the frm 2015). London concentrates more design work- level (DDC, 2003, 2007; Design Council, 2007b, ers and design-intensive frms in the UK (De- 2015; Gemser & Leenders, 2001; Lawlor et al., sign Council, 2015). Then, differences regard- 2015; Roy & Potter, 1993; Roy & Riedel, 1997; Walsh 1996).

24 The relation between design and innovation has been emphasised mainly considering 2 mainstreams: (1) the use of design to make R&D or technological innovations marketable and suited to users (e.g. Thenint, 2008), and (2) the value of design as a ‘learning by doing’ process, as well as an experimental approach in a faster and uncertain world (e.g. Ito & Howe, 2016; Julier, 2017).

25 Generally, large companies present greater design maturity and more intensive use than SMEs with the exception of high-growth frms. 65 The Design Economy report (Design Council, 2015) shows the contribution of design to the GVA and exports in the UK, pointing out the im- The context of Design Innovation in portance of the design economy for jobs crea- MSMEs tion and productivity in businesses. The achievement of better fnancial benefts On the other hand, the issue of how design from the use of design has been related to long- contributes to economic benefts and to human run strategies and risk (see for instance Rae, resources development improving the competi- 2013, 2014). Acknowledgement of and invest- tiveness, and creating value, present few em- ment in design have been more connected to pirical pieces of evidence (Chiva & Alegre, 2009; organisational culture aspects (see Borja de Kang, 2015; Schneider, et al, 2015). Design is Mozota, 2006; Danish Design Centre [DDC], very “integrated into the fabric” of design-led 2003, p. 14; Gemser & Leenders, 2001; Heskett, organizations (Westcott, Sato, Mrazek, Wal- 2009; Micheli, 2014; Roy & Riedel, 1997; Walsh, lace, Vanka, Bilson, & Hardin, 2013), being hard 1996) than to the design outcomes themselves to distinguish the benefts directly related to it, (see for instance DDC, 2003, p. 14; Gemser & and the company’s performance is not just a re- Leenders, 2001). sult of design adoption (Chiva & Alegre, 2009; Gemser & Leenders, 2001; Roy & Riedel, 1997). The culture of SMEs often relies on beliefs of Moreover, climbing the design ladder can be their owners (Bruce, Cooper, & Vazquez, 1999; criticised in terms of the value created in each Cawood 1997). The day-to-day activities in case (Fonseca Braga, 2016; Schneider, et al, MSMEs are still demonstrating a shortage of 2015, p. 11). appropriate conditions to adopt design innovation in diverse contexts (e.g. Bruce, et al, 1999; MSMEs and design innovation have been Cawood 1997; Cox, 2005; Nunes, 2014; Raulik- considered important contributors to economic Murphy & Cawood, 2009b). MSMEs use design growth at a micro (within a business) and mac- support to address immediate needs during a ro levels (countries, regions). Design support crisis, lacking long-term strategy vision (Ca- initiatives focused on the integration of design wood, 1997). The commitment of senior man- into MSMEs play an important role in building agement is essential to the integration of de- up the design capabilities of these businesses. sign into MSMEs (Cawood, 1997; Schneider, et However, some gaps are identifed within these al, 2015). Acklin (2013, p. 157) reinforces that initiatives across Europe and some constraints “... the owner/founder of the company […] deter- referred to design management also have an mines whether design knowledge classifes as impact on design policies (e.g. how to identify useful or not” in the case of SMEs. and evaluate the specifc design contribution to the context). Different contexts where MSMEs were born influence the decision of being an innovator or behaving as a follower. SMEs are more likely to take innovative steps in Wales, where they were “born of innovation” (Cawood, 1997). Compa- nies born in Latin America imitate pioneers’ products as a reaction to the unemployment condition (Altenburg & Meyer-Stamer, 1999). In this case, the imitation is a survivor mode, also related to the infrastructural weaknesses found in this context.

66 SECTION 2 The research feld and context CHAPTER 4 Design policy history, practice, and conceptualization

The design policy’s practices are established (Raulik-Murphy, 2010); however, the research in this feld is recent and there is the lack of theoretical foundations that support design policy practice (Boddington & Grantham, 2012; Er, 2002; Hobday; Raulik-Murphy, 2010). Most knowledge in this area comes from practitioners’ know-how, and the publications lack criticism, being more de- scriptive once they are mostly not peer-reviewed or they are reports done by policy-makers or people who implemented that project or programme within a design policy, which can lead to biased analysis (Patrocínio, 2013; Raulik- Murphy, 2010). The shortage of research in the design policy feld is recognised (Er, 2002; Patrocínio, 2013; Raulik-Murphy, 2010). Design policy is in its fledgling conceptual and theoretical stage. Design historians (e.g. Heskett in the 1980s) were among the frst to identify the relationship between design and policy; later, design management feld dedicated attention to policy-making at the national level, and design policy issues arose in publications (Er, 2002). Heskett (1999, 2001b, 2010, 2016) identifes two main streams of design policy: to create an image of identity for a country or nation and to stimulate economic benefts. The frst is noticed in a diversity its frst design policies in the 1960s (Schnei- of nations dating from “early urban civilisations, der et al., 2015). These design initiatives were such as Sumer and Babylon, the Roman Empire possibly carried out under other labels in Japan and the terracotta army of Han dynasty China” and Finland (Schneider et al., 2015). Bitard and (Heskett, 2010, p. 3). The second has gained at- Basset (2008) recognise the frst design policies tention and has been considered more impor- at the turn of 19th and 20th century and notice tant than a country’s image (Heskett, 2001b, that design policies can be defned by a move- 2010). ment from Europe and the USA to the rest of the world. They describe successive moves of de- The history of monarchy and absolutism in sign policies until the early 21st century, show- France from 1589 with King Henri IV to 1715 ing the changes in the focus of design policy with King Louis XIV (or the Sun King) that built approaches from arts and crafts movements the legacy of French luxury products, such as to industrialisation, branding, and strategic defne textiles, tapestry weaving, wallpapers, rib- sign. bons, furniture, glass, and ceramics is a remarkable example of the second stream (Heskett, The 1960s and the 1970s were dominated by 2001b, 2010). The Sun King had an architect, debates about global-scale problems, such as Jean-Baptiste Colbert, as a minister who was a energy, social inequalities, and pollution, which “decisive fgure in linking the king’s artistic aims stimulate the discussion between policy deci- to economic policies” (Heskett, 2010, p. 4). sions and design processes (Patrocínio, 2013). Design policies were recognised in the in- The policy at the time was based on attract- dustrial and innovation policies’ planning and ing and supporting highly qualifed craftsman implementation (Patrocínio, 2013). From the across Europe to establish their studios in 1970s to the 1980s design promotion initiatives France, to train apprentices, as well as to fa- stood out from Europe to Asia with exhibitions, cilitate French craftsmen to upgrade their skills awards, and some investment in education (Pa- abroad. These interventions were the basis for trocínio, 2013). the development of the French luxury industry, sparking domestic market demand and exports Governments can stimulate or hinder the use as emphasised by Heskett (2010, p. 4): “Stimu- of design. Julier (2017, p. 144) stresses that lating the production of objects of conspicu- “the public sector is a major user and stimulant ous consumption for the wealthy aristocracy of design activities” in the context of neolib- undoubtedly brought considerable prosperity eralisation processes in the West. This public to French cities, especially Paris, where the pro- sector role is highlighted through: (1) the mas- portion of skilled craftsmen serving both inter- sive and diverse felds of work, management nal and foreign clients remained high.” (Heskett, and expenditure of the public sector, (2) the 2010, p. 4) outsourcing of government functions to other organisations, (3) the investment in research, The frst design policies’ initiatives are usu- innovation and development, which can have ally recognised from the 18th and 19th century further commercial applications, and (4) the with emphasis on world product and trade fairs use of design approaches and methods (ex- contemporary with the Industrial Revolution ample of felds: design thinking, service design, (Patrocínio, 2013). The 20th century was char- co-creation, participatory design, design for acterised by the emergence of design councils, community, design activism, design for social awards, and conferences (Patrocínio, 2013). innovation and design for policy) in public sec- The United Kingdom implemented its design tor innovation and policy-making driven by the council in 1944 (Swann, 2010). Japan had its fscal constraint in public budgets and by the frst design policy ofce in 1958, and Finland, 69 rise of public services’ demand (Julier, 2017). Thus, the citizen is seen as a consumer of Heskett (1999, 2016) also emphasises the role public services instead of a user and is respon- of governments in harnessing design by using sible for the choice of those services (Julier, design in the forefront: 2017). The disadvantage of this approach is “If governments wish to encourage such de- that third-party companies or services suppli- velopments, they will need to understand what ers are mainly concerned with their investors, they can and cannot do well. They can con- not with the public, and the focus on optimising tinue on the basis of the status quo, attempt- the core of the services are overlooked (Julier, ing to control or infuence overall trends, or 2017). Other important criticisms are (Julier, they can encourage a diversity of new design 2017): initiatives. They can do this by building infrastructure and exploring possibilities of how − the focus of public sector on procure- to use design in their own activities, demon- ment, logistics or getting the best value strating in environments, communications from suppliers instead of ensuring that the and products not just an aesthetic veneer for delivery is not poorly conceived and de- bureaucratic inertia, but leadership through an signed, being focused on the management encouragement of possibility.” (Heskett, 1999, of systems which are already confgured 2016, p. 232) rather than on “the best functions in use Therefore, policy-makers’ and government and working back from there” (Julier, 2017, members’ familiarity with users’ or citizens’ p. 151)’ needs, and the awareness of the value which − the constant measurement and audit of design can create across a country become processes and outcomes that drive the crucial in order to harness design strategically services arrangements in order to satisfy at the national level, because one cannot recog- measurement criteria more than being de- nise something one is not familiar with (see, for signed to best serve citizens. instance, Heskett, 1999, 2016; Junginger, 2014). By the mid-2000s, service design jams, policy The confict of interest is also identifed in prototyping, and design sprints started bringing the neoliberalisation process. This highlights together civil servants and services users, work- the need for a design outlook, especially as a ing through human-centred and participatory ap- human-centred approach, among government proaches to users’ experiences using prototypes members and service providers. One example in order to help understand networks of people is the New Public Management (NPM), an ap- and things at work, and in proposing insights and proach to the public sector or part of the pub- possibilities for the future (Julier, 2017). Then lic services’ marketization that has taken place the design value shifts from “into the object” to since the 1980s. It is based mainly on outsourc- the value in using design methods, designating a ing public services with the reasoning that bet- continuous transformation referred to a context ter value, better quality, and more innovative and time rather than objects or outcomes them- services can be created from those third-par- selves. The transparency and inclusivity in pro- ties in contrast with the stereotype of the state cesses dominate through emphasis on design in employees (Julier, 2017). action (Julier, 2017).

70 The 2008 fnancial crisis and the emergence of support programmes that were frst dedi- outcome-based budgeting26 (OBB) as a way to cated to businesses (see for instance Ball et rethink public services confguration from about al., 2011; Boult, 2006; Whicher et al., 2013), 2010 spur the use of design within governments and, with the growing interest in the topic, (public sector), pushing the public administra- have moved towards other specialisms or tion into “more innovative and fexible modes” felds, such as design for policy (e.g. Bason, (Julier, 2017, p. 152). In this context, problems are not predefned about the sort of design out- 2014; Bentley, 2014; Junginger, 2014; Kim- comes but the most appropriate and effective bell, 2016). response is to be sought (Julier, 2017). The 21st century has been focused on Government-funded labs27, small-scale integrating design into innovation poli- design consultancies28, think tanks and in- cies and boosting design across Europe novation groups (funded through endow- through European Commission initiatives ments and sponsorships)29 focused on (see for instance Thenint, 2008), reports, public sector innovation, with a background programmes, and projects that encourage in service design mixed with experience in the formation of networked continent (fos- local government, have emerged across Eu- tering the participation of diverse countries rope, and the large design company IDEO within projects) towards the use of design has been moving towards public sector in- to thrive, promoting economic growth and novation for global clients since the 2000s building resilience against economic crisis, (Julier, 2017), demonstrating the growing as well as improving the social welfare us- interest in design in policy and government ing also citizens as resources. These pro- (Kimbell, 2016), which can place design in a grammes and projects were selected based strategic role to make nations thrive. on criteria concerning their economic and social outcomes and impacts (or immediate The initiatives to introduce design capa- and long-term contributions) evidenced by bilities into the public sector, promoting so- measurable variables in an approach that cial innovation, were addressed by design

26 Also known as outcome-based commissioning (OBC), OBB is considered a response to the NPM criticisms and a very user-centred approach that focuses on what one wants to achieve at the user end (Julier, 2017). It can be seen as a reverse engineering process that takes into account where the competencies (e.g. combination of organisations, institutions, departments) are needed and how best to achieve desired results (e.g. healthier citizens, cared-for elderly, literate children) (Julier, 2017).

27 e.g. Mind Lab (Denmark), La 27e Région (France), Helsinki Design Lab (Finland), The Australian Centre for Social Innovation (TACSI, Australia), Public Policy Lab (New York City), PolicyLab (UK)

28 e.g. Innovation Unit, FutureGov, Design Affects, Snook, Uscreates (UK); STBY (Netherlands); Nahman and Yel- low Window (Belgium); Greater Good Studio (USA)

29 e.g. Nesta, Young Foundation (UK); GovLab (New York City); MaRS (Toronto)

71 tends to be rationalist or positivist to policy A timeline of design policy history (Figures evaluation. The current debate in the design 10, 11, 12), including the design movement policy feld argues on the need for explicit towards policy-making in the last decades, design policy dedicated to design initiatives was developed based on this literature re- – or national design plan or strategy (e.g. view on design policy. This timeline aims Whicher & Milton, 2018; Zitkus, Na, Evans, at illustrating the main emphasis raised in Walters, Whicher, & Cooper, 2018) in con- each period rather than providing a com- trast with the inclusion of design policies plete list of design policies and other initia- and programmes into other branches of na- tives. tional policies.

*Intention to position the British industry as an international-focused market. Profts were invested in the land where the Victoria and Albert Museum, the Science Museum, and the Natural History Museum were built

Figure 10: Design policy timeline – 18th and 19th centuries

72 Figure 11: Design policy timeline – 20th century

73 Figure 11: Design policy timeline – 20th century

**This date is not accurate since some of Heskett’s handouts were unpublished and have no date, so this approximation is based on one of his presentations in which this model is shown, but this idea might have also arisen in the 1990s when he analysed design policies in diverse countries.

Figure 12: Design policy timeline – 21st century 74 ***€Design - Measuring Design Value (2012 - 2014) Develops measuring of design as an economic factor for value creation SEE Platform: Sharing Experien- ce Europe - Policy Innovation Design (2012 - 2015) Integrates design into innovation policies by exchanging best practice IDeALL - Integrating Design for All in Living Labs Connects designers and innovative eco-systems to increase the competitiveness of companies DeEP - Design in European Poli- cies (2012 - 2014) Evaluation indicators to provide an understanding of the impact of design innovation policies EHDM - European House of De- sign Management Improves design management competencies in the public sector REDI - Regions supporting En- trepreneurs and Designers to Innovate Stimulates innovation through design in regional innovation ecosystems

Figure 12: Design policy timeline – 21st century

75 Europe is considered to be at the forefront of vaiah, 2015); Russia (Soviet Union at the time design policies (Patrocínio, 2013), which is re- by Heskett, 2001b, 2001c); Kenya and South inforced by public-funded initiatives and labs Africa (M’Rithaa, 2015) have been analysed. that are related to national strategies for com- Among advanced economies, Japan (Heskett, petitiveness and quality of life improvement, 2001b, 2001c, 2006, 2010), South Korea (Bitard contrasting with the USA’s more neoliberal ap- & Basset, 2008; Cho, 2004; Choi, 2009; Choi et proach to the design industry (Bitard & Basset, al., 2010; Chung, 1993; Er, 1997; Heskett, 2001b, 2008). European countries have a strong posi- 2001c, 2006, 2010, 2016; Kim, 1997; Raulik- tion in design as noticed in international design Murphy, 2010), Germany (Heskett, 1993, 2016), rankings (European Commission, 2009). The UK Australia (Bason & Schneider, 2014; Bentley, and Denmark are examples of the core design 2015; Bitard & Basset, 2008), the USA (Bason & role for value creation in the country. The UK Schneider, 2014; Bitard & Basset, 2008; Heskett, has demonstrated a continuous effort to de- 1993, 2016; Mazzucato, 2013), and Canada (Gi- scribe design contribution to economic growth, ard, 1996; Bason & Schneider, 2014) also have which is evidenced in systematic research and received attention. reports (e.g. Design Council, 2007b; 2015). Den- This literature review does not go in-depth mark was a landmark with its report ‘The Eco- in every country’s design and innovation pol- nomic Effects of Design’ (Danish Design Centre icy case; instead it goes into the main design [DDC], 2003) and the Design Ladder tool in 2001 policy mainstream cases and models, gener- (DDC, 2007), which evidenced the growing na- ally related to European and Asian (South Korea tional interest in understanding design evolu- and Japan) contexts, and emphasises the main tion in businesses and has achieved global dis- studies and models that have addressed less semination. The Public Sector Design Ladder advanced economies contexts (e.g. Amir, 2002, refects on the public bodies and policy-makers 2004; Er, 1997, 2002; Raulik-Murphy, 2010; Sun, needs to innovate the way they make policies, 2010) and the Brazilian context (Raulik-Murphy, being an outcome of the joint effort of the Dan- 2010). ish Design Centre, Aalto University (Finland), the UK Design Council, and Design Wales through Some of these studies analyse design policy the SEE project, and supported by the European by comparing different country contexts. Bi- Commission (McNabola et al., 2013). tard and Basset (2008), Choi (2009), Choi et al. (2010), Raulik-Murphy (2010), and Sun (2010) Research attention has also been devoted to are examples of comparative analysis in the non-European countries. Among less advanced feld. Their research brought signifcant con- economies countries, such as Indonesia (Amir, tributions in terms of models that help sys- 2002), Turkey (Er, 1997, 2002); China (Er, 1997; tematise design policy’s analysis. The need to Heskett, 2006, 2010, 2016; Julier, 2017; Sun, consider the context in which design is embed- 2010; Xihui Liu & Jun, 2015), Taiwan (Er, 1997; ded has been stressed in several studies (Amir, Heskett, 2006, 2010, 2016; Julier, 2017), Singa- 2002, 2004; Choi et al., 2010; Er, 1997, 2002; Gi- pore (Bitard & Basset, 2008; Er, 1997; Heskett, ard, 1996; Raulik-Murphy, 2010). Giard clearly 2001b, 2001c; Lerner, 2010), Malaysia (Er, 1997); stresses this aspect: Hong Kong (Bitard & Basset, 2008; Er, 1997; Heskett, 2006; Julier, 2017), Brazil (Er, 1997; “… industrial design did not and could not exist Mazzucato & Pena, 2015; Nunes, 2013, 2014; in a contextual vacuum. In fact, it never has. Patrocínio, 2013; Raulik-Murphy, 2010), Argen- Industrial design has always been an integral part of the greater picture of a nation, a picture tina (Er, 1997), Mexico (Er, 1997; Heskett, 2001b, that includes the political system, the eco- 2001c), Cuba (Heskett, 2001b, 2001c), India nomic model, and the cultural milieu. All three (Julier, 2017; Raulik-Murphy, 2010; Sen & Poo- 76 factors are intertwined and inseparable.” (Gi- by private actors, although public funds ard, 1996, p. 28) are not excluded. Good examples of this Although design policies vary across countries promotion model include the UK, Germa- and regions, Bitard and Basset (2008) identify ny, and Italy. common features of design policies regarding Proper cases of dedicated design policies are their legal characteristics and main objectives. still scarce (Bitard & Basset, 2008). Recent re- Concerning legal aspects, the authors identify search (Zitkus et al., 2018) identifes European two types of design policies used by countries countries with national design strategies or ac- (Bitard & Basset, 2008, p. 38): tion plans, including Denmark, Estonia, France, 1. Explicit or dedicated national design poli- Finland, Ireland, and Latvia. cy implemented with defned strategy, ob- Considering the main objectives, Bitard and jectives, plan, and timeframe, being held Basset (2008) classify policy aims in two main at the national or regional level. Exam- streams that are seen as mutually supportive: ples of this category are North European 1. Competitiveness: design as one of the countries (e.g. Sweden, Norway, and Den- main assets for innovation and com- mark), Ireland, the Netherlands, South- petitiveness, anticipating user’s needs, East Asian countries (e.g. South Korea, adapting products and making them more Singapore), and Victoria State in federal attractive. The scope of needs can be Australia. Within this category of “design specifc (e.g. related to a specifc industry policy” countries, a further distinction can sector, product or service, business prob- be made: lem or opportunity) or more global (e.g. 1.1. Those where the whole process is con- reducing environmental impacts), hence, ducted by public actors (Asian model) affecting directly the use of design in en- 1.2. Those where a public/private part- terprises and indirectly impacting social nership is created to lead the design issues. policy (Scandinavian model). 2. Quality of life improvement: refers to the 1.3. Private actors intervene at one or use of design by a diversity of actors to several steps of the process: state tackle social issues, such as health care, initiative with mixed funding and im- ageing, education, urban planning, hous- plementation, or even elaboration of ing, democracy participation, environment the design policy in cooperation with protection, and accessibility. design private actors (e.g. Sweden, According to Bitard and Basset (2008), pub- Denmark). lic actors can focus on one aim or both aims 2. Businesses-oriented design initiatives combined, it will depend on the country’s or re- usually known as design support pro- gion’s cultural background, on the features of grammes. They can be launched at the the local economy, on political priorities and on global level but are more targeted at de- available budgets. Initiatives carried out are the fned needs. These initiatives are punc- consequence and evidence of this choice. Most tual and adapted to specifc issues. Im- countries’ design strategy combines competi- plementation is generally ensured at the tiveness and quality of life improvement, and local level and consists of assistance specifc national design strategies are aligned and support to enterprises, with punctual with the economic approach adopted when de- problem-solving programmes. Funding signed (Bitard & Basset, 2008). and implementation are mostly assured 77 Raulik-Murphy (2010) compares four coun- development and to different country’s needs. tries in different stages of economic develop- This transition of policy focus is addressed as ment: Finland, South Korea, Brazil, and India. follows: less advanced economies policy must The author establishes 7 categories that are in- focus on building a stable system for the opera- terrelated for a comparative analysis of design tion of the economy, such as improving public systems: design programmes (promotion and and private institutions, infrastructure, educa- support), design education, professional design tion, health, and the macroeconomy; countries sector, rationale, design policy, national design at intermediary stages should focus on im- system, national context. This research also provement of the efciency and quality of prod- contributes to identifying some shortfalls that ucts and processes, exploiting higher education hinder the consolidation of the research feld, and technology to boost competitiveness; and, such as diversity of programmes, shortage of in advanced economies, which have higher pro- comparable data and common indicators, dif- duction costs, policy should focus on highly in- fculty in isolating design results, lack of formal novative products, intensively exploiting design theoretical rationales and empirical academic or technology to keep competitive (Raulik-Mur- studies, lack of terminology that, hence, hinder phy, 2010). communication and knowledge exchange. The Another discussion pointed out by the author exploitation of elicitation method from grounded is the need for a national design policy that has theory enables to map National Design Systems been widely advocated worldwide (Raulik-Mur- that are visually represented by Raulik-Murphy phy, 2010). She observes that a policy on design (2010) who addresses the four countries con- can help address a design strategy and agenda texts that compose her case studies and pro- across a country, on the other hand, a design poses the method as a tool for policy-making in policy might not ft in the rationality used to im- the design feld. prove national competitiveness as it happens The author observes that the national con- in the case of free market competition adoption text and the type of approach or political re- by government, therefore, it will depend on, for gime adopted by the government are defnitive instance, the political and economic circum- to adopt different strategies for design and stances. She also notices that Finland and Ko- to establish the relationship of those with the rea have design policies that coordinates differ- government. Thus, the national context analy- ent design programmes; meanwhile, Brazil and sis (social, cultural, political, and economic India do not. However, patterns of programmes context) is critical to policies on design which are not distinguished between advanced and has also been stressed in other studies (Rau- less advanced countries studied and nor is lik-Murphy, 2010). She notices from the coun- the infuence of a design policy in those pro- tries’ case studies that the government plays a grammes. The author concludes that, although key role in establishing national strategies and there is a trend in adopting a design policy in di- coordinating the design system in advanced verse nations, “there is still limited understand- economies, while professional sector and NGOs ing of its scope and advantages or the risks in- share the lead with the government and public volved” (Raulik-Murphy, 2010, p. 209). institutions in less advanced economies (Rau- European countries that have advocated de- lik-Murphy, 2010). sign as a competitive asset, such as the UK and Looking at the relationship between national Denmark, present diverse approaches regard- context, design programmes and design policy, ing design policy. The UK has fostered design Raulik-Murphy (2010) suggests a transition of through a robust and knowledgeable design policy focus according to the stage of economic ecosystem composed of a high quality of design

78 higher education, Design Council, PolicyLab, according to two main variables: the govern- small-scale design consultancies, think tanks ment ownership (or not) of the organisation and innovation groups. The UK’s approach is where design is being practised, and the kind of fed by measuring the design benefts to organi- control (direct or indirect) carried out by govern- sations and to the country, which assures that it ments in policy implementation (direct or indi- will keep investing in design. Design has not yet rect). Figure 13 shows Heskett’s (2001c) model been addressed in a national design policy but of these dominant types. research (Zitkus et al., 2018) on national design Heskett (2001b) defnes the main features of plans and strategies has suggested that this each general category as follows: will be the UK’s next step. - Statist - government organizations pro- By contrast, Denmark has a national design moting design and the means of produc- policy from 1996 (Thenint, 2008) beyond the tion are directly owned and managed by knowledgeable and consistent design ecosys- the government, being typical of commu- tem. The pioneer MindLab (policy lab) is Danish, nist regimes in the 20th century (e.g. Rus- and the attractiveness of Danish cities for citi- sia, China, and Cuba). zens is one of the government concerns (see for instance Julier, 2017). Though ‘The Economic - Centrist - organizations promoting design Effects of Design’ study (DDC, 2003) was con- are directly controlled by the government, sidered a pioneer in measuring design benefts being part of their administrative struc- across companies in a country, a systematic ture, but the means of production are not control of those measures does not play a fun- owned (e.g. Japan, South Korea, Taiwan, damental role to provide continuity of design in- and Singapore). vestments in the country. Denmark relies more - Dirigiste - There may be ownership of the on the cultural aspects to address design. This means of production by government, but is shown, for instance, through its political his- indirect control over how design policy is tory in which politicians are used to participa- implemented (e.g. France, Spain, Mexico). tory approaches, fostering citizens’ actions, participation, and collaboration as peers as part - Devolved - government policy is held of political traditions in leading the country. through a body not directly controlled as The austerity period has led to shrink the public part of a governmental administration, budget, and design expenses should be clearly and with the means of production also out justifable. of the hands of the government (e.g. Brit- ain, Germany, and the Netherlands). Two types of models considering less advanced economies have been stressed in lit- Another type identifed by Heskett (2001b) but erature concerning design policies: one regards not represented on the matrix is ‘indirect’, which different nations position taking into account means the absence of a design policy (e.g. the factors, such as their economic development USA). However, it does not mean that govern- stage, kind of political regime, and government ment decisions do not impact design activities. role in design policy (Heskett, 2001b, 2001c). It does through legislation on product liability, Another concerns design development stages standardisation, etc. Heskett defnes the com- in a country in a peripheral economy (Bonsiepe, bination of centrist and devolved models as the 1991 cited in Er, 1997), and in newly industrial- most successful design policy type (Er, 2002; ized countries (NICs) ( Er, 1997). Raulik-Murphy, 2010). Er (2002, p. 173) inter- prets this indirect or hybrid design policy type Heskett (2001b, 2001c) identifes general cat- as “a transitory phase of either centrist or de- egories of government design policy. They vary 79 Figure 13: Heskett’s (2001c) model of government design policy’s dominant types

volved design policies already implemented for the mid-1990s and regards the integration of a while” and points out that it seems not appro- design policies into macro policies, such as in- priate for governments planning their frst de- novation policy or SMEs development policy. sign policy initiative. The author (Er, 2002) suggests Finland as an example of this kind of design policy. Heskett’s model is further interpreted by Giard (1996) and Er (2002). Giard (1996) highlights Heskett (2001b) notices that varying natures design policy roles and its existence or absence of design practices promoted by governments according to each model at the time of his re- do not differ regarding the basic approach, var- search, reinterpreting statist, centrist, devolved ying only in terms of details. The author stress- and indirect models. Er (2002) proposes an ad- es that competitive advantage has not been ditional type called integrated, which arose in sought through ‘a radically different approach

80 to design, how it is conceived, applied and prac- nomic, and political systems in which design ticed’ or through new ways of shaping design is embedded (Er, 1997). For instance, Bonsiepe education. Heskett (2001b) also emphasises (1973) presents a clear focus on technological that the design evolvement has been highlight- and productive aspects rather than analysing ed in advanced economies while there is a lack the complexity of Latin American countries’ po- of ‘examples of design being used strategically litical contexts that impact on these systems. at a national level to help build up an undevel- Later, Bonsiepe (2006) refects on crucial of po- oped economy’. litical nature issues in his text ‘Design and democracy’ reinforcing the economic dependence Er (1997) corroborates Heskett’s observation, of peripheral countries on central economies: stating that little is known about less advanced economies’ strategic use of industrial design, “… to mention today the role of government in and new and broad research is still needed to promoting industrialization can appear almost enable industrial design role understanding, as as an offense to good manners. The role of well as to update and review former models republic intervention has been demonized with one exception, paying the debt of a bankrupt, lated to industrial design in these economies privatized service. In that case, public resourc- (Er, 2015). es are welcome, thus reinforcing the idea that Papanek’s (1972) and Bonsiepe’s (1973; Bon- politics is the appropriation of public goods siepe, 1977 cited in Er, 1997) developmentalist for private purposes” (Bonsiepe, 2006, p. 32) approaches are considered fundamental contri- Nevertheless, Bonsiepe’s (2006) arguments butions to the role of design in less advanced are still open-ended issues without practical economies. Bonsiepe (1973, p.12) provides responses on how to change this vicious rela- advice for a design policy in less advanced tionship between less advanced and dominant economies by emphasising the role of design in advanced economies, with the exception of how improving social conditions: “… it becomes nec- designers can act as ‘translators’ of economic essary to establish priorities of design projects data for a public understanding of those (which or design areas according to their global social also is likely to be affected by the dominant po- benefts and development potential”. Stress- litical direction and context’s stability in order to ing the differences between design in advanced be allowed – e.g. in the situation of corruption and less advanced economies, Bonsiepe (1973, in the government and lack of political ‘willing- p.13) states: “… in developing countries the vol- ness’). ume of needs is bigger than the capacity of the productive forces”. A historical model of development for industrial design in the periphery is proposed by Bon- Papanek (1972) focuses on the moral role and siepe in the late 1980s. Bosnsiepe’s model is responsibility of designers in improving social composed by fve phases as follows (Bonsiepe, conditions, while Bonsiepe (1973; Bonsiepe 1991 cited in Er, 1997, p. 296): 1977 cited in Er, 1997) considers dependence of less advanced economies on advanced ones 1. The period of proto-design (from inde- regarding technology development and fnance pendence to the end of the Second World or economic and political relations (Amir, 2004), War); exploiting the idea of central (advanced econo- 2. Gestation period of industrial design (dec- mies) and peripheral countries (less advanced ade of the 1950s); economies) in a “Marxist-oriented depend- 3. Period of incipient institutionalisation ency framework” (Amir, 2004, p. 68). However, (decade of the 1960s and 1970s); the developmentalist approach presents shortfalls regarding the consideration of social, eco- 4. Period of expansion and incipient consoli- 81 dation (decade of the 1980s); characteristics which are described through six categories of analysis (see Table 4). 5. Sovereignty phase, that may be reached in the future. Er (1997) clarifes that his model does not suggest a linear development or sequential phases Though Bonsiepe’s model is a signifcant con- in every NIC but proposes common patterns of tribution to understanding industrial design in industrial design development in NICs. The au- undeveloped economies, this model is based on thor (Er, 2015) highlights the need for a concep- Latin American countries contexts that are in- tual framework for an economic policy on global ward focused, not being representative of Asian design within the worldwide economic system contexts and so of the whole less advanced in order to grasp design discipline in local and economies (Er, 1997). Furthermore, Bonsiepe’s global scale. Er (2015) considers that his re- model does not address the progress of design search fndings (Er, 1997) are still valid except from one phase to another (Er, 1997). for product changes as the main role of indus- Margolin (2007) reviews the evolvement of trial design in Newly Industrialised Countries the development concept from economic to (NICs). He stresses that “without a perspective the inclusion of social, environmental, and cul- of political economy, it is not possible to under- tural perspectives, emphasising the impor- stand the development of design in the periph- tance of Bonsiepe’s centre/periphery model to ery” (Er, 2002, p. 162). the integration of design into the development construct, particularly focused on the less advanced economies or on ‘design for development’, but calling for the need to review this model according to the global economy context, for instance, considering changes spurred with the global practices of multinational corporations that separate design from manufacturing activities, placing design activities in industrialised developed countries and the production in lower-wage countries, such as China. Margolin (2007) urges this review of design for development scope: “Design for development needs to broaden its brief from an emphasis on poverty alleviation to include the strategic creation of products for export” (p. 115). Prior to Margolin’s statement, Er (1997) starts paving this way, relating the rise and development of industrial design in less advanced economies to the economy’s and industry’s market orientation which are largely determined by government policies in global contexts. He notices that export-oriented industries and economies promote a nature of competition which favours the development of industrial design. The author evolves Bonsiepe’s model setting out seven phases and their respective

82 Table 4: Er’s (1997, p. 301) Development Stages of Industrial Design in NICs model (1997, p. 301) Development 4: Er’s Table

83 Policy cycles models have also been developed. In the design for policy feld, for instance, Junginger (2014) proposes the policy design cycle adapted from Howlett and Ramesh (2003 cited in Junginger) in which she proposes ‘policy-making as designing’.

Figure 14: Policy design cycle adapted from Howlett and Ramesh (2003 cited in Junginger, 2014, p. 58)

Junginger (2014) stresses that policy cy- light that proper evaluation of design policies cles generally derive from a problem-solving implies a clearly defned policy or programme approach that separates policy-making from and a centralised organisation of the evaluation. policy implementation, emphasising the gap it They notice that most design policy evaluations creates once policy-makers are usually not fa- are scarce limiting to “the number of projects miliar with citizens’ problems. Thus, a human- conducted under the evaluated policy, the num- centred design approach can shed light on the ber of participants involved and of sums spent” problem causes and can go beyond, contribut- (Bitard & Basset, 2008, p. 49). ing to building desirable futures, being future- The DeEP project30 aimed at developing a oriented rather than reactive and responsive to common framework of design policy evaluation existing problems (Junginger, 2014). across Europe, promoting a shared vision of Models of design policy’s cycle have been de- design within the European innovation system. veloped in recent design policy literature. De- The DeEP project (Maffei et al., 2014a) describes sign policy evaluation has been considered a a classical policy cycle composed of fve steps critical factor (see for instance Bitard & Basset, (Maffei et al., 2014a, p. 43), and sets out a pol- 2008; Maffei et al., 2014a; Raulik-Murphy, 2010; icy evaluation cycle by linking policy cycle and Thenint, 2008). Bitard and Basset (2008) high- evaluation stages (Maffei et al., 2014a, p. 44).

30 The DeEP project (2012-2014) has its origin in the European Plan for Design-Driven Innovation and is set among the European Design Innovation Initiative (EDII), which aimed at harnessing design for innovation, as well as strength the connection between design, innovation, and competitiveness (Maffei et al., 2014). 84 Figure 15: DeEP Policy Cycle (Maffei et al., 2014a, p. 44)

In addition, the DeEP project suggests micro sign, that the Brazilian design policy cycle stops and macro indicators to policy evaluation to at the proposal stage. Some reasons are the contribute to understanding outcomes and im- lack of focus and the weak relationship between pacts of design policies and initiatives (Maffei the national government and the design system et al., 2014a, pp. 45-49). (Raulik-Murphy, 2010). Conversely, Finland and Korea cases evidence the completion of the de- Raulik-Murphy (2010) proposes a generic design policy cycle, especially in the Korean design policy process (Figure 16). sign policy cycle in which feedback information She observes, based on the experience of the and periodical evaluation serve as an input to policy document PBD 2007-2012 Strategic Plan implementation process and new policies for- formulated by the Brazilian Programme for De- mulation (Raulik-Murphy, 2010). 85 She observes, based on the experience of the (Raulik-Murphy, 2010). Conversely, Finland and policy document PBD 2007-2012 Strategic Plan Korea cases evidence the completion of the de- formulated by the Brazilian Programme for De- sign policy cycle, especially in the Korean design, that the Brazilian design policy cycle stops sign policy cycle in which feedback information at the proposal stage. Some reasons are the and periodical evaluation serve as an input to lack of focus and the weak relationship between implementation process and new policies for- the national government and the design system mulation (Raulik-Murphy, 2010).

Figure 16: Raulik-Murphy’s (2010, p. 182) generic design policy process

Patrocínio (2013) cites the differences be- structured, involving the citizens and public sec- tween policy and political cycles, highlighting tor members, and led by a private consultancy that the frst can range from around 5 years to to develop a strategy and vision to make the city generations, while the second varies according more attractive and enjoyable. The duration of to political and personal cycles in democracies, the policy that corresponded to the developed ranging from four to ten years (Dror, 2006 cited strategy was to last over a 10-year period, ex- in Patrocínio, 2013). This reinforces the need for tending over 2 municipal election cycles. Julier stable and committed governance and govern- (2007) points out that the slow and participa- ment, as well as policies aligned with the coun- tory nature of this development keeps citizens, try’s priorities and needs, in order to implement politicians and other stakeholders committed to and complete policy cycles. the project to some degree, which enables stability for longer-term initiatives. The vision for Julier (2017) provides an optimistic outlook the city was adopted by the Kolding Municipal through the Kolding city case (Denmark) that Council in 2012, and by 2015, the strategy was has shown how a bottom-up approach was 86 saving the city €6.6m per year according to the (Heskett, 2006; Schneider et al., 2015). MITI’s Kolding Municipality (Julier, 2017). design policy was aligned with its major strategy of economic reconstruction, being integrated By contrast, in Indonesia, where industrial de- into macro-level industrial and trade policies (Er, sign plays diverse roles according to the type 2002). The initiatives for economic reconstruc- of organisation, technological development, tion were focused on exports and included: in- including industrial design in state-owned cor- troducing latest foreign technology, protecting porations, policy is sensitive to political change domestic industry while rebuilding, and using (Amir, 2002). As highlighted by Amir (2002, p. the home market as a springboard for exports 43): “once the government changes, the policy (Heskett, 2006). Designers were trained in Eu- also changes. Consequently, the position of in- rope and the USA; and an effective mechanism dustrial design is fragile unless these corpora- for design promotion was created, the Japan In- tions are separated from government involve- dustrial Design Promotion Organization (JIDPO) ment”. (Er, 2002; Heskett, 2006). Changes in political directions and agenda also The role of design in Japanese businesses in- infuence design policies and their approach in volved strong top management support, inter- other countries. Giard (1996) evidences how a functional teams (e.g. designers, engineers, change in the Canadian political direction was a marketers), incremental rather than radical de- peak for changing the approach to design poli- sign, use of well-proven off-the-shelf compo- cies, leading to the dissolution of design cen- nents, manufacturer and supplier cooperation, tres and doubts on supporting the design sec- long-term investment in development (Heskett, tor in a government’s neoliberal approach to the 2006). economy, which moved from industrial-based to post-industrial-based. The author observes The Korean case is an example of industry-led that this kind of change has already been ex- government initiatives that were structured with perienced in Great Britain and the USA. Giard a long-term strategy. Chung (1993, 2015) looks (1996) notices the shortcomings on Canadian into the Korean national strategy to develop design policies by modelling them on the basis its industry, especially the Korean auto indus- of foreign design policies, pointing out the need try. He stresses that “the Korean government’s to craft design policies that take into considera- well-thought-out long-term policies, as well as tion the economic, political, and cultural context its step-by-step support, were crucial to the of the country, otherwise, the design policy ef- success of Korean automakers” (Chung, 1993, fectiveness is jeopardised. South Korea design 2015, p. 72). The Korean economy has changed policies seem also affected by the political cli- from a traditional agricultural economy to an in- mate (see for instance Choi et al., 2010). dustrial one from the early 1960s to 1990. The Korean government promoted strong support to The Asian case has been considered success- industry structure and technology development ful (Er, 2002; Heskett, 2006). Japan established from the early 1960s, after 35 years of Japanese the main model that has been followed by other domination (1910-1945) followed by 5 years of Asian countries (e.g. Korea and Taiwan). Ma- civil war which distorted the national economy, laysia, Thailand, and China also have their own letting most Koreans in absolute poverty, and di- national design policies aiming at enhancing viding Korea into two entities: democratic South competitiveness in global markets. and communist North (Chung, 1993, 2015). Six Japan set out its design policy (possibly un- consecutive Five-Year Plan (FYP) were the an- der other labels) through the Ministry of Inter- swer of the military government composed national Trade and Industry (MITI) by the 1950s of ‘well-educated technocrats’ to change the

87 country’s situation. Chung sums up these six FYP that supported the Korean economy transformation and development:

Table 5: Major policies for the motor industry in each Five-Year Plan (Chung, 2015, p. 66)

FYP Government Intent Key Actions from the Major Policies for the Motor Industry Dura- Motor Industry tion 1st FYP Focus on key industries— Preparation for recondi- Five-Year Plan for the motor industry (1962- energy, raw materials, tioning (1962) road building 1966) Motor industry Protection Act (1962) 2nd FYP Focus on light indus- Production of parts and Machinery industry Promotion Act (1967) tries— textiles, footwear, assemblies (1967- A Basic Plan for the Motor industry (1969) 1971) wigs, plywood 3rd FYP Focus on heavy and Establishment of major High protective tariff on foreign cars (1972- chemical industries automotive plants (1973) 1976) A Long-term Plan for the Motor industry (1974) 4th FYP Rationalization of indus- Mass production of do- Motor industry selected by government as (1977- trial structure mestic models and spe- a major export-led industry (1979) cialization by each frm 1981) The Motor industry rationalization Meas- ure (1981) 5th FYP Focus on industries with Achievement of a basis KAICA* established (1985) (1982- competitive advantages for large- scale export of domestic cars Startup of new businesses in the market 1986) sector (passenger cars; minivans; light trucks) prohibited for three years (1986) 6th FYP International competi- Civilian-led globalization Repeal of the rationalization Measure (1987- tiveness (1987) 1991) Freedom to import foreign cars (1988)

KAMA** established (1988) Atmospheric Contamination Protection Measure (1991)

* Korea Auto Industries Cooperative Association ** Korea Automobile Manufacturers Association

According to Chung (1993, 2015), a milestone company used the assistance from Mitsubi- that triggered Korean design development was shi to develop the powertrain and chassis, and the Pony project (by Hyundai) that was held from ItalDesign to develop the body styling and within the 3rd FYP period. Hyundai’s counter- design. The outcome was the Pony model that part turned down its support and Hyundai had had its prototype exhibited in the Torino Motor to organise to develop a product by itself. The Show in 1974. The Pony was the beginning of 88 the cooperation between Hyundai and ItalDe- provement within their scope. From this idea he sign towards the development of the in-house proposes the ‘Four stages of the design revolu- design capabilities at Hyundai. The company tion’ model characterised by four stages: frst sent a team of fve engineers to be trained 1. Connection among conventional design in Italy. In 1975, the in-house design and R&D industries; functions were established at Hyundai and the design studio employed “fve industrial design- 2. Expansion of design domain; ers whose frst job was to put ItalDesign’s en- 3. Application of design principles of new gineering plans into the Pony’s development” felds (e.g. politics, economics, social sys- (Chung, 1993, 2015, p. 67). tem); The national strategy frst led by a military 4. Integration of multiple design ideas or inte- junta promoted strong support to the Korean in- gration of the diverse prior stages. dustry or its Chaebols31 combined with protection of the inward market and other measures, Choi et al. (2010) looks at the UK’s and South such as tax cuts, labour control, and import tar- Korea’s National Design Centres (NDCs), observ- iffs. Support and incentives decreased with the ing that both countries are representative of ef- democratisation process that was consolidated fective design policy in which design is seen as in 1988. The domestic market was opened to a tool for improving competitiveness and eco- foreign automakers, including Ford, GM, BMW, nomic success. They suggest that NDCs should Mercedes-Benz in the auto industry but the in- have independence from government, being dustry had already built its structure and know- independent of political agendas, establishing how or capabilities to develop its own products, more proactive, anticipatory and participatory consolidating its export market, especially in approaches through engagement in new and North America, which, along with the continu- innovative practices underpinned by research. ous expansion of the domestic market, enabled The authors observe that governments tend to the Korean auto industry to keep its competitive reactive approaches with limited and short-term power (Chung, 1993, 2015). Although support objectives addressing short-term failures, and is not heavily held by government anymore, the NDCs have fawed to address industry trends Korean industry built its capability to compete and needs, lacking connection to industries’ re- with leading global companies, and design has alities. Choi et al. (2010) state: “There are fewer increasingly gained attention, being considered long-term propositions for the support of design a ‘key competitive weapon’ in the auto industry. and industry based on foresight and long-term The perspective is that investment in R&D and planning. In addition, contribution to national design shall still increase (Chung, 2015). policy formation at the governmental level is subject to personal infuence and design rele- Design development has been related to in- vance factors” (p. 65). dustrial policy in Korea, being a key element in Korea’s growth strategy (Cho, 2004). Cho (2004) The Korean pathway was not a smooth one. advises that national design initiatives should Crises emerged within the FYP periods but expand, integrating also the quality of life im- the government answered them with specifc

31 Several leading Korean conglomerates (Chung, 1993, 2015) 89 measures, which sometimes were quite harsh Mortati, Villari, Maffei & Arquilla (2016) pro- to take, directly affecting the direction of the pose a categorisation for design policies ac- industry and economy, as well as the citizens’ cording to their diverse aims (see Table 6). lives. However, the impacts for current genera- The defnitions of the diverse stakeholders’ tions are visible not just in terms of wealth and role in the design policy context considered in industry competitiveness but in terms of educa- the empirical cases analysis of this dissertation tion. come from the Design Policy Beacon32 frame- Frameworks of design policies including def- work (Design Policy Lab, 2018): nitions, stakeholders and roles can be found Funder – Refers to bodies, organisations or in Bitard and Basset (2008), Er (2002), Raulik- groups which have allocated funding for a de- Murphy (2010), Sun (2010), the Design in Euro- sign policy or initiative. Funders are often not in pean Policy (DeEP) project fnal report (Maffei, charge of designing the policy. Arquilla, Mortati, Villari, Evans, Chisholm, & Lon- doni, 2014a), Mortati, Villari, Maffei and Arquilla Policy-maker – Refers to bodies, organisa- (2016) (i.e. convergent with the Design Policy tions or groups (e.g. governmental depart- Beacon framework by the Design Policy Lab ments, ofces, think tanks etc.) with the re- [2018]), Whicher and Walters (2014), and in SEE sponsibility of originating the policy or initiative, platform publications, particularly policy moni- determining its rationale, course of action, aims tor publications (e.g. Whicher, Swiatek, & Ca- and objectives. They will also generally deter- wood, 2015). mine how, and by whom, the policy should be implemented. Bitard and Basset (2008) classify design policies activities in the following categories: Intermediary – Refers to those organisations awareness raising and promotion on the local involved in the implementation of a policy or and international scenes, contact and informa- initiative (i.e. by fulflling its aims and objectives tion (to help the general public familiarise with through practical engagement with the intend- design features and approaches), national and ed benefciaries). In addition, by the nature of international events, education and training, their involvement, intermediaries also assist in research and networking, free and fee services the promotion and dissemination process. to the private sector, public consultations and Benefciary – Includes individuals, communi- open democracy mechanisms, grants and tax ties or organisations (e.g. enterprises, public incentives, regulation (norms and intellectual sector organisations, associations, even region- property). al or local authorities) that are intended to beneft from the implementation of a certain design

32 The Design Policy Beacon is an initiative launched by the Design Policy Lab at Politecnico di Milano, and part of Design for Europe (2014-2016), a three-year programme to support design-driven innovation across Europe co-funded by the European Union as part of the EU’s Action Plan for Design-Driven Innovation. It is an evidence- based online resource which uses data visualisation to pinpoint the network of initiatives and organisations in support of design across Europe, documenting the most pressing issues for design and policy in order to support policy-makers who deal with design as a key part of national and regional policies for innovation and growth (Mortati, 2015; “Supporting design-driven innovation across Europe”, n.d.). 90 Table 6: Categorisation of design policies (Design Policy Lab, 2018; Mortati, Villari, Maffei & Arquilla, 2016, p. 38)

policy or initiative. design policies, Choi et al. (2010) propose four alternative structural models for developing and Evaluator – The term ‘evaluator’ includes in- implementing a national design policy, empha- dividuals, experts or organisations that are in sising design support initiatives as follows: charge of evaluating the results and impact of a policy or initiative. Model 1 (Figure 17) is characterised by design units in each government department working In the empirical cases further analysed in this closely with national design centres where rep- study, designers and consultants who are representatives from each government department resentatives of consultancy frms in the design are board members of the national design cen- industry play the intermediary role. tre. From the analysis of the UK and South Korea’s 91 Figure 17: Model 1 - Development and implementation of national design policy should be led by national design centres (Choi et al., 2010, p. 68)

Model 2 suggests a government department responsible for design dealing with all design-related affairs nationally, working with national design centres, and which concerns itself with the development and implementation of the design policy.

