policy framework for design in enterprise in ireland (january 2016)

POLICY FRAMEWORK

DESIGN IN ENTERPRISE IN IRELAND

JANUARY 2016

FOR

DesigninIreland:Summary 21. DefiningDesign 62. TheEconomicContributionofDesign 93. CharacteristicsoftheDesignWorkforce

intheTotalEconomy 134. ProfileofBusinessesinDesignSectors 155. TheRoleofDesigninBusinessesinthe

WiderEnterpriseBaseinIreland 176. PolicyFrameworkforDesigninEnterprise

inIreland 19

CONTENTS

2

Design in Ireland: Summary

Thispaperrecognisestheroleofdesignwithintheeconomyandsetsouta‘PolicyFrameworkforDesigninEnterpriseinIreland’.ThepolicyframeworkisfocusedonenhancingdesignactivitiesintheenterprisebaseinIreland,andwasdevelopedaspartofthelegacyofID2015.

Inrecentyears,thedefinitionofdesignhasexpandedfromamorelimitedviewofstylingandappearanceassociatedwithanendproducttoaperspectiveinwhichdesigncanplayanintegralroleintheinnovationprocess:acrossallstagesofgoods/servicedevelopmentand/orinstrategicmanagementtechniquesandprocesses.Thisevolution,alongwithinternationalevidencehighlightingtheinnovationandeconomicbenefitsassociatedwithcompaniesundertakingdesign,hasledtoanincreaseinpolicyfocusondesigninternationally.

Thedevelopmentofthepolicyframeworkpresentedherewithwasinformedbyaseriesofresearchstudies1,2,3andinsightscapturedviaastakeholderworkshop4.KeyaspectsoftheresearchwereguidedbyaSteeringGroup,chairedbytheDepartmentofJobs,EnterpriseandInnovationandincludedrepresentativesfromEnterpriseIreland,IDA,ScienceFoundationIrelandandID2015/DesignandCraftsCouncilofIreland.

Theresearchfindsthat,basedonabroaddefinitionforthe‘IrishDesignFootprint’,designhasasignificanteconomicimpactontheIrisheconomy:workersengagedindesignrolesinIrelandarefoundtobeemployedrightacrosstheeconomyandexportsfromtheDesignSectorscontributedcirca20%oftotalIrishexportsin2012–themajorityofexportsstemmingfromlesstraditionalDesignSectors(thoseassociatedwithDigitalDesign).

TheevidencerevealsthatforbusinessesinmoretraditionalDesignSectorsrelatedto:• Architecture• SpecialisedDesign(includingGraphic,Industrial,Interior,Fashion)• Craft

thereareissuesrelatedtoscale,size,fragmentation,talentandskills.AddressingtheseissuescouldleadtoenhancedproductivityandastrengtheningoftheseDesignSectors.

Analysisalsoshowsthat,forthelesstraditionalDesignSectorofEngineeringActivitiesandRelatedTechnicalConsultancy5,IrelandunderperformsintermsofcontributiontoemploymentandGVArelativetootherEuropeancountries.ThishighlightsanopportunitytoincreaseeconomicimpactfromdesigninIrelandbyfocusingonincreasingdesignactivityinthisEngineeringSector.

1 The‘IrishDesignFootprint’:EconomicValueandCharacteristics,DepartmentofJobs,EnterpriseandInnovation,2016.2 ProfileofBusinessintheTraditionalDesignSectors,January2016,AReportfortheDesignandCraftCouncilofIreland,

byConKennedy.3 AStudyoftheRoleandImportanceofDesigninFirmsinIrelandinNon-Design-IntensiveSectors,December2015,Areport

fortheDepartmentofJobs,EnterpriseandInnovationbyCMInternationalandPDR.4 AstakeholderworkshopondesignwasheldonNovember16th2015,andparticipantsincludedrepresentativesfromenterprise

agencies,associationsandeducationalbodiesresponsiblefordesignaswellasrepresentativesfromfirmsintheDesignSectorsandtheWiderEnterpriseBase.

5 ThissectorrelatestobusinessesclassifiedspecificallyunderNACERev271.12.BusinessesthatundertakeengineeringactivitiesinsupportofotherkeybusinessfunctionsareincludedinthecohortoffirmsintheWiderEnterpriseBase.

