Research by the Design Council shows that over a ten-year period, UK quoted companies identified as effective users of design out-performed the FTSE 100 by 200 per cent. But too many UK companies spend nothing on design, which shows that design-led planning is not part of mainstream business thinking.
Alistair Darling will say: ‘Design is often key to transforming our world-class science into the products and services that the world wants to buy. With increasing global competition, creativity can determine success, particularly in the manufacturing industry which faces the fiercest competition from low-wage economies.
‘Design is good for the bottom line but with only a fraction of UK businesses investing in design, they are missing a huge opportunity. Through Designing Demand and the extension of R&D tax credits, Government is putting in place help for business to use design to innovate. Business needs to see design investment as being as crucial to their success as R&D and skills.’
Designing Demand is the design support programme for UK business, helping companies to become more competitive, increase profits and boost performance through access to strategic and effective use of design. Targeted at SMEs, the programme supports the use of design as a key driver of business growth. Developed, tested and piloted by the Design Council, a full national programme of delivery is supported by Regional Development Agencies.
Sir George Cox, Chairman of the Design Council, commented: ‘Our universities and design schools are filled with international students eager to take their new skills home to plan products and businesses for the future. UK business needs to respond by inspiring a desire and ambition for continued business expansion through design and innovation. We need the UK to make much greater use of such skills.’
David Kester, Chief Executive of the Design Council, commented: ‘Britain faces a massive threat from rapidly developing economies. Countries such as India and China recognise that design helps business to diversify into high value economic activity, and they are encouraging creativity.
‘Britain has to become more impatient to deliver progress, as we are not reacting quickly enough to the challenge. The Design Council is continuing to work with business and the public sector to embrace design, but there is a long way to go before its potential significantly to contribute to economic competitiveness is fully exploited. Britain has great creative capabilities, but it’s currently sitting on an under-utilised asset. We need to act now, before it is too late.’
For more information contact Saskia Sissons on 07773 768 073 or Charlotte Nye on 07880 508 004 or email saskia.sissons@designcouncil.org.uk
1. The Summit will bring together industry and government, along with representatives from education and creative industries to discuss what can be done to link innovation with economic growth.
2. Over a 10-year period (1994–2004) design intensive companies outperformed the FTSE by more than 200 per cent. (Design Council Design Index 2005). 69 per cent of UK companies spend nothing on design (Design Council’s Value of Design Factfinder 2005-2006). See www.designcouncil.org.uk/research
3. Design Council research demonstrates a link between design expenditure and economic performance. Our studies demonstrate that for every £100 a design alert business spends on design, turner is increased by £225. (Design Council’s Value of Design Fact finder 2005- 2006). ). See www.designcouncil.org.uk/research
4. Alistair Darling will ask the Design Council to work with partners and leading experts in business, academia and design to report to him on the take up of design by UK industry. The report will cover the following areas:
- The UK has made great strides in applying design process to benefit the nation’s economy and society, particularly since the Treasury-commissioned Cox Review of Creativity in Business in December 2004.
- The 2006 Budget affirmed the centrality of design to building competitive advantage in the face of increasing competition in international markets and described how the Government and others have taken forward the Cox Review recommendations.
- The Design Council will report to the Secretary of State for Trade & Industry by February 2007 on progress towards harnessing the UK’s creative capabilities to support the nation’s productivity, performance and sustainability. The Design Council will consult widely, including with business and industry, and will take account of emerging policy to assess impact to date and how the UK can take best advantage of its design talent.