Figure 18: Model 2 - Development and implementation of national design policy should be led by a government department in collaboration with national design centres (Choi et al., 2010, p. 68) 92 Model 3 puts forward a central government department as responsible for the design and dealing with all design-related affairs at a national level. The government department creates a design policy and delegates implementation of the design policy to the regional support agencies.

Figure 19: Model 3 - Development of national design policy should be led by a government department and implemented by regional support agencies (Choi et al., 2010, p. 69)

Model 4 has a liberal approach underpinned by market forces demand rather than by a government- driven approach. There is no national design policy, and design NGOs offer activities based on their individual aims.

Figure 20: Model 4 - Absence of national design policy; instead design NGOs’ activities (Choi et al., 2010, p. 69)

All models present advantages and disad- ditions, resources, priorities, culture, and extent vantages regarding participation and infuence of government intervention in economy and au- of key stakeholders, the autonomy of National tonomy of design bodies. Design Centres, and design activities funding Analytic tools or models to support design (Choi et al., 2010). Choi et al. (2010) advise that policies analysis have also been developed. government decisions on design policy should Raulik-Murphy (2010) suggests a tool for devel- be made case-by-case considering local con- oping an understanding of the design activities’ 93 network within a country (Raulik-Murphy, 2010, p. 233), the National Design System (Figure 21):

Figure 21: Raulik-Murphy’s (2010, p.109) schematic representation of the elements of a National Design System and their defnitions

Sun (2010) looks at design policies in the UK and China, emphasising the current Chinese supportive schemes, indicating the need to focus on tier 2 policies (see Figure 22) that can improve the quality of design supply and demand in China. She (Sun, 2010) distinguishes the role of diverse stakeholders in the design policy-making process and categorises different design policies according to the aims and roles involved (Figure 22).

Figure 22: Sun’s map of the role of diverse stakeholders in the design policy-making process (Sun, 2010) 94 Whicher and Walters (2014) evolve Raulik- supply of quality designers from primary Murphy’s framework, also from the analysis of and secondary school through to under- other research (i.e. Sun, 2010; Raulik-Murphy & graduate level and up to masters and doc- Cawood, 2009) (i.e. Love, 2007; Moultrie, 2008; toral levels, being represented by higher Whicher & Cawood, 2012; and Finnish Minis- education institutions and their networks; try of Economy and Employment, 2013 cited in − Design research: research networks, as- Whicher & Walters, 2014), developing the De- sociations, and centres, as well as initia- sign Innovation Ecosystem framework which tives regarding knowledge exchange be- evidences key aspects that can infuence on tween academia and industry; harnessing design across a region, country or continent. This framework has been used to − Design funding: policy instruments for monitor design in Europe through SEE project governments to incentivise innovation initiatives, supporting the analysis of weak- (e.g. innovation vouchers, grants, and tax nesses and strengths of Design Innovation Eco- credits); systems. − Design policy: government intervention A Design Innovation Ecosystem or a Design- aimed at encouraging the supply of and Driven Innovation Ecosystem (Figure 23) is a demand for design to tackle the failures policy construct which aims at tackling the and capitalise on the strengths of the De- gaps and capitalising on the strengths (Whicher, sign Innovation Ecosystem. Swiatek & Cawood, 2015). According to Whicher, Evans and Chisholm (2014) emphasise that Swiatek & Cawood (2015), the elements which the main aim of a design policy is to improve set up the Design Innovation Ecosystem are: “directly or indirectly the capabilities for people- − Design users: from private to public or- centred innovation of the enterprise system” (p. ganisations sectors that use design ser- 6). vices; Design promotion and design support are part − Design support: policy instrument for im- of a design policy. Raulik-Murphy and Cawood proving the use of design and can include (2010) distinguish design promotion and design one-to-one mentoring ranging from light- support. The frst is “planned to raise aware- touch to more specialised interventions, ness about the benefts of design” (Raulik-Mur- as well as subsidies, tax credits, and ex- phy & Cawood, 2010, p. 121). Design promotion port schemes; programmes “target the general public through exhibitions, publications, events etc.; or they − Design promotion: policy initiatives which target groups through conferences, workshops, aim at raising the awareness and enhanc- promotional campaigns etc” (Raulik-Murphy ing the understanding of design among & Cawood, 2010, p. 121). Design support pro- different target audiences; grammes “work directly with businesses and − Design actors: design centres, associa- the public sector, providing advice and assisting tions, clusters, and networks that often them to make effective use of design” (Raulik- act as the link between government, en- Murphy & Cawood, 2010, p. 121). terprises, the design sector, academia, Tether (2006) notices that design support like and other actors; one-to-one advice activities is more expensive − Design sector: design frms in the creative than design promotion activities, such as semi- industry; nars and workshops, that can reach a larger audience of frms (see Figure 24). Tether (2006) − Design education: aims at ensuring the

95 Figure 23: Whicher’s and Walters’s (2014) Design Innovation Ecosystem framework

suggests a more cost-effective option with the others emphasise one kind, for instance, design development of a portfolio approach to design promotion (see for instance Raulik-Murphy, support which combines design promotion ac- 2010). This choice is also guided by the kind tivities that should be held frst and design sup- of political and economic approach adopted in port initiatives after, in case some frms still need each nation. more focused design support. The reasoning is Thenint (2008, p. 12) points out that success- that not all frms receive design support but just ful promotion and support initiatives in Europe the ones that evidence the need for it. present the following features: The author comments on the diversity of − An accurate identifcation of needs and design programmes’ strategy across Europe, opportunities resulting in a good position- stressing that: “… there is little consensus about ing; need for design support or promotion, and the appropriate balance between the different − Precise objectives and expected results; forms of promotion and support.” (Tether, 2006, − An efcient implementation within gov- p. 10). Thus, the kind of initiative which should ernment departments (business, educa- be prioritised in a country, as well as the appro- tion, etc.) and appropriate multi-level gov- priate balance between support or promotion, ernance; have not been agreed at all (Tether, 2006). Some countries started with design support and move − A systematic evaluation of programmes towards promotion, ceasing design support and a continuous evolution/adjustments programmes and focusing on promotion, while of the programmes. 96 Figure 24: A Schematic Representation of Design Promotion and Support (Tether, 2006, p. 9)

Er (2002) defnes design support as “policy instruments aimed at improving the demand for design by raising the understanding “reinforcing design and design management and capability of design among SMEs and/ or capabilities of companies, creating and man- public ofcials. Design support programmes aging funded-programs and fscal instru- can also focus on the supply of quality de- ments, such as tax rebates to support the sign expertise in the professional design sec- in-house design capabilities and the develop- tor through training and mentoring.” (Whicher, ment of a national design consultancy indus- Cawood & Ryan, 2013, p. 4) try. It also includes the transfer of new design knowledge and skills to companies, and the Schneider et al. (2015, p.10) distinguish differ- provision of consultancy services for strategic ent forms of business design support recogniz- design issues”. (Er, 2002, p. 174) ing three routes: awards, facilitation (easing up Whicher, Cawood & Ryan (2013, p. 4) defne the access to design services), and the integra- design support programmes as tion of design. Activities of integration of design 97 into businesses through a design policy include sources of GDP or exports in a country, as in the (Schneider, et al, 2015, p.10): capacity building, case of the oil in Indonesia in the 1980s (Amir, dedicated advising, and bespoke support. 2002), the Asian fnancial crisis in 1997, as in the case of Korea (Raulik-Murphy, 2010), the Activities of design integration into business- austerity period in the occasion of the fnancial es can be understood as part of design support crisis from 2008, as well as the approach of New activities in the defnition proposed by Whicher, Public Management (NPM) that leads govern- Swiatek, Cawood (2015, p. 14). A common fea- ment’s budget to be continuously shrunk, which ture among diverse design support defnitions triggers the use of design in the public sphere is that design support is usually related to busi- in Europe from around the 2000s (Julier, 2017). nesses or organisations design capabilities de- China has also started to receive the attention velopment. of its politicians who have encouraged the tran- Beyond the lack of terminologies, the existing sition from ‘Made in China to Designed in China’ ones are still confusing as previously observed (Heskett, 2010, p. 6). by Raulik-Murphy (2010) and Patrocínio (2013). On the other hand, these ‘forces’ are not For instance, Schneider et al. (2015) recognise enough when there is not an appropriate and awards as design support, while Raulik-Murphy comprehensive political approach and vision to (2010), Tether (2006), Whicher, Swiatek and support change and transition periods. Turkey Cawood (2015) classify awards as design pro- is an example. Although the country has also motion, and Sun (2010) proposes another way passed through an oil crisis (1973-4), the gov- to distinguish design policies according to the ernment approach was not supportive to de- diverse stakeholders’ role in the policy-making sign capabilities development at the time. The process. emergence of design use as a routine part of Raulik-Murphy (2010) also stresses cases of Turkish companies’ operations has happened transfer of practices failure and success. Mod- in Turkish businesses after the late 1980s with els that have failed in transferring practices dis- the quality-based competition importance in its regarded the national context characteristics of export markets and in its liberalised domestic the country in which the practice should take market, in which design capabilities are mainly place, not being properly adapted or not consid- developed in companies in the export-oriented ering critical differences between the country in industry, such as consumer electronics as Ves- which the practice originally played out and the tel and Beko (Er, 2002). one which received the transfer of ‘best prac- Heskett (2010) emphasises the role of policies tice’ in terms of programmes, policy, or design in encouraging a transition from copying to the council model. development of design capabilities in diverse The change towards a more intensive use of countries contexts. The beginning of the indus- design at a national level has been related to trialisation process is usually characterised by combined factors which infuence and pressure, a copycat behaviour that can change according ‘force’ or spur, a country to advance and imple- to political visions and policies initiatives that ment policies that encourage exports, market foster design skills and competencies develop- openness, and search for differentiated and ment. Japan, Korea, and Taiwan are examples higher quality offers that depends more on skills of countries that made design capabilities de- and knowledge than on materials or natural re- velopment integral to their economic policies sources availability to create value. Examples in a ‘systematic and long-term in intention’ of these ‘forces’ or events are: global drop in (Heskett, 2010, p. 6). South Korea’s design policy the price of raw resources that are among main originated in its industrial policy with a focus on

98 education and has integrated demand-oriented grama Brasileiro de Design [PBD]) (see for in- initiative relying on public procurements, being stance Raulik-Murphy, 2010). mainly government driven and funded (Thenint, Amir (2002) analyses the Indonesian design 2008). The frst dedicated design policy in South policies and their faws. The design develop- Korea emerged in 1993 (Bitard & Basset, 2008). ment in Indonesia was hindered by several fac- Design policy is still an under-researched feld tors according to Amir (2002): the association when compared to innovation policy. Hobday, of design with fne arts and crafts infuenced Boddington and Grantham (2012) emphasise: by Dutch occupation in the 1930s, which consolidated a marginal role of design in industrial − The little tradition of design policy models process, the dependency on imported technol- conceptualisation; ogy (including industrial design), the absence of − The need for design-based research on a legal protection that allows local companies ‘wicked problems’ in order to assist in de- to practice plagiarism, and the lack of industrial veloping more effective, dynamic and redesign awareness among policy-makers in gov- sponsive design policies. ernment. The author advocates for government Awareness of divergences among key stake- policies that consider industrial design in an holders and the need to create a common ground environment in which economy is strongly in- including shared assumptions and expected fuenced by government decision-making. The goals in Italian SMEs are noticed for crafting in- lack of association of design with technology novation policies (Massa & Testa 2008, p. 405). and industry led to the implementation of design initiatives under a Ministry branch that has Er (2002) emphasises the need for a design no political infuence and does not contribute to policy particularly in less advanced economies: fostering connections to industrial corporations “… in a peripheral economic context where either large or SMEs, which dissociate industry markets may frequently fail for a number of needs from design policies. reasons, a government policy is necessary to facilitate the development of strategically Though Amir (2002) makes a crucial point of competitive capabilities, such as design. Gov- design awareness among policy-makers, he ernment intervention through design policy does not structure an idea on how this could appears to matter for national competitive- be achieved in detail, suggesting to set design ness, especially in export markets”. (Er, 2002, initiatives (e.g. Indonesian Design Centre) under p. 190) the Ministry of Trade and Industry, which is in charge of national industry policy, and to asso- However, harnessing design in a country ciate design with technology through “includ- might go beyond the need for a design policy as ing industrial design in technological-oriented it can be noticed in the Brazilian case. The Bra- schools as opposed to fne arts-oriented ones” zilian experience showed that the lack of link- (Amir, 2002, p. 48). The problems of fostering ages of the design policy to major macro policy design capabilities might be not solved chang- priorities, the lack of design awareness among ing Ministry if the lack of design awareness decision-makers, the nature of competitiveness among decision-makers remains. based on inward-focused markets, as well as the fragmented design innovation ecosystem, Later, Amir (2004) emphasises the need to in which key stakeholders usually are not con- change the mainstream of design policies in nected to each other or aware of one another’s less advanced economies. He sets out the deci- initiatives and aims, hindered the implementa- sion-maker role of politicians and policy-mak- tion of the Brazilian Design Programme (Pro- ers, emphasising the need to consider the po-

99 litical context to use design in the Third World33: in government, higher education institutions, industry and professions. Policy-makers and “In a broad sense, public policy is construed a majority of executives are in general insuf- as the pursuit of particular purposes, where fciently aware of the potential of design and the government as the holder of public au- how it might contribute to strengthen the thority decides the policy objectives and the competitiveness of frms.” (Thenint, 2008, p. 4) way to achieve them. Hence, design policy is a form of the government’s political and eco- Thenint (2008) emphasises the importance of nomic intervention into public sectors to infu- good reputation and excellence in design policy, ence the development of design in society.” and in developing design culture and practices (Amir, 2004, p. 70) to infuence policy-makers and top manage- The consideration of design capabilities ment in frms referring to the European context: among decision-makers (e.g. policy-makers, “high-level stakeholders are the only ones likely politicians) who can provide a strategic vision to infuence national and regional governments to integrate design into national policies to- (and companies’ top executives)” (p. 11). wards competitiveness based on quality and The lack of design understanding and aware- innovative design, and welfare improvement, is ness among decision-makers and diverse kinds a crucial issue to be considered, rather than a of organisations which play signifcant roles in design policy per se that can lack a comprehen- a country development, as well as the lack of sive approach towards national priorities and connection of design to development theories policies in the absence of design capabilities used by governments and funding agencies, among decision-makers, and in the absence of are highlighted by Margolin as critical barriers a shared vision to the desired future and chang- (2007): es. The trial of convincing policy-makers has “… design is insufciently understood among also been a non-effective approach in countries the myriad organisations involved in the de- where there is not a design awareness or back- velopment process, particularly in its less ground among decision-makers as evidenced advanced stages… more important, is that if in the Turkish case (see Er, 2002). design begins to contribute to the success of There is a lack of design understanding in a large national enterprises, it may upset even broadened sense and a lack of design aware- further the asymmetric trade advantages of the developed countries. The examples of ness among key stakeholders, such as policy- Japan and South Korea should become mod- makers and businessmen, as Thenint (2008) els for more countries and aid organisations stresses looking at the European context: should help to strengthen larger enterprises, “Because it is commonly limited to the aes- as well as the SMEs and the small-scale co- thetic and ergonomic aspects of a specifc ob- operatives. It is also true that the impact of ject, design awareness has been too narrowly some multinational corporations is so great linked to creative industries. Besides, the lack in the countries where they operate that it of clear understanding of the meanings of de- would be extremely difcult to compete with sign has often led to neglect or the develop- them without some changes in trade legisla- ment of inappropriate policies and strategies tion. Lastly, design is barely considered in the development theories on which governments

33 Third World refers to “a group of countries in Asia, Africa, and Latin America whose social history is characterized by the postcolonial culture”. This term is “widely used to refer to two groups of countries separated by a considerable gap in economic and political power in global affairs” (Amir, 2004, p. 68). 100 and outside funding agencies base their poli- tional trade combined with their conditions, as cies.” (Margolin, 2007, pp. 114-115) emphasised by Amir (2004): “these societies Moreover, the need for infrastructure that ena- still are submerged in many social and econom- bles industry, technology, and research to four- ic dilemmas, such as poverty, lack of adequate ish parallels to export-oriented and domestic shelter, poor health facilities, lack of education, market liberalisation policies are previously malnutrition, and so forth” (p. 69). required initiatives once the Brazilian nature of Although Amir’s (2004) statement about an competition (inward-focused and heavily pro- emergent trend of the rise of design awareness tected from international competition) and the in Third World governments evidenced by the infrastructure conditions do not favour either “establishment of design centres and institutes, design capabilities development nor their con- and the growing number of design schools” solidation in the current situation, especially in (Amir, 2004, p. 70), in practice this trend (Amir, MSMEs. 2004) is not noticed at more strategic levels Furthermore, the assessment of impacts of which is observed with the absence of an ef- design policies on national competitiveness is fective national design policy or innovation still lacking (Er, 2002) and, although recent re- and industrial policies that usually do not ad- search (Maffei et al., 2014a) suggests a frame- dress design in any way and level (e.g. Brazil). work and indicators to evaluation of design Moreover, although design centres and design policies, their implementation in practice is schools exist and can be diffused throughout challenging, involving building a culture of eval- a country, their design capabilities and quality uation (Arquilla et al., 2015) and Latin American of education can vary (see for instance Nunes, countries lack data, such as scoreboard indi- 2013), and their political infuence can be low as cators proposed in European frameworks and evidenced in Amir’s (2002) prior research in In- global design scoreboards. donesia. On the other hand, Arturo Escobar stresses Design policy comes into the Third World the foreign debt of the Third World to First World countries to raise their industrial product com- countries that keep the vicious cycle of fnan- petitiveness inspired by South Korea and Japan cial dependency (Amir, 2004). From the early cases, advocating advantages of design for the post-World War II period there is the emergence economy (Amir, 2004). Even though there are and consolidation of a development idea “which differences in policy implementations regarding conformed to the ideas and expectation of what the diversity of political and economic systems, First World countries judged to be a normal the mainstream of design policies is common: course of evolution and progress” (Amir, 2004, design as a strategic tool for industrial compet- p. 70). Following the development logic of First itiveness (Amir, 2004). World countries and considering the fnancial Amir (2004) calls for a change in design poli- dependency conditions, Third World countries cies’ mainstream in the Third World countries try to increase the value of their exports; howev- from competitive economic purposes to hu- er, this economic solution is not easily achieved man-centred purposes. In a developmentalist34 by them in an environment of rigorous interna-

34 Although the author stresses that his study is different from prior research (e.g. Papanek, Bonsiepe), considering the political dimension, the fundamentals of his proposal are convergent to those approaches and the role of ‘government willingness’, political orientation and approach to policy are not further analysed. 101 approach, the author proposes human-centred might have design skills needed to improve so- policy design inspired by Richard Buchanan cial conditions, but in practice, he/she can be meaning of design for human dignity and hu- embedded in a context that does not support man rights or Buchanan’s human-centred de- the implementation of these skills. A politician sign approach in which “design is for people” might not have appropriate skills and vision to (Amir, 2004, p. 73). In order to institutionalise change a context, or he/she can be aware of so- this ‘new’ mainstream of design policy, Amir cial inequality and poverty conditions but is not (2004) proposes three principles: (1) an orien- interested in improving these aspects, keeping tation towards people’s needs and interests or his/her power and position. design as a social and cultural tool for creating Lerner (2010) analyses barriers to effective a better life; (2) the extension of the design role implementation of public programmes which in enhancing sociality and equity in Third World aim at promoting entrepreneurship in Singapore, societies; (3) a participatory model involving the exploring the appropriate role in public policy. participation of many stakeholders, such as de- The author compares Singapore and Jamaica sign practitioners and academicians, and local development decades after both countries be- communities. came independent. They had similar features Amir’s proposal is very signifcant to Third by the mid-1960s, such as a centrally located World countries but it is naive in its essence. port, tradition of British Colonial rule, similar First, it recalls a discussion initiated in design wealth (GDP), population and geographical di- studies in the 1970s (e.g. Papanek, Bonsiepe) mensions. Jamaica had advantages regarding that lacks practical implications consider- natural resources. However, political directions ing political and economic contexts, as well and related macro policies evolved in a very dif- as decision-makers background, mindset, and ferent way between both countries. About four interests which compete with the public good decades after the independence, Singapore’s achievements in several Third World countries per capita GDP climbed from $2,650 (in 1968, that have historical records of corruption, lack of US dollars) to $31,400 (in 2006) while Jamaica politicians’ commitment to citizens and, hence, had little improvement moving its per capita lack of trust among key stakeholders which al- GDP from $2,850 to $4,800. Some reasons for ready hinders participatory approaches to poli- these contrasting changes have been related cy-making. These aspects are also evidenced in to political contexts that took place in both na- the Global Competitiveness Report 2017–2018 tions. Jamaica experienced a dramatic political (Schwab, Sala-i-Martín, & Samans, 2017). instability passing through shifts from a market economy to a socialist orientation and vice ver- Second, considering the above-mentioned as- sa, with an attendant infation, economic insta- pects, the change of these contexts go beyond bility, crippling public debt, and violence, which design grounds. Although the author seems hampered a consistent long-run economic pol- aware of government importance and role in icy. Meanwhile, Singapore strongly invested in change: “Certainly, this requires the willing- infrastructure, “such as its port, subsidized its ness of the government, as well as the design system of education, maintained an open and community (designers and design scholars) corruption-free economy, and established sov- involved in design policy to include local peo- ereign wealth funds that made a wide variety of ple’s needs, desires, and interests in national investments” (Lerner, 2010, p. 256), harnessing design agendas” (Amir, 2004, p. 74), he does not its strategic position on the key sea lane in rela- analyse in depth the government role, interest, tion to East Asia (Lerner, 2010). and dignity, as well as designers’ conditions to work in these contexts. For instance, a designer In short, improving Third World countries con-

102 texts is not a new matter in design and in other SMEs is still challenging. grounds (e.g. economy, political economy, pol- On the other hand, the focus on companies icy, entrepreneurship, public management, so- that already have design experience and use ciology, pedagogy). An isolated design policy is design at a strategic level has also been noticed likely to be not enough to address all required from the 2000s, for instance, when Denmark changes in these contexts, as well as design it- started to promote design support programmes self. Some countries need a change in perspec- to these frms, changing its design support pro- tive and ethics in politics. Moreover, a change grammes strategy and repositioning the Danish in cultural aspects that were consolidated by Design Centre (cited in Raulik-Murphy, 2010). people getting used to ‘bad things’ might be re- Besides that, Finland presented a national de- quired in order to truly consider citizens needs sign policy initiatives’ focus on large enterpris- and to improve people’s conditions of life. These es that were already familiar with design, ad- issues go beyond design issues, requiring also dressing design issues related to smaller and meritocracy among decision-makers and stra- inexperienced companies to its regional design tegic political visions about desired futures centres (Bitard & Basset, 2008). associated with effective macro policies that consider the country’s economic, political, and Although design support programmes have cultural context. focused on industry sectors in economic de- cline, the trend of design support programmes towards more strategic roles related to design leadership through the promotion of innovative tools and design management in organisa- Design support tions is also recognised in advanced economies (Boult, 2006). Design support initiatives targeting businesses with no design experience seem to start in Generally, design support programmes are the 1970s (Schneider et al., 2015). Design sup- typically justifed on the basis of market failure port programmes are usually focused on small (Tether, 2006), and are government funded but business (Schneider et al., 2015; Whicher, Ca- there are also predominantly self-fnanced ini- wood & Ryan, 2013). Whicher, Cawood and Ryan tiatives, such as the Essex Designers network, (2013, p. 3) highlight the need for government funded by its own membership and with some support: “governments need to play a role in light touch government funding (Boult, 2006). enhancing the understanding and capability of Approach and methods applied to craft, de- design”, and notice that 12 European countries velop, implement, and evaluate design support had an active design support programme in programmes, as well as the background of key 2012. The reasoning in providing design sup- stakeholders, are crucial aspects to be consid- port for SMEs in Europe takes into account that ered. The SEE design programme (2005-2007), (Whicher, Cawood & Ryan, 2013): a network of European design organisations − SMEs comprise the majority of the Euro- that can be considered as a prior version of pean economy, the SEE Platform: Sharing Experience Europe (2012-2015), had the evaluation of design pro- − although design as a tool for innovation grammes as one of its main goals, facing di- has been increasingly recognised by gov- verse challenges in assessing these initiatives, ernments across Europe, the absorption evidencing the lack of comparable data and of professional design services among common terminology, as well as the diversity

103 of programmes and their aims’ nature35, which 2010), and the difculty in replicating practices hamper a common evaluation framework (Rau- considering the existing differences in local pri- lik-Murphy, 2010; Tether, 2006). SEE design orities and fnance (Tether, 2006). programme also revealed the way design pro- The diversity of programmes also reveals the grammes were transferred between diverse na- adopted ad hoc basis “with little if any reference tional and regional contexts without a diagnosis to ‘best practice’” (Tether, 2006, p. 9). Tether of the country or region in which the programme (2006) identifes fve models of design support was going to be transferred (Raulik-Murphy, programmes (Table 7):

Table 7: Tether’s models of design support programmes (Tether, 2006, p. 8)

Model Description and examples Role of design support agency Mode 1 SEE design (2005-2007) partners do not provide this Individual assistance. The The direct provision of type of support. design support agency acts design consultancy to as a design consultant. individual frms. Mode 2 Examples of this kind of initiative include bringing Individual assistance. The Subsidising invest- together designers/design consultancies and frms that design support agency di- had never previously used design or providing place- ments in design in rectly assists frms with their ments for designers in companies. design projects. individual frms. Examples of programmes: Czech Republic’s scheme, and the Danish Design Icebreaker Mode 3 Agencies frst help frms identify their needs, then The agencies act as advi- Individual counselling assist the selection of designers if appropriate. The sors. relationship between agency and frm ceases when frm and advisory services and designer match, or may continue until the end of the project. Examples: One-to-One Advisory Scheme (Design Wales), and the Design Pilot Scheme (the Centre du Design Rhône Alpes, France). Mode 4 These activities bring together frms with similar needs The design support agency Workshops or semi- and deliver information to them as a group. Some ex- does not provide individual amples of SEE partners are: the Trend, Style and Colour nars providing design business assistance, work- Events (Design Wales), the ‘Design Makes a Differ- ing on activities that are advice ence Workshops’ (Design Flanders), and seminars for taken up scale. ‘no-design’ companies (the Centre du Design Rhône- Alpes). Mode 5 Endorsements through the granting of an award or The award making body Recognition of de- certifcate generally held through open competition involvement can range from seeking to recognise excellence in design, or to recog- sign achievements no involvement to an active nise products or indeed processes that satisfy certain partnership. through awards or criteria. certifcation Examples: the Green Home scheme (CSM, the Experi- mental Centre for Furniture and Furnishing, Tuscany, Italy)

35 Tether (2006) notices the diversity of programmes’ goals ranging from improving economic performance to non-economic grounds, such as maintaining or enhancing cultural values or fostering environmentally sustainable design practices. 104 Modes 4 and 5 are also recognised as design the Meeting of Minds workshop held in Estonia, promotion depending on the source. Tether which was formulating a proposal for a national (2006) considers the scalability of those ac- action plan for design (Ball et al., 2011). tivities rather than typology to classify them as Jonathan Ball and Justin Knecht created a design support or promotion (see Figure 24, p. tool, the Business Support Canvas36, which is a 107). framework aimed at supporting design, set-up, Schneider et al. (2015) question the value in delivery, and evaluation of support programmes climbing up the design ladder considering em- (Ball et al., 2011). This tool was used to analyse pirical evidence that has shown that design support programmes during the Meeting 37 “design does not need to be “integral” to the of Minds workshop. Next and best practices strategy of the business before it achieves a among programmes in different countries were huge impact […] a business can stand at the identifed during the workshop, contributing to intermediary steps of the “design ladder” but the outline of Estonia’s support programmes for there might be little or no value to climb up […] implementing design. the key success factor is to fnd the right ft between the business strategy, its competen- The design support programmes considered cies, capacities, the markets it wishes to serve were (Ball et al., 2011): and the design skills that should turn these − Innovation by Design, Ireland; factors into tangible products, services and signs”. (Schneider et al., 2015, p. 11) − The Service Design Programme, Wales; Recognising specifc design fnancial out- − Better by Design, New Zealand; comes and impacts have been considered a − Criacao Parana, Brazil; harsh topic as discussed in Chapter 1, especially within SMEs. − Design Boost and 360° Design, Denmark; Long-running programmes, such as the ones − Design Support Programmes, UK. delivered by Design Wales and Designing De- The presence of a Brazilian design support mand in the UK, have infuenced other pro- programme is coherent with the idea that Es- grammes at the regional and national level (Ball tonia, like Brazil, can work as a case that is not et al., 2011). The need to identify best practices convergent with the UK, New Zealand, and Den- and to build a legacy that lead to improve fur- mark programmes once they are embedded in ther design support programmes was explored very different contexts regarding political and by Ball et al. (2011) in the publication Building economic environments. Then, it can contribute Next Generation Design Support Programmes, to insights that concern a different reasoning a SEE platform booklet, based on insights from related to the context.

36 This Business Support Canvas tool and its questions can be downloaded at http://www.businesssupportcanvas.com/downloads/

37 regarding changes in working practice as they occur, considering learnings from prior or current programmes 105 The need for long-run strategies and the key Defne: success factors for economic impact are stood − DO defne client readiness at the outset. out through two speeches from members of de- As participant selection is critical for any sign support programmes’ best practices: programme success, it is important to se- “We started with the design audit, but soon lect participants that are “ready” based on realised that just pointing a company in the the desired outputs of the programme; right direction was not enough. It’s got to be a journey; it’s got to be a long-term relationship − DO prototype before piloting or scaling with big helpings of both inspiration and prac- your programme; tical support along the way […] We’re in the − DON’T choose breadth over depth. This business of transformation, so it’s all about means dedicating programmes to lasting changing hearts and minds, and the key person you need to infuence is the CEO.” Judith impact and defnitive economic beneft Thompson, Better by Design Director (cited in unless the only programme ambition is Ball et al., 2011, p. 4) design awareness. “There are four things that are critical for your Set-up: programme’s success, for economic impact − DO charge for participation to keep part- and a sustainable legacy within the businesses. Content, meaning your processes, tools ner and clients involved; and techniques. Design associates. Client − DO map both the journey and the desti- readiness. The right designers.” Jonathan Ball nation. Provide a visual map of the over- from UK’s Design Support Programmes (cited all process from the programme’s mile- in Ball et al., 2011, p. 5) stones; The ‘next practice’ suggestions or a basis for − DON’T allow a company on the pro- future programme development were organ- gramme without CEO participation, the ised under seven key headings: Policy, Defne, ‘CEO + 1’ rule. If senior management does Set-up, Delivery, Promote, Measure, and Impact, not take part, the company should not join indicating what to do and what not to do (Ball the programme. et al., 2011). The synthesis of these next practices’ headings by Ball et al. (2011, p. 6-7) are Promote: described below: − DO promote economic impact, quantify Policy: benefts; − DO align with key policy objectives and − DO use the right language. Straightfor- measures; ward business language. DON’T use jar- gon. − DO the right thing. Though it is important to tie into key policy, a programme should − DO visit the companies. Invest a lot of time prioritize the needs of target companies to ensure you are selecting the right com- through desired outcomes rather than panies and invest in relationship building volume; with existing support networks and agencies for strong client referrals. − DO be prepared to change your language for different audiences beyond business, Deliver: such as policy-makers and government − DO take risks, especially in the prototyp- members, in order to communicate de- ing phase, where there are meaningful sign-led programmes benefts. learnings when something goes wrong

106 more than when everything goes right; the following programmes: − DO use action-based learning, begin with − SME Wallet – Flanders, Belgium; tangible topics; − Design for Export – Czech Republic; − DO use visual tools and frameworks, or a − Design Boost – Denmark; common language for everyone involved in a programme. − Design Bulldozer – Estonia; − DO build local capability for delivery. Iden- − Service Design Toolkit – Central Finland; tify and involve the right design partners − Extraversion: Competitiveness of Enter- that should be regional or national re- prises – Greece; source in the long-run; − Innovation by Design – Border, Midland, − DON’T keep the wrong company on a pro- and Western Region of Ireland; gramme. When a company is not committed to the programme, those resources − Design Silesia – Silesia, Poland; should be better invested in other partici- − The Service Design Programme – Wales, pants. the UK / The Design Leadership Pro- Measure gramme – the UK. − DO build evaluation into procedure at the They describe the focus of reviewed pro- outset. Defne measures before the be- grammes that ginning of the programme and monitor “range from subsidies for design costs (SME them considering the desired impact. Do Wallet and Extraversion), promoting design periodical reports and collect images and as a factor for export (Design for Export and quotes throughout the way to build com- Design Boost), specialised service design in- pelling case studies and stories. tervention (the Service Design Toolkit, Design Silesia and the Service Design Programme), Impact piloting intensive intervention (Design Bull- dozer and Innovation by Design), improving − DO measure impact, quantify it. Stories the expertise of designers (Design Bulldozer, are not enough for future funding. Design Silesia and the Service Design Pro- − DO maintain legacy. Do follow-up with gramme) to a broad package of support (De- past participants to understand every sign Leadership)” (Whicher et al., 2013, p. 3) aspect of your programmes legacy. Turn Whicher et al. (2013) emphasise the impor- past clients into advocates. tance in considering each context features in or- Whicher, Cawood and Ryan (2013) provide an der to better craft design support programmes: overview of design support programmes and “each programme was developed as a result of recommendations from their analysis. ‘Review- a unique mix of political, economic and stake- ing Design Support Programmes in Europe’ holder circumstances that were intended to (Whicher et al., 2013) is a complementary publi- address a particular regional or national issue cation to ‘Building Next Generation Design Sup- or objective” (Whicher et al., 2013, p. 3). The report Programmes’ (Ball et al., 2011) that aimed port seeks to explore programmes learnings in at informing “the development and delivery of their contexts rather than defne best practices, new support programmes that ft the particular providing “recommendations for government circumstances of regions and nations rather and insight on changing attitudes to design in than encouraging replication” (Whicher et al., SMEs” (Whicher et al., 2013, p. 4). 2013, p. 3). They (Whicher et al., 2013) review Most programmes focus on SMEs but with 107 particular specialisms, profle, and targets (e.g. export companies, tourism sector, or manufacturing) (Whicher et al., 2013). There is the trend towards more strategic and specialised intervention to fewer companies (e.g. 360° Design programme - Denmark, Danish Design Centre) instead of offering limited intervention to a large number of companies as noticed in prior design support programmes (Whicher et al., 2013). The companies’ contribution to the cost of programmes has been considered by programme coordinators as a way to keep business managers committed and to make them realise the value of the service (Schneider et al., 2015; Whicher et al., 2013). The total annual spending of a country on design support programmes is difcult to be identifed because “design can feature in multiple programmes, delivered by multiple organisations and funded at multiple levels of governance (national, regional and local)” (Whicher et al., 2013, p. 9). The majority of programmes do ex-post evaluation (when the programme is over) focusing on a number of activities held and participants, and developing qualitative case studies to show successful cases rather than measuring impact indicators (e.g. new products or services launched, new spending on design expertise following programme intervention, and return on investment) that are considered costly assessments to be carried out (Whicher et al., 2013). Two tools used to analyse the programmes were: the Design Support Blueprint (Figure 25), an instrument that supports design stakeholders and policy-makers through the process of planning, delivering, and reviewing design-led business support programmes, and the Pro- gramme Evaluation Wheel (Figure 26) (Whicher et al., 2013).

108 Figure 25: Design SupportFigure Blueprint (Whicher et al., 2013, p. 4)

109 Figure 26: Programme Evaluation Wheel (Whicher et al., 2013, p. 5)

Their conclusion points out that there are still the supply of design expertise is of a sufcient barriers to scale up design skills in small busi- quality” (Whicher et al., 2013, p. 14). Hence, they nesses and in the public sector across Europe, report the need to improve the skills and busi- noticing that design is not considered in the ness models of the professional design sector broader innovation and business support pro- (design supply), as well as to train companies grammes. Hence, their main recommendation is and public ofcials to use design methodolo- “to integrate design as a component of broader gies and user engagement tools (Whicher et al., innovation and business support programmes 2013). and promote the take-up of design in national The programmes’ measurable impact and re- programmes targeted at SMEs” (Whicher et al., sults should be used to further policy develop- 2013, p. 14). ment and to improve the programme. One ex- They advocate for the implementation of spe- ample of best practice regarding this aspect is cifc innovation policy targets with specifc sec- the Designing Demand programme, which has tors, such as manufacturing and healthcare, kept the UK Government support based on its emphasising the importance of design qual- measurable impact on companies (Whicher et ity: “Demand for design will only increase if al., 2013).

110 Whicher et al. (2013) advocate an explicit activities, and awareness of the indirect promotion of design within innovation support value offered to their customers. programmes, arguing that design can be hidden Other fndings were that most design inter- and might be rarely accessed by business. On vention programmes target small businesses the other hand, the authors (Whicher et al., 2013) that “lack a maturity of organisational struc- emphasise that design support programmes ture and management expertise” (Whicher et and policies should be aligned regarding policy al., 2013, p. 14), so to increase the impact in aspirations and implementation. medium and large-sized organisations the pro- Linzi Ryan provides some outcomes of a re- grammes should be more focused and special- search that targeted traditional manufacturing ised; moreover, the need to evidence the value frms in Ireland within this report (Whicher et of design for innovation through defned met- al., 2013). The study is spurred by the discov- rics with ex-ante and ex-post data evaluations ery that most SMEs in Ireland use design as is emphasised. style, not recognising strategic design that was However, the problem of measuring, especial- considered outside normal activities. The result ly the ROI (return on investment) of design (see was the proposition of some rules that can help for instance Cooper et al., 2016; Schneider et al., familiarise small businesses with strategic de- 2015; Westcott et al., 2013) has been evidenced. sign. They refer to: Thus, methods to measure design value are still − top management support, lacking a solid basis that considers the broad implications of design beyond design intensity − awareness of the dominant culture in or- (based on sales). Moreover, the design invest- der to question the value of that to current ment is usually complementary to other invest- and future initiatives, ments, such as R&D and marketing (Cooper et − focus on the value proposition consider- al., 2016; Tether, 2006; Tether, 2007), then its ing tangible and intangible assets to make pay-off should not be realised without those customers clearly recognise the value of (Tether, 2006; Tether, 2007). the offerings, On the other hand, the need to evidence de- − defnition and communication of a clear sign benefts is highlighted to infuence organi- design strategy in the company, sations’ decisions in investing in design, as − strong customer relationships building, Thenint (2008) claims: − communication to staff about reasons for “It could be argued that one should not persist on measurement issues but the lack of fac- change and to customers showing new tual evidence of design’s added-value consti- offerings benefts beforehand, tutes a mental barrier to business strategists’ − learning from mistakes, avoiding future choice. As a matter of fact, aversion to risk and ones. The need for changing operations returns on investment are two major manage- to implement new strategies can spur ment decision criteria.” (Thenint, 2008, p. 7) mistakes, staff members should feel com- The need for effective measurement of design fortable and confdent to freely make sug- benefts is felt among researchers, practitioners, gestions, being supported by an open in- and design advocates (Bitard & Basset, 2008; novation mindset from top management Raulik-Murphy, 2010; Thenint, 2008). Bitard and that should be less risk-averse, Basset (2008) highlight the need for measure- − measure success considering the value ment and for an effective ofcial statistic sys- of design within company processes and tem to justify policies in support of design.