DesigninIreland:Summary 3

Furthermore,evidenceisreportedforthefirsttimethatthereisacohortofbusinessesinIrelandthatoperateintheWiderEnterpriseBase(i.e.insectorsoutsideoftheDesignSectors)butplaceastrongemphasisondesign-relatedactivity.Thesedesign-drivenfirmsconfirmthatdesignishighlyvaluedasakeycontributortotheireffortsindevelopingnew/improvedgoodsandservices.

However,atanaggregatedlevel,thesetoffirmsinIrelandreportalowerlevelofengagementandalessmatureviewofdesignthanisreportedbythecohortofdesign-drivenfirmsintheWiderEnterpriseBase.Thisdeficitinactivityrepresentsanopportunitytofurtherenhancetheinnovationeffortoffirmsandconsequentlythecompetitivenessofthefirmbasethroughdrivingforgreaterlevelsofdesign-driveninnovationacrosstheWiderEnterpriseBase.

Policy Framework for Design in Enterprise in IrelandBuildingontheevidencebase,a‘PolicyFrameworkforDesigninEnterpriseinIreland’wasdeveloped,anditisfocusedaroundsixkeyelements:

1. IncreaseduseofDesign-DrivenInnovationintheWiderEnterpriseBase

2. BuildingScaleintheDesignSector

3. AStep-UpintheEngineeringDesignSector

4. SupportingEntrepreneurshipintheDesignSectors

5. DevelopingSkillsandTalentinDesign

6. MoreFemalesinDesignRoles

4

Employment in Design Roles in Enterprises in Design Sectors

Employment in Design Roles in the Total Enterprise Base (across all business sectors)

Employmentin Design Roles in the Total Economy

Employment in Design Rolesin Non-BusinessSectors of theEconomy

Employment in Design Roles in the Wider Enterprise Base (i.e. outside of Design Sectors)

EDUCATIONPUBLIC

ADMINISTRATION

SERVICES

ARTS

Workers in design roles are employed across many sectors of the economy

PolicyFrameworkforDesigninEnterpriseinIrelandJanuary2016

Employment in design roles has increased to 48,000 in 2014 – 2.5% of total employment in Ireland

45,0

00

2011 2014

6.7%

48,0

00

21%

90%Design is a driver

of innovation77%Design is part of R&D

97%Design is key to

increased customer satisfaction

83%Design can increase

profitability

86%Design is key to

Ireland’s business reputation

73%Design can increase

export share

94%Design is usedin developing

goods/services

WIDERENTERPRISE

BASE

DesigninIreland:Summary 5

Design has an important role in the Wider Enterprise Base (enterprises outside of the Design Sectors)

DataisbasedonasurveyoffirmsinIreland,byCMInternational.ThesurveywasfocusedonfirmsoutsideoftheDesignSectorsi.e.firmsintheWiderEnterpriseBase.

At > €38bn in 2013, exports from Design Sectors account for over 21% of total exports

6

1. Defining Design

Multi-faceted Nature of DesignTheabsenceofacommonlyagreeddefinitionofdesignleadstoaninherentcomplexityinfocusingondesign.Itisdifficulttocategoriseandmeasuredesignandthewordisgivendifferentmeaningsindifferentcontexts6,whichmakesthetopicakeychallengeforpolicymakers.

Inessencedesignisamulti-dimensionalconceptinthat:1. Designencompassesabroadrangeofmeanings,including:

• Developmentofutilityoffunctionandform.• Outputassociatedwithstylingandaesthetics.• Aprocessforgoods/servicedevelopment.• Amethodologytosolvecomplexproblemsandfindsolutions(designthinking).

2. Designisassociatedwithabroadvarietyofactivities,including:interior/exhibitiondesign/architecture,fashiondesign,designmanagement,strategicdesign,eco-design,service/userexperiencedesign,packagingdesign,universaldesign,industrialdesign,engineeringdesign,communication/graphicdesign,softwaredesign/digitaldesignandcraftdesign.

3. Designisanactivitywhichcanpervadeallpartsoftheeconomyeitherastheprimaryoutputorutilisedaspartofaproductiveeffort.

Measuring Economic Contribution of Design: Defining the ‘Irish Design Footprint’Adefinitionforthe‘IrishDesignFootprint’wasdevelopedsoastosupportestimatesofeconomicmeasurementacrossthefullIrisheconomyasfarasisfeasiblebasedonavailabledata.The‘IrishDesignFootprint’isrepresentedbysixDesignGroupsandwasdevelopedbasedonconsiderationofworkcarriedoutelsewhere7,8,9.