111 Whicher et al. (2013) explain that evaluations induced. The authors stress the need for quan- generally focus on measures of activity, such as titative, as well as qualitative evidence of bene- the number of enterprises assisted, the num- fts from design support programmes (Whicher ber of individuals assisted, and the number of et al., 2013). collaborative R&D projects. They (Whicher et The Design in European Policy project (DeEP), al., 2013) describe the Common EU-level indi- a European Commission design innovation ini- cators of impact that are used to ‘understand’ tiative (Maffei et al., 2014a) provided a compel- the programmes’ impact, they are: the num- ling framework to ex-ante and ex-post evalu- ber of jobs created, the number of enterprises ation. They (Maffei et al., 2014a) suggest the created, proft beneft, the number of products, following macro and micro design indicators processes or services registered, the number of (Tables 8, 9): new or improved products, processes or services launched, and the value of new investment

Table 8: DeEP’s macro design indicators

112 Table 9: DeEP’s micro design indicators

113 The proposed DeEP measures ft especially in − Nearly 60 per cent had increased their European contexts, not being possible, for in- sales turnover, stance, to apply all of them in some emerging − About 60 per cent had increased their economies contexts that lack data regarding proftability, design, such as the ones proposed in the Inter- national Design Scoreboard (Moultrie & Live- − Around half had increased their exports, sey, 2009), and some of them can have different − 40 per cent had increased their employ- evaluations depending on the background of the ment. evaluator. This indicates the need for a design background and skills not just for identifying The author clarifes that these positive re- problems and opportunities, crafting, develop- sults are not just related to design support pro- ing, managing, and implementing initiatives, but grammes “but it is likely that design has played also for evaluating them considering the target a part in these successful outcomes” (Tether, businesses’ design maturity. However, some of 2007, p. 4). This survey also points out that de- the suggested measures are common to any or- sign has similar signifcance to R&D for frms - ganisation which enables further analysis and which is corroborated in more recent research adaptations to other contexts. by Cooper et al. (2016) - although policy-makers tend to be more favourable to providing in- Tether (2006) emphasises the need for eval- vestment in R&D (Tether, 2007). uations not just to keep design support programmes active but to recognise when design Schneider et al. (2015) provide criticism and support should cease in frms, particularly when identify best practices in design support pro- its benefts do not make a difference anymore, grammes across Europe (e.g. the UK, France, or when diminishing returns have set in. Spain etc). They (Schneider et al., 2015) provide an in-depth analysis of six programmes which Tether (2007) presents a framework for design have demonstrated an active engagement with support programmes evaluation based on data businesses beyond dissemination of the design gathered considering the perception of pro- role and good practices, including: grammes’ impact from client frms of SEE design partners’ programmes. Nevertheless, these − Design Leadership Programme for Busi- outcomes are based on client frms’ (or benef- ness (formerly Designing Demand), Brit- ciaries) perceptions since gathering “informa- ish Design Council, the UK; tion that is not normally collected” directly from − The Design Integration Programme (next client frms sounds like an “awkward intrusion” step of Better by Design initiative), New (Tether, 2007, p. 3). Zealand Trade & Industry, NZ; Tether (2007) observes the importance of − Innovation by Design, Centre for Design managing frms’ expectations considering their Innovation, North & West Ireland, IE; design experience, whether they have already − Design 360 and Design boost, Danish De- used design and at which level they have ex- sign Centre, DK; perienced it or whether they are ‘novices’. This survey (Tether, 2007) answered by benefciary − Design-driven Innovation Programme, frms shows that: Norwegian Design Council, Innovation Norway & Research Council of Norway, − 85 per cent had increased their awareness NO; of design, − SME support pilot programme in Brittany − 80 per cent had also increased their in- and Picardie regions, APCI, FR; vestment in design, 114 − Red dot “young designer”, Design Zen- als can contribute to business recognition trum Nordrhein Westfalen, DE. of the value of design, The Red dot is considered within the scope of − a key criterion for business selection is design promotion schemes in this thesis. These the commitment of top management programmes were inquired through the Regions member(s) that can be demonstrated by Supporting Entrepreneurs and Designers to In- attending activities and being part of the novate (REDI) initiative. project team. Among these design support programmes Causes of design support programmes failure studied, two were considered noteworthy by are also pointed out as follows (Schneider et al., streamlining “in a broader perspective on inno- 2015, p. 37-38): vation” beyond “pilot schemes” approach, and − Timeframe, short deadlines, having a narrow target group and focus, they are: the Design Integration Programme (NZ) and − The absence of a diagnosis, the Design-driven Innovation Programme (NO) − The lack of designer acceptance by the (Schneider et al., 2015, p.2). company, Their fndings (Schneider et al., 2015) em- − The shortage of a business model analy- phasise the importance of mentoring, including sis, including a consistent fnancial analy- individual support by an advisor or consultant sis before launching the design project, with a background in design management. The authors stress that (Schneider et al., 2015, p. 2): − Business and project strategies are not “Programmes that have focused on getting the aligned, design project being done without some prelim- − The company is not ready to invest time inary audit seem to have poorer results: match- and money, making is not sufcient in the long-run”. − Other urgent projects get the priority, Other observations stand out throughout this − Lack of top management commitment, report (Schneider et al., 2015), such as when the programme or budget ends, the continuity − The study phase is too long for the man- of design use by these businesses is at risk. ager, This fact is also noticed by Julier (2017), who − The global cost of the project. observes the dissolution of communities and networks with the end of design for social in- Furthermore, the report (Schneider et al., 2015) novation initiatives. The key issue still is how to offers a range of recommendations on craft- make these initiatives (that are funded through ing design support initiatives regarding: target public money) more sustainable in the long- businesses, target audiences prioritising, activi- term, scaling them up. Other issues identifed ties typologies, and programme architecture. by Schneider et al. (2015) are that: Concerning target businesses, they (Schnei- − most business managers’ lack of design der et al., 2015, p. 32) suggest: awareness and understanding, − To defne a specifc objective for the ac- − programme managers believe that a con- tion, tribution in cash to the programme could − To adapt the communication to the tar- improve businesses commitment towards gets and level of interest of the business, design support initiatives, − To distinguish between design experi- − the good reputation of design profession- enced managers, users in a specifc de- 115 sign feld and novices. by these non-proft private entities. The architecture of design support pro- Schneider et al. (2015) propose a benefciar- grammes is a topic of major interest in this ies’ contribution to design support programmes inquiry. Schneider et al. (2015, p. 37) summa- or a fee to join a programme: €300 for a diag- rise a standard approach and methodology for nosis, and €600 for support, much lower values individual support from the initiatives studied, than the service value. They also emphasise which can contribute to “qualitative, scalable, the need for specifc funding to develop tools, rooted in values, context and companies’ leg- methodologies and optimise resources (Sch- acy” (Schneider et al., 2015, p. 13). The steps neider et al., 2015). summed up are (Schneider et al., 2015, p. 37): The difference between countries and regions 1. Diagnosis of the needs: to match a clear in Europe is also highlighted: “There are still na- demand with the company’s strategy. tions in Europe in which “design” does not ap- Phase to be accomplished by people with pear on any innovation policy document, be it a background in marketing and fnance; at the national, regional or even local level […] many industrial regions in Europe have no ac- 2. To assess the potential of the programme cess to design services…” (Schneider et al., through an evaluation committee if a spe- 2015, p. 45). cifc grant is proposed; Schneider et al. (2015) bring light to the de- 3. Selection process of a design consultan- sign support initiatives in a compelling manner, cy, defnition of the tendering brief; providing signifcant insights; however, some 4. Development of the project: to follow the key issues risen are not explored in depth, for launch of a call for tenders to identify ap- instance, the unsustainability of these ac- propriate services providers. A private tions after the programmes are over, the need contract between the company and the to change stakeholders’ mindset and to design design consultant is set. programmes from the business perspective European design support initiatives studied rather than from a policy-maker point of view. by Schneider et al. (2015) stop at the establish- The evaluation of the programmes, as well as ment of the private contract (step 4 – develop- the need for a regional or territory focus rather ment of the project). In Brazil, the main design than an individual business focus, are also not support programmes include the contract of the inquired with more accurate propositions on design consultancy (or of the intermediary that how to promote this needed changes which are is going to implement the project) using a public set as future research. call for tenders or using design frms database The awareness of design and its value is a of the design support agency. After that, the ac- key issue rather than the access to design ser- tion implementation is monitored and evalu- vices since there is not a true business’ design ated (ex-post) by the design support organisa- demand when there is no design awareness, tion which offers the programme. Generally, the understanding, and commitment within busi- non-proft private entities, which are in charge nesses. And, if the senior management of the of design support initiatives, set temporary or company is not able to take part in the pro- by-service contract to hire a design consultan- gramme activities, this can suggest that the cy for business. Tendering brief for the service company is not ready to join that kind of project. provider, the design of the support initiative, its Hence, it brings a refection on most projects’ monitoring (standard audits of the implementa- targets, architectures, as well as on design sup- tion process), and its evaluation are managed port programmes’ typologies that have been

116 employed. − The support of the competitiveness of individual businesses, rather than sectors Another criticism that has been discussed or regions (Schneider et al., 2015, p. 14- is to attain government support. Boult (2006) 15); highlights the issue: “… if design support is to develop it will need to be heard in that most dif- − The lack of a broader perspective, such fcult of places, the public governmental arena. as macroeconomic or socio-economical This is probably the greatest challenge of all.” approaches: e.g. focus on some sectors, (p. 7). Boult (2006) stresses the need to build territories, quality of jobs — raising the evidence of benefts of design support pro- knowledge or skills intensity (Schneider, grammes, stating the difculty in gathering tan- et al, 2015, p. 14-15); gible results directly related to these initiatives, − The need for criteria that would assess in then suggesting the development of soft met- a broad manner the innovation capacity of rics “into schemes which can become equally businesses vs. evaluating the innovation as convincing and compelling” (Boult, 2006, p. in a given product or service (Maffei, Bi- 7). anchini, & Mortati, 2014b; Schneider et al., Another aspect that is generally overlooked in 2015, p. 14-15); design management studies and programmes − The failure in the selection of the design schemes is the difference among designers policies’ benefciaries suggesting that the and design consultancies, which is observed by selective processes of benefciaries have Boult (2006) and Schneider (2006). Boult (2006) not achieved the ‘right companies’ with claims “… not all designers or design consultan- the potential to innovate (Maffei, Bianchini cies do the same thing or even do similar things & Mortati, 2014b); to the same level. Thus realistic ways to identify and apply relevant design competencies will − The focus on quantitative aims (such as need to be explored” (p. 7). the number of SMEs supported) rather than on the quality of the approach, de- Projects of integration of design into MSMEs sign work, and capacity building (Schnei- or design support initiatives have presented der et al., 2015); shortfalls related to the capacity to build an innovative culture38, as well as their approaches − The difculty in evaluating design impacts and instruments throughout the development at the frm level (Cooper et al., 2016; Sch- process, such as: neider et al., 2015; Westcott et al., 2013), as well as building a culture of evaluation − The shortage of qualitative studies that at the design policy level (Arquilla et al., look at design and management (Schnei- 2015). der, et al, 2015, p. 7);

38 An innovative organisational culture is based on the implementation of ideas (Kenny & Reedy, 2006, p. 119). Innovative cultures are risk-taking, engage all members promoting participation, encourage creativity, learning, share responsibilities, are committed to innovation (Kenny & Reedy, 2006; cited in Naranjo-Valencia, Jiménez- Jiménez, & Sanz-Valle, 2016), and can be measured by a number of innovative services or products launched (Kenny & Reedy, 2006) and investment in innovation (Rao & Weintraub, 2013). 117 not addressed within a major framework of industrial policy, for instance, being fragmented in Rationales for design policies diverse design programmes that lacked a comprehensive strategy to enhance competitive- This section draws on literature regarding de- ness at the time (Er, 2002). The lack of linkages sign use and policies, and their relations to eco- of design policies to national economic strategy nomic and political approach. Heskett (2010) is one of the main reasons for failure (Er, 2002), relates the origin of the development of luxury and the industrial instability, although industrial product industry and design education in France stability and authoritarian governments tend to its monarchy and absolutism history from to produce incremental rather than radical in- 1589 which had its peak with the Sun King, Lou- novation (i.e. Heskett, 1999, 2016). Failures in is XIV. The presence of an architect as a minis- addressing design policies include cases in ter (the strategic position shows the importance countries, such as Canada, Britain and the Neth- and power attributed to that background), and erlands (Er, 2002). Design policy’s role and ben- the fact that this policy was sustained for gen- eft in economic competitiveness are not agreed erations reinforced the position adopted by the upon and clearly evidenced (Er, 2002). government, as well as its values, consolidating the French competitive power in the luxury In the late 1990s, some countries in Europe domestic and international market through the (e.g. Finland) started to integrate design policy quality of work (Heskett, 2010). As stressed by into macro policies in related areas, such as in- Heskett (2010, p. 5) the competitive and stra- novation policies usually directed to SMEs (Er, tegic French position was built upon sustained 2002). This approach is still adopted in many policies and political vision instead of being an European design support programmes but innate asset: some countries in Europe, such as Finland and Denmark, have moved towards support to en- “The role of France as a leader of taste in Eu- terprises at strategic levels including also large rope was not an accident, and had nothing to enterprises from the 2000s (see for instance do with any innate quality of taste in French Bitard & Basset, 2008; Raulik-Murphy, 2010; culture. Instead, it was the outcome of long- term consistency in political policies, and sup- Whicher et al., 2013). port for design practice and education in qual- Looking at more recent studies we can still ity manufacturing.” (Heskett, 2010, p. 5) state the defnitive role that adopted policies, Heskett (1999, 2016) states that evidence that political position, and economic approach play design policy can promote economic competi- in supporting or not design and innovation in a tiveness is mixed, relating to two factors: country. The argumentation of this section explores these political and economic infuences. − Authoritarian characteristics in govern- Among these studies, Heskett (2009) discusses ment (e.g. absolutism in France [17th how design can be related or not to different century], or a guided economy in Japan economic theories, Swann (2010) points out [the 1950s]); economic rationales for design policies in the − Relative industrial stability in industries United Kingdom, Tether (2007) highlights dif- which tends to incremental innovation ferent economic positions to design support, (ceramics and tapestry [18th century], au- Julier (2017) brings into light how design has tomobiles and domestic electrical prod- changed according to the political and econom- ucts [late 20th century]). ic changes, Mazzucato (2013) emphasises the role of the government in national innovation In the UK, design is perceived as a tool for investment, Er (1997, 2002) highlights the role economic growth in the 1980s; however, it was 118 of government strategies in defning the nature lates how design policies can fnd specifc of the competitive environment, and Raulik- economic rationales according to three main Murphy (2010) stresses the need to review the theories: Neoclassical and New Growth theo- rationales for design programmes. ries from economics, and the ‘footloose multinationals’ theory from international business. Heskett (2009) and Swann (2010) build upon These three perspectives do not exclude one economic theories and are concerned with another; they address different issues accord- which one is more convergent with design po- ing to Swann (2010). The author proposes ge- tentialities (Heskett, 2009) and the need for a neric design policy options for the UK, address- policy justifed by economic rationales (Swann, ing different economic rationales according to 2010). Tether (2007) briefy describes how dif- each perspective. Swann (2010) suggests that ferent economic approaches are favourable or three main areas should receive strong sup- not to design support, while Julier (2017) no- port: Creating National Design Assets, Design tices design development as a discipline and for Complex Systems, and Standards for Design practice being shaped by and shaping eco- Strengthening the Design Profession; and other nomic and political changes, he focuses on how two should receive some support: Public Ex- design provides responses to those changes penditure on Design, Stronger IP and Tax Cred- and, at the same time, shape them, rather than its Education about Design. seeking for one rationale within economic theories. Mazzucato (2013) focuses on the govern- There are different positions about the role of ment as a fundamental player in research and government intervention in private businesses. development that is further exploited for market Free market liberals argue that the government purposes. Er (1997, 2002) points out the fun- should not interfere or interfere with the mini- damental role of learning by exporting in the mum necessary. Tether (2007) points out di- development of design capabilities in a coun- verse perspectives that refect on providing or try, highlighting the role of government policies not providing design support to business: in stimulating this. Raulik-Murphy (2010) ob- “Free market liberals argue that design should serves that rationalities for design programmes be treated as any other investments in intan- have been more related to the market failure, gibles made by the frm, such as advertising constituting a corrective measure rather than a or R&D. Firms should make their decisions preventive one. about whether to invest in design, just as they decide to invest in advertising or R&D, whilst Heskett (2009) argues that the Neo-Classical it is up to designers and design agencies to theory is not appropriated to get and to evidence promote their services to potential clients. Op- design benefts because their logics are contra- ponents argue that design, like R&D, is likely dictory: design “by defnition creates imperfect to suffer from “market failure”, particularly due competition… a state of disequilibrium as a per- to asymmetric information, and consequently manent condition” (p. 74). The author (Heskett, frms are likely to under-invest in design. Oth- 2009, p. 83) proposes a compelling refection on ers argue that design should be supported the relations between design and economics, because it plays an important role in cultural emphasising the limitations of economic theo- expression.” (Tether, 2007, p. 3) ries to consider design as an element of change The characteristics and behaviour of small and a way to envision potential futures, pointing businesses suggest the need for design inter- out that economic theories fail to get the con- ventions. In a political point of view, Swann’s text of use and the roles played by design which (2010) reference to Abraham Lincoln sheds affect people’s lives beyond the point of sale. light on that: “The legitimate object of govern- Swann (2010) provides a framework that re- ment is to do for a community of people, what- 119 ever they need to have done, but can not do at that should aim at facilitating relations, provid- all, or can not so well do, for themselves in their ing efcient interfaces and framework condi- separate and individual capacities.” (cited in tions for frms to adopt design-driven innova- Swann, 2010, p. 1). tion strategies. Economic rationales can differ not just in Thenint (2008) argues that terms of the economic theory considered, but “market failure could not be an adequate way they also depend on the specifc conditions in to justify support to design since it is not a which the country is immersed (e.g. governmen- sector or a structured activity. As discussed tal approach to economics, such as the level of during the meeting, design does suffer from protectionism and interventions in economy, signifcant transaction costs and, above all, and the kinds and weight of taxations), as well information asymmetries between design us- as the sociotechnical aspects, which can also ers, design providers as well as design educa- be rooted in diverse aspects, such as culture, tion and research. Hence, to justify a design history, society, politics, and infrastructure. In support policy, it would be better to talk about other words, some economic rationales can be systems failure”. (Thenint, 2008, p. 10) more important in one context than in another Julier (2017) provides a compelling outlook of depending on circumstances in which a country how design has been shaped in response to the is embedded, and they can also change accord- political and economic environment, particu- ing to time and achieved ‘design evolvement’ in larly drawing on the neoliberalisation processes a country. in Western contexts, especially in Europe, that Although some contexts can be observed in have spurred design changes, diversifcation, the light of market failure perspective, the sys- and specialisations. In his reasoning, design of- tems’ failure (New Growth Theory from evolu- fers responses to the diverse political and eco- tionary economics) seems closer to shed light nomic changes and challenges rather than be- on rationalities for design interventions, even ing aligned with or considered within economic if it does not get all design dimensions as em- theories that justify its use. phasised by Heskett (2009). Knowledge is a key This idea suggests that external economic driver in the New Growth Theory, which advo- and political contexts are defnitive to design cates that governments should invest in knowl- evolvement, understanding, and use. Thus, de- edge since citizens and the private sector can- sign in a defned context and time is a product not have appropriate resources to do so, and of or response to its environment while it also economies cannot rely on physical resources produces substantive changes in the context of to develop and grow. This theory also advo- networked governance through the role of de- cates the importance of public sector invest- signers in policy-making processes that leads ment in infrastructure that can generate better to re-imagine “what the state, publics and their revenues, attracting external investments and relationship might be” (Julier, 2017, p. 157). reducing production costs. The role of government as innovation risk Bitard and Basset (2008) address initiatives sharer comes from the post II war period in proposals to harness design through a common advanced economies, and the State’s demand framework for a European design policy organ- to stimulate innovation is historically related ising them within the scope of market failure, to the R&D effort of the defence sectors in the setting out specifc support measures “in case USA, being intensively practiced throughout the the market for “design activities” does not per- 20th century (Torres Freire, Massami Maruy- form efciently” (Bitard and Basset, 2008, p. 60), ama & Polli, 2017). Since the 1980s, the USA’s and systems failure, which refers to initiatives government has shared innovation risks with 120 small businesses and has stimulated demand atically in the NICs (Er, 1997). Hence, the ca- for technology from them. The Small Business pacity of governments to integrate design into Innovation Research (SBIR) is one example of their development policies appears crucial to a non-refundable public resources use (Torres country’s design capability development rather Freire, Massami Maruyama & Polli, 2017). than providing design support and promotion to frms, as observed by Er (1997, 2002): Mazzucato (2013) points out the role of the public sector investment in innovation in the “… the development prospects of [industrial] USA concerning research and development design in NICs are related to the extent to funding39. The USA’s government plays a sig- which governments are prepared to absorb nifcant investor role. Some outcomes of its in- design as an integral part of their long-term development strategies, rather than to the ex- vestments in R&D are, for instance, technologies tent to which they give direct support to de- that were applied to some Apple products. Maz- sign institutions and promotion” (Er, 1997, p. zucato (2013) argues that the state as an inno- 299; Er, 2002, p.167) vation investor should get better returns from these innovations that went into the market in Er (2002) advocates the need for a design pol- order to provide a better reinvestment from the icy in Turkey in order to improve the competi- public sector. Thus, following Mazzucato’s rea- tiveness potential of Turkish businesses in an soning, the state is a key player in innovation environment of domestic market liberalisation investment across a country while such risky and export-oriented economy, once companies investments could not be done by the private by themselves have not been able to integrate sector. An environment where research and de- design into their routines, although they have velopment are well developed and receive ap- started to recognise the need for design but do propriate investments favours design activities not know what to do. that can contribute to those towards the market Germany in the 19th century and Japan in the through the human-centred approach, envision- 20th century are examples of countries which ing future applications and desired features. harnessed systematic government-led indus- Er (1997) highlights the role of government trial and technology policies within their frame- policy in stimulating outward-looking indus- work of national economic strategies, catching tries. Government policies “determine not only up or even taking over leading countries (Er, trade regimes – the direction of market orienta- 2002). tion – but also the mode of technology transfer Raulik-Murphy (2010) stresses that design through foreign investment policy and industrial programmes’ rationales have been more cor- structure through sectoral policies” that defnes rective, for instance, addressing business’ “the nature of competitive environment in which market failure, instead of promoting preventive frms operate” (Er, 1997, p. 299). He notices that measures, for example, ensuring a good quality export-oriented economies and industries tend of design education and fostering connections to better develop design capabilities system- between design students and graduates, design

39 Although the USA adopts a more neoliberal approach to the design industry (Bitard & Basset, 2008). 121 professional sector and companies. The author (Raulik-Murphy, 2010) notices that focus on market failure also took place in the case of technology and innovation policies, which have moved towards a system failure approach that is based on the network of actors that depend on one another to support innovation activities, and in which the interaction of actors works as generators of knowledge transfer, collaboration and competition. Thus, a well-functioning network becomes critical to attaining success (Teubal, 2002 cited in Raulik- Murphy, 2010). According to Raulik-Murphy (2010), design policies should have broadened rationales aligned with country priorities and agenda in diverse sectors, contributing to the country competitiveness and welfare. Er (2002) corroborates this idea, emphasising that: “The lack of linkages to major government policy areas such as trade, industry and technology is a serious weakness in both understanding the design policy options within a dynamic and coherent fashion, and in implementing design policies in an effective way.” (Er, 2002, p. 163) Er (2002) reinforces the appropriate use of diverse policies in a consistent way, as well as the policy-makers’ ability to develop and change policies over time as crucial success factors: “… any meaningful link between development issues and the possible contribution of industrial design to the economic development process requires an evaluation of the role of design in the wider context of macro-level government policies” (p. 168).

122 CHAPTER 5 Design in Brazil a brief history and context40

“… we could begin to trace the history of design in Brazil before the arrival of the Portuguese. In this case, we would mention the capacity of indigenous Brazilians to objects - networks, screens, baskets and banks - in perfect har- mony with nature and with an inherent artistic expression” (Borges, 2009, p. 57)

40 This chapter contains fragments of the manuscript ‘Introducing design-driven innovation into Brazilian MS- MEs: Barriers and next challenges of design support’ (Fonseca Braga & Zurlo, 2018). It was originally presented at DRS2018 Conference: Catalyst, held at University of Limerick, Ireland, 25-28 June 2018. An initial version of the paper was included in the Proceedings of the event. This is one part of the reviewed version of the paper, improved with the contributions from the Conference, further literature review, especially on the Brazilian design support programmes. The influence of architects, such as Oscar 2009; Moraes, 2006; Moraes Junior, 2002). The Niemeyer, Lucio Costa, and Sergio Rodrigues, professors’ backgrounds were in architecture as well as Joaquim Tenreiro’s and Zanine Cal- and engineering (Borges, 2009). das’s furniture design, marked the basis of Design policy initiatives took place from the modern design and architecture in Brazil since 19th century in Brazil. The timeline (Figure 27, the 1940’s (Borges, 2009). In 1964, the Indus- 28, 29) shows events and initiatives related to trial Design College (Escola Superior de De- design policies cited in Raulik-Murphy (2010), senho Industrial [ESDI]) was founded in Rio de and other complementary sources (Borges, Janeiro, and held the frst higher education de- 2009; Cabello & Martins Costa Póvoa, 2016; sign course in South America; the educational CBD, Apex-Brasil, MDIC, 2014; Patrocínio, 2013). programme followed the Ulm School in Germa- ny, having some professors from there (Borges,

Figure 27: Brazilian design policy timeline – 19th century

124 Figure 28: Brazilian design policy timeline – 20th century

125 * PBD aimed at formulating a national design policy and at creating a synergy between diverse design initiatives in the country. This programme’s operation and leadership were limited, mainly due to lack of resources/budget. ** Design Centre Paraná had full support from the government at the beginning, is still operating but is no longer supported solely by public funding.

Figure 28: Brazilian design policy timeline – 20th century

126 Figure 29: Brazilian design policy timeline – 21st century

127 The discontinuity of design policy initiatives egy.” (Borges, 2009, p. 58) and the lack of budget to move forward are In 1995, the Brazilian Design Programme was some of the constraints faced by design pro- the frst noteworthy government initiative in the grammes and policies, as noticed by Raulik- feld of design policies promoted by the Min- Murphy (2010) and by Nunes (2013). Design istry of Industry and Commerce (Ministério da centres and industrial design laboratories are Indústria, Comércio Exterior e Serviços [MDIC]), opened but not thrive or survive, being vulner- recognising the need for a ‘Brazil Brand’ and to able to policy-makers’ mindset, political, and invest in distinctive design characteristics for economic climate. Programmes have been his- Brazilian products. Since then, it is noticed the torically interrupted or ended due to the lack of emergence of Brazilian designers in the interna- funding that hinders the development and con- tional scenario, working for renowned brands, solidation of design capabilities within organi- such as Motorola, Nike, Bentley, Volkswagen, sations, that are build by-product of practice GM, Disney; doing signed design for foreign requiring long-run strategies to promote sub- companies (e.g. Sergio Rodrigues, Campana stantial changes instead of one-shot initiatives Brothers); and having excellent performance which are usually held. And a policy, such as the in international design awards (e.g. iF- Design Brazilian Design Programme (PBD), does not Awards and Red Dot Design Award) (Borges, contemplate the practical implementation of its 2009; CBD, Apex-Brasil, MDIC, 2014; Kraichete, whole scope. Design initiatives are carried out 2015; primary data collection). In addition, Bra- isolated in a fragmented local and national sys- zilian brands start emphasising original fea- tem characterized by the lack of connections tures and multinationals with branches in Bra- and collaboration between key stakeholders. zil settled design departments in Brazil, having The economic model adopted, as well as the Brazilian designers also in charge of products late and forced industrialization process since development to North America, Europe, China 1964, when the military junta took power, led to and India (Borges, 2009). the Brazilian identity crisis (Borges, 2009, 2011; Despite the aforementioned aspects and Moraes Junior, 2002). Multinational enterprises, the diversifed industrial sector, Brazilian sec- mainly from the United States, Europe, and Ja- tors, such as furniture and automotive are still pan, arrived in Brazil, influencing habits, culture inward-focused, being concerned with local and society. This process is known as modern content and domestic market, and the industry colonization (Moraes Junior, 2002). These edu- is heavily protected from foreign competition cational, political and industrial contexts con- (Araújo, 2016; Arnold, 2016; Bradesco, 2017; tributed to the Brazilian rupture with its cultural Galinari, Teixeira Junior, & Morgado, 2013; Mo- roots (Borges, 2009, 2011). raes Junior, 2002; Organisation for Economic After the end of the dictatorship period in the Co-operation and Development [OECD], 2014). 1990’s, the market openness to international Moreover, productivity growth in Brazil is as- competitors brought consequences to the Bra- sociated with low value-added sectors, such as zilian businesses: agriculture and mining, whereas manufacturing “Foreign products proved fatal for many com- and services correspond to 20% of the Brazil- panies accustomed to merely copying, since ian productivity growth, concentrating over 80% there was always a time-lapse between the of value added and employment (OECD, 2013a). original and the copy. At frst a number of The potential of manufacturing and services to these companies went under, but in time the contribute to the productivity growth is under- survivors grew stronger by absorbing design explored despite the value added and employ- as a component in their manufacturing strat- ment rates related to these sectors.

128 Economic reviews (Araújo, 2016; Arnold, 2016) − Caloete and Westin (2014) – this publica- have suggested the need to open the market to tion from the Brazilian Micro and Small international competitors in order to strengthen Business Support Service (Serviço Bra- the national industries. However, this isolated sileiro de Apoio às Micro e Pequenas Em- initiative might lead many frms to go under, presas [SEBRAE]) lists the Brazilian insti- especially MSMEs, because of the lack of re- tutions, programmes, courses, university sources and skills to lead innovation, increas- laboratories, events, and fairs; ing the unemployment rates. Thus, combined − Borges (2009) and Kraichete (2015) – this initiatives that strengthen education, innova- research has been carried out in partner- tion, design, and management skills, or, a learn- ship with the Dutch Culture Centre for ing process to integrate the Brazilian trade into International Cooperation and started the global one and into exports, providing ap- to map the Brazilian design scenario, its propriate support and competencies to face this actors, and initiatives related to cultural, ‘openness’ process, are required for current and promotion and funding assets; future generations. − The National Institute for Educational Studies and Research “Anísio Teixeira” (Instituto Nacional de Estudos e Pesqui- sas Educacionais Anísio Teixeira ([INEP], 2017) – part of the offcial Brazilian higher The Brazilian Design Innovation education statistics; Ecosystem − And, information sourced at institutional websites of actors that play a relevant Figure 30 uses a framework adapted from role in design and innovation programmes Whicher and Walters (2014)41 to bring a picture across Brazil, such as: the Brazilian Mi- of the Brazilian design innovation ecosystem cro and Small Business Support Service based on (Serviço Brasileiro de Apoio às Micro e − The Diagnostic Review of Design in Bra- Pequenas Empresas [SEBRAE]) (SEBRAE, zil (Centro Brasil Design [CBD], Agencia n.d.b), the Brazilian National Confedera- Brasileira de Promoção de Exportações tion of Industry (Confederação Nacional e Investimentos [Apex-Brasil], Ministério das Indústrias [CNI]) and the National da Indústria, Comércio Exterior e Serviços Service of Industrial Training (Serviço Na- [MDIC], 2014) – this study is an initial effort cional de Aprendizagem Industrial [SEN- to measure the Brazilian design capability AI]) (CNI, n.d.a, n.d.b). using as the main reference the Design This scheme does not include all initiatives Staircase Model (Kootstra, 2009) and the and entities that compose the Brazilian Design International Design Scoreboard (Moultrie Innovation Ecosystem but provides examples and Livesey, 2009).The diffculties related which have national relevance and sources to the lack of available data are clearly ev- where to fnd additional available data. idenced, not enabling to compare Brazil to other European contexts;

41 This framework is the same adopted in the European context in the Design Policy Monitor (e.g. Whicher, Swiatek & Cawood, 2015). 129 Figure 30: The Brazilian Design Innovation Ecosystem 30: The Brazilian Design Innovation Figure 130 Brazil has moved forward regarding its inno- Curitiba, where a concern with design has been vation policies and regimentation that favour evidenced also through design management innovation since the 2000s, diversifying the studies focused on Paraná Federation compa- mechanisms for small business support which nies (Murphy & Raulik Murphy, 2015). is noticed, for instance, with the Industrial, Tech- The design and innovation policy-making pro- nological and Trade Policy (Política Industrial, cesses follow essentially a top-down approach Tecnológica e de Comércio Exterior [PITCE]) in where political influence plays a defnitive role in 2004 (Torres Freire, Massami Maruyama & Polli, strategies, goals, and investment decisions. By 2017). contrast, experts have emphasised the impor- However, Brazil still needs to advance con- tance of participatory, collaborative, and bot- cerning its competitiveness, innovation capa- tom-up process for policy-making (Chisholm, bilities, and productivity. The country ranks 80th Cruickshank, Evans, & Cooper, 2013; Julier, in the Global Competitiveness Index 2017–2018 2017; Maffei, Mortati & Villari, 2014c; Whicher Rankings (Schwab, Sala-i-Martín, & Samans, & Walters, 2014). Participatory policy decision- 2017), presenting a variety of problems from making process is also considered critical by infrastructure to bureaucratic processes, for in- Thenint (2008): “Because SMEs and design stance. The Brazilian design policies are frag- companies are important stakeholders, policies mented and short-term focused (Raulik-Mur- should facilitate and not hold back their way of phy, Cawood, Larsen, & Lewis, 2009a). Design innovation. Stakeholders ought to be the fnal and innovation policies publications regarding decision-makers when defning, prioritising this the Brazilian context have emphasised the need kind of policy objectives” (p. 12). (a) for long-run innovation strategies (Mazzu- Chisholm, Cruickshank, Evans and Cooper cato & Penna, 2015; Raulik-Murphy, Cawood, (2013) point out that “Participatory policy devel- Larsen, & Lewis, 2009a), (b) for a combination of opment approaches present challenges to poli- diversifed design policy initiatives (Raulik-Mur- cy-makers” (p. 450). Policy-makers are used to phy, 2010) and (c) for a connection of innova- a traditional top-down policy-making approach tion systems that are quite fragmented across which uses citizens’ inputs in a cursory manner. the country (Mazzucato & Penna, 2015; Raulik- However, the “… societal shift towards closer Murphy, Cawood, Larsen, & Lewis, 2009a) that engagement with citizens in policy develop- is heterogeneous in terms of culture, education, ment, the challenges of a devolved and democ- innovation, and design. The geography of de- ratised decision-making process have resulted sign referred to design events (Kraichete, 2015), in tensions that traditional policy approaches design jobs and frms (CBD, Apex-Brasil, MDIC, have been unable to address” (Chisholm et al., 2014) evidence these contrasting contexts 2013, p. 450). across the country. This shift is also recognised by Whicher The concentration of design frms and jobs is (2015), who argues that people are getting frus- mainly identifed in the southeast and southern trated about policy and government, hence, the regions of Brazil (CBD, Apex-Brasil, MDIC, 2014). public sector needs a new approach to policy- São Paulo, Rio de Janeiro, and Bento Gonçalves making, and design approach can be of beneft. stand out regarding promotion initiatives. São Whicher (2015) recommends the use of the de- Paulo and Rio held most design events. Bento sign tools by policy-makers as the most effec- Gonçalves held the largest furniture fair in Latin tive way to make them understand the benefts America with the Salão Design (Design Hall) of using design methods in policy-making. Award. The frst Brazilian Design Centre (Cen- tro Brasil Design [CBD]) was founded in 1999 in According to Chisholm et al. (2013, p. 450),

131 designers can play the intermediary role be- aversion attitude by fearing for spilling over fur- tween policy-makers and citizens (or benef- ther benefts in other industries (which should ciaries), assisting policy-makers in empowering be desirable by government representatives in citizens’ voice. Designers can do that as they a public good perspective), or for being consid- do consider users as being in the core of design ered responsible for a procedure that is up to processes, providing appropriate approaches private manufacturing companies according to and methods to face such a challenge. This law. Nunes’s fndings also suggest the lack of change requires relationship building in order to design awareness and understanding among construct confdence between key stakeholders decision-makers in Brazil in diverse kinds of (Chisholm et al., 2013). organisations, from public government departments to private companies. This need is clearly evidenced in the Brazilian design initiatives in which the lack of collabo- Discrepancies between industry reality and ration among key stakeholders, such as design dynamism, and the pace and capabilities of support agencies, government, and the private non-proft private entities in Brazil (e.g. SENAI, sector, has hampered design innovation and SEBRAE) hamper the contribution of non-proft knowledge transformation and acquisition. Ex- private entities to Brazilian industries, once in- tending on innovation research which considers dustries need hard and soft skills, as well as collaboration as a potential way of knowledge timing, that these entities have demonstrated acquisition and transformation through net- not prepared to meet (see for instance Nunes, works, particularly in MSEs, Nunes (2013) uses 2013; Piore & Cardoso, 2017). a design initiative, a pilot project - MODU.Lares, The Diagnostic Review of Design in Brazil focused on MSEs in the local furniture indus- (CBD, Apex-Brasil, MDIC, 2014) is an initial at- try - aiming at stimulating collaboration among tempt, considering that the sizes of companies main actors of the Uberlândia-MG (Brazil) local that answered the survey do not represent the system in order to facilitate the incorporation Brazilian reality (where 99 per cent of business- of environmental criteria into design, manage- es are micro and small), as well as its industry ment, and manufacturing of those small busi- sectors. Moreover, other limitations were point- nesses. Diffculties in the collaboration between ed out as follows: diverse institutional actors and among entrepreneurs led to the identifcation of the Brazilian “… the absolute design capability indicators in political system shortfall: Brazil are often higher in comparison with other countries. However, this can be misleading “…one of the reasons for such limitations [on because when the numbers are placed within collaboration and active participation in the the national context according to the size of pilot project] is related to the political confgu- the population, Brazil’s design resources are ration system of government bodies in Brazil, classifed at the lowest end of the table for all also recognizable in the context of Uberlândia, indicators. It should also be considered that generally bureaucratic, slow and focused on there is a lack of data on the indicators for very narrow and specifc interests.” (Nunes, public investment in design and the contribu- 2013, p. 427) tion of the design sector towards GDP.” (CBD, Furthermore, Nunes’s (2013) fndings also Apex-Brasil, MDIC, 2014, p. 49) indicate the lack of human-centred perspec- The lack of design management studies and tive and meritocracy among policy-makers who data on design across Latin America compli- are not interested in improvements needed for cates a comparison with foreign regions (CBD, citizens and society or targeted benefciaries Apex-Brasil, MDIC, 2014), as well as an analysis (diverse groups of taxpayers), presenting a risk- of the state of the art of design in the country.

132 ning that included the LBDI into industrial and S&T policies and coordinated the frst phase of Design support in Brazil LBDI (Patrocínio, 2013). Other design support initiatives are highlight- The design support programmes in Brazil are ed within the national context: the Criação Par- currently industry-specifc and local (regional), aná Programme launched in 2000, and the Via generally not presenting a systemic approach Design SEBRAE Programme that ran from 2001 at the national level. The lack of linkages and and provided support for about 100 design cen- collaboration between the main actors of the tres until 2005 (Raulik-Murphy, 2010). Raulik- Brazilian design innovation ecosystem has Murphy (2010) explains these two programmes been considered a barrier to advancing design as follows. through programmes and initiatives which are usually one-shot, focusing on short-term out- The Criação Paraná Project was based on the comes related to market failures in small busi- experience of Glasgow Collection programme nesses (see for instance Nunes, 2013; Raulik- that ran from 1997 to 1999 in Scotland (the UK). Murphy, 2010). It provided tailored advice for manufacturing frms from the outset of the design process to The frst design support initiative was the the prototype phase. Two iterations took place, programme 06 (1972-73) from the Ministry of one iteration in 2002, and another in 2005. They Industry and Commerce. Large design projects were closed with one exhibition of more than 40 were developed across Brazil as a way to foster products. The third iteration did not happen due design teams in some research centres, such to the lack of funding (Raulik-Murphy, 2010). as CETEC in Belo Horizonte and INT in Rio de Janeiro (Barroso Neto, 1998 cited in Patrocínio, The Via Design was a design support pro- 2013). gramme launched in 2001 by SEBRAE. This programme After that, design initiatives were developed by the Brazilian government agencies, such as “had three streams: assisting SMEs in the use CNPq, FINEP, STI / MIC and Cacex / BB. The de- of design, promoting design among SEBRAE, sign support was offered through one-shot ini- and strengthening the Brazilian infrastructure tiatives after the mid-1970s and, from 1982 on, of design services for SMEs. The third stream was responsible for the establishment of a design support programme was established about 100 design centres and/or units around (Barroso Neto, 1998 cited in Patrocínio, 2013). the country. However, fnancial support from Another important actor in the design sup- Via Design for these centres lasted only until port scenario was the Brazilian Laboratory of 2005. After that, the centres had to fnd their Industrial Design (Laboratório Brasileiro de De- own means for sustaining their operations senho Industrial [LBDI]) founded in the period of and about 30% of them closed their doors.” the military junta. The LBDI developed design (Raulik-Murphy, 2010, p. 140) support activities, including design projects, These three experiences (LBDI, Criação Par- workshops, research, and conferences. Its ac- aná and Via Design) showed the setbacks faced tivities ran from 1984 to 1997 in the context of by design support programmes regarding dis- an inward-focused market (Barroso Neto, 1998 continuity, lack of political, and economic sup- cited in Patrocínio, 2013). Barroso Neto (cited port, hence, shortage of budget to move for- in Patrocínio, 2013) relates the closure of LBDI ward. to neoliberalisation processes during the early Torres Freire et al. (2017) identify 25 main pro- 1990s, which led to the privatisation of research grammes regarding small businesses in Brazil centres. Bonsiepe took part in the early plan- 133 from 1998 to 2017. The authors are interested texts compared to Silicon Valley, once the Bra- in high-growth frms (HGFs)42, particularly start- zilian environment does not correspond to those ups43. Brazil has the largest number of start-ups social, cultural, economic, and institutional in Latin America: São Paulo holds 61%, Rio de conditions. The importance of going beyond f- Janeiro 12%, and Belo Horizonte 10% (OECD, nancial supportive approaches to programmes 2016b). However, “investment in research and towards initiatives that foster an environment development (R&D) grew from 0.63% of GDP which promotes various stakeholders (e.g. en- in 2009 to 0.74% in 2014, a small increase that trepreneurs and investors encounters) con- leaves the region’s countries trailing far behind nection and collaboration is highlighted (Tor- the OECD countries, which invest around 2.3% res Freire et al., 2017). The authors emphasise of GDP in R&D (in 2014)” (OECD, 2016b, p. 2). some shortfalls that should be overcome in the In spite of the increased use of information and Brazilian small business support programmes: communication technologies (ICTs), the gap be- “… despite new initiatives and growing pro- tween the OECD countries and the Latin Amer- gress on this issue, Brazil still needs to move ica ones is still large (ECLAC, 2015; European forward in this process. Factors such as re- Commission, 2015a; OECD, 2014; OECD, 2016a). source instability, discontinuation of pro- The need for an appropriate environment from grammes, and the lack of an evaluation cul- infrastructure to policies is emphasised to fos- ture inhibit the consolidation of a state policy ter start-ups growth (OECD, 2016b). for innovation that is effective and effcient.” (Torres Freire et al., 2017, p. 73) Torres Freire et al. (2017) identify programmes dedicated to small business beyond start-ups. Similarities between design support pro- They estimate that about 5 billion BRL have grammes and start-up support programmes’ been invested in those programmes using pub- failures were recognised: it is diffcult to iden- lic funding from 1998 to 2017. The authors also tify investments concerning the specifc target provide criticism to the benchmarking of pro- (in their case start-up support programmes), grammes that are placed on very diverse con- there is not a clear policy that addresses the set

42 According to the Eurostat−OECD Manual on Business Demography Statistics high-growth enterprises are “All enterprises with average annualised growth greater than 20% per annum, over a three-year period should be considered as high-growth enterprises. Growth can be measured by the number of employees or by turnover.” (2007, p. 61)

43 According to the OECD (2013b), there is not a consensual defnition of start-ups. The term originally refers to Silicon Valley youthful, creative, high-tech environment and their information and communication technologies (ICTs) diffusion, as well as the concentration of human and fnancial capital, universities and companies in the south of the San Francisco Bay (USA) that generate innovative frms. These types of frms started to arise in other contexts with different approaches, but were often related to some basic conditions, such as availability of fnance for frm creation and expansion, services for business development, and access to scientifc and technological base. Start-ups can be understood as innovation-intensive or high-impact new enterprises, bringing new products and services to the market based on scientifc discoveries or new applications of existing knowledge. They bolster competition for innovation and promote a dynamic business environment. Brazil focuses on technological start-ups.

134 of initiatives, the innovation ecosystem is frag- to small businesses support as identifed by mented and is composed of a variety of pub- Torres Freire, Massami Maruyama and Polli lic, private and non-proft organisations where (2017), but the design relation to those is not the actions are framed generally disconnected evidenced. Their innovation perspective is limit- from one another, lacking a national strategy ed to the technological development approach. that helps drive a major reasoning and envision In short, design and its relations to innovation a desirable future for the country competitive- are still not understood in Brazilian institutions. ness. Any kind of comparison, monitoring, and Its strategic value is not considered in practice evaluation of programmes is hampered since at business, at institutional, and at national lev- there is not a picture of ‘before’ (ex-ante) and els. ‘after’ (ex-post) the programme connected to The main well-known established design sup- national or regional benefts or goals. Moreover, port initiatives in Brazil are held by SEBRAE and the lack of a long run strategy and discontinua- SENAI, which are still providing “a large part of tion of programmes are also identifed in design the investments in design in the country” as ob- support programmes. The lack of data about served by Raulik-Murphy (2010, p. 142). These start-ups in Latin America is also emphasised organisations are spread across Brazil with in the OECD (2016) report. hundreds of units in charge of Brazilian Federa- Design is not considered within their review tions. They are non-proft private entities which (Torres Freire, Massami Maruyama & Polli, are funded by public money, more specifcally, 2017) as a tool or driver of innovation, not be- by a government tax paid by registered frms ing even quoted, which evidences the lack of in diverse industries. This money goes directly design awareness among institutional actors44 to CNI (National Confederation of Industries), that are still binding innovation around the axes which redistributes it among its regional units of technology and research development not (regional SENAIs), and to the national SEBRAE, considering human-centred approaches. The which redistributes it among its regional units way design can build bridges between science, (regional SEBRAEs) or the S system. technology, and industry towards new business SEBRAE offers design support within an inno- models, new market shares, or humanisation of vation and technology branch. The programme technologies or even specifcally contributing is known as SEBRAETEC, and provides support to service, product, system, or platforms devel- in seven felds that were presented as follows: opment is not exploited nor considered in any Innovation, Design, Quality, Productivity, Intel- depth or level. lectual Property, Sustainability and Digital Ser- As well design is not exploited within indus- vices (SEBRAE, 2013a). trial and innovation policies in Brazil (see, for Although design is defned as “Intellectual, instance, Patrocínio, 2013; Mazzucato & Pena, technical and creative design process, which 2015; Torres Freire, Massami Maruyama & Polli, contemplates project planning and develop- 2017). There are some programmes dedicated

44 The authors worked at public sector bodies (or bodies that are funded with public money) at the time of this publication. Their background varied from sociology, industrial engineering to science, and technology policies, playing roles related to innovation initiatives and promotion. 135 ment, focused on the user, with an integrated fulflled in order to provide services through approach of product, service, communication the programme. Registered design businesses and / or environment for the company” (SE- are alternated to provide services that were in BRAE, 2013b) at SEBRAETEC website, showing the on-demand typology. When the project is an effort to transmit a system vision, in practice, by-cluster, generally, the services are limited projects are punctual and have an ex-post and to some institutional bodies’ services, such as top-down approach. universities, public research centres, or non- proft third sector organisations (NGOs). Businesses that join the design support programmes are not audited before the project pro- The emphasis of SEBRAE’s annual report (SE- posals’ development and, usually do not partici- BRAE/MG, 2016) is on the number of new busi- pate in project proposals development. Then, nesses opened; however, there is not a clear design is exploited within this programme with evidence that connects the projects run to this a narrow outlook that overlooks its systemic number. Furthermore, the need for design in- potential and strategic value aligned with busi- novation is not just related to new businesses nesses potentialities. generated but to the existing businesses’ capacity to be sustainable, to keep up with their Nunes (2013) realises these aspects observ- businesses and to be able to catch up with best ing the lack of a collaborative and participatory practices businesses throughout time. approach to design initiatives in order to consider the real needs of small businesses: Phrases like “The strategic priorities were also “… it is necessary to fnd an intermediate so- validated by the Executive Board” (SEBRAE/MG, lution for projects proposed by support insti- 2016, p. 45), in which “validated by the Execu- tutions, in particular SEBRAE, to facilitate the tive Board” works as the main rationale to jus- integration of smaller groups of MSEs (e.g., en- tify strategies prioritised that are quite general, able groups of 12 MSEs, instead of the required delineating general principles that should be number of 25) in order to minimize abandon- obviously led by SEBRAE considering its insti- ment along the process and to strengthen en- tutional role and funding sources. The ‘how’ gagement. In any case, a fundamental issue they are going to turn these strategic priorities is to be attentive to the real needs of groups into benefts is addressed through a strategic related to the institutions (whether individuals map with corresponding indicators that are the or companies) and to search for collaborative partnerships that operate to solve problems same used since 2013. Although some indica- together.” (Nunes, 2013, p. 444) tors used have regional and national relevance, how SEBRAE’s projects specifcally contribute Design actions are presented and imple- to them is not clearly evidenced since other mented in a fragmented manner, being repre- micro and macro factors can influence the pro- sented, for instance, by brand, product design, posed indicators besides SEBRAE’s actions. and packaging interventions. The subsectors Furthermore, indicators that could set specifc within design in the programme are: interiors relationships between SEBRAE’s projects and design, communication design, product design, business outcomes and impacts, such as the and service design (SEBRAE, 2013b). The value ones related to the economic impact of SMEs’ of design methods’ use (Julier, 2017) is over- new investment, are still not defned. looked since there is a clear focus on the result rather than on the process of design. The report (SEBRAE/MG, 2016) is just one example of the adopted SEBRAE’s approach which The selection of designers who can provide is convergent with New Public Management design services is regulated by public procure- (NPM) approach regarding the constant meas- ment, which contains the requirements to be urement and audit of processes and outcomes 136 that drive the services’ arrangements in order able design innovation strategy to these small to satisfy measurement criteria more than be- businesses. In addition, the budget destined ing designed to best serve benefciaries’ com- to design is not clear, and nor is the criteria to panies. The situation seems worse considering dedicate the budget to some regions instead of that design is not fully grasped as evidenced by others. the structure and processes of the organisation. The SEBRAE by-year funding could better The absence of follow-ups also does not make serve to provide some continuity; however, the easier to evidence design benefts to these main programmes present a short-run strategy businesses and regions, especially in the case in a reactive one-shot approach. of design, in which better fnancial benefts are Three models or typologies of design support usually noticed in long-term strategies (about programmes can be identifed in these non- 8-10 years) in design-centred frms (Rae, 2013, proft private entities, which are the main devel- 2014), so it would be reasonable to provide opers of design support in Brazil, as follows: structured follow-ups in frms that have little or no experience, considering the design knowl- SEBRAE has largely applied on-demand (Fig- edge formalisation as by-product of practice ure 31) and by-cluster (Figure 32) models, which (see D’Ippolito et al., 2014), which means that are illustrated below: one-shot projects tend not to provide a sustain-

Figure 31: Design support programme’s on-demand model

137 The on-demand programme has positive aspects regarding the flexibility of serving needs that are recognised by a company. The drawbacks are generally related to the bureaucracy and timing.

Figure 32: Design support programme’s by-cluster model

138 The by-cluster model presents two diverse grammes are usually combined with training ways to unleash the design support: (1) the in- and workshops when working with frms in an dustry union requests a design initiative. And, industry cluster, then they include also some (2) the project is proposed by the non-proft pri- activities that can be considered as design pro- vate entity. The decision-making process’ cri- motion activities. teria for investing in some regions rather than SENAI acts as the counterpart in some SE- others is not clear. This type of support requires BRAE’s support initiatives but also has its own that at least 25 MSMEs join the project. innovation call held by CNI (SESI/SENAI Innova- In by-cluster initiatives, design support pro- tion call) with national coverage (Figure 33).

Figure 33: Innovation call model - projects are selected by a panel of experts

Considering prior research fndings that “… taken up scale (having to address at least there are no signifcant patterns that differenti- 25 SMEs to be run), and no programme ate the design programmes in advanced econo- presents the prototyping phase. This is mies and developing countries” (Raulik-Murphy, generally spurred by the need to reach 2010, p. 204), the Brazilian design support pro- indicators’ goals set in which the num- grammes’ main models can be analysed in the ber of businesses assisted is one of the light of best practices. Some weaknesses iden- main criteria regardless of how the project tifed are: is carried out and what happens after the project is over. − Programmes are standard, not being properly crafted regarding prototyp- − Though top management has to sign a ing phase, participatory methodologies, document at the outset of the project, business design audit, company design their commitment and participation is not maturity, and senior management com- considered throughout the project. More- mitment. Some schemes work as a pilot over, businesses that join a project are not project but most of them are immediately audited before, which means that diverse 139 design maturity businesses are mixed in a gramme standard or from the initial plan project that can be more appropriate to a of the action in which the meaning ‘phase defned target despite most of them usu- completed as planned’ works as the best ally having little or no design experience. answer. To adapt the plan according to Thus, addressing the “mix of political, perceived changes and realities during the economic and stakeholder circumstanc- project is seen as ‘not doing well’. Com- es” (Whicher et al., 2013, p. 3) is ham- panies’ participation is not assessed. pered through the current approach used − There are no follow-ups. Measures and to crafting design support programmes. outcomes that can be related to economic − Non-proft private entities employees benefts or growth or qualitative aspects (who play a policy-maker role in design that can form compelling case studies and support programmes) are usually con- stories are not addressed through an ex- cerned with providing responses to their ante and ex-post data collection. Impacts system, metrics, and bosses rather than (long-run) are also not monitored. Hence, attending real business demands, not be- what happens after the programme or ing, generally, embedded in the business project ends is not used to build a design or design world, which hinders the re- support programme legacy or relation- flection on crafting programmes to solve ships, turning benefciaries into advocates businesses’ problems or to promote new for other peers and policy-makers. business opportunities. There is a focus On the other hand, the annual resources as- on ‘making paper’ to fll in the established sured by public funding and the autonomy re- system requirements rather than visiting garding government policies, as well as the businesses and cultivating existing de- robust structure composed of units across the sign and business networks that can con- country can be seen as strengths. As highlight- tribute to identifying potential target ben- ed by Raulik-Murphy (2010, p. 209): efciaries according to their programmes. Hence, there is a huge gap between poli- “ln comparison to policies, design programmes cy-makers’, designers’, and benefciaries’ demand less fnancial and bureaucratic com- visions and experiences. This aspect is mitment and are more easily implemented and monitored. Moreover, they do not depend crucial, as emphasised by Heskett (1999, strictly on government support, as seen in the 2016): case studies of lndia and Brazil. Given this “policies for promoting design and for design substantial difference in practicability, design education are the most powerful tools availa- programmes have indeed been implemented ble to governments, but these need to empha- more often across the globe, in comparison to size the new demands being made on busi- design policies.” (Raulik-Murphy, 2010, p. 209) ness and design practice. Businesses that Er (2002) also notices this difference between do not adapt to change disappear.” (Heskett, design programmes and design policies imple- 1999, 2006, p. 232) mentation. He states that “a comprehensive − Evaluations are standard regardless of the design policy almost always requires the coor- projects specifcity, target benefciaries, dinating power, or at least an open support of and design consultancies. Evaluations governments to be implemented” (p. 163), while are focused on the client’s feedback, such design programmes can rely on other kinds of as the ‘ok’ or approval of a design project organisations, such as non-governmental or- outcome by the company’s representa- ganisations or professional design associa- tive, and checklists derived from the pro- tions.

140 PART II IN SEARCH OF EMPIRICAL EVIDENCE

This part of the dissertation looks at the empirical cases analysed. The frst group of cases (Chapter 6) approaches the engagement of business at the micro and project level and its influence on design capabilities building. The second group of cases (Chapter 7) is composed of 2 polar types cases. This second analysis is broader than the frst one, considering the key stakeholders’ perspective, and three levels: from individuals and organisations features to the ecosystem characteristics which hamper or foster design in MSMEs throughout design support initiatives. CHAPTER 6 The choice of design From businesses’ conditions to businesses’ attitudes45

This chapter addresses a psychological approach to creativity use as a decision in order to understand design management capabilities absorption within small businesses throughout three design support programmes focused on the integration of design into MSMEs in the Brazilian furniture industry. The issue is: What are the different companies’ attitudes and prior knowledge (or conditions) that contribute to or block the absorption of design capabilities throughout these projects? Literature review and participant observation were employed from a qualitative perspective. The integration of design into business has been more related to the organisational culture than to an economic reasoning. The main contribution is to start better understanding different businesses’ attitudes and prior knowledge that support the absorption or improvement of design management capabilities within MSMEs. The fndings are summed up in a map that shows the perceived businesses’ conditions and attitudes and their impact on design management capabilities absorption.

Keywords: business’s attitude, prior design knowledge, design management absorptive capacity, use of creativity resources, MSMEs

45 This chapter was built upon the paper ‘The choice of design: From businesses’ conditions to businesses’ attitudes’ (Fonseca Braga, 2017). It was originally presented at 12th EAD Conference: Design for Next at the Sapienza University of Rome, Italy, 12-14 April 2017. An initial version of the paper was published in The Design Journal, 20:sup 1, S635-S646. This is a reviewed version of the paper, improved with the contributions from the Conference, and further literature review. Sternberg and Lubart’s theory of investment (Sternberg, 2006, 2012) in the psychology feld, Introduction in order to better understand empirical evidence Creativity is the main basis of the design pro- of success and failure in absorbing design cess. Although design management (Gorb & management capabilities through design policy Dumas, 1987; Pilditch, 1990) and business (Pe- projects of integration of design into MSMEs or ters, 2001) research has pointed out the impor- design support initiatives. tance of the companies’ cooperation, attitudes The choice of exploring the design potential and leadership towards design, an in-depth has been considered as more related to organi- analysis, especially in the case of MSMEs, has sational culture aspects than to an economic not been drawn. Studies have not considered reasoning. Good fnancial performance is not a psychological approach to creativity in or- a precondition for design investment in frms der to analyse the role of frms’ conditions and (Gemser & Leenders, 2001; see also Fonseca attitude during the integration of design into Braga, 2016). The main motives for integrat- their (not design-oriented) small businesses. ing design into businesses reported in the de- Many design support programmes focused on sign management literature have been: trust the integration of design into micro, small and (Micheli, 2014), vision (Borja de Mozota, 2006), medium-sized enterprises (MSMEs) and stud- ethos (Walsh 1996), behaviour (Danish Design ies on design management ignore differences Centre, 2003), cultural imperatives (Heskett, related to the decision to deploy creativity held 2009), and adopted strategy (Gemser & Leend- by diverse stakeholders and its implications as, ers, 2001; Roy & Riedel, 1997). The gap lies in for example, the lack of value to move on to the the businesses’ attitudes and prior knowledge next level of the design ladder, and the mind- that support or not the absorption or improve- set and experience regarding design knowledge ment of design management capabilities. and practice. The assumptions about the fundamentals of Design attitude was related (1) to an organi- creativity related to design management con- sational design perspective to design manage- sidered in this manuscript are: ment, examining how the formal design position in the frm leverages design autonomy and stra- − Design “is creativity deployed to a specifc tegic importance (Dumas & Whitfeld, 1990), (2) end” (Cox, 2005, p.2); to designers’ approach and mindset to problem − Creativity is not an inborn trait but people solving (Boland & Collopy, 2004), and (3) to the can decide to use or not to use creativity professional designers’ attitudes in design-led resources (Sternberg, 2006, 2012); companies that promote a professional culture − Deploying creative ideas is harder than or a work-based attitude that is spread within ‘following the crowd’ (Sternberg, 2006, organisations (Michlewski, 2008). However, at- 2012); tention has not been devoted to the case of MS- MEs with little or no design experience where − The value of being creative varies de- this potential is incipient, and the owner’s in- pending on individual perspectives, intra- fluence is defnitive to the way design is used, organisational (see for instance Amabile, as well as to its intensity (Acklin, 2013, p. 157; Conti, Coon, Lazenby, & Herron, 1996; Bra- Bruce, Cooper, & Vazquez, 1999). ga, 2016; Heskett, 2009) and external environment (e.g. macroeconomic factors, This chapter sheds light on the use of crea- design innovation ecosystem, societal tivity resources as a decision at the micro lev- and cultural context); el (enterprises’ level) using insights from the 143 − The willingness to explore design and design management in MSMEs does not assure the investment in design or the The use of creativity resources: absorption of design management ca- from conditions to attitudes pabilities (see for instance Acklin, 2013). Organisational aspects, such as the lack This topic is based on Sternberg’s (2006, of top management support (Acklin, 2013; 2012) explanations about Lubart and Stern- Amabile, et al, 1996; Cowood, 1997; Sch- berg’s theory of investment. Their theory sheds neider, Gibet, Colomb, Orazem, Loesch, light on the use of creativity as a decision. Most Kasparyan, & Salminen, 2015), other pres- of the analysis provided by Sternberg is based sures on the business and risk aversion on learning (teacher-students) environments (Cox, 2015), underdeveloped education and were useful to understand mainly the indi- and training (Massa & Testa, 2008), as vidual differences that lead to the use of crea- well as external barriers, such as the dif- tivity. Some analogies to the ‘absorption’ of de- fculty in fnding appropriate support with sign management capabilities into MSMEs are respect to design professionals (Arquilla, possible considering their prior knowledge or Maffei, Mortati, & Villari, 2015; Cox, 2005), condition and decision to deploy creativity (or to fnance (e.g. credit availability) (see Bell, promote some change into businesses) by ap- 2015) and bureaucracies related to local plying design resources throughout a learning authorities and to intellectual property ‘to use design’ process. procedures (see for instance Acklin, 2013; Studies have not considered stakeholders’ Massa & Testa, 2008) are examples of the differences in terms of attitude and prior knowl- obstacles that frms face to implement in- edge, and empirical evidence from cases stud- novative ideas besides their ‘willingness’ ied has shown that the stakeholders’ attitude to make them happen. and prior design-related knowledge impact on This discussion brings implications to the way the absorption of design management capa- of dealing with innovation in the design man- bilities throughout the projects of integration of agement and in the design policy felds (espe- design into MSMEs in different ways. cially for policies focused on the integration of According to the theory of investment, crea- design into MSMEs). tivity is not a result of any particular inborn trait Schneider et al. (2015, p.7-8), Thomson and and is seen as a habitual novel response, an Koskinen (2012) notice that few companies attitude towards life, instead of responding au- and industries use design potential to leverage tomatically and mindlessly to it (cited in Stern- successful business across Europe. This is not berg, 2012). considered a specifc European diffculty; di- Schooling often does not encourage crea- verse publications (Organisation for Economic tivity, and evaluating students through tests Co-operation and Development [OECD], 2014; based on wrong-answer-right-answer format Economic Commission for Latin America and limits assessment, focusing on content related the Caribbean [ECLAC], 2015; European Com- to knowledge. Solving problems that do not ft mission, 2015a) report the need to lead also into the wrong-answer-right-answer standard countries of the South to more innovative paths requires creative thinking or divergent thinking. reducing the productivity gap between MSMEs Then, knowledge is necessary but it is not a suf- in Southern and Northern countries. fcient condition for creativity (Sternberg, 2012). Design issues depend on context and there is

144 no ‘right’ or ‘wrong’ answer; there is the most appropriate answer that is built up by exploring new ways of thinking, doing, and making through the use of the knowledge available at a certain time and in a certain context. Creative ideas defy the crowd, and when frst presented they encounter resistance. Society does not realise the value of creative ideas, perceiving them as an opposition to the status quo. Thus, creativity cannot be understood without its societal context (cited in Sternberg, 2006, 2012). However, the issue is whether the creative individual will persist and go against the crowd (cited in Sternberg, 2012). As stated by Sternberg (2006, 2012), one decides to deploy creativity according to six different and interrelated resources, which are briefly described in Table 10.

Table 10: Creativity resources (Sternberg, 2006, 2012)

Creativity resource Description Intellectual abilities Three main abilities compose this resource: (1) the synthetic one, which allows seeing problems in new ways; (2) the analytic one, which refers to the ability to recognise which ideas are worth pursuing and which ones are not; (3) the practical-contextual one, that means knowing how to persuade others of, or to sell others on, the value of one’s idea. All of them are important to deploy creative ideas. Knowledge Enough knowledge is required to move a feld forward. However, knowledge can block creativity when it promotes a closed perspective. Then, the balance between enough knowledge and freeing oneself of it is advised. Thinking styles There are preferred ways of using one’s skills. Thinking in new ways (legislative style) and distinguishing the whole from the parts are considered important for creativity. Personality Personality attributes, such as willingness to overcome barriers, willingness to take sensible risks, willingness to tolerate ambiguity, and self-effcacy. Motivation It is not inherent in a person. It is up to the individual to feel motivated by their own reasoning. However, task-focused motivation is important for creative work, and people rarely do truly creative work unless they love what they do and focus on the work more than the rewards (cited in Sternberg, 2006, 2012). Environment A supportive and rewarding environment is required to deploy creative ideas. The cultural differences related to the support of creativity, as well as about its concept, should be taken into account when evaluating creativity (cited in Stern- berg, 2012).

These components should be considered to- deploy creativity. Compensation can happen gether as more than a sum of an individual’s between different components (e.g. strength level of each component (Sternberg, 2012). in motivation can counteract weakness in the Some elements are essential (e.g. knowledge), environment), as well as interactions between and creativity is not possible without them; resources enhancing creativity (cited in Stern- also, when isolated, they are not enough to berg, 2012).

145 tasks, and capabilities in the design management feld ranging from basic skills to strategic Key elements to understand the skills (Acklin, 2013; Mortati, et al, 2014). Several integration of design into MSMEs studies provide examples of design management skills (e.g. Acklin, 2013; Borja de Mozota, Activities of integration of design into busi- 2006; Bruce, Cooper, & Vazquez, 1999; Chiva & nesses through a design policy46 include (Sch- Alegre, 2009; Mortati, et al, 2014). neider et al., 2015, p.10): Acklin (2011, 2013) proposes the Design Man- 1. capacity building: this activity refers to agement Absorption Model (DMAM). This model the development of good practices for in- started from a prescriptive approach based on tegrating design through activities, such literature review insights and was frst used by as seminars, approaching topics related the research team to drive the analysis of com- to design management, such as “writing a panies results from a design knowledge absorp- brief” and “user-centred innovation”, tion perspective during an action research pro- 2. dedicated advising: it is the evaluation ject in 2011 (Acklin, 2013). They studied design by a dedicated advisor in order to assess projects implementation and their outcomes re- the needs and capacities of the company, lated to design management skills in fve SMEs supporting activities, such as brief devel- with little or no prior experience. After a more in- opment, design consultant selection, and depth study of literature, Acklin (2013) revised project development monitoring, DMAM and proposed a second version based on Zahra and George (Figure 34). 3. bespoke support: it is focused on the integration of design into a business strategy The framework of reference taken by Acklin by mentoring or coaching senior manag- (2013) adopts a design thinking approach to de- ers. sign management capabilities. This approach promotes the use of design tools by compa- Capacity is the ability to perform an activity nies’ members “as a vehicle to introduce how in an acceptable manner, whereas capability is designers work, to socialise design knowledge the ability to repeatedly deploy the capacity in a throughout the company” (Acklin, 2013, p. 157). well-structured way (cited in Acklin, 2013; cited She highlights the distinction between design in Mortati, Villari, & Maffei, 2014). In this sense, management capabilities and design capabili- design management capabilities absorption can ties, emphasising that design management cabe recognised when a frm is able to develop or pabilities “are more readily absorbed” because improve its design management skills through- they establish a relation to the prior company out time during a design policy intervention. knowledge, such as the way to use or manage Although under-researched, design capabili- resources (Acklin, 2013, p. 158). ties are identifed as design management skills,

46 These activities are considered within the category of design support initiatives. 146 Figure 34: Revised Design Management Absorption Model (Acklin, 2013) 34: Revised Figure 147 Pesquisas e Estudos Econômicos, 2015). Methods The Brazilian industry has historically devoted more to the domestic market than to exports The main methods used in the research were (OECD, 2014; Moraes Junior, 2002; Galinari, the literature review and the author’s partici- Teixeira Junior, & Morgado, 2013), and is con- pant observation. The literature review includes sidered low technology based presenting struc- topics which were selected considering the po- tural problems that affect trade development tential to contribute to the comprehension of and design. The strategy of product design is empirical cases and the gaps that surpass the low priority, there is low design insertion, and lack of economic resources to promote the ab- competition is based on prices in low value- sorption of design management capabilities in added markets (Silveira da Rosa, Correa, Lemos, MSMEs. & Barroso, 2007, Galinari et al, 2013). Most enterprises are MSMEs in the furniture sector in Participant observation was based on design Brazil (Silveira da Rosa et al, 2007; Galinari et policies’ initiatives at different times, from 2006 al, 2013). to 2014 in Brazil (see Table 11). The author took part in projects of integration of design into MS- MEs, working with teams of designers and consultants from other felds (according to the type of intervention requested), being in charge of the (re)identifcation or adaptation of the enterprises’ needs or demands, participating in the development of the ‘micro’ strategy to achieve the (innovative - when possible and needed) solution required in the real context of each company, while trying to preserve or strengthen the innovative content that could be addressed to and realized in each context (sometimes more innovative steps are not the main priority or need to attribute more value to the business at that moment and in the context of the company). The MSMEs which were benefciaries of these design policies programmes are frms in the Brazilian furniture industry in Minas Gerais. The economic relevance of the Brazilian furniture industry is recognised through the value of its production and its potential to create jobs (Ministério do Desenvolvimento, Indústria e Co- mércio Exterior, 2015). The southeast region of Brazil is the frst in number of employees and the second in number of frms, and Minas Ge- rais state is the third in both numbers in Brazil, presenting 45.002 employees and 2.539 companies formally registered (Departamento de

148 Table 11: Design support programmes and their projects of integration of design into MSMEs considered

characteristics proposal and goals projects’ architecture Pro- Number of MSMEs Cluster 1: 8 To develop products The funds came from gramme 1 benefted Cluster 2: 5 and brand identities for public funding through a Cluster 3: 5 frms in three clusters government design offce. Staff 18 designers in the Brazilian furniture There was not foreseen f- 3 designers seniors industry. nancial or economic compensation coming from Time 2007-2008 benefted companies. 8 months Pro- Number of MSMEs Direct: 1 To integrate ergonom- The funds are provided by gramme 2 benefted and indirect47 ics into the design a non-proft private entity practices of a furniture which has specifc funding Staff 3 product designers company contributing addressed to innovation. 2 graphic designers to the development of The projects and their 1 physiotherapist an instrument of ergo- benefciaries are selected nomic assessment (to through annual edict crite- Time 2010 be deployed prior to the ria. The benefciary covers 2012 complete physical pro- at least 10% of the costs 2 years totyping phase aiming at in economic and fnancial shrinking that), and spe- terms. cifc ergonomic methods applied to and replicated in this industry through diverse design centres. Pro- Number of MSMEs 3 P148: To ft products ac- On-demand projects gramme 3 benefted cording to the compul- supported by non-proft Staff P1: 2 designers sory national regulations private entities’ initiatives P2: 1 designer P2: to introduce practic- and funds. P3: 3 designers es of projects detailing The company requests to production support for a specifc de- Time 2014 P3: to design a new sign need identifed within from 3 to 8 months product ftted to a mar- the frm. ket opportunity identi- The benefciaries cover at fed least 20% of the costs in economic terms.

47 MSMEs in the regional and national furniture industry, associations, universities, research centres, laboratories.

48 P1 means project 1. P2 means project 2. P3 means project 3. 149 design strategy, briefng, concept, and prototype that did not correspond to the company’s Results needs at that moment. Other issues were: to The indicators of design management capa- make resources, such as time of skilled work- bilities absorption (Acklin, 2013) were used to ers and appropriate machines (or processes) analyse differences between businesses’ prior available to collaborate with prototyping activi- knowledge or conditions and their attitudes or ties within the frm, and the commitment of the decisions to use (or not) creativity resources frm to its tasks deadlines. Most frms made a (Sternberg, 2006, 2012) observed within frms. ‘last-minute’ prototype close to the deadline; in this way, they do not properly use the design The customer experience strategy was not experts’ support to solve any question or to ex- successfully explored in any programme and plore detailed solutions specifc to their busi- was not considered in their proposals. The rea- nesses. On the other hand, the few frms which sons identifed were: the potential and the value engaged with the project development from the of design were not and are still not being ac- beginning showed commitment and meaning- knowledged by diverse stakeholders. The idea ful cooperation through specifc knowledge of of having a project almost ‘for free’ or com- their market, needs, processes, prototyping, and pletely ‘for free’, as well as the lack of trust in skills in their industry. the competence of the non-proft entities, seem to lead some companies to the lack of commit- In Programme 2, the lack of (1) basic knowl- ment with projects’ activities and goals. How- edge applied to the production process, (2) de- ever, these factors are not enough to explain sign experience, and (3) a prior defned busi- the different levels of frms’ engagement with ness strategy by the company49 contributed to projects and the absorption or no absorption of not giving continuity to the ideas of the projects design management capabilities by the frms after implementation. The consultants had diff- throughout the projects. culty carrying out the tasks which required frm participation. The company needed more sup- In Programme 1, the differences observed port than usual to do activities that were sup- were that, on one hand, some frms did not posed to be done by its members. Moreover, the pursue basic operational design capabilities last-minute attitude related to the company’s (e.g. to be able to read the project specifca- tasks was observed. All in all, this project was tion, to properly use the available technologies more valuable for indirect benefciaries, such within the frm, to build jigs) to contribute to as other businesses, universities, associations, making prototypes within the company. Oth- and laboratories which had access to the mate- er frms sent employees who did not seem to rial produced and their fndings related to ap- have enough power or leverage in the strategic plied ergonomics. decision-making within the company, as well as not enough knowledge of their businesses, In Programme 3, each individual business does to meetings, to take part in the process of de- a design demand based on a need recognised fning the design strategy, briefng, and select- within the company. The demands considered ing concepts to be prototyped. This fact led to in this study did not involve intense creative ef-

49 (e.g. the company served a business-to-business market and produced whatever was requested by its customers from building frames to chairs, and pursued a cost-driven approach) 150 fort by design, as they were related to (P1) tech- titude was more positive considering their en- nical adequacy to ft into national regulations, gagement with and commitment to projects. P2 (P2) design projects integration into production contributes to building up other design man- process, and (P3) the design of a furniture piece agement capabilities if the top management de- to serve a defned and established market niche cides to do it. In the case of P3, the lack of basic taking the opportunity of a national event into design knowledge (e.g. reading design project account. These demands were pushed by the specifcations, building jigs to guide prototyp- external environment (e.g. to ft into national ing) was a barrier. compulsory regulations, to satisfy an event de- The main differences among frms’ condi- mand) or by basic design knowledge needs (e.g. tions and attitudes towards the use (or not) of technical detailing and patterns to production) the creativity resources that leverage the design more than by a unique vision, innovative behav- management capabilities absorption observed iour or risk-taking attitude at the business side. in these projects can be summed up as follows However, these demands represent changes for (see Figure 35): these businesses in that context and their at-

Figure 35: Map of perceived business conditions and attitudes towards the use (or not) of the creativity resources (based on the framework proposed by Sternberg, 2006, 2012) by engagement and their impact on design management capabilities absorption intensity 151 Businesses’ conditions or prior design knowl- nesses in diverse dimensions (e.g. production edge or essential knowledge needed noticed process, technologies, materials, norms, mar- in the cases studied can be classifed as: op- ket, strategy) and of design (e.g. ability to read a erational design knowledge regarding the abil- project specifcation, to do a jig, to consider us- ity to read a project specifcation, to do a jig, to ers’ needs), which blocks design activities and prototype, and to consider users’ needs; and creative ideas to move on within the frm. In this business-specifc knowledge concerning avail- case, other actions should be considered before able production process, technologies, materi- in order to ‘prepare the feld to flourish’ creative als, norms/standards, market position, strategy, ideas by design when the frm’s top manage- and limits of investment. Operational knowl- ment decides to deploy creativity resources. edge impacts mainly on briefng and prototyp- Hence, from the policy-makers side, more ing; business-specifc knowledge affects main- than the ‘willingness’ of companies should be ly design strategy and briefng. considered to select benefciaries, especially for The operational knowledge is similar to de- design innovation purposes and for the absorp- sign execution capability (Maffei et al., 2012, p. tion of design management capabilities. For ex- 48), which “Involves the presence of human re- ample, the attitude of the business during prior sources with technical skills, design technolo- projects and the history of innovative efforts gies and infrastructures [...] It is related to the held by frms can indicate their real conditions skills visualising/prototyping and applying new to integrate design into their business. technologies.”. Besides the lack of prior knowledge or conditions, the way the company’s members cooperate and engage with designers makes a difference in the projects’ outcomes. The company’s members do not have to master the use Discussion and conclusion of design tools, and including the use of these tools in the day-to-day activities is hard in small MSMEs’ top management can express the businesses’ environments where one person willingness to integrate design management plays diverse roles in the company. However, capabilities into their businesses. However, they should cooperate in a manner that enhanc- sometimes they do not evidence this willing- es the potential of the use of design by engage- ness through attitudes derived from decisions ment, which means cooperating and engaging to deploy creativity resources throughout pro- with designers in order to generate meaningful jects’ implementation. Some frms seem to join outcomes through the knowledge they already design policy projects ‘following the crowd’ master, and designers do not. rather than considering purposes related to their organisational culture, business strategy, Designers are usually included from the imple- and attitude. Others really lack the basic knowl- mentation phase of the project when the budget edge or conditions to move on and absorb de- and main possible directions have already been sign management capabilities. decided. Designers’ skills and ways of thinking and knowing are useful to shape change, to The lack of essential creativity resources, such defne problems and opportunities, to envision as the prior knowledge needed, was convergent value creation and innovative steps in a situ- with Sternberg’s point of view when looking at ational, contextual, mode (see Fonseca Braga, the design management capabilities absorption 2016). Therefore, designers can play an impor- throughout the projects studied. Some compa- tant role in the earlier stages of the project. They nies lack basic knowledge of their own busi- can contribute to designing the policy. 152 These projects involve issues inherent to the analysed; design activity, such as the diversity of de- − The diffculty in analysing attitudes distin- signers and their experiences, know-how, tacit guishing each creativity resource because knowledge, creativity, and reputation in the de- they compose together the attitude of the sign feld. On the designers’ side, there are also individual; different conditions and attitudes regarding experience, know-how, motivation, commitment, The evaluation of the real impact regarding and so on. design management capabilities absorption or no absorption after the end of projects. The selection of designers relies mainly on qualitative aspects, such as references from other businesses, individual creativity, talent, and the experience of the designer (D’Ippolito 2014; Gemser & Leenders 2001). The bureaucratic process to contract designers or consultants and the lack of design management skills to properly source professionals and to select benefciaries are constraints for non-proft entities in Brazil that carry out design policies. These qualitative criteria are not properly addressed in the bureaucratic contract rules that must be followed according to the Brazilian ministry. The main criterion established is price-oriented.

Limitations

This chapter looks at the differences related to the use of creativity resources throughout three design support programmes of integration of design into MSMEs. The approach is qualitative and the results and the fndings are dependent on these contexts and on the author’s participant observation and interpretation. Other limitations observed are: − The lack of policy-makers’ and benefciaries’ perspectives; − The designers’ and policy-makers’ attitudes towards creativity were not inquired in-depth; − The external environment (e.g. design innovation ecosystem, societal and cultural context, macroeconomic factors) and its leverage on the frms’ attitudes, were not 153 CHAPTER 7 Enlarging the landscape barriers and drivers to introducing design innovation into MSMEs at three levels

The second group of empirical cases analysed aimed at broadening the framework of barriers and drivers which influence the integration of design into MSMEs through design support initiatives from the actors level to the ecosystem level. In so doing, the following questions were set: What are the barriers to introducing design innovation into micro, small and medium-sized enterprises (MSMEs) in mature industries through design support? What are the drivers? What are their meanings? This chapter aims at answering these issues. The research strategy was based on the analysis of two exploratory cases of design support in Brazil, taking the key stakeholders’ perspectives into account. The approach is qualitative and inductive; we analyse empirical evidence using a literature review on barriers and drivers to design innovation. New constraints and drivers in the inquired contexts and the ones which were found in prior research are identifed, interpreted, analysed and framed at three levels: individual (actors), organisational (micro), and ecosystem. This chapter has the purpose to overcome some limitations faced in the in the frst cases analysis, such as the lack of the key stakeholders’ point of view and confrontation with other designers and consultants’ experiences when implementing design support projects. The two projects, which the researcher did not join, were selected in collaboration with a Brazil- ian non-proft private entity. In addition, the limitations of the map of perceived businesses conditions and attitudes, the outcome of the prior cases analysis (Chapter 6), and the Acklin’s indicators use were investigated in depth.

Keywords: Design innovation; MSMEs; barriers; drivers; design support 50 key stakeholders’ representatives who take part Methodology in the design policy-making processes and implementation, such as policy-makers, design- This research uses an inductive reasoning, ers and other consultants, and benefciaries), starting from empirical cases to identify the in- in-depth interviews (to get insights on specifc tegration of design’s problematic in the context topics emerged from the semi-structured inter- of design support51 programmes when benef- views), and desk research (data collection and ciaries are generally MSMEs and have little or analysis from brochures, projects’ documents, no design experience. websites of projects, institutions and compa- Two research strategies were combined: case nies). study (Eisenhardt, 1989; Stake, 2000; Yin, 1994) The design support cases inquired were se- and grounded theory (Glaser and Strauss, 1967). lected in collaboration with a non-proft private The case study is indicated when a contempo- entity which aims at promoting the sustainable rary phenomenon is inquired in a real context and competitive development of the Brazilian where the boundaries between the context and small businesses. The selection of the institu- the phenomenon are not clearly defned (Yin, tion took into account the role and purpose of 1994). It allows diverse research phases inter- the non-proft entity that supports design intro- action throughout the research process, which duction in MSMEs, as well as its relevance in the enables a better update of the research design design support practices in Brazil. The projects according to the discoveries about the phe- were chosen considering polar types (Eisen- nomenon and the needs found out throughout hardt, 1989; Glaser and Strauss, 1967). the research process (Eisenhardt, 1989). The grounded theory approach enables to evidence Polar types (Eisenhardt, 1989; Glaser and the meanings from empirical data (Glaser and Strauss, 1967) were considered in order to fa- Strauss, 1967). vour theory extension and to contribute to flling in theoretical gaps. One project in a design- The methods’ triangulation was used, includ- intensive industry52 and another in a non-design ing semi-structured interviews (addressed to

50 This topic contains text fragments from the paper ‘Introducing design-driven innovation into Brazilian MS- MEs: Barriers and next challenges of design support’ (Fonseca Braga & Zurlo, 2018). It was originally presented at DRS2018 Conference: Catalyst, held at University of Limerick, Ireland, 25-28 June 2018. An initial version of the paper was included in the Proceedings of the event. This is one part of the reviewed version of the paper with more detailed information on the adopted methodology, and the further development and illustration of the model of the interpretative framework for barriers and drivers to introducing design innovation at three levels, which was developed after the frst version publication.

51 “Design support programmes are a policy instrument for improving the use of design and can comprise of one-to-one mentoring ranging from light-touch to more specialised interventions, as well as subsidies, tax credits and export schemes.” (Whicher, Swiatek, Cawood, p. 14, 2015) In the Brazilian case, design support is defned, developed and managed mainly by non-proft private entities. These entities are funded through a Bra- zilian Government’s tax paid by formal companies (private frms).

52 Industries in which design plays an essential role to develop outstanding products and services, considering the defnition used by Verganti (2003, p. 35) who includes furniture, lighting, kitchenware, and small appliance as examples of this typology of industry. 155 Figure 36: Polar types cases

intensive industry were selected. Other opposite Gemser and Leenders (2001) emphasise characteristics were considered (see Figure 36). the importance of design strategy in frms in industries that are design-oriented and Two in-person meetings with policy-makers in industries that are not design-oriented, (managers at the non-proft entity) were done noticing that major differences in design in order to select the projects to be studied. The benefts were found out in industries that selection of the projects followed the criteria are not design-oriented. Thus, it is pos- below: sible to recognise different design poten- − Successful projects according to the poli- tials according to the industry the frm cy-makers who were in charge of them. serves but the relevance of the design − To look at the integration of design into strategy is critical in both cases (see for MSMEs through design support pro- instance Cooper et al., 2016; Gemser & grammes or projects considering polar Leenders, 2001; Roy & Riedel, 1997). types. Then, a project that focused on an − Recent projects (from 2010) which were industry that is design-intensive (Verganti, implemented and ended in practice. 2003; this terminology is described in the − The access to representatives of key glossary) and another, where the indus- stakeholders (policy-makers, consultants, try is not design-intensive, were selected. 156 designers, and benefciaries) that joined − P2: Lingerie cluster in Juruaia – from the the design support programme’s projects. fashion industry, specifcally composed of manufacturers of panties and bras (de- Two projects in Minas Gerais were selected sign-intensive). following the aforementioned criteria: Figure 37 shows the locations were the se- − P1: Cheese from Canastra – from the food lected projects were held, and Table 12 shows and agriculture industry (non-design in- the projects’ characteristics. tensive industry),

Figure 37: Serra da Canastra and Juruaia

The methods used in this second group of − Questionnaires aimed at validating and cases were: inquiring in-depth one specifc outcome of the frst cases analysis (the map of − Semi-structured and in-depth53 inter- perceived businesses conditions and at- views addressed to the representatives of titudes) were addressed to designers and key stakeholders. consultants. − Desk research was used to analyse ma- − Literature review focused on drivers and terials of the projects provided by the barriers to the integration of design into non-proft private entity (such as presen- MSMEs. tations and results of projects), websites, brochures and project videos posted on the web.