AsetofbusinesssectorsisassignedtoeachDesignGroup–thesebusinesssectorsarethe‘Design Sectors’ andarerepresentedintheinnercircleofFigure1bytheirdescriptivenamesasassignedintheNACERev2classificationsystem.TheDesignSectorsareconsideredtobedesign-intensivewithaconsiderableproportion(~30%)oftheworkerswithineachsectoremployedinadesignrole.

TheDesignSectorsincludesectorsmoretraditionallyassociatedwithdesign–thesectorsmappedintheArchitecture,SpecialisedDesign,andCraftGroups–andalsosectorslesstraditionallyassociatedspecificallywithdesign–thesectorsmappedintheEngineering10andDigitalGroups11.

6 CommissionStaffWorkingDocument‘Designasadriverofuser-centredinnovation’Brussels,7.4.2009,SEC(2009)501final.7 TheDesignEconomy:TheValueofDesigntotheUK,2015,UKDesignCouncil.8 Galindo-Rueda,F.andV.Millot(2015)“MeasuringDesignanditsRoleinInnovation”,OECDScienceandTechnologyand

IndustryWorkingPapers,2015/01,OECDPublishing.9 CreativeClusters:EconomicAnalysisoftheCurrentStatusandFutureClusteringPotentialfortheCraftsIndustryinIreland.

Indecon,2013.10 TheDesignSectorsintheEngineeringGrouprelatestobusinessesclassifiedspecificallyunderNACERev271.12,16.29and

26.4.BusinessesthatundertakeengineeringactivitiesinsupportofotherkeybusinessfunctionareincludedinthecohortoffirmsintheWiderEnterpriseBase.

11 NobusinesssectorsaremappedtotheAdvertisingGroup.

DefiningDesign 7

Inthisanalysis,estimatesforGVAandexportsfromdesign-relatedbusinessactivitiesinIrelandarelimitedtomeasurementsbasedontheDesignSectors.

BusinessesoutsideoftheDesignSectorsarecollectivelytermedthe‘WiderEnterpriseBase’andestimatesofGVAandexportsstemmingfromdesignactivitiesintheWiderEnterpriseBasecannotcurrentlybemeasuredfortheIrishcase.

Estimatesforemploymentindesignarebasedontwodifferentapproaches:1. Employment in the Design Sectors

Inthiscase,employmentfiguresquotedrelatetototalemploymentinaDesignSector,i.e.employmentindesignrolesplusemploymentinnon-designrolesoffirmsinthesector.

2. Employment in Design Occupations across the Total Economy Inthiscase,employmentismeasuredbasedonallworkersthatareemployedindesignoccupations,regardlessofwhichsectortheyareemployedin:thismeasureofemploymentincludesemploymentindesignoccupationsinenterprisesinDesignSectorsandtheWiderEnterpriseBaseaswellasinNon-BusinessSectorsoftheEconomy.

Tosupportmeasurementofemploymentindesignoccupationsacrossthetotaleconomy,asetofdesignoccupationswasassignedtoeachDesignGroupinthemapofthe‘IrishDesignFootprint’andthesearerepresentedintheoutercircleofFigure1bytheirdescriptivenamesasassignedintheStandardOccupationalClassificationSystem(2010).


Figure 1: Defining the ‘Irish Design Footprint’ for measuring the economic contribution of design: map of the Design Sectors and design occupations assigned to each of six Design Groups.

Economicmeasurementsofthe‘IrishDesignFootprint’arebasedondatafromtheCentralStatisticsOffice(GVAandemployment)andtheDepartmentofJobs,EnterpriseandInnovation(exports).

TRADITIONAL DESIGN SECTORS TRADITIONAL DESIGN SECTORS

TRAD

ITIO

NAL D

ESIG

N SE

CTOR

S

Product, Clothing and Related Designers

Glass Product and Ceramics MakersDecorators and Finishers Programme and Software

Development Professionals

Web Design andDevelopment Professionals

Tailors and DressmakersWeavers and Knitters

Precision Instrument Makersand RepairersFurniture Maker and other Craft WoodworkersPrint Finishing and Binding WorkersSmiths and Forge Workers

Sewing Machinists

Manufacture of otherWearing Apparel and Accessories

Specialised Design Activities

Other Software Publishing

Computer ProgrammingActivities

Publishing of Computer Games

Manufacture of Jewellery

Repair of Furniture and Other Home Furnishings

Manufacture of Other Furnirure

ArchitecturalActivities

Architects

Chartered ArchitecturalTechnologist

Town Planning Officers

Draughts Persons

Architectural and Town Planning

Technicians

Graphic Design

SPECIALISED DESIGN

MEASUREMENT OF THE ECONOMIC CONTRIBUTION OF DESIGN

ARCHITECTURE

CRAFT DIGITAL

ADVERTISING ENGINEERING

Binding and Related Services

Manufacture of Ceramic Household and Ornamental Articles

Upholsterers

Textiles, Garments and Related Trades, n.e.c.