53 when it was needed to clarify some important issue that emerged during the semi-structured interview 157 Table 12: Projects’ characteristics

Project and context Description Activities Purposes and Funding P1 Industry: food and agri- Cultural heritage identi- To develop the territorial culture fcation and registration brand, as well as individ- Canastra region (verbal language, com- ual producers brands. 800 cheese producers Location: Serra da munity behaviour, terri- To support making prod- 40 certifed Canastra (Minas Gerais tory features, institutional ucts suitable for quality (Marzano, 2015) Federation, Brazil) videos) and compulsory certifcations regulations, pro- Cheese from Canastra MSMEs (benefciaries): Brand, tags and package moting a better commu- 200 y. tradition This design support design (for a consortium nication of product origin Made of raw milk initiative counted on of 6 businesses that and values. 30 to 45 benefciaries shared the same brand, 2008 - Production prac- from 2013 to 2016. This and for other individual The non-proft entity tices were considered as inquiry focused on 19 businesses). funds from 60% to 80% of part of the benefciaries of design the design interventions Brazilian cultural and im- interventions that in- Research of best prac- and the benefciaries pay material heritage by the cluded a major range of tices in loco. (refund the institution) Instituto do Patrimônio activities proposed. from 40% to 20% of the Histórico e Artístico Na- total economic value. cional (IPHAN) Projects studied were carried out from 2013 to 2015 - 2nd ranking 2016 Mondial du Fromage et des Produits Laitières (Tours, France) P2 Industry: fashion Technical drawing linge- To enlarge the benefciar- rie modeling workshop. ies market share intro- 3rd Brazilian Lingerie Location: Juruaia ducing the products into Cluster (Minas Gerais Federation, Research of best prac- the B2C market through 160 manufacturers Brazil) tices in loco. a new retail store, to Focus on wholesale B2B improve the quality and (Guedes, 2014) MSMEs (benefciaries): Mentoring, coaching. update the industry This project started with trends. 25 benefciaries but 15 Development of brand left the project before its identities, tags, packages The non-proft entity conclusion because of design, and other com- funds from 70% to 80% of their own (from the en- munication materials. the design interventions trepreneurs) investment and the benefciaries pay required to open their Store design for the con- (refund the institution) store. sortium of frms (same from 30% to 20% of the store and brand shared total economic value. Projects studied were by a group of entrepre- carried out from 2010 to neurs). 2014 Lingerie collection design

158 All interviews were done in the frst language of the interviewee. They were recorded and transcribed. Fragments of the interviewees’ speech referring to barriers and drivers, clearly connected to the research issues, were translated. Statements that appeared to have personal nature were excluded. A report including the subjects of interest for this research was elaborated and sent to the interviewees in order to validate the information. Eight representatives of key stakeholders were interviewed (policy-makers, designers and other consultants, and benefciaries). The interviews were carried out between October 2016 and March 2018. The duration ranged from forty minutes to one hour and thirty minutes. Table 13 shows the interviews carried out between October 2016 and March 2018.

Table 13: Interviews and interviewees

Interviewee Project Position Background Duration (at the time of the interview) Policy-maker A P1 Project coordinator Agribusiness Man- Video call 40min agement, Economics Policy-maker B P1 Project manager Project Management, Video call 1h10min Tourism Policy-maker C P2 Project manager Management, Video call 1h30min Agriculture Consultant A P1 P2 Consultant Product Design E-mail and 55min Video call Consultant B P1 Consultant Graphic Design E-mail (twice) Consultant C P1 Consultant Business Manage- E-mail (twice) ment Benefciary A P1 Benefciary Project Management, Video call 1h20min (Cheese Association Public Management Representative, Cheese producer) Benefciary B P2 Benefciary Entrepreneur Video call 40 min

The analysis of the interviews proceeded in between the new barriers and drivers, and the convergence with grounded theory reasoning ones that were already identifed in prior re- principle of elicitation, frst attributing codes to search (Tables 14, 15, 16, 17, 18, 19). the texts fragments selected from interviews, Three levels of analysis of drivers and barriers summarizing them in short phrases or themes. were set out as follows: Second, these themes were clustered according to the similarity between them through cross- − The actors level: policy-makers, design- reference. Finally, they were confronted with ers and consultants, and benefciaries as the existing literature enabling to distinguish individuals;

159 − The organisational level: the micro level regarding organisational structure, culture, and design process in the frm; − The ecosystem level: the industry, economic, political, and educational environment, as well as the geography. These three levels of analysis contribute to addressing design support programmes complexity, considering the context in which the programmes took place and diverse influences that can affect programmes; in other words, the context in which the design support initiative is embedded.

Figure 38: An interpretative framework for barriers and drivers to design innovation at three levels

The introduction or integration of design inno- bilities, Knowledge management, Design think- vation into MSMEs is also studied in the litera- ing, Creativity, Innovation, and Organisational ture with other terminologies, such as: to absorb studies. The barriers to design innovation found design management capabilities, to learn to use in the literature came from these felds at the design, to adopt design, to innovate by design, actors and at the organisational level. At the and to bring design into business strategy. The ecosystem level, they were additionally recog- main felds that deal with the issue identifed in nised in the Industrial policy, Innovation policy, this research were: Design management, Stra- Design policy, Economics, and Finance feld. tegic design, Product innovation, Design capa- 160 Barriers to introducing design innovation into MSMEs54

Appendix A of this thesis evidences the development of the elicitation process, demonstrating the selection of interviewees’ speech fragments, their translation, their synthesis or attribution of codes and, fnally, the literature check or confrontation. The barriers that were not found in prior research concerning design innovation in MSMEs were considered new. Some interviewees’ speeches provided insights for more than one barrier and level according to the interpretation and analysis held. The synthesis of the results is reported in this section. Tables 14, 15 and 16 show the barriers to design innovation found in the literature review, and others spontaneously55 cited by the respondents during the interviews. These barriers were framed at three levels: actors (Table 14), organisational (Table 15), and ecosystem (Table 16). Most barriers quoted were identifed in pri- or research, while others, that were highlighted, were not quoted before related to design innovation in MSMEs.

54 The frst version of this topic was published as ‘Introducing design-driven innovation into Brazilian MSMEs: Barriers and next challenges of design support’ (Fonseca Braga & Zurlo, 2018). It was originally presented at DRS2018 Conference: Catalyst, held at University of Limerick, Ireland, 25-28 June 2018. An initial version of the paper was included in the Proceedings of the event. This is one part of the reviewed version of the paper, improved with the contributions from the Conference, and further literature review, particularly addressing the ecosystem level.

55 The interviewees did not have access to the barriers found in literature either before nor during the interview. 161 Table 14: Barriers to design innovation at the actors level

162 Table 14: Barriers to design innovation at the actors level

*Although there are studies emphasising the role of trust in some innovation ecosystems, research pointing out the lack of trust (motivated by regional culture) as an obstacle to design innovation was not found.

The diffculty in trusting and the delay in de- terised by the gold and minerals exploitation by livering required activities that would be carried foreign people (from São Paulo and Bahia Fed- out by the company in order to accomplish a eration) throughout the 17th and 18th centuries. design process phase were pointed out by re- This situation led locals to develop a distrust of spondents and identifed as new barriers. foreigners or of people they were not familiar with since outsiders were seen as nomads who The diffculty in trusting means that projects were there mainly to get advantages, not being benefciaries show reluctance to engage with concerned with future relationships with the lo- consultants or to contribute to them mainly at cal community. This attitude is still related to frst attempts of the project when they have the ‘mineiro’ behaviour, and seems alive in more never met each other before. Interviewees rea- isolated communities in the countryside. soned this attitude due to the culture and tradition found in Minas Gerais Federation. This is The delay in deliveries impacts design imple- evidenced by the following speeches: mentation and results (e.g. when tests cannot “… talking specifcally about the cheese re- be carried out, problems are identifed later, im- gions… the mineiro (people from Minas Gerais pacting time to market, and adding design ac- Federation) is distrustful by nature; imagine a tivities to correct them). The lack of a design- mineiro almost 10 km from another mineiro, er’s experience in the specifc market feld was he becomes paranoid. Then, it started to cre- pointed out by a benefciary as an obstacle to ate several diffculties…” Benefciary A successful product design. “… because the small family producer is a Most barriers at the actors level were recog- very traditional man; in the beginning, he feels nised by interviewees that collaborate with each some diffculty in seeing the advantages to in- other, having face-to-face contact throughout vesting in something related to design. Then, projects. They have been addressed in several there is an initial barrier that is really cultural […] it is hard to get the information” Policy- felds, such as innovation, creativity, organi- maker A sational studies, and design policy. The lack of design awareness has been recognised as Minas Gerais Federation’s history is charac- a critical barrier (Choi, 2009; Raulik-Murphy, 163 2010), especially regarding government and branch and limited to tangible outcomes, such policy-makers that play a defnitive role in poli- as product design, that are seen as the appro- cies development, funding and, hence, imple- priate response to innovation processes. More- mentation (see for instance Amir, 2002; Mar- over, product development and other assets golin, 2007; Nunes, 2013; Raulik-Murphy, 2010; that compose product design activities are seen Thenint, 2008). as fragmented and separated activities, which do not evidence what is the actual meaning that One interviewee commented on the policy- the policy-maker attributes to design. makers’ attitude to design training as a service that can be done for free regarding the non- This reinforces the top-down approach car- proft private entity’s design support process ried out by non-proft private entities in charge and system. This evidences that policy-makers of design support, as well as its similarity to do not recognise design benefts and see the NPM approach criticisms (see Julier, 2017). designers’ job of transferring expertise as an People working at these organisations are en- easy activity that does not deserve payment, cultured to follow the rules, to achieve the goals, is not time demanding or is easily accessed or to measure their outcomes ftting in the system developed anyway. Another issue is that policy- without questioning or understanding the value, makers can consider that they already know the rationales, and relations that these design everything about design without ‘making’ de- actions can offer or not. Then, design becomes sign or having a background in design, which one more fashion word in this kind of design narrows the use of design within programmes support initiative. and projects that are generally crafted by them. This boundary is comprehensive consider- The lack of a full understanding of design was ing the background of most policy-makers that also evidenced in policy-maker C’s observation. does not include some design content or expe- Design is naturally seen within the technology rience in practice. branch, has a fragmented rather than a systemic approach, and its value is in the results rather than in its methods and processes: “The non-proft-private entity has a project focused on technology… we use a lot this tool because it is a resource that is cheap for the entrepreneur, he invests 20% of the project value. […] So this [voucher scheme] eased very much the introduction of design’s topic, not just design, but other tools we use, product development, modelling. Everything was done with this technology tool because its focus is to transform companies’ products, to bring innovation to the businesses. Then, to create new products, to improve what exists, all these aspects are focused on development, technology, and product innovation.” Policy-maker C The concern of the policy-maker was to be suited to the institutional structure rather than harnessing design as much as possible to improve businesses capabilities. Design understanding is constrained to ft in the technology 164 Table 15: Barriers to design innovation at the organisational level

165 Few organisational barriers were cited by participants during the interview. Policy-makers identify the lack of economic resources and the lack of trust among entrepreneurs. This second one hinders collaboration among them. Designers and benefciary recognise the need to have in-house capabilities, education, and training. The lack of top management (generally the owner in MSMEs) support to collaborate towards design support projects is pointed out by a designer. In addition, the lack of users orientation was identifed in the speech of a benefciary. The barriers quoted by respondents can be understood as the ones that they perceive as having a clear impact on design introduction through design support initiatives. Even though the other barriers might influence the introduction of design into MSMEs, they were not spontaneously remembered. A possible reason for this can be the usual approach to crafting projects that do not include a prior design audit or a strategic assessment before defning design support strategies and projects goals. Hence, generally, designers and consultants have the role of developing and implementing specifc new products and communication elements that were previously established in the design support programme or project by policy-makers.

166 Table 16: Barriers to design innovation at the ecosystem level

167 Table 16: Barriers to design innovation at the ecosystem level

168 The illegality was the new barrier recognised ket orientation price-based in contrast with a in the industry. The illegality in the market quality-based market, not evidencing a concern (shadow economy56 products) is recognised in with building capabilities through a systematic less advanced economies context. In this case, approach to innovation but with low products it represents the fact that some producers sell prices. The benefciary reasoning regards im- their products without quality requirements and mediate results more than impacts or long-term compulsory certifcations in the market as if benefts. Moreover, illegality has not been clear- they were made in a region where they were not, ly addressed in design studies. communicating this misleading information to On the other hand, informal economies can customers through package and brand. These be interpreted as a catalyst in defned contexts, products are generally cheaper than original such as China, where innovation arises from and quality-certifed products, thereby affecting copying and adapting mainstream products in a the competition in the retail market as the cus- more fluid approach to intellectual property (Ju- tomer is not able to distinguish them. lier, 2017). Innovation activities are undertaken Informality57 (OECD, 2005) is also a recognised mostly in the informal, non-registered part of barrier to innovation in less advanced econo- the economy (Julier, 2017). Informality, in this mies. The difference between illegality and in- sense, can provide conditions for an agile and formality is that illegality represents shadow lean pace of innovation processes in that con- economy products which can take place within text. a registered business (within the offcial struc- The lack of cooperation is when benefciaries tures of national government legal systems), see the other benefciaries as competitors that and informal economies involve non-registered can ‘steal their ideas or know-how’ more than businesses beyond informal practices. allies to achieve a goal. In the case of the stud- The factor considered by the interviewee to ied design support initiatives, the cooperation address illegality as a barrier was diverse from is not characterized by interdependence and informality in the Oslo Manual (OECD, 2005). mutual influence58 among frms in the same in- The Oslo Manual’s informality (OECD, 2005) dustry, since the access to external resources, concerns the informal practices impacts on such as a design consultancy, is assured when building capabilities towards innovation. The the businesses formally join the project, which interviewee considered the effects of ‘imita- means that one company will access the com- tion’ and ‘fake information’ that make the mar- petencies proposed in the project regardless

56 Illegal activities that can take place within the formal economy, such as cash-in-hand transactions not de- clared to tax authorities (Julier, 2017, p.123).

57 Structures outside the offcial national governmental legal system involving non-registered businesses who do not pay taxes (Julier, 2017, p. 123). 58 i.e. Cantù (2013) explains that these two factors are present in different types of network, including interper- sonal ones. 169 of other companies’ attitudes, conditions, and ments counteract the idea of the design policy commitment. This cannot be seen as a network role (including design support) to balance or because the motivation to join other business- stimulate design supply and demand, making es is mainly based on sharing the investment the conditions of private studios not suitable to costs and on the voucher scheme to exploit a hire them regardless of their competencies and resource, not requiring trust (among business- reputation. Even though bureaucracy has been es), commitment or skills from benefciaries. recognised as a constraint (Raulik-Murphy, 2010), the bureaucracy regarding standards and Thus, the kind of collaboration identifed regulations specifcally to hire consultants and means ‘to help one another’ or to learn in a designers to implement design projects in busi- collective process without prior relationships nesses through design support programmes fostered by a bottom-up approach to business in Brazil has not been addressed, and is con- needs and to strategies formulation (to exploit sidered crucial concerning the importance of resources). In this sense, the way design sup- designers’ experience, practice-based know- port projects are generally designed (top-down how, and good reputation to achieve competi- process), as well as how businesses join pro- tiveness advantage (see for instance Gemser & jects, do not favour cooperation or collabora- Leenders, 2001; D’Ippolito, 2014; Schneider et tion. al., 2015; Whicher et al., 2013). The top-down policies barrier means that, Most ecosystem barriers were not cited by when benefciaries do not participate in the ear- respondents. Some possible reasons might lier development of the design support initia- be that people get used to the national condi- tive, strategies can be inappropriate to current tions by just adapting to them and seeing things businesses know-how, interests, and goals. within the national boundaries context. Another Although the proposed design strategy seems can be the top-down policy approach that dis- compelling at a frst glance, problems arise af- courages taking actions and trying to change a ter implementation and project conclusion. Af- system that lacks meritocracy. The lack of edu- ter projects closure, companies solve emerg- cation and skills towards innovation can also ing problems using their own experience and lead to hiding the weaknesses at the ecosys- know-how, gradually abandoning design strate- tem level (how can one recognise something in gies proposed and implemented in the absence which one has no background or experience?). of (1) further follow-ups, and (2) medium- and An additional evidence is the time required to long-term design strategy sustainability and formally address laws that regulate the design- viability. Therefore, a post-evaluation process er profession in Brazil, an attempt that comes of the initiative to share the learnings of the di- from 1980 (CBD, Apex-Brasil, MDIC, 2014) and verse actors is required in order to learn from is still being carried out with limited content be- the previous experience and to better craft fu- ing discussed regarding the global expansion ture projects, building the programme legacy. and importance of design at organisational and The extensive regulations to contract con- national level. sultants make the process slower compared to hiring the designer or consultant in the market situation. This is also related to the top-down approach to policy-making. The consultant has to ft in several requirements that are not related to their design background, reputation or competence to attain the projects’ goals. Another issue is that some of these regulations’ require- 170 Drivers to introducing design innovation into MSMEs

Appendix B of this thesis evidences the development of the elicitation process, illustrating the selection of interviewees’ speech fragments, their translation, synthesis or attribution of codes, and, fnally the literature confrontation. The drivers that were not found in prior research regarding design innovation in MSMEs were considered new. Some interviewees’ speeches provided insights for more than one driver and level according to the interpretation and analysis held. The synthesis of the results is reported in this section.

171 Table 17: Drivers to design innovation at the actors’ level

172 Six drivers were quoted regarding the actors siastic, very dynamic, who go ahead, who are level. active. Nowadays, they make things happen regardless of the supporting entity…” Policy- Design awareness, internal motivation/will- maker C ingness, and proactivity related to benefciaries. Proactivity differentiates from internal moti- Entrepreneurs’ design awareness was the vation/willingness by the actions that are car- most cited among diverse stakeholders, and ried out, getting things well done rather than concerns the perception, feeling of, and sensi- just demonstrating the will to do something. tivity to the need for design and to its benefts. According to the consultant A: Drivers cited with respect to designers and consultants were: the use of good communica- “… the great facilitator is the recognition that tion (didactics, use of empathy) and experience, he needs… this market story and the dissemination of information, as it happens today, practice-based know-how, good reputation. bring them the certainty that they need to in- The most recognised driver among diverse vest in it […] they know the need for it”. Con- stakeholders was good communication. Good sultant A communication concerns the language, words, Benefciary B also states: and treatment used to deal with entrepreneurs. The discourses that evidence this driver were: “… I believe in the importance of design, because design studies behaviour, it has market “… we have to be careful, to use simpler and perception about customers, needs, demands. more suitable words” (about talking to benef- I invest and I would invest much more… in de- ciaries in an accessible way) Consultant A sign, because I think that a great experience “… when she [designer] starts telling him… he for us was that: the importance of having an [benefciary, producer] starts, according to active professional in the business feld.” Ben- what she says, saying ‘no, this is important, I efciary B want [other design intervention] too’ […] From The internal motivation/willingness was the this conversation, he [benefciary, producer] second most perceived driver referring to ben- can see other things” Policy-maker B efciaries. It means that benefciaries show de- “… you [consultant] have to guide, to bring the sire, wish, will, willingness, motivation towards information in an accessible [spoon-fed] way design, the will to make changes and a belief in in order to make them [benefciaries, produc- those proposed changes. Examples of speech- ers] grasp the information and get things done es that evidence this driver were: […] care has to be taken, it is exactly this, this explanation of the information to these fami- “What most facilitates any project is people lies [producers’ families] […] it helps open or at wanting to make the transformation” Policy- least get out of the comfort-zone” Benefciary maker C A “I’m just going to get into what I believe be- “There is a consultant [...] she is worshiped because then I know that I’m going to dedicate cause she achieves outcomes [...] she knows myself.” Benefciary B how to transfer [teach, transfer knowledge], Proactivity means a proactive attitude to- she has that ability. The professionals that we hire, we truly take the treatment into account… wards change, to make things happen, to get how they [consultants] deal with business- things done throughout projects. The following men. This matters a lot” Policy-maker C quotation describes this meaning as perceived by Policy-maker C: Experience, practice-based know-how, and good reputation are the aspects that compose “… what we propose to them, they do […] there are entrepreneurs who are very enthu- the second driver recognised by benefciaries 173 and policy-makers regarding designers and consultants, which means selecting professionals according to their competencies built throughout a recognised professional history. This professional is able (1) to provide examples that make the understanding and the implementation of design easier to non-experts, and (2) to promote the openness to learning of entrepreneurs from the earlier phases of the project, inspiring trust even if entrepreneurs and professionals have not worked together before. Having a design management background or design experience, which means having a technical know-how to manage/coordinate design projects, knowing businesses’ nature and dynamics, was the driver regarding policy-makers. Consultant A described this driver: “… this perception, this sensitivity to how to ... act, how to organize things, technically. In the case of P2, for example, that was Policy- maker C, Policy-maker C had a more accurate notion of business… about what the work was, so he/she contributed in a very nice manner to the work” Consultant A The drivers that were not cited by the interviewees are also important traits to foster design innovation and indicate the sort of features that should be cultivated. Many entrepreneurs’ natural resistance to change (they are generally not used to dealing with design) can lead to not perceiving these traits in the reality of these projects. The barriers concerning the benefciaries’ traits are more recognised among interviewees than the drivers, suggesting that benefciaries’ traits found in practice are more related to resistance to change than openness to it.

174 Table 18: Drivers to design innovation at the organisational level

175 Organisational drivers remembered by partic- to-face, explaining the reasons for doing ipants were related to culture and design pro- things… this shall demand, for sure, more at- cess. The ones regarding organisational culture tention to carry out and to translate what was were: the inspiration, from where it arose, and why some features were used in order to make the The use of design when the business goes producer understand and get the issue of his/ well, anticipating and adapting to changes. This her own identity… this contact [in-person] is means that frms join projects not to face a cri- fundamental… to know why he/she [benef- sis or urgent problem but when business is go- ciary] does things in a certain way. […] it is not ing well, especially sales. because he/she [benefciary] wants, it is because he/she learnt… from his family trial and The commitment of senior management, error practice…” Benefciary A which is evidenced through the companies’ Three drivers were remembered in relation to commitment to carry out proposed project ac- the design process: clear product development/ tivities. The following speech expresses this design strategy, international market-focused driver: orientation, plan, and resource market launch “These outstanding companies did the pro- using stage gates process. posed homework” Policy-maker C Clear product development/design strategy Collaboration among individuals from differ- refers to accurate, clear, and defned design ent backgrounds is related to the relevance of strategy, opportunities and deliveries to be experts from diverse felds and their collabora- achieved throughout projects. Examples of this tion among the teamwork. This driver was de- driver quoted were: scribed as follows by a designer: “… the demand was clear… the need to have an “… it (the project) was truly ‘every jack to his identity to get a market share, to strengthen trade’… There was ...the professional who un- the knowledge of the product… Everything led derstood the most or was more dedicated to to the need for a battle for the brand, for the market analysis… the fashion designer with recognition of an identity…” Consultant A the product issues, the architecture with point “Everything was quite clear […] they [consult- of sales design… information carried out by ants] got our demand and delivered what was people who know… understanding the market, contributing… to the Consultant X, seeing being requested…” Policy-maker C what was going on, and knowing that the team International market-focused orientation con- was made up of people who were contribut- cerns the importance of getting insights from ing” Consultant A global/international best practices in diverse Face-to-face communication means that in- phases of the project, from strategy and plan- person meetings and face-to-face contact mat- ning to implementation, including also in loco ter. These moments work to check the strategy explorations to improve benefciaries knowl- and briefng information and shed light on the edge of their business feld. real need of benefciaries to designers, contrib- Plan and resource market launch using stage uting to consultants understanding of reason- gates process was related to defned stages/ ing related to the organisation’s ‘way of doing’. phases (processes and activities) and decision According to Benefciary A: points with benefciaries’ validation throughout “… this (job) cannot be done as a job done projects. Speeches that detail this driver were: from the offce, from the cabinet […] the in-per- “We meet every ffteen days to discuss the ac- son meeting is fundamental… it is not enough tions [activities] of the group and all projects to talk sometimes on the phone, WhatsApp of development had their time to be carried etc. You (consultant) have to be there… face- 176 out [to happen]…” Policy-maker C “… more organization and to mark certain steps with validation of the representatives of the group [benefciaries group]…” Consultant A Other drivers at the organisational level were not cited by interviewees. Some reasons for this can be: the lack of design audit processes that could identify them; the lack of design and innovation experience among companies and policy-makers, taking also into account that these enterprises have little or no design experience, confguring a fledgling situation; the generally late introduction of designers and consultants into the design support initiative; and the way benefciaries usually take part in design support projects, not participating in the strategy defnition, and the way they were ‘selected’ (free adhesion) without prior analysis or diagnosis of design.

177 Table 19: Drivers to design innovation at the ecosystem level Cross-functional (experts from different backgrounds) in order to design the policy (design support in order programme/project) backgrounds) (expertsdifferent Cross-functional from * 178 The drivers regarding industry which were no design or innovation experience, started us- pointed out by interviewees were: ing design and evidenced positive changes or design benefts (mainly related to economic Cooperation between businesses/shared benefts), influencing other entrepreneurs in the concerns and practices means to pursue shared same cluster. The interviewees’ speeches be- aims/goals and activities, and the presence of low describe this: trust and help among businesses in the same industry. “…he [benefciary] realises that his positioning, along with the new positioning of the region “… the aim was the same to everyone [...] to as a whole, that it is important for him to re- become more professional in the presentation position himself, he sees this advantage. Once of the business… it extrapolated the issue of one, two, three do, others are automatically being competitors” Consultant A sensitized” Policy-maker A “… an important factor is their union because “There’s a producer, for example, who did it the actions are cheaper and more accessible anyhow. Then, only when he goes to the fair, to them, if we have projects nowadays it is be- to the events, he notices the others, the differ- cause there is a group of producers […] I think ence of other labels. These [producers who did the great differential is this issue of their union not join design support programmes before] […] this partnership… they understood the im- are already looking for [professional design portance of increasing the product value. […] interventions] …” Policy-maker B The aim of a producer is the same as another one, they have shared aims, and because of “… in any group there are those people who this they are together” Policy-maker B sit on the fence ... ‘I’m going to wait for others take part in it, if it works I will join it’ [ex- “… we started to work focused on the integra- ample of benefciary reasoning quoted]. That tion emphasising the entrepreneurial group happened too ... Then, this second group that integration… we implemented several courses we are organising came from people who were focused on the kind of cooperation that would here… they did not believe and left… and then make them trust each other […] from there, this sought [for design support]... again” Policy- group started to create conditions to work, maker C they created a purchase centre company […] they started to stand out, frst, because they Motivating environments/external motivation understood themselves as a team, they helped can be characterised by an environment where each other as a team… they know that what businesses take part in industry events and they learn together, they learn individually in fairs, having their products divulged to good their business […] They understood that work- reputation experts, who professionally use the ing together with other businesses does not interfere in their individuality; on the contrary, product and are recognised nationally, and by they just got everything they achieved be- the noticeable rise of more demanding consum- cause they were together” Policy-maker C ers. Other frms successfully used design in their The other industry drivers, related to more in- industry/cluster was the new driver identifed, tensive levels of innovation, were not quoted by which means that success of design interven- the interviewees. tions in other businesses in the same industry Two new drivers were quoted regarding policy: stimulates the use of design. Different from the clear strategies built in collaboration with good marketing idea of followers and pioneers that reputation experts and validation process with involve forefront and dominant frms that lead benefciaries/stage gates with benefciaries. the trends in an industry, the idea evidenced by Both were considered new at the ecosystem interviewees is that frms that were in the same level related to design policy formulation, spe- ‘follower’ position than others, having little or 179 cifcally design support. Although they are al- ing defned roles. Even though cross-functional ready recognised at the organisational level, im- integration is a recognised positive aspect for pacting on the project level, they were set at the managing new product and process develop- ecosystem level concerning policy formulation ment at the organisational level (Clark & Wheel- in the cases studied. Thus, they were explained wright, 1993), no research was found referring as follows regarding the ecosystem level: to this influence in the policy-making process concerning design support initiatives formula- Clear strategies built in collaboration with tion. good reputation experts can be described as the participation of experts in the earlier phases Validation process with benefciaries/stage of projects defnitions (strategy and teamwork gates with benefciaries is explained through a composition) contributing to project clarity and defned process and activities (stage) with par- assertiveness. As policy-maker C evidences: ticipatory decision points (gates). Consultant A “… we search for companies that will help us describes this process throughout design sup- within this process because the expertise is port initiatives: there. Here, we are just the guides and inter- “… more organization and to mark certain locutors… of businesses (benefciaries)… Eve- steps with validation of the representatives of rything was defned in terms of expertise, we the group [benefciaries group]… you have to search for the best […] the consultant of XXX defne… representatives, leadership… people [recognised leader brand in the global mar- from the group who were more promising to ket]… From her we got all the information re- be a representative of a certain topic.” Con- ferred to the professionals that would be nice sultant A to work with. This helped a lot… First, because we did not come from the feld [do not have Finance (e.g. credit availability) was remem- that background, know-how] […] the external bered by all policy-makers interviewed as a key indications of professionals who worked with driver to introducing design innovation into MS- us. This matters a lot. It was pretty assertive MEs, and it is related to fnancial and economic for us.” Policy-maker C resources available to invest in design. Accord- Although participatory policy-making pro- ing to policy-makers: cesses have been emphasised (Chisholm, “The main facilitator is the subsidy itself, Cruickshank, Evans, & Cooper, 2013; Julier, which makes it much easier for the small 2017; Maffei, Mortati & Villari, 2014c; Whicher company, the small producer, to access more & Walters, 2014), there is not a clear indication specialized design services” Policy-maker A and detail regarding design support initiatives, “For those producers who do not have fnan- outcomes, and impacts for design innovation cial resources, for many of them, I think, what in MSMEs, nor the use of participatory policy- is truly important is the issue of fnancing” making process as a driver to design innovation Policy-maker B in MSMEs. Hence, in this research, the mean- “… we facilitate a lot for them… What most fa- ings addressed by stakeholders are defned cilitates is the partnership between the entity in detail, providing specifc features that were and the companies [benefciaries]… one part considered by them. Whicher (2015) points out of the resources is subsided; this give us con- that a bottom-up approach to policy-making is ditions to work” Policy-maker C not always appropriate or the best approach, Another recognised driver was related to the depending on the case. This enables to distin- education of end-users or end-users’ design guish the general participatory or collaborative awareness, which refers to end users/consum- processes idea from the kind of participation ers understanding and identifying brands, their of each stakeholder at diverse moments, play- values, features, and offers. Communication 180 design helps spread knowledge about products, their processes, and origins. “… to show big cities what these (cheeses) differences are… The Canastra cheese is the cheese made in Canastra, in the seven municipalities of the geographical indication, with the recognised traditional techniques. […] keeping the same quality standards and with unique concepts and identities. This f- nal consumer’s perception of each cheese as a different cheese facilitated for each farmer.” Benefciary A Thirteen drivers found in literature at the ecosystem level were not quoted. They were not noticed or spontaneously quoted by participants, Figure 39: Policy-makers’ evaluation of Acklin’s in- confrming the likely shortage of these drivers dicators in the studied realities and the likely absence of their recognition as drivers to design innovation at the ecosystem level by interviewees.

Acklin’s indicators limitations All interviewees were asked to attribute scores for Acklin’s indicators using a Likert scale from 1 (unsatisfactory) to 6 (excellent). All the indicators had their meanings clarifed and described in the protocol of interviews. However, policy- makers and benefciaries, who usually do not have a background in design or in design management in the empirical cases studied, seemed to hear about them for the frst time and sometimes got confused about their meanings that Figure 40: Benefciaries’ evaluation of Acklin’s indicators were explained several times also using further examples. Thus, as policy-makers and benefciaries Figures 39 and 40 show the Acklin’s indicators were not familiar with those terms and practic- assessment by policy-makers (Figure 39) and es, and the process of interview was not enough benefciaries (Figure 40). Policy-makers and to make them grasp the indicators’ meanings benefciaries generally attribute great scores to and their representations in the design process the indicators, even if they have noticed major practices, this leads to questioning the validity drawbacks in the design process. One policy- of their assessments using this method. In oth- maker gave a mid-score to one indicator be- er words, their Acklin’s indicators’ evaluations cause he/she directly related a negative fact were inconclusive to understand project deliv- that played out during the project to this indica- eries and their effectiveness or not throughout tor, which was rarely noticed among other non- the design process. designer stakeholders. 181 On the other hand, talking about Acklin’s design indicators led to make design process points as they were perceived by the stakehold- Map of perceived businesses’ ers. Hence, policy-makers and benefciaries conditions and attitudes limitations pointed out the facts and their importance, and The implications on the map of perceived how those relate to the projects happenings in- businesses’ conditions and attitudes are that dicating negative and positive perceptions. Acklin’s indicators can receive different evalu- An experienced designer critically evaluated ations depending on the background of people the project using the indicators (Consultant B), who are assessing them. Furthermore, in case a consultant who has the background in man- many design activities are developed outside agement was less critical (Consultant C), and the benefciary company, not depending mainly another senior designer preferred not to evalu- on companies’ activities performance (e.g. in ate using the indicators but telling the story of the case of cheese logo development), the re- the project, pointing out what was seen as a sults are less affected by the company condition drawback and what was understood as a posi- or attitude, also considering that the change of tive aspect of the process and why, according to the logo and of the packaging communication their experience (Consultant A). This empirical aimed at making the product suitable to current evidence suggests that Acklin’s indicators are compulsory standards to introduce the product better harnessed by experienced designers but in the market. Hence, it was not a ‘choice’ but a one who is a senior designer can also think that reaction to a limitation on product commerciali- other ways, close to storytelling, are more use- sation. ful to share their learnings. Therefore, in situations in which changes are The chart below (Figure 41) shows these dif- pushed by the external environment, such as ferences of interpretation. Consultants without to make a product suitable for the purpose of a background in design or design management current compulsory standards, the map is not usually give better grades/scores to design in- useful to indicate companies’ engagement once dicators (Consultant C), while experienced de- they have to engage as soon as possible in or- signers tend to be more critical (Consultant B) der to still commercialise their products, and in as realised in the cases analysed. the case in which design activities do not rely mainly on companies’ performance, being carried out outside the benefciaries’ frms.

Figure 41: Consultants’ evaluation of Acklin’s indicators 182 PART III LEARNINGS, FINDINGS AND DISCUSSION

Might we envision a promising scenario to design innovation? What strategies can be drawn on how to get there? This part of the thesis aims at answering these issues, proposing recommendations to overcome the barriers and strategies to attain the preferred scenario to cultivate design innovation. Recommendations on design support programmes and a metamodel are proposed to better craft design support initiatives considering the empirical cases and the literature analysis. A promising scenario to design innovation for Brazilian MSMEs is drawn from the prior analysis of barriers and drivers. Key issues that should be addressed are set out in a holistic perspective using the How Might We (HMW) question framework. These HMW questions aim at promoting a reflection and stimulating the use of participatory approaches rather than providing immediate answers, being a starting point to further development, indicating promising directions. Implications for key stakeholders are pointed out. Finally, the discussion emphasises the research contribution to the design policy and design management studies focused on MSMEs, its fndings, limitations, and need for further research.

Keywords: Design innovation; MSMEs; promising scenario CHAPTER 8 Recommendations on design support59

In short, design practices consolidation is not harnessed throughout design support programmes and projects. Design is used in practice to achieve other priorities related to, for example, compulsory standards regulations, adequa- cies to technology, and market requirements characterized by short-term strategies, immediate perspectives towards which benefts can be achieved. There- fore, design support initiatives are more ‘pushed’ interventions than ‘pulled’ ones, being crafted in a market failure perspective. Hence, design as a connector, a functional integrator; an enabler of product- service systems (PSS) that fosters innovation to users; as a strategic driver; a way to boost economic growth; to envision futures, collaborating and co- creating them together with citizens, users or benefciaries of policies, are not observed in project practices, policy priorities and approaches to crafting design support initiatives.

59 The frst version of this chapter was published in the paper ‘Introducing design-driven innovation into Bra- zilian MSMEs: Barriers and next challenges of design support’ (Fonseca Braga & Zurlo, 2018). It was originally presented at DRS2018 Conference: Catalyst, held at University of Limerick, Ireland, 25-28 June 2018. An initial version of this chapter was included in the Proceedings of the event. This is one part of the reviewed version of the paper, improved with the contributions from the Conference, and further analysis of the issues proposed, especially on the implications for key stakeholders and on the design support model process which was developed after the frst version publication. In addition, looking at the design support and leadership, decision-making, and coordination policy frameworks, and at most research and of these processes. supportive institutions that relate to design, The scheme (Figure 42) addresses design leads to interpreting that design is seen as an support programmes gaps found in the empiri- addition, as it is usually included in other policy cal cases, considering also insights from the lit- priority, such as technology or quality require- erature review analysis. ments, to attain compulsory regulations. There are exceptions regarding this design under- The objective of this metamodel is to support standing considering the diversity and hetero- the design of initiatives which aim at introduc- geneity of design in Brazil. However, analysing ing, consolidating or improving the use of de- the picture of the Brazilian Design Innovation sign in MSMEs. It proposes an experimental ap- Ecosystem and how it works, we might state proach to crafting design support programmes that, generally, the potential of design has a very based on participatory processes to formulate narrow understanding. This is evidenced by or- proposals, and is built upon typical design pro- ganisational, institutional, and political practic- cesses and methods to take up scale, includes, as well as by current Brazilian design man- ing prototyping and pilots prior to scaling up a agement research (e.g. CBD, Apex-Brasil, MDIC, programme. As a prior stage, a design audit and 2014; Murphy & Raulik Murphy, 2015), which a portfolio analysis of businesses are suggest- also evidences the lack of data at national lev- ed in order to identify the design maturity and el, including public investment in design (CBD, needs of businesses. This helps set out a group Apex-Brasil, MDIC, 2014). of businesses with similar needs, addressing specifc programmes according to this under- Although evaluation has been considered a standing. controversial issue even in advanced economies, and it is costly (Raulik-Murphy, 2010; These suggestions contribute to aligning pro- Whicher et al., 2013), frameworks that enable grammes goals and strategies with actual busi- from short to long-term assessment need to be nesses’ needs considering experts and benef- taken into account and to be discussed in ac- ciaries’ perspectives earlier, avoiding the cost cordance to local realities and to international of immediately scaling up programmes that do adopted scoreboards and parameters in order not reach industry needs, not being sustainable to monitor the outcomes and impacts of these after the end of the initiative because the back- initiatives locally and globally. This can be seen ground of benefciaries was not considered in as a long-run development process rather than crafting the proposal. an immediate solution, requiring not just design Evaluation of programmes should be accom- expertise but collaboration with other experts, plished considering outcomes and impacts of as well as the consideration of local contexts these in a design perspective and in collabora- and the ones in which standard design score- tion with other experts in order to establish hard boards are used. and soft metrics related to the initiatives. The The diffculty in identifying public investment legacy of design support programmes has to be can be due to the inclusion of design as an ad- built by sharing the learnings from programmes’ ditional asset in other branches of policies experiences locally and at the national level, as programmes or to the lack of specifc policies, well as acknowledging global best practices. institutions or agencies concerned with de- The design support programmes’ learnings and sign, as well as the lack of professionals with a legacy shall feed next cycles of programmes, design or design management background in- contributing to better crafting next initiatives, fluencing the ecosystem and taking part in the considering adaptations and changes required.

185 Figure 42: Design support programmes’ metamodel

Furthermore, the fragmentation of the design tioned design support metamodel suggestions innovation ecosystem and the way current an- might contribute to flling in these gaps. nual accountability reports were done do not facilitate (a) the communication to a general public (citizens) and (b) distinguishing which part was specifcally destined to design, as well as measurable evidence of benefts directly related to the design interventions. Thus, the aforemen-

186 important social and economic impact? A promising scenario to design − How might we communicate design support outcomes and impacts to the general innovation: What is next? public and to potential partners? 2. the processes of policy-making are par- The preferred scenario addresses critical vari- ticipatory; ables which were identifed in each level as follows: − How might policy-makers elaborate new ways of crafting design support pro- 1. the design support programmes/projects grammes/projects in collaboration with have an important social and economic experts and benefciaries? impact; 3. the programmes/projects are evaluat- 2. the processes of policy-making are par- ed and monitored regarding short (out- ticipatory; comes) and long (impacts) term benefts; 3. the programmes/projects are evaluat- − How might we evaluate short and long-run ed60 and monitored regarding short (out- benefts of design support programmes/ comes) and long-term (impacts) benefts; projects? 4. the organisations are international market − How might we monitor short and long-run focused, human-centred and future-ori- benefts of design support programmes/ ented; projects? 5. the actors are design aware and build on 4. the organisations are international market appropriate education and skills to lead focused, human-centred and future-ori- design innovation. ented How Might We (HMW) questions (IDEO.org, − How might we prepare companies/benef- n.d.) are proposed to be answered in collabo- ciaries to become internationally competi- ration with key stakeholders’ representatives tive through design support programmes/ through a co-creation approach using design projects? thinking methods. The HMW questions elaborated are: − How might we make the frms be dedicated to their users’ needs through design 1. the design support programmes/projects support programmes/projects? have an important social and economic impact; − How might we make the frms be future- oriented through design support pro- − How might we propose design support grammes/projects? programmes/projects’ goals that have an

60 The evaluation framework has been discussed in Europe (Maffei, Arquilla, Mortati, Villari, Evans, Chisholm, and Londoni, 2014) and the assessment of design has been a matter of discussion at micro (see Fonseca Braga, 2016) and macro (Schneider et al., 2015) levels. We need to consider local conditions and the actors’ perspectives, understanding current frameworks in order to analyse and generate alternatives for the Brazilian case. 187 5. the actors are design aware and build on Thenint, 2008). Education is seen as a precon- appropriate education and skills to lead dition to enable an environment favourable to design innovation; international competitiveness since to open the domestic market to global competition, inward- − How might we make policy-makers and focused businesses need to promote consist- benefciaries aware of design? ent changes, catching up with (or, preferentially, − How might we improve policy-makers’ surpassing) international businesses innova- and benefciaries’ conditions, education tion standards. and skills towards design innovation? These HMW questions are exploratory rather than searching for immediate answers. They aim at fostering reflections. In order to propose Implications for key stakeholders strategies to achieve this scenario, the need for more participatory and collaborative processes, The suggested recommendations in order including the voice of experts and benefciaries to start improving design support in Brazil are in the earlier stages of design support initia- mainly related to the policy-maker role, consid- tives development, as well as long-term strate- ering the current top-down approach to design gies and appropriate follow-ups that can keep support programmes. They are: and foster design innovation within businesses strategies throughout time are required. Other- − To increase designers, consultants’, and wise, the sustainability and viability of design benefciaries’ participation in the policy- in one-shot projects are not assured. Generally, making process, so they can take part in annual reports elaborated by the non-proft pri- the defnitions of projects’ goals and strat- vate entity in charge of SMEs development fo- egies, and their experience and knowledge cus on the number of businesses which were are considered earlier. This kind of earlier opened; however, this indicator is not necessar- benefciaries’ involvement tends to make ily related to the non-proft private entity initia- them strongly committed to the project tives, and the main concern is how to keep up once they participate in its decisions. with these businesses to provide appropriate Designers and other experts can support support enabling them to thrive. prior assessments to design appropriate policy projects according to benefciaries The need for the development of an appropri- needs and conditions. The collaboration ate evaluation framework and for a clear com- with experts in earlier phases can prevent munication of outcomes and impacts to diverse misleading decisions regarding the lack of audiences, especially citizens, MSMEs, and pol- background in design; icy-makers are also pointed out. − To set out clear goals and strategy dur- The education of users, policy-makers, and ing the earlier collaborative phase. For entrepreneurs towards design innovation in or- instance, what is to be achieved, the com- der to attain design awareness is crucial. In the petencies required, how the programme/ case of policy-makers and entrepreneurs, de- project will be carried out, who will be in sign management is a key issue to make design charge of what and how, communicating innovation part of the day-to-day activities, as this information to all key stakeholders; well as to develop design awareness as emphasised in prior research (e.g. Amir, 2002; Bitard − To revise best practices in their feld & Basset, 2008; Margolin, 2007; McNabola et across the world. Several aspects related al., 2013; Nunes, 2013; Raulik-Murphy, 2010; to MSMEs conditions to absorb design 188 innovation or to develop design capabili- cuss businesses’ topics that interest both. ties through design support programmes To be present in design sector events and are not particular of a context but found in fairs (not just related to the institution). other situations too; The capacity to communicate with diverse − To look for tools that can support design audiences, especially to entrepreneurs, provid- programmes’ and projects’ development, ing examples and using accessible vocabulary, monitoring, evaluation, and legacy build- suitable to the audience were crucial factors ing, as well as experts’ collaboration in or- for designers and consultants. Furthermore, a der to strengthen their design capabilities good reputation and a practice-based know- towards future projects; how built upon experience is a recognised driver that facilitates design introduction. As to − To be updated and informed about the build a good reputation and experience a newly regional61, national, and global content graduated designer might be included in those and data related to design support pro- programmes being led by a senior designer. grammes/projects, as well as design in The novice designers can have a fresh mind to the world and in Brazil (collecting also foster design innovation, contributing to the in- current and comparable data in time), novativeness of a project while learning from building on reasoning that evidences the seniors’ experience and contributing to update outcomes and impacts on the Brazilian them about the ongoing trends in the feld. society and economy in order to negoti- ate required changes (e.g. to decrease Moreover, the entrepreneurs or benefciaries bureaucracy and better consider meritoc- of a design support programme have also a fun- racy) to better accomplish their role in the damental role towards design absorption. They supply and demand of design in Brazil, as can facilitate the introduction, consolidation or well as to defne budget destinations; improvement of design use in their businesses through support programmes by: − To move the focus of the work from inside the institution (e.g. fulflling demanding − embracing the risks of the design project, forms and reports) to outside, including − setting up an agenda to accomplish pro- visits to benefciaries with the specifc grammes activities in the company, purpose of understanding their needs and conditions, listening to their expectations − behaving proactively towards the project and what they need from the institution; and spreading this feeling among organisation’s members, being committed and − To be immersed in the design world. To making time of people with the required cultivate an environment that includes skills to carry out an activity available, the design industry professionals, as well as benefciaries, promoting events and − collaborating with other entrepreneurs meetings where people can have the op- and with designers towards the achieve- portunity to meet each other, to set con- ment of project’s aims, and the building of nections, to share knowledge, to propose learnings’ legacy. solutions to common problems or to dis-

61 The lack of knowledge about the real local context of small businesses and lack of capability to accomplish companies needs and expectations of non-proft private entities corroborates prior Nunes’s (2013) research fndings in Uberlândia (Brazil, Minas Gerais Federation). 189 CHAPTER 9

Discussion

This research has evidenced barriers and drivers to introducing design innovation into MSMEs through design support programmes which are largely applied in Brazil. In the frst empirical cases analysis, a map that indicates the businesses’ engagement intensity and its impact on Acklin’s design capabilities indicators was proposed. Businesses’ attitude and conditions throughout projects’ implementation are generally overlooked in design management research, particularly regarding MSMEs with little or no design experience. The preconditions to better absorb design in those cases were also identifed. The map should not be interpreted as an and managed considering the frms’ conditions evolvement scale in which each frm passes and attitudes. Programmes might have diverse through all stages but should be seen as a way designs and activities according to the position to visualise the position (condition or attitude) of the frms, setting up frms with similar posi- of a company throughout design support pro- tions and needs in the same initiative’s project. jects implementation, working as a soft metrics’ Table 20 points out this relationship, consider- assessment of the frms done by senior designing a cost-beneft perspective on design pro- ers who joined the implementation of projects. grammes (i.e. Tether, 2006): Design programmes might be better designed

Table 20: Soft metrics guidance on design programmes’ activities

Position in the map of perceived businesses’ Suggested design programme activities conditions and attitudes Lack of essential knowledge Basic skills development (emphasis on design promotion) Workshops, seminars, and lectures with emphasis on the competencies required to keep up with the specifc industry and design basic requirements for product development, implementation, and commercialisation. Unclear decision Rising design awareness (emphasis on design Last-minute task promotion) Workshops, seminars, and lectures focused on best practices examples, industry trends, user- centred design, lifestyle, market, new technologies and materials, sustainability. Take part and solve questions Basic design support (emphasis on design support) Development of products, communication and brand considering improvements, benchmarking or incremental innovation, expansion of market share or product value increment. Engage with and cooperate Design support towards innovation (emphasis on design innovation) Development of products, communication, and brand considering exports, new market shares, forefront technologies, lifestyle trends. Network development. B2B meetings.

191 Table 20 is a speculation, an example of how cies’ and programmes’ contexts. It can also be soft metrics feedback based on the map of per- useful to promote collaboration between key ceived businesses’ conditions and attitudes can stakeholders and to bring awareness of barriers help provide a guidance on programmes design and drivers that are seen by them, as well as to considering a better cost-beneft relationship. promote an opportunity for discussion consid- This can be done for businesses that have al- ering diverse actors’ points of view before set- ready joined design programmes and were in ting up a programme or policy strategy, under- touch with senior designers. Other cases re- pinning the decision-making strategy. quire a design audit as suggested in the design Another function is to provide a quick ‘before’ support programme metamodel. and ‘after’ assessment considering what was However, the map of perceived businesses’ discussed and agreed as barriers and as driv- conditions and attitudes, as well as the use of ers before the programme’s or policy’s strategy Acklin’s indicators, showed limitations regard- formation, and what was achieved at the three ing some specifcities in the second group of levels after the implementation regarding out- cases. The map did not work when a project comes and impacts. Even though this cannot involved ftting products in compulsory stand- constitute a very accurate evaluation, it can ards, and when most design activities were held be less costly as a process and can provide a outside the frm, showing that even in the case broader view of changes that took place and of low engagement, Acklin’s indicators received remaining challenges through the lens of key good grades/marks/scores. Acklin’s indicators stakeholders. also presented other constraints. They had di- This study showed that barriers and drivers verse evaluations of the same project depending at the actors’ level were more often and easily on the background of people who are assess- recognised by a range of key stakeholders, likely ing them. Non-designers usually gave better because they had enough face-to-face contact scores and are not familiar with the indicators’ throughout projects that helped them identify concepts. Designers showed more criticism in one another’s drawbacks and strengths. The the evaluation, and one designer preferred an- lack of background in design management of other evaluation method. Hence, Acklin’s indi- policy-makers (which is already stated in prior cators evaluation by an experienced designer research), the absence of companies’ prior de- is suggested but senior designers can also be sign audit led by people with a design back- harsh on the use of these and would rather use ground, and the introduction of designers usu- another method considering their own profes- ally from the implementation of programme’s sional experience. project phase, underpinned the fact that many In the second group of cases, the landscape barriers and drivers that are already discussed of analysis was broadened. Although most bar- in prior research focused in the context of MS- riers and drivers are already reported in prior MEs might exist but were not addressed at the literature, most of them were not previously re- organisational level. lated to the specifc context of design support The ecosystem level can be seen as quite programmes, especially in a holistic perspec- challenging once to promote ecosystem chang- tive that addresses the complexity of design es a network of key collaborators that agree support programmes’ projects as this study and corroborate each other’s needs should be provided through the framework of analysis at set out and take action, sharing a purpose and three levels. strategy. Most barriers and drivers at the eco- This framework can work as a tool or a meta- system level were not identifed by interviewees model to handle the complexity of design poli- despite the fact that they are clearly quoted in 192 prior research addressing the Brazilian con- takes place at the national level. Thus, the pro- text (see Figures 43, 44). They were only rec- posed framework helps bring the awareness of ognised when directly affecting the established their existence, spurring the importance in set- programme process or programme implementing out collaboration with diverse stakehold- tation, relating to day-to-day constraints and ers (e.g. government, institutions, universities, short-term outputs. Though they are crucial to industry, frms, designers associations, industry moving towards a promising scenario, people unions) to achieve consistent changes through seemed to get used to them. Hence, one might a more systematic and long-term development not be aware of a problem because one cannot strategy. recognise it in a certain lasting situation that

Figure 43: Barriers found at three levels

Figure 44: Drivers found at three levels

193 Few barriers and drivers were new and distin- using the ‘How Might We’ question framework guished from others in prior research only re- in order to suggest a starting point for a more garding the rationale used to address them by participatory re-beginning rather than pointing the interviewee or the lack of empirical evidence out immediate solutions to them, considering within design studies or regarding design sup- the advantages of the non-proft private entities port programmes. This analysis showed that of diffused structure across the country and the barriers and drivers differ according to: (1) the signifcant autonomy of resources use regard- context in which each project is embedded, in- ing national government. cluding the economic and political priorities and Finally, two major wicked (Buchanan, 1992) orientation, as well as cultural aspects; (2) the design issues were set at the outset of this the- way programmes and their projects were craft- sis: What matters when bringing or to considered, managed, implemented and evaluated; (3) ing design in the core of organisations’ strate- the background and mindset of key stakehold- gies? Is design for everyone, for every nation? ers who take part in these projects. The reflection on these wicked design issues is A design support programme metamodel was open-ended as follows. proposed addressing the design support pro- Design has set up a great potential to deal grammes’ drawbacks. This metamodel, as well with complex problems and opportunities due as the framework at three levels, should be seen to its experimental nature that enables to ad- as dynamic metamodels that can change ac- dress systems’ interconnections and complex- cording to the specifc project’s contexts char- ity. The need for design from private to public acteristics, the industry typology, the level of sphere has been increasingly highlighted with intervention (local, regional, national), and inno- the emergence of new design domains, spe- vation needed, background of people who use cialisations, and practices which have spilled them, and time (barriers and drivers can emerge over diverse industries, and created new ones. or change and can vary in a certain context, be- However, decision-makers’ design awareness ing more important or insignifcant). Therefore, and understanding, combined with macro fea- an expert with background in design policy or in tures related to economy, politics, and culture in design management, and in participatory meth- a country, can hinder harnessing design contri- odologies, is suggested to moderate a collabo- butions. Thus, reflecting on this research path, rative and more participatory approach, help- I might state that design is for everyone con- ing lead and fgure out controversies that can cerned about improving their real context, and arise, promoting symmetry of key representa- in envisioning and building desirable futures be- tives’ participation, checking the awareness of sides their own perspective, being predisposed possible barriers and drivers that can be over- to collaborate with others and to integrate oth- looked, as well as solving questions about de- ers’ visions in a strategy shared by key stake- sign concepts and contents and their relations holders in a process of change. A starting point to a broader context (or ecosystem level). is to build design awareness and understanding A promising scenario was envisioned through among decision-makers who can support and the selection of critical variables which were shape the desired change, because one can- organised within 5 headlines that are empha- not fully appreciate what he/she does not have sised in prior research, particularly those which the appropriate know-how in or not collaborate focus on less advanced economies contexts, towards. Therefore, the need to acquire appro- and some of them were reinforced by empirical priate skills to deal with more complex environ- evidence which arose from analysis of inter- ments, which are characterised by open-ended viewees’ speeches. Challenges were proposed challenges rather than pre-set issues, is a fledg-

194 ling issue among decision-makers. management feld were drawn. Other triggers of change can come up from The need for an explicit national design policy designers with appropriate backgrounds (e.g. was not noticed in the Brazilian case accord- in service design, social innovation, design ing to the literature analysis and to the empiri- thinking, participatory methodologies, design cal evidence raised that reflected on the current management, design policy, policy for design, context. A national design policy can undoubt- strategic design) who might acquire political edly contribute to identifying design initiatives, skills to reach a decision-makers role and influ- and to setting up an agenda and strategy to de- ence their peers’ ‘political’ conversations and sign, aligning initiatives across a country and decisions. Otherwise, we can hope for another positioning design in the attainment of national Juscelino Kubitschek’s (known as JK, a for- goals contributing to the country’s competitive- mer Brazilian president, considered a visionary ness, social conditions improvement and eco- politician) encounter with Oscar Niemeyer (a re- nomic growth, and to setting out what is to be markable Brazilian architect) in a different mo- achieved in qualitative and quantitative ways in ment and context in history in which a visionary collaboration with other experts related to the politician meets a skilled designer (regarding specifc sectors. Examples of diverse govern- the above-mentioned appropriate background). ment sectors’ outline in which design can contribute are: boosting exports, agriculture, nature preservation, technological innovation, clean energy, water access, earlier entrepreneurship education, healthcare, policies development, Other design policy’s matters and citizens’ empowerment within different government policies. This kind of relationship This research also brought situated insights has been already explored in prior research which arose and were referred to other relevant (Raulik-Murphy, 2010). subjects in the design policy feld. They are re- Policy-makers can be influenced to harness lated to: design across Brazil. One way is to identify − the need for an explicit national design design investment, initiatives, goals, real out- policy, comes (immediate effects), and impacts (long- term value). The need to invest in and implement − the need to bring design awareness and design support programmes and projects that understanding into the policy-makers’ assist in identifying, monitoring, and evaluating world, these initiatives in terms of outcomes and im- − the need for long-run strategies and ac- pacts is critical. Hence, the main problem is not tions, the branch in which design initiatives are placed − the influence of neoliberalisation process- but the identifcation of which action addresses es, especially the New Public Manage- design and which outcomes and impacts can ment approach, which is currently conver- be attributed to these design actions, as well as gent with the design support programmes the design contribution towards a major policy approach in Brazil, goal. However, the current shortage of knowledgeable design support initiatives can de- − the need for evaluation processes, crease the potential use of design and possible − the reliance on policy-makers’ back- positive outcomes and impacts, as well as their ground, interest, willingness, and mindset. identifcation considering the one-shot design support programmes approach without follow- In addition, fndings related to the design 195 ups or long-run strategies. and Singaporean cases show great transformations promoted by structured national policies Therefore, the most critical need emerged with a long-term strategy. was to raise the policy-makers design awareness and design understanding. In the cases In less structured incipient contexts, as in MS- studied here, policy-makers are also the ones MEs with little or no design experience, and in who act within non-proft private entities which Brazil, an emerging country with an agriculture- run national and regional design programmes. and mining-based economy, where the domes- The need for a knowledgeable and structured tic market is inward-focused, with recognised national design system or design innovation social inequality and low quality of education ecosystem that shares the language, methods, across a large and heterogeneous country, fail- measures, and learnings regarding design ini- ures will arise. Flaws also happen in experi- tiatives’ outcomes and impacts is noticed and enced and knowledgeable companies towards has also been realised in prior research (e.g. innovation and countries that have a signifcant Raulik-Murphy, 2010). This evidence of design emphasis on innovation through their invest- benefts (qualitative and quantitative) should be ment and policies. The approach used to ad- connected to the contribution to social welfare dress failures can be a meaningful input for fu- and economic growth, and communicated in ture design support programmes and projects. accessible ways to general citizens or wider au- What can be learnt from the experienced fail- diences and felds of expertise related to these ures (see also Ball et al., 2011), as well as how contributions or targeted audiences. fast we can learn from them, are fundamental aspects to move forward, improving or chang- Design support in Brazil and the New Public ing future design support initiatives in order to Management approach present similarities re- be more effective. This use of learnings from garding the focus on the management of the failures requires an experimental, structured, system rather than ensuring the quality of the and informed way to recognise drawbacks as conception and design of services that should soon as possible, and share learnings among be provided. Hence, constant measurement and key stakeholders, feeding further initiatives. audit of processes and outcomes drive the services’ arrangements in order to satisfy meas- However, all these proposed evaluations and urement criteria rather than being designed to structured and knowledgeable system cannot best serve the target or benefciaries of these become paperwork in addition to the existing programmes. This is a fact that seems wors- system which is already overwhelmed by ‘mak- ened in Brazil once the measures that are gath- ing paper’. ered are not directly related to the implementa- This evaluation system should be developed tion of initiatives, and to a design orientation. in cross-functional collaboration. For instance, Major design benefts are perceived in long- designers, economists, and sociologists can term strategies (8-10 years) in design-centric collaborate aiming at a lean framework and pro- companies (Rae, 2013, 2014) that are well-in- cess to evidence what matters to demonstrate formed and structured in their businesses, gen- design benefts and their relations to economic erally multinational and large enterprises with growth and social welfare concerning outcomes high fnancial assets value, and in advanced and impacts. Another cross-functional con- economies with a robust design innovation eco- tribution is to provide ways to compare Brazil system (e.g. UK) or a strong cultural orientation to other contexts through international score- to design (e.g. Denmark) that motivates invest- boards and standards. Designers can provide ment and measurement of design benefts at the communication to diverse audiences, es- the national level. Moreover, the South Korean pecially general citizens and MSMEs, in a more 196 accessible way. This enables a better diffusion tices’ upgrade according to changes in the and comprehension of programmes’ outputs real (users’/citizens’/benefciaries’) context, in and impacts for main stakeholders. trends, and in industries. Hence, generally fail- ing to perform in current dynamic and complex Design support initiatives, investment, and environments. processes are vulnerable to policy-makers’ mindset and background, political moments, External pressures, coming from large en- cycles, climate, and priorities. Policy-makers terprises, are emerging, questioning the rea- can receive design training by identifying and son for paying the tax that is destined to these using design tools to solve problems, to envi- non-proft private entities, and international sion opportunities, to map information, to lis- consultancies and collaborations62 (e.g. Maz- ten to citizens, and to communicate to diverse zucato & Pena, 2015; Piore & Cardoso, 2017) audiences, for example. However, it is not as- have pointed out the need for a connected inno- sured the effectiveness of mindsets’ and human vation system, for meritocracy or skilled profes- traits’ changes by this kind of training. Hence, sionals within these systems. These facts can design support interventions, as well as their in- lead to a movement towards the focus on real tensity and investment, will rely on political will- users’, benefciaries’ or citizens’ needs instead ingness that can be spurred by policy-makers of shaping and evaluating actions to serve re- background, beliefs, and interests in a certain quirements of these non-proft private entities context and moment. that often do not ft in benefciaries’, territories’ or industries’ current or future needs, which is Most Brazilian design support initiatives are evidenced through the double work of design offered and managed by non-proft private en- service suppliers that have to engage with ben- tities which are funded by public money and efciaries to fnd a personal solution to attend are still presenting a New Public Management their businesses, while ftting in the system (NPM) approach to design interventions. This standards’ requirements that generally do not NPM approach does not facilitate these prac- correspond to businesses’ real needs.

62For instance, CNI and SENAI have established collaborations with good reputation international bodies, such as Fraunhofer (Germany), Poli.design (Italy) and Massachusetts Institute of Technology (MIT, the USA) in recent years. On the one hand, these collaborations are welcome, considering that these international bodies can be regarded as international best practices in their felds. On the other hand, the lack of a prior strategic scope which defnes the specifc contribution of these international consultancies considering the Brazilian differences concerning infrastructural, economic, political, historical, social, and cultural aspects in which fledgling Brazilian communities of practice are embedded in. Another issue is the conflict of interests. For example, an international consultant might be likely to adopt a diplomatic attitude, not emphasising or clearly addressing leadership shortcomings that exist, while there are signifcant aspects to implement crucial changes towards the improvement of the Brazilian innovation system at this level. Thus, the positive impact of these international consultancies might be hampered, not reaching signifcant changes or benefts for the Brazilian context. Hence, considering that the budget which supports these international consultancies is mainly sourced at public funding, it is critical to rethink how these collaborations can be better harnessed considering the Brazilian context and defning strategic directions that do not aim at ‘copying’ a phenomenon that flourished in countries which present a quite different environment, infrastructure, economic, and political approach, as well as history and culture. 197 Moreover, as has been noticed in several coun- resource-poor and delayed replay’ of the pro- tries’ contexts (e.g. Singapore, South Korea), cess that advanced economies have already a change towards more innovative contexts is passed through without considerations about fostered by diverse influences in the public and differences in context’s reality. Bonsiepe pro- private sphere. In other words, several factors vides a developmentalist approach to design contributed to those changes, converging to- in less advanced economies in which design wards a shared interest and goal that motivate should play a crucial role in enhancing social public and private investment. Then, the frame- conditions. work at three levels can also spur catalysts’ However, research (Er, 1997) demonstrates forecasting through its holistic approach. that, in fact, the design aim in advanced and This research started with an interest in better in less advanced economies is connected to understanding these design actions from a de- design as a tool for better competitiveness of sign management lens. One of the contributions companies, industries, and economies. Con- addressed refers to this feld. This research versely, improving social conditions has been pathway showed limitations regarding the cur- addressed by design feld specialisms, such as rent design management approaches which social innovation, design thinking, participatory generally take for granted that design capabili- methodologies, design for policies, and oth- ties can be absorbed regardless the context in ers in advanced economies that have passed which design takes place, and the influence of through the neoliberalisation process followed diverse stakeholders’ background and mindset by an economic crisis (Julier, 2017). Thus, it can towards design. be understood that the developmentalist theo- rists’ suggestion has actually flourished in Eu- Hence, the attempt to shed light on barriers rope. and drivers to design in ordinary contexts (MS- MEs with little or no design experience) and in an Western countries, particularly European ones, emerging economy situation brings the particu- have experienced the impacts of an economic larities that should be considered and identifes crisis and of immigration that have highlighted the common aspects regarding design man- social inequalities and led to efforts towards agement and other complementary grounds. In integration and, on the other hand, segregation short, this study contributes to an approach of in some political approaches. At the same time, design as a situated practice in which design the use of design even in countries that have in- limitations and opportunities are embedded in vested in and demonstrated economic benefts the inquired contexts’ characteristics and ac- of the design industry, such as the UK, is not tors’ conditions and attitudes towards design. homogeneous across the country (e.g. Design Council, 2015), which is also noticed across Eu- rope (Thomson & Koskinen, 2012). Furthermore, we can fnd out differences regarding the use A brief reflection on Bonsiepe’s and understanding of design across a country in less advanced economies (e.g. Brazil, China). centre/periphery Moreover, the speed of innovation development and diverse forms in which it has manifested Bonsiepe (1991) contrasts centre (advanced in emerging economies, differing from western and industrialised economies) and periphery patterns (e.g. China, see for instance Heskett, (less advanced, third world, undeveloped econ- 2010, 2016; Julier, 2017), challenges the clas- omies), pointing out how the centre economies sical idea of centre-periphery that shows the see design in the periphery as a ‘second-rate, world through the lens of advanced countries.

198 All these current conditions suggest that cen- beyond the implementation of design support tre and periphery cannot be seen as separated initiatives, requiring better understanding of the spaces by national labels but, instead, they can reasons why some MSMEs succeed and why be sharing the same nation, although social in- others do not even when best practices of de- equalities are still presenting diverse intensities sign support are applied. according to countries’ economic development. Design support programmes (or initiatives) Hence, we should not overlook these heteroge- and their projects per se do not assure the de- neous contexts and the possibilities for a more sign acknowledgment and potential design use broadened learning from contrasting contexts within companies and countries. The need for sharing the same space rather than regarding diverse interventions that can be combined with economic development and the national labels design support is recognised (Cox, 2005; Rau- they hold. Thus, focusing more on context char- lik-Murphy, 2010; Swann, 2010; Tether, 2006). acteristics and their respective ‘how’ and ‘why’ Hence, this is one of this research’s limitations. design has been addressed in social and indus- This study looks at design support and its rec- trial mainstreams. ommendations focus on that. As discussed throughout this thesis, different factors can move a country towards innovation, better competitiveness, and quality of life beyond design policies and initiatives. In addition, political and Limitations and future research economic conditions and orientations affect priorities of investment, actions, and strategies Research in the design policy feld is acknowl- across the country. edged as a new phenomenon despite the long tradition of design policy practice, remaining the A review by the Design Research Society (DRS) lack of conceptual and theoretical foundations Conference in 2018 presented a positive evalu- (Er, 2002; Hobday, Boddington and Grantham, ation about the paper which addressed the bar- 2012; Raulik-Murphy, 2010). Moreover, the di- riers to introducing design innovation from an versity of design policy programmes, the lack of ‘ecosystem’ perspective in Brazil, stressing the a common terminology, defnitions, comparable comprehensive nature of the manuscript (Fon- data, and indicators across countries, policies, seca Braga & Zurlo, 2018) as follows: and projects also evidence this aspect (Raulik- “Strengths and Weaknesses: After several Murphy, 2010; Tether, 2006). In addition, there readings of this paper, I could not add any is the lack of studies and data related to design further points to enhance its overall quality. in the Brazilian context (CBD, Apex-Brasil, MDIC, Comprehensive in nature and well-articulated 2014). Therefore, the literature used to support throughout, it provides a reasoned and criti- the cases’ analysis is fragmented, coming from cally informed interrogation of design support systems that yield invaluable fndings as several felds as a consequence of the holistic to their value and relevance in their particular view required to inquiry the issues proposed domains of application. Particular strengths and of the fledgling design policy feld. of the discussion rest upon the ‘implications Design support best practices are fledgling, and recommendations on design support’, also lacking conceptual and theoretical foun- which raise a whole series of points that could inform the effectiveness of these programmes dations, as well as empirical evidence. Then, it in operation. This paper will have wide appeal is still not clear which are the downsides faced to DRS attendees and audiences far beyond by MSMEs when trying to make an effective use the conference itself. and management of design. This issue goes General Comments: An intellectually robust 199 and critically informed paper that could be of tors, trust among key stakeholders or kinds of beneft to a large number of interested audi- attitudes might a belief in design be associated ences. Findings arising from the paper could with? be applied to different industry/geographic contexts other than Brazil due to the compre- Furthermore, some constraints emerged dur- hensive nature of the paper.” Anonymous re- ing the research process: some people contrib- viewer of the DRS2018 Conference ute a lot, telling their perspectives on the pro- After this paper was written, the framework jects, while others are more diffcult to reach, evolved, including factors mainly related to the and were not available to a face-to-face inter- ecosystem level through further literature review, even though they have contributed by oth- view analysis. Further research can improve the er means. Some consultants feel afraid for their framework at three levels; for instance, through relationship with the design support agency an open source platform that can be fed by ac- when pointing out projects’ criticisms. The ben- tors who join diverse design programmes’ and efciaries’ list provided by the design support projects’ typology in different regions and coun- agency did not contain all the benefciaries that tries. This can provide a rich source of design joined a project, and one of them did not have programmes understanding, enabling to set out all their contacts up to date, which delayed the more robust relations about what is particular last interview. of a context and what is spurred by specifc In the Brazilian context, the isolated use of ecosystem factors, as well as to better identify design (or more collaborative or participatory diverse stakeholders’ point of view. Hence, pat- approach) is not enough to change the current terns of success or failure associated with de- scenario. Other transformations are also need- fned contexts features and time might be fur- ed. The need (1) to improve the social and eco- ther grasped. nomic infrastructure across the country, (2) to In addition, the design support metamodel foster design education among key stakehold- suggested was developed based on fndings ers, (3) to invest in and better monitor design considering the largely applied design support innovation, and (4) for meritocracy among de- models in the Brazilian context. Further re- cision-makers call for policy and management search is required to validate it in practice, as change. Design is one of the means or vehicle well as to explore improvements and adapta- for political and organisational change. How- tions or divergences regarding other contexts. ever, the openness to it is not taken for granted. The ability to put citizens’ and benefciaries’ real Benefciary B clearly stated a precondition to needs at the core of responsible policies crea- joining a project and truly dedicate to it: tion is the main contribution of designers’ role “I have to believe in the project” Benefciary B and competencies to policy-making (Junginger, 2014; Mortati et al., 2016). Diverse factors can influence this ‘belief in a project’ connected to an internal motivation Nonetheless, while decision-makers are still that is a quite subjective matter and also de- not truly committed to the public good, avoiding serves attention, remaining an unanswered is- to promote changes in their approach to policy- sue which can be better detailed, although some making that increasingly require human-cen- clues emerged in this research, such as ‘the tred and collaborative perspectives to address neighbourhood frm success’ (when one frm a complex and dynamic world, in the fear for be- in the same cluster achieves success spurred ing responsible for, or, for sharing responsibil- by a design support initiative). What kinds of ity for what they shall be strongly committed to, conditions (at the individual, micro, and macro and should struggle to achieve, things are likely levels), experiences, backgrounds of diverse ac- to not change too much in the coming decades. 200 GLOSSARY

Communities of practice studies and differences are identifed according to the conceptual framework developed in each They are “molded out of people with diverse research. backgrounds and perspectives and the need in organizing for innovation to create and maintain such communities” (e.g. Silicon Valley) (Piore & Cardoso, 2017, p. 6). In the 1990s and 2000s, Design-centric company communities of practice play a key role in creat- Companies that consciously use design as an ing the appropriate environment for new ideas integral part of their business strategy, under- to flourish. However, studies from the 1990s standing the power of design, how to use it as a and 2000s have pointed out that creating and tool, and how to scale it in a way that will drive maintaining such communities is feasible in success for their businesses (Rae, 2014). Rae theory but hard to implement in practice (Piore (2014) points out the criteria to recognize a de- & Cardoso, 2017, p. 22). sign-centric frm used to establish the Design Management Institute (DMI) design value index throughout a ten-year study, which shows that Design capabilities design-centric companies outperform the S&P 500 (S&P index is determined by Dow Jones Capacity is the ability to perform an activity in indices and includes 500 leading companies an acceptable manner, whereas capability is and captures approximately 80% coverage of the ability to repeatedly deploy the capacity in a available market capitalization. Source: http:// well-structured way (cited in Acklin, 2013; cited us.spindices.com/indices/equity/sp-500) by in Mortati, Villari, & Maffei, 2014). In this sense, 228%. design management capabilities absorption can be recognised when a frm is able to develop or improve its design management skills through- Design-driven innovation out time during a design policy intervention. “… customers hardly help in anticipating pos- Although under-researched, design capabili- sible radical changes in product meanings. ties are identifed as design management skills, The sociocultural context in which they are tasks, and capabilities in the design manage- currently immersed makes them inclined to in- ment feld ranging from basic skills to strategic terpretations that are in line with what is hap- skills (Acklin, 2013; Mortati, et al, 2014). Several pening today. Radical changes in meanings studies provide examples of design capabili- instead ask for radical changes in sociocultural models, and this is something that might ties (e.g. Acklin, 2013; Borja de Mozota, 2006; be understood (and affected) only by looking Bruce, Cooper, & Vazquez, 1999; Chiva & Alegre, at long-term phenomena with a broader per- 2009; Jevnaker, 2000; Mortati, et al, 2014). The spective. Design-driven innovation is there- terminology adopted is not convergent in these fore pushed by a frm’s vision about possible breakthrough meanings and product languag- the market in terms of users’ experience, ser- es that could emerge in the future. As this vi- vices, products, and business strategy at the sion cannot be developed solely by looking at company’s level, to better public services and current user behaviors, the process of these quality of life in social and public spheres in frms has little in common with user-centred which its value is in its processes rather than in approaches.” (Verganti, 2008, p. 438) its results (European Commission, 2016; Julier, Design-driven innovation is an approach or 2017; Thomson & Koskinen, 2012). strategy in which organisations propose the innovation for customers. Its process does not start from users’ insights but it has its core in Design-intensive frm the companies’ capabilities to redefne the prod- A rapidly-growing company that attaches much uct’s meaning for a customer. Examples of frms greater weight to design than average-growing which have built these capabilities are among companies; a company where design is integral design-intensive frms or design-led organi- to business strategy (DTI, 2005). See also the sations, such as the worldwide leaders: Apple, defnition of design-intensive frm according to Bang & Olufsen, Philips, and Italian frms, such the Design Council (2015) in the design-inten- as Alessi, Artemide, and Kartell, that achieved sive industry defnition. leadership in their industry despite their small size and limited resources (Verganti, 2008). However, since around 2008 the term has been Design-intensive industry also used to approach innovation and its relation to design, including human-centred design Industries in which design plays an essential and social innovation, especially in European role to develop outstanding products and ser- Commission documents. vices. For instance, Verganti (2003, p. 35) quotes furniture, lighting, kitchenware, and small appliances in this typology of industry. The Design Design innovation Council (2015) follows the Nesta method, which considers design-intensive frms and industries Despite the absence of a commonly agreed de- when 30% or more of the workforce are em- sign defnition (see for instance Arquilla, Maf- ployed in design occupations. Some examples fei, Mortati, & Villari, 2015; Swann, 2010), design of these industries that practice and sell design can be: are digital design, web design, animation, archi- − a tool that drives innovation, competitive- tecture, and built environment (Design Council, ness, and national economic growth (Eu- 2015). Verganti’s approach is not connected to ropean Commission, 2016; Thomson & the workforce in design occupations as Nesta Koskinen, 2012); and Design Council’s approach but is related to how these frms use design to innovate in their − a way to shape creativity towards innova- industries, establishing also external collaboration (Cox, 2005); tions with designers. − a lever of non-technological innovations (D’Ippolito, 2014; Thomson & Koskinen, 2012; Verganti, 2008); Design-led company − a way to humanise technologies (Heskett, It is when design thinking promotes a cultural 2009). transformation process within a business, moving from the design thinking focus on specifc Design results can range from new ideas into 202 processes and tools to building leadership to reached a rapid economic growth and integra- support design activity (Bucolo, Wrigley, and tion into world markets (OECD, 2009) but these Matthews, 2012). countries are still considered very risky for sev- “Being design-led requires a company to have eral reasons (Emerging markets, 2003) includ- a vision for top-line growth within its busi- ing inequality (OECD, 2011). We note that the ness, one based on deep customer insights terms are also used overlapped (see Interna- and expanded through customer and stake- tional Monetary Fund [IMF], 2008, 2012). The holder engagements, with the outcomes being emerging countries (markets or economies) are mapped to all aspects of the business to en- developing ones (e. g. Brazil and China are con- able that vision to be achieved.” (Bucolo, Wrig- sidered upper-middle income economies). It is ley, and Matthews, 2012) possible to identify different groups of emerging economies depending on the source, aim of information or analysed subject (e. g. Mor- Design-oriented company gan Stanley Investment Funds, 2015; Tsounta, A company in which design is the core activity 2014). The NICs term refers to countries whose and is the lever for innovativeness, where de- level of economic development ranks some- signers drive and support the development pro- where between the developing and frst-world cess and design is completely integrated with classifcations, presenting a transition from an the other functions and its outputs contribute to agriculture-based economy to a more industri- the overall performance of the company (Cala- alized, urban economy based on manufacturing, bretta, Montaña and Iglesias, 2008). construction, and mining, during the late 20th and early 21st centuries (Newly Industrialized “… kinds of organization favourable to collective Country - NIC, 2018; Singal & Wokutch, 2014). learning cycles, which are themselves condu- Trade and living standards are higher in NICs cive to this simultaneous regeneration of ob- than in developing countries (Singal & Wokutch, jects, skills and occupations.” (Hatchuel and 2014). They are also known as “newly indus- Weil, 1999 cited in Landoni, Dell’Era, Ferraloro, trializing economies” or “advanced developing Peradotto, Karlsson, and Verganti, 2016). countries” (Newly Industrialized Country - NIC, 2018). Er (1997, p. 294) defnes NICs as a sub- group of less advanced economies that include Developing x Emerging x Newly In- countries that ‘have attempted to gain design dustrialised Countries (NICs) capabilities in parallel to their industrial development’ from about the 1970s, although indus- These terms are used interchangeably through- trial design is still unknown in the less advanced out the thesis and are clarifed below. economy practices. Brazil is included in three major group defnitions: developing country or economy, emerging market, economy or country, and Newly Indus- Effective design policies trialised Countries (NICs). “The term developing The effectiveness of design policies is related used to denote low- and middle-income coun- to the positive change and/or transforma- tries does not imply that all economies in the tion of design capabilities observed in ben- group are experiencing similar levels of devel- efciaries (Maffei, Arquilla, Mortati, Villari, Ev- opment or that other economies have reached a ans, Chisholm, & Londoni, 2014a). Maffei et al. preferred or fnal stage of development” (World (2014a) and Mortati, Villari, and Maffei (2014) Bank, 2015). Emerging market, country or econ- include as design capabilities, design manage- omy have been related to countries which have

203 ment skills or capabilities (design leadership and design management), as well as design skills (design execution). Acklin (2013) distinguishes design management capabilities and design capabilities and their differences related to design ‘absorption’ in small companies with little or no design experience. The effectiveness of design policies in this research is considered when the design policy contributes to the (1) adaptation of benefted companies, organizations, groups or territories to the competitive dynamics of markets, enabling (1.1) the valorization of products or services, or (1.2) employment growth, or (1.3) market range expansion (e.g. contributing to exports and regulation of products and services, promoting consumer awareness), or (1.4) to build skills towards innovative cultures, such as capabilities to visualize opportunities and introduce new ideas into the marketplace.

Innovative culture An innovative organisational culture is based on the implementation of ideas (Kenny & Reedy, 2006, p. 119). Innovative cultures are risk-taking, engage all members promoting participation, encourage creativity, learning, share responsibilities, are committed to innovation (Kenny & Reedy, 2006; cited in Naranjo-Valencia, Jimé- nez-Jiménez, & Sanz-Valle, 2016), and can be measured by number of innovative services or products launched (Kenny & Reedy, 2006) and investment in innovation (Rao & Weintraub, 2013).

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221 APPENDIX A ELICITATION PROCESS: BARRIERS TO DESIGN INNOVATION PRIOR RESEARCH Bruce, Cooper and (1999) Vazquez Nunes (2014) Raulik Murphy and Cawood (2009b) Maffei, Arquilla, Mortati and Villari (2015) (2005) Cox European Commission (2009) (2005) Cox (2006, Sternberg 2012) - - BARRIER Over-involve ment in ope rational-level decisions and activities Not knowing to turn where for specialised help Risk aversion - - - SYNTHESIS Benefciaries are com strongly mitted to opera tional day-to-day activities Recognised need for design inter the by vention owners but lack of knowledge to fnd appropriate to professionals their need. solve for / distrust Fear of innovation. - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… the farmers spend all day in the farm…” Benefciary A that “…we knew beforehand we face a serious problem of falsifcations... the farms need to sepa knew that they the wheat, from rate the tares just did not know how…” they Benefciary A any resist already “... they kind of innovation…” Benefciary A - os - - quando ...” os produtores normalmente os produtores . Então, tem muita gente, a …” ele já tem uma certaquanto retração a gente sabia de ante mão é que disponibilidade de contato por parte

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… A gente tem que lem dos produtores. brar que na roça passam o dia inteiro e aí, fazenda não moram na própria cargas... por ser interior, isso, às vezes, não tem acesso a etc... o produtor internet, acesso a telefonia, isso gera uma certa tensão às vezes.” Benefciary A “… sério de falsi um problema enfrenta fcações canastra tem um peso grande nesse mundo dos queijos artesanais, então que tinha muita gente que achava, queijo de qualquer lugar do país pegava ou de Minas, e por ser um queijo re dondo etc. isso aqui é queijo canastra e como queijo canastra. Então, vendia já tinham essa... precisava produtores separar o joio do trigo, só não sabiam como Benefciary A “... a qualquer inovação Benefciary A

BENEFICIARIES ACTORS LEVEL

223 PRIOR RESEARCH Braga (2017) Fonseca Nunes (2013) - - - BARRIER at Passive titude towards design with lack of co operation/ engagement with design ers throughout projects - SYNTHESIS Lack of owners’ participation and collaboration with design ers throughout projects. attitude Passive design towards strategies and processes. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION is no interaction, “…There owners demand projects and wait for a good develop is no collabora ment. There tion during the development process.” Consultant B, designer time to “…we did not have too much to it, so, devote a lot of I think that lacked us, leaders, dedication from commitment more maybe… to follow the development… […] since the beginning, I had said that I did not believe I think did (in the project)… not contribute enough to it, every which was a problem body had (all entrepreneurs/ benefciaries), so it did not succeed…” Benefciary B - o ã - s lideres, s lideres, o . […] Penso que o . […] Penso .” o, os proprietários o, os proprietários m das demandadas é çã o durante o processo o durante processo enviado de forma mui çã é a gente não tinha tempo de eu acho que não contribui o o há intera da loja… […] desde o início, eu falei colabora ã

N INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “ e esperam que o demandam projetos seja satisfatorio. N desenvolvimento h de desenvolvimento pode oferecer proprietário/colaborador informações al O briefng, na maioria pelo projetista. das vezes, to pontual, especifcando apenas a demanda.” Consultant B, designer e quando todos “… pegou 10 líderes eu acho que não foi liderar, querem entendeu? Além disso não ser positivo, positivo, se dedicar muito, então, eu acho que faltou muita dedicação de n mais, mais empenho mesmo em talvez, estar acompanhando o desenvolvimen to mas aí, para eu que eu não acreditava, contribuir junto, não fcar fora, querer mas aí, de todos, necessário, foi um problema aí não aconteceu Benefciary B

BENEFICIARIES ACTORS LEVEL

224 PRIOR RESEARCH (2006, Sternberg 2012) et al. (2015) Arquilla Bruce et al. (1999) (2005) Cox Gibet, Schneider, Colomb, Orazem, Loesch, Kasparyan and Salminen (2015) - BARRIER Conventional thinking Lack of experi ence - - - - SYNTHESIS Emphasis on the of traditional way thinking because of conditions and traditional pro duction adopted. Lack of previous design experi ences in ben efciaries’ busi nesses SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… a person who is used to of 200, 300 of production way practically of history, years the world, then, isolated from any kind resist already they the frst From of innovation… design interventions with this startedcontact in loco… they to open their minds other approaches” Benefciary A about previous When asked experience with designers or design This was one of the “… Never. biggest barriers that we had […] Most to start overcoming heard never have producers about computers much less about what design is” Benefciary A do not know exactly “...they what it (design) is, how happens etc” Consultant A, designer

- - ” - - - - es çõ , de co que a do produtor, produtor, a do ç ão, como ela ç é que começa então , mas eles sabem ” abrir a cabeça para uma pessoa que na pauta, então, á com á ão da informa ç com esse contato in loco

Nunca. Essa daí foi uma das grandes INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS est “… você está acostumada com um modo de de 200, 300 anos história, produção isolado praticamente do mundo, então ele já tem uma certaquanto a retração […] A partir do mo qualquer inovação mento que começou a ter os primeiros trabalhos, e aí foram trabalhos foram de conhecer a família, nhecer a fazenda, a história dela etc., esses con a ter uma..., ser revisitado cabe quena ceitos, tanto concep quanto nas suas próprias estéticas, não no sentido de enxerto, mas no sentido de outras abordagens Benefciary A a existência sobre Quando perguntado com de experiência ou contato prévio designers. “ que a gente começou ter barreiras que quebrar […] a maioria dos produto nunca tinha ouvido falar em compu res tador e muito menos que é design Benefciary A falando um que a gente estava “Aquilo pouco antes, sim, apesar de que com assim e a essa história de mercado divulga acontece hoje, traz para eles a certeza nisso, né, investir de que eles precisam eles não sabem exatamente o que é, como acontece etc que assunto est assim, eles sabem claramente. É muito isso, desde o pequenini interessante nho até o mais estruturado.” Consultant A, designer

BENEFICIARIES ACTORS LEVEL

225 - PRIOR RESEARCH and Basset Bitard (2008) Choi (2009) (2005) Cox Commis European sion (2009) Filson and Lewis (2000) and Lewis Millward (2005) None - - BARRIER Lack of design awareness in deliv Delay ering needed activities (e.g. putting off pro totype tests) - not related to availability of economic resources - - - SYNTHESIS Lack of under standing and of recognition design benefts, advantages, and way value, of work as well as the need for design. Diffculty in lead ing/carrying out activities projects in time (e.g. put ting off prototype tests). - - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION limitation, in the “Another case of the small family is that the owner producer, understands the advantages this (design of a work like work)… in the beginning, he diffculties in recognis feels in invest ing the advantage to ing in something related design.” A Policy-maker is not spon “The initiative the taneous and this proves unfamiliarity/ignorance/lack de of knowledge regarding and benefts” sign processes Consultant B, designer was “Because the product (to carry not ready out pack aging tests), the packing had further adaptations.” Consultant C, management background - - -

- - . é - - o ã o s por ã ó n é .” .” A iniciativa n A iniciativa cnicas. A comuni é no início ele sente um o da entidade sem fns ã no geral formada por pessoas cios do design í é .”

O outro limitador, no caso do pequeno limitador, O outro a pronto, Como não existia o produto INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “ é ele entender a van familiar, produtor um trabalho desse tagem de se fazer isso a partirEle só consegue perceber do momento que ele consegue ganhar em mercado.[…] a van pouco de difculdade enxergar em alguma coisa tagem de se investir ao design em relação A Policy-maker chegam at “... os produtores recomendac difculdades e apresentam lucrativos ao serem de contribuir para o projeto infor solicitados a elencar diferenciais, mar o posicionamento, fornecer dados as normas t sobre dade a impress muito simples. Tenho de que aceitam participar dos proje o ao design porque tos de incentivo participou. “vizinho” o desco espontanea e isso comprova e os os processos nhecimento sobre benef Consultant B, designer “ adequações posterio embalagem teve res Consultant C, management background

BENEFICIARIES ACTORS LEVEL

226 - - - PRIOR RESEARCH None are *Despite there studies emphasis of trust ing the role in some innovation ecosystems, it was not found research pointing out the lack of trust as an obsta cle to design innova to tion and related cultural aspects. - BARRIER Diffculty in trusting due to cul regional tradition ture, - SYNTHESIS The regional and culture traditions that a mis leverage trust behaviour influence design interventions/ projects. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… talking specifcally about the the cheese regions… Minas (people from mineiro is dis Gerais Federation) imagine a nature; trustful by almost 10 km from mineiro he becomes another mineiro, paranoid. Then, it started to diffculties…” several create Benefciary A “… because the small family is a very traditional producer man; in the beginning, he seeing in diffculty some feels to investing the advantages to de in something related is an initial sign. Then, there cul barrier that is really to get the tural […] it is hard the small information from producer” A Policy-maker - -

o , . - á tico - á ou de os cultu pegando, ç ão quanto a ç ão, ao mesmo tempo, ç ximo mineiro, chega a ximo mineiro, o es que foram sendo contor com uma pessoa que est á çõ tem uma certa retra á ão de 200, 300 anos história, como o pequeno produtor familiar, familiar, como o pequeno produtor ç

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS est “você acostumada com um modo de pro du isolado praticamente do mundo, então ele j qualquer inova tem a questão dos tra você rais da cultura mineira. E aí, de queijo especifcamente as regiões eu brinco que é até mais problem se mineiro por exemplo, ainda, porque, da Serra é desconfado, o mineiro ele chega a Canastra, por exemplo, imagina, você ser paranoico, porque, é desconfado quase que por mineiro distante imagina um mineiro natureza, 10 km do pr ser paranoico. Daí, então, começou a criar uma série de difculdades implanta nadas aos poucos.” Benefciary A “… ele é um cara muito tradicional, no iní cio ele sente um pouco de difculdade de se investir a vantagem de enxergar ao design. em alguma coisa relação inicial que Então, existe uma barreira é cultural mesmo […] difícil tirar do rural a informação pequeno produtor for […] dependendo do público que você de mais imersão precisa você trabalhar, um briefng mais para conseguir fazer fdedigno com o produtor” A Policy-maker

BENEFICIARIES ACTORS LEVEL

227 PRIOR RESEARCH (2006, Sternberg 2012) BARRIER the ‘Follow attitude crowd’ (join actions because others joining) are - - - SYNTHESIS depend People on other benef ciaries’ decisions and outcomes to a decision; make do not make they a decision based on their own at titude or reason on ing; relying others. ------SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… when he (the owner/ producer/benefciary) goes he to the events, to the fair, notices the others, differ ence of other labels. These… looking for (de already are sign support)…” B Policy-maker (of ben “… in any group people are efciaries) there undecided… ‘I will who are await for other people join; part in if it works, I will take it.’(citing the sort of benef ciaries’ reasoning)” C Policy-maker that the impression “I have part in accept to take they projects the design incentive because their ‘neighbour’ has part in it” taken Consultant B, Designer “… since the beginning, I had (in said that I did not believe but… (in order the project), out (of the pro not to) stay ject), to contribute together, but… I think did not contrib ute enough to it, every which was a problem body had (all entrepreneurs/ benefciaries), so it did not succeed.” Benefciary B - ” estão para eu á j aí, assim , “ah... eu quero que eu quero , “ah... o de que aceitam desde o início, eu falei eu início, o desde ã .” ” eu acho que não contribui o aí, “Eu vou esperar fulano entrar se der vou “Eu em qualquer grupo tem aquelas

Tenho a impress Tenho INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS que ele por exemplo, um produtor, “Tem Aí, só que de uma forma qualquer. fez nos even na feira, na hora que ele vai a diferença os outros, tos, ele percebe Esses rótulo. do outro a gente procurando para nós”, “um novo faz o rótulo você pra gente” rótulo B Policy-maker “… pessoas que fcam em cima do muro, né. certo, eu entro C Policy-maker “ ao participar de incentivo dos projetos participou o “vizinho” design porque Consultant B, Designer em entrar só realmente “… eu devo E, a marca que a gente acredite. projeto consórcio, o para mas que eu não acreditava, contribuir junto, não fcar fora, querer mas de todos, necessário, foi um problema aí não aconteceu Benefciary B

BENEFICIARIES ACTORS LEVEL

228 PRIOR RESEARCH et al. (2015) Arquilla and Basset Bitard (2008) Filson and Lewis (2000) and Lewis Millward (2005) - - BARRIER Little under standing of devel product opment/design - - SYNTHESIS Shortage of de sign knowledge and experience that leverages the need to com municate in an accessible way. - - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION (consultant, designer) “… you to guide, bring the have information in an acces to the way sible (spoon-fed) to make farmers in order them grasp the information do and get things done… they access to infor not have mation… all or almost of them show a huge defcit of information… The producers know their need for (design just did interventions), they not know how” Benefciary A “Sometimes I follow a brief a little; ing script; it deviates no (benefciaries) have they knowledge (design knowl do not know edge) […] they exactly what it (design) is, how it happens etc” Consultant A, designer show “… the producers… diffculties in contributing are when they to the project to list features requested advantages), (competitive to inform positioning, data about product provide The community standards. is generally made up of very simple* people.” Consultant B, designer simple in *the adjective to refer Portuguese is a way to the shortage of knowledge, access to education and as well being resources, humble. It is socially consid a polite manner to do ered so. It is generally used as a euphemism in the day-to- speech. day

- á - , j - - - - ão, ç cnicas. é ” separar o joio os produtores .” etc...” ão da informa ç , porque vontade ele vontade , porque , e nem pode se exigir no geral formada por todos ou praticamente é precisava […] a gente sabia de ante ões. [...] que pegava queijo ões. [...] que pegava não sabiam como c o eles não sabem exatamente o s ele não tem acesso a informação os produtores... apresentam dif apresentam os produtores... você tem que orientar, trazer a trazer tem que orientar, você

As vezes eu sigo um roteirinho de eu sigo um roteirinho As vezes INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… informação de forma, é... mastigada para ele conseguir captar produtor pro e conseguir fazer tem, ou não tinha até pouco tempo […]ape sar da vontade, todos, têm um défcit muito grande de informações sério um problema mão é que enfrenta de falsifca de qualquer lugar do país ou Minas, etc. “isso e por ser um queijo redondo como e vendia aqui é queijo canastra” queijo canastra. Então, tinham essa... do trigo, Benefciary A “ desvia um pouco, briefng de projeto, eles [os benefciários] não têm o conhe cimento nenhum que tenha, mas eles [os benefciários] têm sensibilidade para a necessidade do trabalho dia cuidado com a ima gem [...] a divulga como ela acontece hoje, traz para eles a certeza investir de que eles precisam nisso, né, que é, como acontece Consultant A, designer “... culdades de contribuir para o projeto solicitados a elencar diferen ao serem ciais, informar o posicionamento, for as normas t necer dados sobre A comunidade pessoas muito simples Consultant B, designer

BENEFICIARIES ACTORS LEVEL

229 PRIOR RESEARCH D’Ippolito (2014) None (2009) Brown - - - BARRIER Lack of experi ence, practice- based know- how Lack of experi ence, know- how in the specifc feld, market. Lack of ability to communi cate design knowledge to company members - - - SYNTHESIS Lack of de practice- signer’s know-how. based Importance of design product experience in the specifc market or feld. Shortage of abil de ity to transfer sign knowledge to others. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION with little “… the professional experience… when market a person who is ap take you plying his/her knowledge for the frst time… someone who has just this experience… I many problems…” have C Policy-maker was a lack of more “… there experience… In the lingerie feld, Consultant X is very up dated, very good… has expe rience with fashion, clothing, not so much with lingerie. So, was a shortage I think there [...] of lingerie professionals assertive, needed to be more know? As I said, missed you a better knowledge having this about lingerie to create collection” Benefciary B the professional “sometimes, can be good, but he/she does a good didactic… not have of transferring The way information… this has a big are impact… sometimes, they but they good professionals, their not able to transfer are knowledge” C Policy-maker - - - - , - A tem ... só ela ão a profssion é bem antena c No ramo de lingerie, mas não tem a... assim, ” tica não era bacana. á sabe?! ... com rela ” o profssional com pouca experiên o profssional pode ser o profssional as vezes

Faltou, faltou também uma experiên Faltou, INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... pegar uma Você cia de mercado... que ela vai pessoa que é a primeira vez aplicar o conhecimento dela, tem essa experiência... eu tenho muito problema ais...” C Policy-maker “ cia maior, o Consultor X, do, muito bom, não a experiência com moda, roupa, tanto com lingerie. Então, eu acho que mais ligado a faltou um profssional ser mais asserti lingerie [...] precisaria entendeu? Como eu disse, faltou ter vo, mais a visão de lingerie para criar essa coleção Benefciary B “... bom, mas não têm uma didática boa que tirar que eu tive tipo profssionais a did porque a informação... Isso forma de repassar são bons implica demais... às vezes mas não sabem repassar profssionais, conhecimento C Policy-maker

DESIGNERS & CONSULTANTS & DESIGNERS ACTORS LEVEL

230 PRIOR RESEARCH Amir (2002) and Basset Bitard (2008) Bianchini and Maffei, Mortati (2014b) (2007) Margolin McNabola et al. (2013) Raulik-Murphy (2010) Thenint (2008) BARRIER Lack of design and awareness familiarity with design - - - - SYNTHESIS The policy-mak ers’ (non-proft entity) private attitude towards design training senior design by This ers for free. evident makes that design ben not rec efts are the ognised by entity system. SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… the technician [newly graduated designer] who identifes the customer’s needs… he has no idea what design is, he has very little have information about it. We with the non- argued already about entity… private proft I doing some roadshows; could teach all technicians, private but the non-proft entity wants us [senior designers, associations of designers] to do this for which we did not think free… that It is a project was fair. planning, detailing, requires is a meeting, then… everyone to doing this in bit resistant know…” you this way, Consultant A, designer - de - é, com a enti ele não faz á l todo mundo á assim, .” o técnico que faz capitação das

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... necessidades do cliente, esse téc nico não entende, a mínima ideia do que seja design, ele Já tem muito pouca informação sobre. até discussões tivemos sem fns lucrativos dade privada shows, que eu poderia uns road fazer um por os técnicos todos para aprender pouquinho de design, mas a entidade quer sempre lucrativos fns sem privada que agente faça isso gratuitamente... o que a gente não acha justo. Que é um detalhar, que demanda planejar, projeto então, assim, t reunir, isso desta a fazer um pouco resistente maneira, sabe Consultant A, designer

POLICY-MAKERS ACTORS LEVEL

231 PRIOR RESEARCH (2005) Cox Bianchini and Maffei, Mortati (2014) - - BARRIER Lack of back in ground design man agement - - - SYNTHESIS Little design ex perience, knowl edge, know-how to run/coordi nate/manage projects. - - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… the technician [newly graduated designer] who identifes the customer’s needs… he has no idea what design is, he has very little information about […] how (pro they things work here, had jects) go on… as if you is there know, to push, you be a thought may not… There of the need for planning and in management; however, practice, things get mixed up a bit. This is the feeling it is not a bad inten I have; diffculty in tion, it is a real doing things in a clearer, […] the planned process more the way demand was clear, of carrying it out was a little confusing […] In the moment I execution of the project was a lack of think that there of centraliza organization, tion… of information… little of the whole coordination story […] at a certain point, design an activity that emerges, advan competitive creates tages for companies etc. I do not, so far they think they a, it is logical do not have that this thing is going to on be gradual, it is feeding design training and informa that is it, they tion; however, did not have (policy-makers) they this knowledge, it is like for this.” being prepared were Consultant A, designer - - - . tinham á é como se de fato ele não faz a mínima

e foi para, gico que esta coisa vai gico que esta coisa vai sabe o pode ter um pensamento , assim, a assim que ia transferindo a assim que ia transferindo ç assim, a demanda estava clara, a forma a demanda estava em um determinado momento entra o técnico que faz capitação das ne

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… cessidades do cliente esse técnico não entende ideia do que seja design, ele tem muito pouca informação […] como as coisas como se funcionam aqui elas vão… sabe, não que empurrar, tivesse você tem, da necessidade de planejamento e mas, na prática, as coisas organização, um pouco. Essa sensação se atropelam que eu tenho, não é assim seja uma má intenção, é uma difculdade mesmo mais a coisa em um processo de fazer mais planejado claro, [...] que foi um pouco tumultu de realizar do ada [...] No momento da execução que eu acho faltou uma, projeto uma centralização... uma organização, da da informação... pouca coordenação história toda [...] o design, uma atividade que cria lá etc. eu para as empresas diferencial acho que eles não, até agora não têm uma, é l se alimentando vai sendo gradativa, da formação e informação sobre design mas, é isso aí, ele não tinha este conhecimento se formando para isso estivesse acho, [assim, […] Algumas pessoas, Eu com modéstia eu acho que me coloco deste grupo,] alguns nomes dentro pessoas que pela experiência j conhecimento maior no design pas saram estar mais juntos do ... neste tinha uma período [...]Então assim, você presen conhecimento.” Consultant A, Designer

POLICY-MAKERS ACTORS LEVEL

232 PRIOR RESEARCH Acklin (2013) Larsen and Lewis (2007) - BARRIER Limited re sources - SYNTHESIS These speeches highlight the lack of economic to resources access and to in design invest as a constraint, especially for small busi nesses; despite also pointing out credit a driver, at the availability, ecosystem level. - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “The main facilitator is the subsidy itself, which makes it much easier for the small the small producer, company, spe access to more to have design services”cialized A Policy-maker who do those producers “For fnancial resources, not have for many of them, I think, what is truly important is the issue of fnancing” B Policy-maker “… we facilitate a lot for them… What most facilitates is the partnership between the entity and companies (benefciaries)… one part of is subsided; the resources us conditions to this gives work” C Policy-maker

- prio rios, então o á es. Então, .” çõ rias presta ” á ” a gente facilita muito para eles… dos recursos serem subsidiados serem dos recursos

O principal facilitador é o pr que não têm aqueles produtores Para INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “ subsidio que facilita muito para a o pequeno produ pequena empresa, possa ter acesso a serviços mais tor, especializados de design A Policy-maker “ muitos, eu acho o fnanceiro, recurso que é importante sim é a questão do fnanciamento B Policy-maker “Como nos trabalhamos com grupo para cada muito baixo saiu um valor de 30.000 era esse valor empresa, os 25 empres dividido entre 1000 mil e pouquinho cada um pagava dividido em v assim, O que mais facilita é essa parceria que a entidade tem com as empresas, né, uma parte, isso nos dá condições de trabalhar C Policy-maker

STRUCTURE ORGANISATIONAL LEVEL

233 PRIOR RESEARCH Acklin (2013) Bruce, Cooper and (1999) Vazquez (2005) Cox Filson and Lewis (2000) - BARRIER Limited in- house ca pabilities for conducting innovation processes - SYNTHESIS Lack of know- how to contribute to design innova tion processes. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “Sometimes I follow a brief a little; ing script; it deviates no (benefciaries) have they cannot knowledge, and you them to have…” require Consultant A, Designer access do not have “… they to information… despite willingness, all or almost a huge defcit of of them have information… the producers... needed to separate the tares just did the wheat, they from not know how” Benefciary A show dif “… producers fculties in contributing to are when they the project to list features requested to advantages), (competitive inform positioning, to provide stand data about product …” ards Consultant B, designer - . - , - - - apesar não cnicas o pre é ões. Então, tem muita c tinham essa... no geral formada por [...] a gente sabia de á é j ” ...” ão de forma, é... mastigada ç ele não tem acesso a informação os produtores... apresentam dif apresentam os produtores...

As vezes eu sigo um roteirinho de eu sigo um roteirinho As vezes INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “ desvia um pouco, briefng de projeto, eles [os benefciários] não têm o conhe cimento nenhum, e nem pode se exigir que tenha Consultant A, designer a trazer tem que orientar, “… você informa para ele conseguir captar produtor pro ele vontade porque e conseguir fazer, tem, ou não tinha até pouco tempo […] todos ou praticamente da vontade, todos, têm um défcit muito grande de informações um problema ante mão é que enfrenta sério de falsifca gente, a canastra tem um peso grande nesse mundo dos queijos artesanais, então tinha muita gente que achava, queijo de qualquer lugar do que pegava país ou de Minas, e por ser um queijo etc. isso aqui é queijo canastra redondo como queijo canastra. Então, e vendia os produtores separar o joio do trigo, s cisava sabiam como Benefciary A “... culdades de contribuir para o projeto solicitados a elencar diferen ao serem ciais, informar o posicionamento, for as normas t necer dados sobre A comunidade pessoas muito simples.” Consultant B, designer

STRUCTURE ORGANISATIONAL LEVEL

234 PRIOR RESEARCH Larsen and Lewis (2007) - BARRIER Underdevel oped education and training - - - SYNTHESIS Lack of access to education, knowledge, information, as well as diffcul ties in contribut ing throughout develop projects ment. - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION (benefciaries) do not “…they any knowledge, and you have them to have cannot require it…” Consultant A, designer (consultant, designer) “… you to guide, bring the have information in an accessible to the farm way (spoon-fed) them to make ers in order grasp the information and get things done [...] in spite of do not the willingness, they access to information… have all or almost of them have a huge defcit of informa tion…” Benefciary A dif present “... producers fculties in contributing to are when they the project to list features requested advantages), (competitive tech positioning, to provide data. The nical standards community is generally made up of very simple* people.” Consultant B, designer - , - - - - - cnicas. é .” ... mastigada , é ões. Então, tem muita c tinham essa... pre no geral formada por todos ou praticamente [...] a gente sabia de á é ...” os produtores... apresentam dif apresentam os produtores... você tem que orientar, trazer a trazer tem que orientar, você

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS de eu sigo um roteirinho vezes “As desvia um pouco, briefng de projeto, eles [os benefciários] não têm o conhe cimento nenhum, e nem pode se exigir que tenha Consultant A, designer “… informação de forma para ele conseguir captar produtor pro ele vontade porque e conseguir fazer, tem, ele não tem acesso a informação ou não tinha até pouco tempo […] ape sar da vontade, todos, têm um défcit muito grande de informações um problema ante mão é que enfrenta sério de falsifca gente, a canastra tem um peso grande nesse mundo dos queijos artesanais, então tinha muita gente que achava, queijo de qualquer lugar do que pegava país ou de Minas, e por ser um queijo etc. isso aqui é queijo canastra redondo como queijo canastra. Então, e vendia j os produtores separar o joio do trigo, só não cisava sabiam como” Benefciary A “... culdades de contribuir para o projeto solicitados a elencar diferen ao serem ciais, informar o posicionamento, for as normas t necer dados sobre A comunidade pessoas muito simples Consultant B, designer

STRUCTURE ORGANISATIONAL LEVEL

235 PRIOR RESEARCH Cawood (1997) Filson and Lewis (2000) Larsen and Lewis (2007) Schneider et al. (2015) Larsen and Lewis (2007) Schneider (2006) - BARRIER Lack of top management support Lack of trust to build up part nerships ------SYNTHESIS The owners’ pas attitude and sive lack of participa tion/collabora tion towards design. Mistrust among entrepreneurs who see other (benefciar peers ies of a project) as competitors or that can ‘steal’ their ideas, ‘copy’ impacting at the organisational (e.g. the level try they to way problems solve op or approach portunities them as well selves) at the ecosystem level. - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… the owners demand and wait for a good projects is not There development. collaboration throughout process. the development […] I think the owner/com can provide pany employee those information beyond the designer. by requested The briefng, many times, is (short,sent in a very precise top one or a few regarding specifying only ics) manner, the demand.” Consultant B, designer was too much “… there mistrust. The entrepreneurs… had distrusted a lot, they competitors in the same benefciar (of project group manufac ies) because they the same product.” ture C Policy-maker - o ã - .” os proprietários os proprietários o, m das demandadas ã é o durante o processo o durante processo enviado de forma mui çã é es al .” rio/colaborador pode oferecer rio/colaborador pode oferecer á çõ o há interaç existia muita desconfança. Os colabora ã

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “N e esperam que o demandam projetos seja satisfatorio. N desenvolvimento h que o […] Penso de desenvolvimento. propriet informa O briefng, na maioria pelo projetista. das vezes, to pontual, especifcando apenas a demanda Consultant B, designer “… muito, desconfavam empresários… no grupo por pro tinham concorrentes o mesmo produto duzirem C Policy-maker

CULTURE ORGANISATIONAL LEVEL

236 PRIOR RESEARCH Larsen and Lewis (2007) - BARRIER Lack of cus tomers/users orientation - - - - SYNTHESIS Lack of a defned opportunity re a group garding of potential users and their behav lifestyle, iour, needs, as well as indications of gaps re market lated to potential users and com panies interest. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION us asked “… he did research, many things, but about shop ping malls, mainly because we had no experience with it, we did not know very much, where shopping mall this that people from are there we are, the region, the city and from so, many tourists go there, is not a completely there public, you defned target a little know?! […] It deviates used to what we were from selling because it was a door (B2C sales point) in a shop ping mall. Then, the pieces this designed having were mall in mind, and so this was not so assertive. I do not know if it happened because so, this public is very varied, all collections are actually, asser more bets… we are with our own (individual tive business) brand…” Benefciary B - as, . ç , á rias cabe á que shopping, ainda a gente, enquanto marca a gente, enquanto marca o né. E, […] Saiu um pouco do que a gen

ele fez pesquisa, ele nos perguntou pesquisa, ele nos perguntou ele fez da gente, a gente é mais assertiva

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... muita coisa, s mais que a gente não tinha nenhuma experiência, a gente não sabia muito, que esse shopping a gente est existem pessoas da cidade e região, muito turista lá também, então, não vai tem um público totalmente defnido, sabe?! era uma porque vender te costumava porta em um shopping. Então, fez-se as peças pensando neste shopping, e, não sei assim, não foi tão assertivo. Eu se é por esse público ser tão variado, todas coleções são assim, na verdade, apostas, s v por terem No consórcio, um shopping, nós tentamos ser dentro assertivos, mas não aconteceu muito…” Benefciary B

DESIGN PROCESS DESIGN ORGANISATIONAL LEVEL

237 PRIOR RESEARCH Nunes (2013) None - - - BARRIER Lack of co operation between businesses by motivated distrust among entrepreneurs in the same industry. (shad Illegality ow economy products/non- certifed prod ucts) - - SYNTHESIS Mistrust among entrepreneurs who see other (benefciar peers ies of a project) as competitors or that can ‘steal’ their ideas ‘copy’ what hinders cooperation. of The presence illegal products in the market leads to a price- oriented compe tition, influencing the industry to adopt low-quality standards. - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… we started to work focused on the integration emphasising the entrepre integration… we neurial group courses implemented several focused on the kind of coop them to make eration in order trust each other because… was too much mistrust. there distrust The entrepreneurs… had competitors ed a lot, they (of project in the same group benefciaries) because they the same prod manufacture uct.” C Policy-maker is a “… the illegal market… completely alienated market, which focuses mainly on price…” Benefciary A

- - a gente é um .” . Então, lcool, bebida á á l ...” , independente de existia muita desconfança. a gente começou trabalhar com o ilegal o mercado

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... foco de interação focando na do grupo empresarial cursos focados no implementou vários tipo da cooperação para que eles ga eles mesmos nhassem confança entre … porque muito, desconfavam Os empresários… no grupo por pro tinham concorrentes o mesmo produto duzirem C Policy-maker “... ser queijo cocaína ou alcoólicas não regularizadas, completamente alienado, que mercado preço foca sobretudo Benefciary A

INDUSTRY ECOSYSTEM LEVEL

238 PRIOR RESEARCH Nunes (2013) Raulik-Murphy (2010) ------BARRIER – Bureaucracy slow decision making, invest ments focused on standards and regulations rather than ac tual solutions, lengthy paper work to access government funds, hurdles for partner ship agree ments (mainly to referred the time re to fulfll quired government pro standard cedures) - - - - SYNTHESIS Paperwork fo cused on regula tions and stand rather than ards actual benefciar ies needs from design services. - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION private “… the non-proft that guides in a way entity… I is quite, I do not know, must fulfll goals, think they fulfll. Then, things do not At a very clear control… have know the frst moment, you works, you how the process the paperwork,organise the demand comes…, we call to check a bit of that described intention, we elaborate a contract which is annoying [non-proft because they requir entity] are private ing us to follow a standard form which is something like contents, copying-pasting and many times during the chat to check the demand, sometimes it extrapolates a some variations, are bit, there of but the internal evaluation entity private the non-proft the fulflment is requiring form. Thus, of the standard sometimes, I talk to them, are asking me to act dumb?, you because I am going to copy a form in which content I do you if but there, is believe not that, send like want to charge it, then I the form, approve and I will correct will go there this distortion... So, I will go to the client [benefciary], I will confrm what he wants. Consultant A, designer

- - tão né. - assim, .” a entidade privada sem fns lucra a entidade privada

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... ela conduz de um jeito muito, tivos, a não sei, eu acho que ele tem Então, as cumprir meta sabe, cumprir. coisas não tem um controle, momento, você no primeiro claro.... organiza você sabe como é o processo, né, a um documento, a demanda vem gente liga para confrmar um pouco assim aquela intenção né ali descrita, elabora um documento de contrato, eles que agora está um saco, porque estão exigindo que a gente siga uma fcha técnica, que é uma coisa meio copia cola conteúdos, e, muitas vezes, está tendo para que você na conversa extrapola confrmar aquilo, às vezes, um pouquinho, tem algumas variações interna da entidade avaliação a mas ali, está exi sem fns lucrativos privada gindo que seja cumprido o conteúdo da eu até fcha técnica. Então, às vezes, estão pe falo com eles assim, vocês dindo para que eu aja de maneira burra, copiar uma fcha que eu eu vou porque no conteúdo que não estou acreditando cobrar querem está ali, mas se vocês depois eu assim, manda a fcha, aprova, corrigir essa distorção lá e vou vou Então, eu chego no cliente, confrmo o que ele quer Consultant A, designer

POLICY & GOVERNANCE & POLICY ECOSYSTEM LEVEL

239 PRIOR RESEARCH None BARRIER Bureaucracy limitations to select/contract consultants SYNTHESIS Bureaucracy constraints to consultants hire in the market. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION a consult “we cannot hire a private from ant directly to hire we have company, re institutions, universities, associa agencies, or, search tions… the system alternates among the entities that are to and accredited registered meet these demands. So we this one as the main have constraint.” A Policy-maker the internal “… a diffculty, we that we have, bureaucracy process strong a really have Public the Federal from to be then we have Ministry, to the rules [...] very attentive is what most Bureaucracy hinders any hiring.” C Policy-maker - - o - o s temos, o como a ABE es, a gente çõ .” um difcultador, a pr um difcultador, s temos que contratar ins o .” a a desenvolver o trabalho […] a desenvolver ç a gente não pode contratar um

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… em uma empresa consultor diretamente n privada, institutos de tituições, universidades, pesquisa, ou, associações e a partirdesign, por exemplo, desse contrato com as institui come as entida entre sistema faz um rodízio des que estão inscritas e credenciadas para atender essas demandas. Então a gente tem esse aí como o principal limitador A Policy-maker “… acaba sendo interna que n pria burocracia muito fortea gente tem um processo do Ministério Público, então a gente tem que estar muito atento as normas é o que mais emperra […] Burocracia qualquer contratação C Policy-maker

POLICY & GOVERNANCE & POLICY ECOSYSTEM LEVEL

240 PRIOR RESEARCH Acklin (2013) (2005) Cox - BARRIER Bureaucracies to local related authorities/ regulatory is sues - SYNTHESIS Legislation rules/regulatory show processes constraints to rural artisanal and production introduc delay in tion of projects the market. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION the issue of leg “Nowadays islation… does not facilitate a lot for the rural producer, especially for the very small one…” B Policy-maker “… what concerns the legal part or at least training and of leg formal oversight islation rules… is simply ignorance and Federation ‘sillycracy’.” Benefciary A is still being im “The project plemented, waiting for IMA* registration.” Consultant C, management background * Minas Gerais Agriculture Institute - a ria á ” uma briga aí, á é simplesmente igno o, aguardando o registro o registro o, aguardando não facilita muito para , então, h ão, né, adequada, que çã né, ç ão, ela *.” ç no que tange a parte legal ou pelo uma expectativa grande que saia uma expectativa ncia e ‘burrocracia’ estatal ncia e ‘burrocracia’

Hoje é a questão da legislação, ainda está em O projeto a INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “ legisla rural, principalmente para o o produtor pequenininho h uma legisla as necessidades do atenda realmente rural” produtor B Policy-maker “… menos de formação e fscalização legislações, r Benefciary A “ implementa no IMA Consultant C, management background de Agropecu *Instituto Mineiro

POLICY & GOVERNANCE & POLICY ECOSYSTEM LEVEL

241 PRIOR RESEARCH Bianchini and Maffei, Mortati (2014) - BARRIER No clear strat to attend to egy a businesses/ design cluster demand/need – HOW SYNTHESIS No clear plan and management to the coordinate of achievement goals/ project demands. - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION be a thought may “… There of the need for planning and in management; however, up practice, things get mixed diffculty in do a bit… real more ing things in a clearer, […] knew planned process what needs to be done. The was a little confus process ing… the demand was clear, of carryingthe way it out was the mo a little confusing… At execution ment of the project was a lack I think that there of centraliza of organization, tion… of information… little of the whole coordination story…” Consultant A, designer - - - - ar o ç ão da pode inten ç e basica á a demanda , assim, No momento da , teve um período , teve […] eu acho que pouca coordenação pouca coordenação ão que eu tenho ç sabe […] ão assim do… porque, ão assim do… porque, ç ão e o governador, e não sei ão e o governador, ç ão, foi um momento da coisa ç ão. Quer dizer, tudo isso aí que ão. Quer dizer, essa sensa uma difculdade mesmo de fazer uma difculdade mesmo de fazer ç

ão, é

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS as coisas funcionam aqui elas “como quem tivesse na Como se você vão empurrar sabe não tem assim ter um pensamento da necessidade de mas planejamento e da organização, um na prática as coisas se atropelam pouco não é assim que seja uma m ç mais mais claro coisa em um processo planejado de fato […] sabia foi O processo ser feito. que precisava um pouco tumultuado desse aí, tipo assim, queria ter uma inaugura da sinaliza então tinha que quem, representante, né, não tinha saída não, O negó fazer, Então, foi cio tinha que estar pronto. tudo assim, tudo, acho que que foi clara, a forma de realizar estava um pouco tumultuada foi a organiza come só, em termos de … vou veja do princípio, da demanda confgurada uma assim a necessidade de eles terem para mercado identidade para reservar o conhecimento do produto valer fazer a tradi para não deixar morrer produ a necessidade da batalha pela levava de uma pelo reconhecimento marca, todo claro, identidade. Isso estava nisto. mundo nivelado que eu acho do projeto execução uma centrali faltou… uma organização zação, Assim, da informação mente isso. […] teve da história toda Consultant A, designer

POLICY & GOVERNANCE & POLICY ECOSYSTEM LEVEL

242 PRIOR RESEARCH Penna and Mazzucato (2015) Nunes (2013) Raulik-Murphy, Cawood, Larsen and Lewis (2009a) (2013) Patrocínio - - BARRIER One shot pro jects without follow-ups or strate run long gies - - - SYNTHESIS are Projects shaped disre possible garding follow-ups that could lead to a strategic more use of design. Hence, when setbacks arise benefciaries their own develop solutions based on their know- giving up/ how, abandoning the design strategy established dur ing design sup port initiatives. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION to better “… ‘we would like to be we would like organize; because other remembered are competitors’ products not like are but they emerging a have I already our product… brand’ (consultant exemplify ing benefciary speech) then, (consultant) discuss a you how she little bit of strategy… (benefciary) the introduces into lodgings… she product ex more (benefciary) feels is the project cited; however, just that little bit, but some times she (benefciary) calls (for advice on business) you we come into there … from it does her business strategy, not matter if it is a small business, business or a large but it matters…” Consultant A, designer -

tenho ’... á j como é que ela né, aquele pedacinho, o né...” cio dela não importa se é ncia o a a partir daí a entrar na estra a ç a gente queria se organizar um a gente queria se organizar

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... a gente queria ser pouco melhor, está começando a lembrado porque concorrentes produtos outros aparecer mas não é como o nosso produto muito legal, então assim ela fcou no céu com a história, agora legal, discuti um uma assinatura, aí você pouco de estratégia nas pousadas, aí você põe o produto assuntos, aí começa a entrar em outros isso ela fca mais entusiasmada ainda, é s mas o projeto em quando mas aí ela te liga de vez fala assim: Oh Consultant A, o que você uma [banquinha, Corte,acha de fazer com não deu para entender direito] um negócio, então assim ela sabe, come tégia do neg um negocinho ou negoção, mas é uma import Consultant A, designer

POLICY & GOVERNANCE & POLICY ECOSYSTEM LEVEL

243 PRIOR RESEARCH Penna and Mazzucato (2015) Nunes (2013) Raulik-Murphy, Cawood, Larsen and Lewis (2009a) (2013) Patrocínio - - BARRIER One shot pro jects without follow-ups or strate run long gies - - - SYNTHESIS are Projects shaped disre possible garding follow-ups that could lead to a strategic more use of design. Hence, when setbacks arise benefciaries their own develop solutions based on their know- giving up/ how, abandoning the design strategy established dur ing design sup port initiatives. - - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… among these 10 leaders was a lack of com there it should know-how… mercial be focused on commercial to sell be aspects in order was beauti cause the store ful, the collection was nice, was presented everything right, but we did not sell […] the idea to start So, we have our from products offering putting the consor stores tium brand label, it improved a little. After that, we decided were products that more needed, and if we needed to change labels, it would not be nice, then, the brands started with their to send products own labels. So, the consor became a kind of tium store multi brand, which was also a trial, but this coincided for shopping with a bad year malls… Sales, movement… that… it we could not afford All became very expensive. partners had to put money month… we decided every not going to that we were sell to tried we store, the keep we did not get a (the store), buyer…” Benefciary B - - - pre então ...” De venda, de De venda, a gente não conseguia rcio. Depois, a gente rcio. resolvemos que não ia resolvemos o , sabe? E aí, cios tendo que por dinheiro cios tendo que por dinheiro E aí, o rcio fcou tipo uma Multima rcio fcou muito dispendioso. o Aí prias marcas mesmo. Aí, a loja prias marcas o desses 10 líderes nem todos eram desses 10 líderes

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... para o comercial voltados para comercial cisaria ser mais voltado a loja porque para conseguir vender, fcou bonita, a coleção legal, tudo certinho,fcou apresentado mas [...] Aí, a a gente não conseguia vender a ideia de começar levar gente teve das nossas lojas, melhorou produtos um pouco e a gente punha etiqueta da do cons marca ter mais produ que precisava resolveu a fcar trocando tos e que se precisasse etiqueta não fcaria legal, aí as marcas com começaram a mandar produtos as pr do cons mas também foi uma tentativa, rcas, coincidiu de estar em um ano bem ruim nos shoppings movimento. pagar. os s Todos todo mês. não fcar com a loja, tentamos vender, conseguíamos vender Benefciary B

POLICY & GOVERNANCE & POLICY ECOSYSTEM LEVEL

244 - - - PRIOR RESEARCH None. Although participa tory policy-making been have processes highlighted in design policy and in design for policy domains, this indication is not depend prescriptive, ing on the context. The studied design support initiative showed the need for participatory (bot tom-up) processes. - BARRIER poli Top-down cies - - - SYNTHESIS The policy was crafted by policy-makers and consultants. ben Diverse efciaries’ brand identities, market focus, and expe not riences were in the considered design support strategy project and develop ment. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION 10 leaders and take “… they when all want to lead, I think that this was not positive… unsuccessful, when we are messed up… every we feel one with their brand experi ence, aiming at building only one brand, I think this is the this was the big dif answer, fculty…” Benefciary B , quando tem lido como experiência ... á né...” , entendeu [...] pegou 10 líderes e quando todos pegou 10 líderes

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... eu acho que não foi liderar, querem positivo com a gente algum insucesso mexe mas tudo é v cada um com sua experiência de marca, única, eu acho pôr uma marca querendo essa foi a grande que essa é a resposta, difculdade Benefciary B

POLICY & GOVERNANCE & POLICY ECOSYSTEM LEVEL

245 PRIOR RESEARCH (2008) Brown IDEO (2011, 2014) (n.d., 2015) IDEO.org - - BARRIER Lack of a vi ability analy sis of design strategy - - - SYNTHESIS Design ideas not evalu are ated in terms of economic sustainability time throughout (short-, medium- and long-term). the Moreover, sales new supply, and next product situ developing not ations were proto tested by typing. - - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… among these 10 leaders was a lack of com there it should know-how… mercial be focused on commercial to sell be aspects in order was beauti cause the store ful, the collection was nice, was presented everything right, but we did not sell […] the idea to start So, we have our from products offering putting the consor stores tium brand label, it improved a little. After that, we decided were products that more needed, and if we needed to change labels, it would not be nice, then, the brands started with their to send products own labels. So, the consor became a kind of tium store multi brand, which was also a trial, but this coincided for shopping with a bad year malls… Sales, movement… that… it we could not afford All became very expensive. partners had to put money month… we decided every not going to that we were sell to tried we store, the keep we did not get a (the store), buyer…” Benefciary B - - - De venda, de De venda, ...” a gente não conseguia rcio. Depois, a gente rcio. sabe? resolvemos que não ia resolvemos o E aí, cios tendo que por dinheiro cios tendo que por dinheiro E aí, o fcou muito dispendioso. rcio fcou tipo uma Multima rcio o Aí prias marcas mesmo. Aí, a loja prias marcas o desses 10 líderes nem todos eram desses 10 líderes

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... então pre para o comercial voltados para comercial cisaria ser mais voltado a loja porque para conseguir vender, fcou bonita, a coleção legal, tudo certinho,fcou apresentado mas [...] Aí, a a gente não conseguia vender a ideia de começar levar gente teve das nossas lojas, melhorou produtos um pouco e a gente punha etiqueta da do cons marca ter mais produ que precisava resolveu a fcar trocando tos e que se precisasse etiqueta não fcaria legal, aí as marcas com começaram a mandar produtos as pr do cons mas também foi uma tentativa, rcas, coincidiu de estar em um ano bem ruim nos shoppings, movimento. pagar. os s Todos todo mês. não fcar com a loja, tentamos vender, conseguíamos vender Benefciary B

POLICY & GOVERNANCE & POLICY ECOSYSTEM LEVEL

246 PRIOR RESEARCH Choi (2009) BARRIER Ineffcient monitoring, insuffcient assessment, complicated and immature evaluation process - - - SYNTHESIS Unclear manage ment/monitoring of processes. pro ineffective cess to formalize design services. forms Standard useless that are to defne in order benefciaries needs and ser to vices required their needs. solve - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION private “… the non-proft that guides in a way entity… I is quite, I do not know, must fulfll goals, think they fulfll. Then, things do not at a very clear control… have know the frst moment, you works, you how the process the paperwork,organise the demand comes…, we call to check a bit of that described intention, we elaborate a contract which is annoying [non-proft because they requir entity] are private ing us to follow a standard form which is something like contents, copying-pasting and many times during the chat to check the demand, sometimes it extrapolates a some variations, are bit, there of but the internal evaluation entity private the non-proft the fulflment is requiring form. Thus, of the standard sometimes, I talk to them, are asking me to act dumb?, you because I am going to copy a form in which content I do you if but there, is believe not that, send like want to charge it, then I the form, approve and I will correct will go there this distortion... So, I will go to the client [benefciary], I will confrm what he wants.” Consultant A, designer a - tão - .” né, , assim, ali descrita, né . Então, eu chego no né conduz de um jeito muito, , ela a entidade privada sem fns lucra a entidade privada

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... tivos a não sei, eu acho que ele tem Então, as cumprir meta sabe, cumprir. coisas não tem um controle momento, você no primeiro claro.... organiza você sabe como é o processo, um documento, a demanda vem gente liga para confrmar um pouco assim aquela intenção elabora um documento de contrato, eles que agora está um saco, porque estão exigindo que a gente siga uma fcha técnica, que é uma coisa meio copia cola conteúdos, e, muitas vezes, está tendo para que você na conversa extrapola confrmar aquilo, às vezes, um pouquinho, tem algumas variações interna da enti ali, mas a avaliação está sem fns lucrativos dade privada exigindo que seja cumprido o conteúdo eu da fcha técnica. Então, às vezes, estão até falo com eles assim, vocês pedindo para que eu aja de maneira copiar uma fcha eu vou burra, porque no que eu não estou acreditando conteúdo que está ali, mas se vocês cobrar assim, manda a fcha, querem corrigir lá e vou depois eu vou aprova, essa distorção cliente, eu confrmo o que ele quer Consultant A, designer

POLICY & GOVERNANCE & POLICY ECOSYSTEM LEVEL

247 PRIOR RESEARCH Choi (2009) - - BARRIER Under-skilled design agen cies and de signers - - SYNTHESIS Lack of knowl edge and experi ence to develop, carry out and manage design initiatives - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… the technician [newly graduated designer] who identifes the customer’s needs, this technician does not understand… he has no idea what design is, he has very little information about […] how things work here, go on… as (projects) they had to push […] the if you the way demand was clear, of carrying it out was a little confusing […] at a certain point, design an activity that emerges, advan competitive creates tages for companies etc. I do not, so far they think they a, it is logical do not have that this thing is going to on be gradual, it is feeding design training and informa that is it, they tion; however, did not have (policy-makers) they this knowledge, it is like for this.” being prepared were Consultant A, designer - ão - ç - ão... ão da ç ç . tinham ão do á ç , sabe, não tica, as coisas é como se á ele não faz a mínima ão, uma centraliza e foi para, .” ç gico que esta coisa vai gico que esta coisa vai o ão... pouca coordena ç ão, é uma difculdade mesmo ão, mas, na pr c ç assim, a assim que ia transferindo a assim que ia transferindo ç em um determinado momento entra o técnico que faz capitação das ne

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… cessidades do cliente esse técnico não entende, ideia do que seja design, ele tem muito pouca informação […] como as coisas como se funcionam aqui elas vão… que empurrar tivesse você tem, assim, pode ter um pensamento da necessidade de planejamento e organiza um pouco. Essa sensa se atropelam uma seja que assim é tenho, não eu que má inten mais a coisa em um processo de fazer mais planejado de fato claro, clara, a forma [...] a demanda estava que foi um pouco tumultu de realizar ada [...] No momento da execu que eu acho faltou uma, projeto uma organiza da informa história toda sabe [...] o design, uma atividade que cria lá etc. eu para as empresas diferencial acho que eles não, até agora não têm uma, é l se alimentando vai sendo gradativa, da formação e informação sobre design mas, é isso aí, ele não tinha este conhecimento se formando para isso estivesse acho, [assim, […] Algumas pessoas, Eu com modéstia eu acho que me coloco deste grupo,] alguns nomes dentro pessoas que pela experiência j conhecimento maior no design pas saram estar mais juntos do ... neste tinha uma período [...]Então assim, você presen conhecimento Consultant A, designer

EDUCATION ECOSYSTEM LEVEL

248 PRIOR RESEARCH Swann (2010) Apex-Brasil, CBD, MDIC (2014) Choi (2009) Design Council (2015) BARRIER Lack of design awareness/ end-users education to the recognise design value Distribution of design services - SYNTHESIS Users/custom ers did not distinguish the and origin cheese in the features market. Geographical distance from designers/ studios/design services. - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… the education of custom ers, to show the cities what the these differences… are Canastra cheese is not a cylindrical milky white, round, mass. The Canastra cheese is the cheese made in Canas tra, in the 7 municipalities of the geographical indication, with the traditional tech niques recognized…” Benefciary A about diffcul When I talked ties designers, “Distance [from design services, studios]…” Benefciary A - - - - a quando .” ç que, por exemplo, que, por exemplo, [...] tem muita gente, , agenda, ehh... Metereolo . ‘isso aqui é queijo canastra’ e . ‘isso aqui é queijo canastra’ ncia a a formação de público externo,

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... quais mostrar para os grandes centros são essas diferenças o queijo Canastra não é uma massa cilíndrica. O láctea branca, redonda na queijo da Canastra é o feito Canastra nos 7 municípios da indicação geográfca, com as técnicas tradicio nais reconhecidas a canastra tem um peso grande nesse mundo dos queijos artesanais, então que tinha muita gente que achava, queijo de qualquer lugar do país pegava ou de Minas, e por ser um queijo redon do etc como queijo canastra vendia Benefciary A as difculdades sobre Quando falava “Dist gia e... disponibilidade de contato por A gente tem que parte dos produtores. normalmen lembrar que os produtores na ro te passam o dia inteiro e aí, fazenda não moram na própria cargas... por ser interior, isso, às vezes, não tem acesso a etc... o produtor internet, acesso a telefonia, isso gera uma certa tensão às vezes.” Benefciary A

EDUCATION GEOGRAPHY ECOSYSTEM LEVEL

249 APPENDIX B ELICITATION PROCESS: DRIVERS TO DESIGN INNOVATION - - PRIOR RESEARCH Mor Maffei, Arquilla, tati and Villari (2015) and Basset Bitard (2008) (2005) Cox Choi (2009) Commis European sion (2013) Larsen and Lewis (2007) and Lewis Millward (2005) - DRIVER Design aware ness - SYNTHESIS The perception, sensitiv feeling, ity for the need of design and its benefts. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION (benefciaries) have “… they sensitivity to the need take of their image. This is care among them. quite evident that the feeling are They and business dy processes to be appropri namics have where ate to the world today of the brand, the exposure the message, has to be very [...] the great coherent. clear, facilitator is the recognition that he needs […] this story and the dis market semination of information, as bring them it happens today, the certainty need that they know in it […] they to invest the need for it” Consultant A, Designer the have... “... the producers of the need” awareness Benefciary A ------eles a..., consci . Aquilo que a o, essa história ” ” e a divulgação da in , né, eles não sabem assim os produtores tinham os produtores

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS de eu sigo um roteirinho vezes “As desvia um pouco, briefng de projeto, eles [os benefciários] não têm o conhe cimento nenhum, e nem pode se exigir que tenha, mas eles [os benefciários] têm sensibilidade para a necessidade do trabalho de cuidado com a imagem. Eles Isso em todos é muito evidente. e a estão sentindo que os processos dinâmica do negócio têm que estar adequada ao mundo de hoje onde a da mensagem, exposição da marca, [...] tem que estar muito clara, coerente. o grande facilitador é reconhecimento daquilo de que ele precisa falando um pouco antes, gente estava sim, apesar de que com de mercado formação, como ela acontece hoje, traz para eles a certeza de que eles preci nisso sam investir etc, acontece como é, que o exatamente mas eles sabem que assunto está na pauta, então, assim, eles sabem clara isso, desde mente. É muito interessante o pequenininho até mais estruturado. [...] da mesma maneira que no indivi dual, o grupo individualmente acontece da mesma forma, individualmente sabem da necessidade Consultant A, Designer “... ência da necessidade Benefciary A

BENEFICIARIES ACTORS LEVEL

251 - - PRIOR RESEARCH Mor Maffei, Arquilla, tati and Villari (2015) and Basset Bitard (2008) (2005) Cox Choi (2009) Commis European sion (2013) Larsen and Lewis (2007) and Lewis Millward (2005) - DRIVER Design aware ness - SYNTHESIS The perception, sensitiv feeling, ity for the need of design and its benefts. - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION started “… they to see the importance of the designer had they […] the perception needed to be differ that they in ent and seek the difference detail of the business every the from there, ... It was from this to have will to perceive, had they power of perception, to be differ to do differently, ent, to do different” C Policy-maker in the importance “… I believe of design, because design it has studies behaviour, about perception market customers, needs, demands. and I would invest I invest in design, much more… because I think that a great experience for us was that: the importance an of having in the professional active business feld.” Benefciary B - ” - - - - no design, porque no design, porque , sim, .” eu acredito na importânciaeu acredito do de eles começaram a ver a importânciaeles começaram a ver

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… que eles do designer [...] a percepção ser di de que eles precisavam tiveram em todos e buscar a diferença ferentes a partirdetalhes do negócio [...] Foi daí, de ter esse po de perceber, da vontade fazer precisavam eles percepção, da der diferente fazer ser diferente, diferente, C Policy-maker “... o design estuda compor sign, porque do mercado, tamento, tem percepção enquanto cliente, comportamento, invisto e necessidades, demanda. Eu muito investiria eu acho que uma grande experiência para a gente foi isso, importância de atuan um profssional se ter realmente do na área Benefciary B

BENEFICIARIES ACTORS LEVEL

252 PRIOR RESEARCH Acklin (2013) Schwartz, Poirier, Berman, Eddy, Wynne, Chacour, Martin, Cavanaugh, Byrne, and Sanberg (2017) (2006, Sternberg 2012) None - - DRIVER Internal moti / will vation ingness Proactivity - SYNTHESIS wish, Desire, will, willingness, want motivation, changes to make in and do believe those proposed changes. at Proactive titude towards change, to make things happen. - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION (benefciar “… because they the will…” ies) have Benefciary A will “… their (benefciaries’s) people are is very nice… they […] What know. with will, you is most facilitates any project the people wanting to make transformation” C Policy-maker gotten “So… the lesson I’ve just going I’m for my life: go into a business to really because believe, that I really a good business is one that in and dedicate believe you to, right. Then, I’m yourself just going to get into what I because then I know believe going to dedicate that I’m myself.” Benefciary B to “… what we propose are do […] there them, they very who are entrepreneurs enthusiastic, very dynamic, ac who go ahead, are make they Nowadays, tive. of things happen regardless the supporting entity…” C Policy-maker - - - - O que [...] ...” . Isso assim, faz a porque vontade ele vontade porque são pessoas com

.” eu só vou entrar no que eu eu só vou aprendizado eu peguei para aprendizado aí, Então, [...] Foi a partirde daí, da vontade [...] Foi , ele não tem acesso a informação, o querer deles é muito bacana o querer você tem que orientar, trazer a trazer tem que orientar, você o que a gente propõe para eles, eles o que a gente propõe

Então, INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… informação de forma, é... mastigada para ele conseguir captar produtor pro e conseguir fazer, tem ou não tinha até pouco tempo” Benefciary A “. uma necessidade deles, nasceu da Foi deles [...] vontade entendeu vontade, para continuar tra gente ter motivação do grupo [...] balhando, a vontade é as mais facilita em qualquer projeto a transforma fazer pessoas quererem ção de ter esse poder da percep perceber, ser diferente, fazer ção, eles precisavam diferente” fazer diferente, C Policy-maker “ entrar realmen minha vida: eu só vou te em um negócio que eu realmente o negócio bom é porque acredite, e se dedica, acredita aquele que você né. aí eu sei que vou porque acreditar, me dedicar Benefciary B “... que são [...] têm empresários fazem muito afoitos, dinâmicos, que as Hoje fazem atrás, que correm. vão independente da coisas acontecerem entidade apoiadora C Policy-maker

BENEFICIARIES ACTORS LEVEL

253 PRIOR RESEARCH (2009) Brown - DRIVER Good com munication (didactics, use of empathy) SYNTHESIS Language, words, and treatment used to deal with entrepreneurs. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION we “… we use the words… to use to be careful, have suitable simpler and more (about talking to words” benefciaries in an accessible way) Consultant A, Designer sometimes, “… the producer, he only he does not know, adopts the label develop ment, when she (designer) starts telling him, the pro he (benefciary, fessionals, starts, producer) according saying to what she says, this is important, I want ‘no, (other design interventions) […] And other things too. too’ he this conversation, From can producer) (benefciary, see other things” B Policy-maker is a consultant [...] she “There is worshiped because she outcomes [...] she achieves (teach, knows how to transfer knowledge), she has transfer The profession that ability. we truly take als that we hire, into account… the treatment (consultants) deal how they with the businessmen. This matters a lot” C Policy-maker - - - - ’, - E assim, ” também. A partir dessa ele consegue ver outras ele consegue ver aí aí ” ” a gente vai usando palavras, a gente vai ele não sabe, às vezes, o produtor,

Tem uma consultora [...] ela é idola Tem INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… tem que tomar cuidado, usar as pala vras mais simples e adequadas Consultant A, Designer “… a hora que moça ele só faz o rótulo, com ele, os profs começa a conversar sionais, é que ele começa, conforme for é que ele diz ‘não, o que ela conversa isso é importante, também eu quero o cartão por exemplo, de visita que é super importante para eles, né. outras coisas que conversa coisas B Policy-maker “ [...] a mulher dá resultado trada, porque ela tem essa habilida ela sabe passar, que a gente contra profssionais de. Os ta a gente tem muito esse cuidado das né, como é que eles lidam tratativas, Isso é muito com os empresários. importante C Policy-maker

DESIGNERS & CONSULTANTS & DESIGNERS ACTORS LEVEL

254 PRIOR RESEARCH (2009) Brown - DRIVER Good com munication (didactics, use of empathy) SYNTHESIS Language, words, and treatment used to deal with entrepreneurs. - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION (consultant, designer) “… you to guide, bring the have information in an accessible (accessible, suit (spoon-fed) to make in order able) way them grasp the informa tion and get things done […] most One of the things you attention to, that need to pay is exactly need to have, you this, this explanation of the information to these families […] he (benefciary) starts that people wanted realizing him, it was not to hear from something top-down, he had not only to position himself, but also to interact, and so, in one hand, it helps to open or at least to get out yourself of the comfort zone” Benefciary A . - , ” saber saber não podem ter […] sobretudo para as […] sobretudo […] é muito de , mas ao mesmo tempo um dos maiores cuidados que um dos maiores Ele começou a perceber que ele Ele começou a perceber você tem que orientar, trazer a trazer tem que orientar, você

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… informação de forma... mastigada pro para ele conseguir captar e produtor conseguir fazer artesanais alimentícias cadeias agro rurais, é exatamente essa, tem que se ter, essa explicitação das informações para essas famílias o que as pessoas estão introjetar falando também como explicitar isso para elas que, assim, é um Então, eu acredito de mão dupla, processo ruídos de comunicação com certeza a disponibilidade de informações é que tenha crucial, mas que eu acredito muito interessan gerado um resultado te, tanto na abertura de conhecimento quanto na por parte dos produtores, abertura de conhecimento por parte e escritórios. consultores dos próprios […] ser escutado, não procurando estava era simplesmente uma coisa de cima que ele tinha não só para baixo, e mas também interagir, se posicionar, aí, por um lado, auxiliou a abrir ou pelo de confortomenos sair da zona Benefciary A

DESIGNERS & CONSULTANTS & DESIGNERS ACTORS LEVEL

255 PRIOR RESEARCH Gemser and Leenders (2001) D’Ippolito (2014) - DRIVER Experience, practice-based know-how, good reputa tion SYNTHESIS Importance of experience built, examples to lead businesses tasks, didactics, in and reputation the market. ------SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… the expertisewe, is there, just guides and in are here, terlocutors… of the business was defned es […] everything in terms of competences, we for the best (profes search sionals) […] the consultant of company XXX (brand as a leader in the recognized she is a pro global market)… […] their (consultants) fessor experience… I think… that the during the examples provided implementation are projects’ quite fundamental… the best practice is… to add skills and experience to the didactics this to the of how to transfer entrepreneurs” C Policy-maker “… this support, these con sultancies… bringing profes sionals with a good reputa tion, experience to guide us we met, […] the professionals we learned with them what about: heard we had never concept, brand presentation, customer service, fashion collection formation… count less things” Benefciary B - - - os - a - - nossa, , que fazer fazer , que tudo que tudo do […] .” ” Eu acho que Eu eu acho que é ... é professora . Então, assim, Então, . esse apoio, essas con . E, assim, nos impulsionou, as expertises estão lá, nós aqui inúmeras as coisas os profssionais que a gente co os profssionais

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS que vão “... a gente busca as empresas deste processo, nos auxiliar dentro porque e interlocuto somos só os condutores negócio do res… foi determinado em termos de espe os melhores cialidade, a gente buscava líder [...] consultora da XXX (marca global) no mercado reconhecida ela é brasileira... experiência deles utilizados na implementação exemplos são fundamentais demais dos projetos … a boa prática é, a soma das habilidades, da experiência isso com a didática de como repassar para os empresários C Policy-maker “… estar junto, profssionais sultorias, sabe, trazendo de nome, experiência, para estar nos orientando a coragem de ir para um nós tivemos shopping, O que até então era um tabu, a gente não tinha coragem mesmo, muito em função do custo e com o gru po a gente criou esta coragem de ir [...] eu acho muitas coisas positivas, Tem que nheceu, coisa que a gente nunca tinha com os ouvido falar a gente aprendeu de conceito, da a respeito: profssionais de atendimen da marca, apresentação to, de uma formação coleção, foram Benefciary B

DESIGNERS & CONSULTANTS & DESIGNERS ACTORS LEVEL

256 PRIOR RESEARCH (2005) Cox Bianchini and Maffei, Mortati (2014) - - - DRIVER a de Having sign manage ment back ground - - - SYNTHESIS to Know-how manage/coor dinate design knowing projects, businesses’ na and dynam ture ics. - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION this sensi “… this perception, tivity to how ... act, things, technically. organize In the case of P2, for exam C, ple, that was Policy-maker C had a more Policy-maker accurate notion of business… about what the work was, so she contributed in a quite nice manner to the work” Consultant A, Designer - .” do que era o trabalho, então essa percepção, essa sensibili essa percepção,

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… dade que tem de como... atuar né, as coisas, técnico. No como organizar que era caso de Juruaia, por exemplo, C tinha C, Policy-maker Policy-maker uma noção mais tranquila do negócio, assim, ela contribuiu de forma bem legal no trabalho Consultant A, Designer

POLICY-MAKERS ACTORS LEVEL

257 PRIOR RESEARCH and Basset Bitard (2008) Larsen and Lewis (2007) & Cardoso Piore (2017) et al. (2017) Poirier, (1992) Mintzberg - - - DRIVER Collaboration among indi viduals from back different grounds Face-to-face communica tion - - SYNTHESIS of Relevance experts from felds and diverse their collabora tion within the team. In-person meet ings and face- to-face contact matter - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION was truly “… it (the project) jack to his trade’… ‘every was ...the professional There who understood the most dedicated to or was more analysis… the fashion market designer with the product with issues, the architecture point of sales development… information carried out by under people who know… contrib standing the market, to the Consultant uting to her, X, seeing what was going on, and knowing that the team was made up of people who contributing” were Consultant A, Designer “… I do at least one face- to-face, in person, meet at the client ing… I arrive (benefciary) what and verify he wants. When I go there, he is, we of where regardless started an a conversation, an informa argumentation, tion gathering” Consultant A, Designer - , - - , be ” o que etc informação entendendo… o estilista com a contribuindo lá ’. Então teve assim, ’. Então teve foi ‘cada macaco no foi ‘cada mesmo

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS muito legal de ter “… foi um projeto participado que seu galho que entendia mais ou se o profssional mais análise de mercado dedicava presente, leza estava com a arquitetura questão do produto, do ponto de venda o desenvolvimento nesta circulando e o design que estava história né... […] Isso é um negócio legal né, aonde, para mim que, de vivenciar outros, vários projetos, assim, eu já tive se sente plenamente satis aonde você que legal fala: poxa você porque feito né, cada coisa no seu lugar por gente que sabe realizada assim com Consultor circulou […] você ótimo relacionamento, Y, contribuindo com ela, do Mercado, o que estava com o Consultor X, vendo acontecendo e sabendo que as pessoas do grupo estavam Consultant A, Designer “... a partir da hora que eu chego no cliente, [eu faço um... ] eu pelo olho no pes menos um encontro [...]Então, eu chego soal lá, presencial no cliente, eu confrmo o que ele quer. indo lá, independente de onde ele Eu esteja, e começamos uma conversa, um levantamento uma argumentação, de informação né.” Consultant A, Designer

CULTURE ORGANISATIONAL LEVEL

258 PRIOR RESEARCH (1992) Mintzberg - DRIVER Face-to-face communica tion - SYNTHESIS In-person meet ings and face- to-face contact matter ------SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… this cannot be done as a the offce, from job done from the cabinet… studios also went to the farms know, so, knowing the farm, they started to get, in the begin ning, what the story behind a the family that produces certain kind of cheese is, and what the main features only one are… value they (benefciary) took part in the but work (design project) with the out agree didn’t come. And, he (benefciary) to accept it, according didn’t my criticism, because of the lack of this close contact. […] the in-person meeting is fundamental… it not enough to talk sometimes on the phone, WhatsApp etc. to be (consultant) have you face-to-face, explain there… for doing ing the reasons things… this will demand, for attention to carry more sure, out and to translate what was the inspiration, from and why some it arose, where used in order were features under the producer to make stand and get the issue of his this contact (in own identity… person) is fundamental… to the know why he (benefciary, farmer) does things in a cer […] it is not because tain way. he (benefciary) wants it, it is because he learned from trial and error his family by creat 200 years, throughout ing an empirical knowledge” Benefciary A - - - - . ” - - - é isso repassar o repassar é, os escritórios ” […] Então, . Então, eu acho . Porque, sobretu . Porque, olho no olho, explican demandará com certeza . Feito isso, eles come . Feito oh, somente 1 fez o trabalho, mas somente 1 fez não basta ter contato por telefo o contato pessoal é fundamental, isso não tem como ser feito como isso não tem como ser feito

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… um trabalho de escritório, gabinete E aí, o mais importante, e aí, conhecer, também foram a fazenda eles começa conhecendo a fazenda, inicialmente, o que é a captar, vam essa história atrás dessa família produ tora de determinado queijo e o que são as características principais que eles valorizam a cruzar com detalhamentos çavam então, o que existe no de mercado, de queijos artesanaismercado hoje e o que é atraente para esse público […] eu acho que uns 25 a 30 produto que utilizaram esse trabalho de res e embalagem, de rotulagem inovação desses, não aceitou o trabalho. E aceitou, na minha análise crítica, por falta desse contato mais próximo produtor rural, micro do esse produtor rural, então, etc., mas tem as vezes ne, WhatsApp, que estar ali, das coisas do o porquê para essas cadeias, que às vezes, demandar e vai uma atenção um pouco maior para atender e para conseguir que foi essa inspiração, de onde surgiu foram utilizados determinados e porque consiga aspectos para que o produtor entender e captar junto a questão da identidade dele. própria fundamental que tenha esse contato, que saber porque o ar, esse respirar ele faz as coisas de determinado jeito. não é ele que está na verdade, Porque, ao é porque ele quer, porque fazendo longo de 200 anos a família dele foi e erros uma serie de tentativas fazendo para criar um conhecimento empírico Benefciary A

CULTURE ORGANISATIONAL LEVEL

259 PRIOR RESEARCH and Basset Bitard (2008) Cawood (1997) Gibet, Schneider, Colomb, Orazem, Loesch, Kasparyan and Salminen (2015) Deserti and Rizzo (2014) Schneider (2006) - DRIVER Commitment of senior man agement Use design support when the business goes well - - SYNTHESIS Commitment to carry out pro posed project activities. Joining projects not to face a crisis or urgent but problem, when business is going well, espe cially sales. - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “These outstanding com panies did the proposed homework” C Policy-maker thing in “… an interesting nobody (benef this project, ciaries) was going through nobody had a a problem, was good, everyone problem, in their business, everyone their sales” Consultant A, Designer - - né.” ninguém estava com um ninguém estava ” assim, uma coisa interessante deste pro uma coisa interessante

Essas empresas que sobressaíram que sobressaíram Essas empresas INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “ de casa que era pro o dever fzeram posto C Policy-maker “... jeto ninguém tinha um problema, problema, bem, cada um no seu todos estavam negócio, suas vendas Consultant A, Designer

CULTURE ORGANISATIONAL LEVEL

260 PRIOR RESEARCH Filson and Lewis (2000) DRIVER Clear product development/ design strategy - - SYNTHESIS Accurate/clear/ defned design op strategy, portunities, and deliveries to be achieved pro throughout jects. - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… the demand was clear… an identity the need to have to share, to get a market the knowledge strengthen to in order of the product tradi the production keep led to Everything tion alive… the need for a battle of brand, for the recognition an identity…” Consultant A, Designer was quite clear “Everything (consultants) got our […] they what demand and delivered was being requested…” C Policy-maker - . - - . - a neces , a forma de tudo isso aí que levava a ne tudo isso aí que levava captar a nossa demanda e , é, , então, assim, eu acho que a a demanda estava clara a demanda estava

Foi tudo muito claro [...] eles conse tudo muito claro Foi INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... que foi um pouco tumultua realizar começar do princípio, da da. [...]… vou demanda confgurada assim uma identidade sidade de eles terem valer para fazer mercado, para reservar para não o conhecimento do produto a tradição da produção deixar morrer Quer dizer, pelo cessidade da batalha pela marca, de uma identidade reconhecimento todo mundo nivelado claro, Isso estava do nisto. No momento da execução que eu acho faltou uma, projeto uma centralização, uma organização assim, da informação, é basicamente isso.” Consultant A, Designer “ guiram sendo aquilo que estava nos entregar pedido gente conseguiu ‘brifá-los’ muito bem e da mesma forma eles conseguiram nos aquilo que eles iam nos “brifar” sobre entregar” C Policy-maker

DESIGN PROCESS DESIGN ORGANISATIONAL LEVEL

261 PRIOR RESEARCH Er (1997, 2002) Larsen and Lewis (2007) - - DRIVER International market-fo cused orienta tion - SYNTHESIS Importance of getting insights (main stakehold global/ ers) from international best practices in phases diverse of the project, strategy from and planning to implementation. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION preparation About the project (strategy and plan develop ment) who did this project “People went to the they went abroad, to United States, to Europe, understand what we could better do…” C Policy-maker About visits to an exhibition and exportsin Paris best practices in Colombia thing that boosted “Another it a lot was the international visits we made […] this gave a very big start, opening their (benefciaries’, entre minds a lot. And, preneurs’) some companies nowadays, all their prod have already ucts exhibited in this fair that it is currently was in Paris, taking place in Milan” C Policy-maker - nós podíamos que ...” ” . E hoje algumas empresas já tem . E hoje algumas empresas

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS para o do projeto a preparação Sobre pólo esse projeto pessoas que fzeram “As elas saíram para fora, foram os para po Estados Unidos, para Europa, der entender o que de melhor trazer C Policy-maker e best em Paris a visita feira Sobre practice em exportação na Colômbia durante o projeto “Outra coisa que impulsionou demais foram as visitas internacionais que nós [...] isso deu um startfzemos muito grande, abrindo muito a cabeça deles né todos expostos nessa seus produtos agora está sendo em lá em Paris, feira Milão C Policy-maker

DESIGN PROCESS DESIGN ORGANISATIONAL LEVEL

262 PRIOR RESEARCH Larsen and Lewis (2007) - DRIVER Plan and re market source launch using stage gates process - - - SYNTHESIS Defned stages/ phases (process es and activities) and decision points with ben efciaries’ valida tion throughout projects. - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION ffteen days meet every “We to discuss the actions (ac and all tivities) of the group had projects development their time to be carried out (to happen); for instance, there development, product and many products were consultancies, there several that took nine projects were months, ten one month there but every year, was a professional” C Policy-maker and organization “… a larger to defne certain steps with rep of the group validation for example [...] resentatives, to defne spokes have you leaders” people that are Consultant A, Designer - - - -

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “Nós encontramos de 15 em dias para discutir ações do grupo e todos tinham de desenvolvimento os projetos seu tempo de acontecimento, por de produto desenvolvimento exemplo, consul e várias produtos eram vários 9 meses, que durava projeto torias, teve 10 meses, um ano, mas que mensal mente tinha um profssional” C Policy-maker de e marcar maior organização uma “… dos terminadas etapas com validação do grupo, por exemplo, representantes tem que defnir em Juruaia […] você lideranças, porta-vozes de repente traços A gente identifcava identifcar. nas pessoas do grupo que eram mais de deter a ser representante propícias minada coisa” Consultant A, Designer

DESIGN PROCESS DESIGN ORGANISATIONAL LEVEL

263 - PRIOR RESEARCH Nunes (2013) Symbola, Union (2016) camere (2011) Wenger - - DRIVER Coopera tion between businesses / con shared cerns and practices - SYNTHESIS aims/ Shared goals and ac tivities. Trust and help among businesses in the same industry. - - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… the aim was same [...] to become to everyone in the professional more of the business, presentation so the goal of all was that it extrapolated the issue of be ing competitors” Consultant A, Designer importanttheir an is “… factor union because the actions acces cheaper and more are sible to them, because if we it is nowadays projects have of is a group because there […] I think the great producers is this issue of differential their union […] this partner understood the ship… they importance the of increasing […] The aim value. product is the same of a producer have of another one, they aims, and because of shared together” are this they B Policy-maker “… we started to work focused on the integration emphasising the entrepre integration… we neurial group courses implemented several focused on the kind of co operation that would make them trust each other […] started this group there, from conditions to work, to create a purchase created they company […] centre C Policy-maker - - - - ” a gente ...” Então, [...] extrapolava a ques extrapolava né, o objetivo era comum a todos [...] se o objetivo um fator que é importante é a união a gente começou trabalhar com o

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... na apresenta tornar mais profssional de ção dos negócios, então o objetivo todos era isso concorrentes tão de serem Consultant A, Designer “... fca muito mais barato deles, porque também as ações, para eles e acessível se a gente tem ação hoje é porque têm um grupo de produtores porque é [...] eu acho que o grande diferencial essa questão da união deles [...] dessa eles entenderam a importânparceria... [...] O ao produto. valor cia de agregar de queijo é o de um produtor objetivo em eles têm objetivos mesmo do outro, comum, por isso eles estão juntos B Policy-maker “... foco de interação focando na lá. do grupo empresarial cursos focados no implementou vários tipo da cooperação para que eles ga eles mesmos nhassem confança entre [...] a partir daí esse grupo foi criando eles criaram condições de trabalhar, uma central de compras C Policy-maker

INDUSTRY ECOSYSTEM LEVEL

264 - PRIOR RESEARCH Nunes (2013) Symbola, Union (2016) camere (2011) Wenger - - DRIVER Coopera tion between businesses / con shared cerns and practices - SYNTHESIS aims/ Shared goals and ac tivities. Trust and help among businesses in the same industry. - - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION started to stand out, [...] they under frst, because they as a team, stood themselves helped each other as they are there a team, for sure, individualities, but nowadays working with them is delight do (carryful because they know out activities), they learn together, that what they learn individually in their they under business […] They stood that working together with other businesses does in their indi not interfere viduality; on the contrary, they just got everything they were because they achieved understood together […] they that their competitor is not only their neighbour […] They after stepping into a thrive because, process collective would not I think, alone they […] today are they be where was collectively everything sought, the information ar in the same to everyone rived it went to the way manner, the company and way it was implemented individual […] All that they this came from today are in of believing whole process in and believing themselves the collective” C Policy-maker - - - Eles eles fazem, sabem eles fazem, eles começaram a [...] coletividade. tudo era buscado cole . Porque o que nós fzemos o que nós fzemos . Porque . Porque se elas tivessem que se elas tivessem . Porque eles não...

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS [...] A partir daí eles se porque primeiro se destacar, entenderam enquanto grupo, eles se que ajudam enquanto grupo, é claro existem algumas individualidades, mas hoje trabalhar com eles dá muito prazer porque coletivamen que o eles aprendem individualmente nos te, eles aprendem negócios deles que trabalhar em conjunto entenderem no individual deles, pelo não interfere contrário, eles só conseguiram fazer eles trabalharam tudo isso porque juntos [...] eles entenderam que o con não é o meu vizinho [...] elas corrente depois que entraram em só cresceram acho que, porque, coletivo um processo elas não estariam onde sozinha estão hoje deu oportunidadepara elas no coletivo para elas [...] as informações chegavam tivamente, para todas da mesma forma, e a forma pela qual elas iam para as empresas aquela informação e implementavam aí era individual [...] tudo que elas são de de todo esse processo hoje adveio no nelas mesmas e acreditar acreditar coletivo pagar individualmente todos esses que nos disponibilizamos consultores para elas, elas não fariam” C Policy-maker

INDUSTRY ECOSYSTEM LEVEL

265 PRIOR RESEARCH None DRIVER Other frms successfully used design in their industry/ cluster - SYNTHESIS Success of design interven tions in other businesses in the same industry stimulates the use of design. ------SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “…he (benefciary) realizes that his positioning, along with the new positioning of as a whole, that it the region is important for him to repo sition himself, he sees this Once one, two, advantage. auto do, others are three matically sensitized” A Policy-maker for a producer, “There’s example, who did it anyhow. Then, only when he goes he to the events, to the fair, notices the others, differ ence of other labels. These looking for us already are design inter [professional supportedventions the by entity] …” B Policy-maker are there “… in any group those people who sit on the going to wait ... ‘I’m fence part in it, if for others to take it works I will join it’ (exam ple of benefciary reasoning quoted). That happened too ... Then, this second group came organising that we are here… people who were from and left… did not believe they and then sought (design sup port)... again” C Policy-maker - - - - ” - .” a gente, , não acreditavam e saí , não acreditavam Tem um produtor, por um produtor, Tem ele percebe que o posicio ele percebe e né e depois buscaram… de novo em qualquer grupo tem aquelas fora

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... mas depois que ele quebra essa que barreira, namento dele, juntamente com o novo como um posicionamento da região todo, que é importante ele se reposicio Depois que essa vantagem. ele vê nar, já fcam os outros fazem, um, dois, três sensibilizados automaticamente A Policy-maker mais enxergando “Eles estão cada vez a necessidade. de uma forma que ele fez exemplo, Aí, só que na hora ele vai qualquer. os ele percebe nos eventos, na feira, Es rótulo. do outro a diferença outros, ses assim já estão procurando faz o rótulo que você eu quero “ah... pra gente” rótulo para nós”, “um novo B Policy-maker “Mas pessoas que fcam em cima do muro… cer der se entrar fulano esperar vou ‘Eu Isso aconteceu também… to, eu entro’. que esse segundo grupo nós Tanto de pessoas que estamos pondo adveio aqui tavam ram C Policy-maker

INDUSTRY ECOSYSTEM LEVEL

266 PRIOR RESEARCH et al., (2017) Poirier, (2006, Sternberg 2012) - DRIVER Motivating environments/ external moti vation ------SYNTHESIS Environment business where part in es take industry events and fairs, hav ing their prod ucts divulged to good reputation personalities (ex perts that profes sionally use the sort of product) at the national The notice level. ably raise of the number of more demanding con sumers. - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION see their (benefciar “… you ies) participation in fairs, see the de and you events, (benefciaries) mand … they number seeing a larger are then, they of tourists today, they the way to improve have satisfy them […] ” B Policy-maker - - -

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS a participação vê deles em fei “… você a demanda, vê e você ras, em eventos, a valor agregar eles não vão a procura… na queijadinha, eles estão enxergando queijadinha uma oportunidade, então trabalhar com isso também, eles vão para a queijadinha rótulo desenvolver É, a questão, produtos. e para outros maior um número assim, eles tão vendo de turistas hoje, então, com isso, eles têm que melhorar a forma de aten atender bem, a hospitalidade […] der, de muito chefes a gente tem levado especializadas casas donos de cozinha, da o queijo lá na região que vendem Canastra, para poder conhecer a his conhecer a realidade tória do produtor, ações, deles. Então, assim, são várias de fortalecermas tudo com o objetivo a rural” o produtor cadeia produtiva, B Policy-maker

INDUSTRY ECOSYSTEM LEVEL

267 - PRIOR RESEARCH None* *Cross-functional differ (experts from in ent backgrounds) to design the order support(design policy programme/project) - DRIVER Clear strate gies built in collaboration with good reputation experts - - SYNTHESIS The participation of experts in the earlier phases of defni projects tions (strategy and teamwork composition) contributing to clarity project and assertive ness. - - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION analysis carried “…a market Consultant Y of Com out by São a company from pany Y, was already there Paulo… was already a design, there something launched about the intention, whether issues as defnition of market issues… the well as product participation […] of a fashion who was Consult designer, […] ant X that went there some labs, work developed shops to them (benefciaries) already style…they regarding information […] The had more traced […] already aims were what the story would bring […] it was truly as a result. jack to his trade’… ‘every was ...the professional There who understood the most dedicated to or was more analysis… the fashion market designer with the product with issues, the architecture point of sales development, and the design that was you in this story… circulating fully satisfed because feel cool’, every ‘that’s say: you thing in its place, information people who know… made by work with… Consultant you understanding the market, Y… to the contributing to her, Consultant X, seeing what was going on… knowing that contribut there, people were ing” Consultant A, Designer - - - -

- - - - - eles da - Foi uma Foi a par o profssion do mercado, do mercado, você se sente você , beleza estava , beleza estava . [...] Então, foi você circulou as circulou você com o Consultor , ótimo relaciona , assim, assim a Arquitetura com o a Arquitetura , , aí teve uma interrupção, ai , aí teve o estilista com a questão o que etc […] , como, por exemplo, , como, por exemplo, né... Mas aí essa, Isso é um entendendo do produto já tinha um desenho, uma sabendo que as pessoas do grupo

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS um trabalho e depois “… eles fzeram um tempo. fcou interrompido pela Consul feita análise de mercado de uma Empresa Y, tora Y da Empresa São Paulo a Consultora Y de novo, depois voltou Confrmou né, corrigiu os rumos dessa defnição para cobrir o gap. Então as sim, coisa lançada dessa intenção, tanto na defnição das questões de mercado quanto nas defnições da questão de produto ticipação [...] de um estilista, que foi o Consultor X que foi pra lá [...] desen alguns laboratórios, workshops volveu com a turma para questão de estilo né, coisas desse tipo. Então assim, já tinham mais informação […] Os ob claramente traçados já estavam jetivos na história. […] foi [...] o que resultaria muito legal de ter particium projeto pado que foi cada macaco no seu galho mesmo. Então teve al que entendia mais ou se dedicava mais análise de mercado presente, da e do ponto de venda desenvolvimento nesta circulando o design que estava história né, aonde, negócio legal de vivenciar proje mim que, Assim, eu já tive Para aonde outros, tos, vários fala: você porque plenamente satisfeito que legal né, cada coisa no seu poxa por gente informação realizada lugar, que sabe sim com Consultora Y mento, contribuindo com ela acontecendo o que estava X, vendo em, lá contribuindo estavam muito completo” um projeto Consultant A, Designer

POLICY & GOVERNANCE & POLICY ECOSYSTEM LEVEL

268 - PRIOR RESEARCH None* *Cross-functional differ (experts from in ent backgrounds) to design the order support(design policy programme/project) - DRIVER Clear strate gies built in collaboration with good reputation experts - - SYNTHESIS The participation of experts in the earlier phases of defni projects tions (strategy and teamwork composition) contributing to clarity project and assertive ness. - - - - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION for companies “… we search that will help us within this because the exper process, just we are here tise is there, the guides and interlocutors… of business (benefciaries)… was defned in Everything terms of expertise, we search for the best […] consult leader (recognised XXX of ant brand in the global market)… her we got all the infor From to the profes mation referred sionals that would be nice to work with. This helped a lot… First, because we did not the feld (do not come from know- that background, have how) […] the external indica who tions of professionals with us. This matters worked assertive a lot. It was pretty for us.” C Policy-maker - - - tudo Foi a partir Foi Então, assim, ” a gente busca as empresas que vão que vão a gente busca as empresas

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “... deste processo, nos auxiliar dentro as expertisesporque estão lá, nós aqui e interlocu somos só os condutores do negócio. tores... que foi determinado em termos de os especialidade a gente buscava [...] consultora da XXX (marca melhores global), no mercado líder reconhecida da que ela é brasileira... professora Z também. Universidade dela que ela nos colocou todas aos profs as informações referentes sionais que poderiam ser bacanas de Isso ajudou demais da conta. trabalhar. nós também não so porque Primeiro, [...] as indicações externas, mos da área conosco. atuaram que profssionais dos bem assertivo Isso conta muito. Foi para nós C Policy-maker

POLICY & GOVERNANCE & POLICY ECOSYSTEM LEVEL

269 PRIOR RESEARCH None Bell (2015) Larsen and Lewis (2007) - DRIVER Validation with process benefciaries/ stage gate with benefciaries Finance (e.g. availabil credit ity) - - SYNTHESIS Defned process and activities (stage) with participatory decision points (gates). Financial and economic re avail sources in ability to invest design. - - SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION and to organization “… more mark certain steps with vali dation of the representatives (benefciaries of the group to defne… have you group)… leadership… representatives, who the group people from to be promising more were of a certain a representative topic.” Consultant A, Designer “The main facilitator is the subsidy itself, which makes it much easier for the small the small producer, company, spe access to more to have design services”cialized A Policy-maker who do those producers “For fnancial resources, not have many of them, I think, what is truly important is the issue of fnancing” B Policy-maker “… we facilitate a lot for them… What most facilitates is the partnership between the entity and companies (benefciaries)… one part of is subsided, the resources us conditions to this gives work” C Policy-maker - - , por você tem que você .” ” porta-vozes, lide porta-vozes, ” pessoas do grupo que eram ” a gente facilita muito para eles… de repente , identifcar. A gente identifcava A gente identifcava , identifcar. uma organização maior e marcar maior e marcar uma organização dos recursos serem subsidiados serem dos recursos

O principal facilitador é o próprio O principal facilitador é o próprio que não têm aqueles produtores Para INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… determinadas etapas com validação do grupo dos representantes em Juruaia […] exemplo, defnir ranças traços nas de a ser representante mais propícias determinada coisa Consultant A, Designer “ subsidio que facilita muito para a o pequeno produtor, pequena empresa, possa ter acesso a serviços mais espe cializados de design A Policy-maker “ muitos, eu acho o fnanceiro, recurso que é importante sim é a questão do fnanciamento B Policy-maker “Como nos trabalhamos com grupo para cada muito baixo saiu um valor de 30.000 era esse valor empresa, então os 25 empresários, dividido entre 1000 mil e pouquinho cada um pagava Então, prestações. dividido em várias assim, O que mais facilita é essa parceria que a entidade tem com as empresas, né, uma parte, isso nos dá condições de trabalhar C Policy-maker

POLICY & GOVERNANCE & POLICY ECONOMY ECOSYSTEM LEVEL

270 PRIOR RESEARCH Swann (2010) - DRIVER Design aware ness - - SYNTHESIS End users/con sumers under standing and identifcation of brands, their features, values, and offers. ------SELECTED FRAGMENTS FRAGMENTS SELECTED TRANSLATION “… to show the cities what these (cheeses) differences Canastra cheese is the are… cheese made in Canastra, municipalities of the seven the geographical indication, tradi with the recognised tional techniques. […] keeping the same quality standards and with unique concepts and identities. This fnal con of each perception sumer’s cheese cheese as a different facilitated for each farmer. And, at the same time, it fa cilitates the identifcation by consumers…: ‘… this label is that family’ (example of from quoted). consumer reasoning Then, a link was formed… connection between con it sumer and producer… whether in the strengthened, of language or in approach it facili the visual approach, tated this empathy between the two worlds (farms and cheese consumers) […] so, visits of received we have tourists in Canastra… ‘I have cheese bought your already I for six months, and today family… come to know your startyou shifting the percep tion that he (benefciary, bottom farmer) was at rock and is now a person who has his recog his profession, know-how” nized Benefciary A , - - - - - do - mos O mantendo .” , ao identif ” […] isso acaba aí a gente já tem que, por exemplo, que, por exemplo, [...] Então, isso eu já comprava o eu já comprava conexão consumidor a sua profssão, o a sua profssão, . […] você orienta esse . […] você reforçou, seja na abord reforçou, a sua, esse rótulo aqui eu sei que esse rótulo da percepção que ele tinha da percepção Então , que foi, também é uma das você começou a tirar o produtor começou a tirar o produtor você

INTERVIEWS FRAGMENTS FRAGMENTS INTERVIEWS FROM RESPONDENTS “… a formação de público externo, quais que trar para os grandes centros são essas diferenças o queijo Canastra não é uma massa cilíndrica. láctea branca, redonda na queijo da Canastra é o feito Canastra nos 7 municípios da indicação geográfca, com as técnicas tradicion ais reconhecidas externo […] esse diferencial, o mesmo padrão de qualidade e com conceitos e identidades únicas. Para facilitou essa cada um dos produtores, do consumidor fnal, de que percepção E, cada queijo é um diferente. ao mesmo tempo facilitou a própria identidade do consumidor aí, ‘pera car: é da família tal’. Então, conseguiu criar um link que é estratégicas do projeto diretrizes exatamente, ehhh, produtor. agem de linguagem, seja na abordagem visual, conseguiu facilitar essa empatia os dois universos entre essa identidade criando e reforçando aí hoje, por porque de cada produtor, uma dessas ações de for exemplo, mação de público [...] na Canastra de turistas visitas recebido que visita determinada por exemplo, eu tô vindo aqui para e fala ‘oh, fazenda porque te conhecer, seu queijo a seis meses, e agora eu vim conhecer sua família daí ‘knowhow’, de ser o fundo do poço para uma pes soa que tem seu ‘knowhow’ reconhecido Benefciary A

EDUCATION ECOSYSTEM LEVEL

271 APPENDIX C LIST OF PUBLICATIONS 2015 - 2018 LIST OF PUBLICATIONS 2015 - 2018

Fonseca Braga, M., Zurlo, F. (2018). Introducing design-driven innovation into Brazilian MSMEs: Bar- riers and next challenges of design support. In: C. Storni, K. Leahy, M. McMahon, P. Lloyd, & E. Bohe- mia (Eds), Proceedings of the Design Research Society 2018: Catalyst, Volume 7, pp. 2987-3006. doi 10.21606/dma.2018.442

Fonseca Braga, M. (2017a). Ceasing copycat behaviour: developing product-design identity through industry and handcraft interaction. Gestão e Tecnologia de Projetos [Design Management and Tech- nology], 12 (2), 21-40. doi: http://dx.doi.org/10.11606/gtp.v12i2.110536

Fonseca Braga, M. (2017b). The choice of design. From businesses’ conditions to businesses’ attitudes. The Design Journal, 20:sup 1, S635-S646. doi: 10.1080/14606925.2017.1353011

Fonseca Braga, M., Mondelli, E. (2017). Automotive: Post-acquisto. In: Lunardi, V., Malerba, C., Costa, B. (eds.) Envisioning with millennials. La customer experience del futuro, pp. 21-23. Retrieved from: http://marketrevolution.it/pubblicazioni/envisioning-with-millennials-customer-experience-futuro

Fonseca Braga, M. (2016). The value of design: an issue of vision, creativity and interpretation. In P. Lloyd & E. Bohemia (Eds.), DRS 2016 Conference Proceedings, pp. 1865-1881. London, UK: Design Research Society. doi: 10.21606/drs.2016.129

Fonseca Braga, M.; Manhago, M. S.; Ingaramo, M. O. (2015). Design boundaries in Brazilian SMEs: A case study in the furniture sector. in: E. Canli & R. M. Branco, eds., Proceedings of UD15: Periphery and Promise 4th PhD in Design Forum, pp 327-337. ISBN: 978-989-98284-3-8. Retrieved from: http:// www.ud15.org/ud15proceedings.pdf

Vignati, A., Fonseca Braga, M. (2018). Design thinking for public good: moving towards change? in: Z. Linghao, L. Yanyan, X. Dongjuan, G. Miaosen, S. Di, Cumulus Conference Proceedings Wuxi 2018 -Diffused Transition & Design Opportunities, pp. 75-87. School of Design Jiangnan University; Aalto University School of Arts, Design and Architecture: Wuxi, China; Aalto, Finland. 31st October - 3rd No- vember, Wuxi, China.

Forthcoming (2019)

Fonseca Braga, M., Zurlo, F. (2019). Handling design support programmes complexity: An interpretative framework for barriers and drivers to introducing design innovation into Brazilian MSMEs. in: L. Rampino and I. Mariani, Advancement in Design Research at Polimi. Notes on doctoral research 2019. Milan, Italy: FrancoAngeli. 273 APPENDIX D AUTHOR’S SHORT BIOGRAPHY Mariana Braga is a designer with a Master’s Degree in Production Engi- neering. Braga is currently a PhD candidate in the Design Department at Politecnico di Milano. Her PhD research is focused on the introduction of design innovation into Bra- zilian MSMEs. She has identifed drivers and barriers to introducing design into small businesses in traditional industries, and developed new models for supporting design. Braga enjoys crafting better futures, and has developed skills to help non-expert (non-designers) teams apply design methods or human-centred approaches. Her background in product design and ergonomics has been en- riched at Politecnico regarding design thinking, service design, strategic design, and design management through tutoring, mentoring, teaching, and research activities in 7 European countries and 9 cities. She is used to multicultural environments, and enjoys dealing with people from several backgrounds. Prior to this, her experience was mainly in product design, especially in home appliances and furniture, and ergonomics consultancy for Brazilian companies. She also worked at SENAI (Brazil) where she managed innovation projects, performed consultancy work, research on ergonomics and taught in the furniture design course. Braga took part in the Brazilian Association of Technical Standards (ABNT) as a guest member of the offce chairs study committee.

[email protected] https://www.linkedin.com/in/mariana-braga-59596a26/?locale=en_US

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