Other Skilled Trades n.e.c.

IT Business Analysts, Architects and Systems

Designers

Advertising Account Managers and Creative Directors

Design and DevelopmentEngineers

EngineeringActivities and Related Technical Consultancy

Manufacture of Consumer Electronics

Manufacture of Other Products and Woods

Design occupations in each groupOccupations are based on the SOC (2010) classification system and multiple occupations may be represented by one Design Group.

Design sector in each groupDesign sectors are based on the NACE Rev 2

classification system and multiple sectors may be represented by one Design Group.

Sectors included in the design footprint are sectors for which≥30% of the workers within

the sector are employed in a design role.

Occupation data allows for estimating total employment of workers in design roles across the whole economy,includuing employment in design roles in:

the Design Sectors plus the Wider Enterprise Base plus Non-Business Sectors of the Economy

Design Sector data allows for measurement of:

• GVA in a Design Sector • Exports from a Design Sector • Employment in a Design Sector: where employment relates to employment in design roles in the Design Sector plus employment in non-design roles in the Design Sector

9

2. The Economic Contribution of Design

Based on measurements associated with Design Sectors and design occupations as mapped for the ‘Irish Design Footprint’, design has a significant economic impact on the Irish Economy12.

Insummary,theimportanceofdesignisdemonstratedbythecontributionofdesignerstototalemploymentintheeconomy(2.48%in2014)andthecontributionoftheDesign Sectors tototalexportsfromIreland(estimatedat19.5%in2012,andmorethan21%in2013).ThiseconomicimpactisheavilyinfluencedbyactivitiesassociatedwithdesignoccupationsandDesignSectorsoftheDigitalGroup;however,non-digitaldesignrolescontributed1.28%tototalemployment(in2014)andtheremainingDesignSectorscontributedmorethan€0.94bn13toexports(in2012).

TheresearchindicatesthattheemploymentimpactforIrelandbasedonemploymentindesignoccupationsiscomparabletothatintheUKwhencomparedonasimilarbasis.However,designexportsaregreaterinabsolutetermsforIrelandthanfortheUK(basedontheutilisationofasimilarsetofDesignSectorsinthemeasurement).

Themoredetailedsetoffindingsaresetoutbelow.

Findings on Employment in Design Occupations across the Total Economy

1. EmploymentindesignoccupationsinIreland14rangedbetween45,000–48,000overtheyears2011-2014:in2014employmentindigitaldesignrolesaccountedfor48%ofemploymentindesignoccupationsinIreland.

2. TheaveragecontributiontototalemploymentinIrelandwas2.48%peryearbydesignoccupationsoverthe2011-2014timeframe.

3. Growthinemploymentindesignoccupationswas6.7%overthe2011-2014timeframe,thusbroadlykeepingabreastwithgrowthinemploymentintheoverallIrisheconomyoverthisperiod.

4. TheimpactontotalemploymentinIrelandbypersonsworkingindesignoccupationsissimilartothatintheUKwhencomparedona‘likewithlike’measurementbasis.15

5. UKdataalsoindicatesthatahighproportionofemploymentindesignrolesiscontributedfromtheoccupationsassociatedwiththeDigitalGroup:in2014employmentindigitaldesignrolesaccountedfor38%ofemploymentindesignoccupationsintheUK.

6. DesignersareemployedacrosstheIrisheconomyasdemonstratedinFigure2,whichindicatestheproportionofdesignersemployedintheNACERev2categoriesofeconomicactivity.16

12 FulldetailscanbefoundinThe‘IrishDesignFootprint’:EconomicValueandCharacteristics,DJEI,2016.13 Theestimateofexportswasbasedonexportsfromfirmswith10ormorepersonsinemployment.Itisacknowledgedthat

manyenterprisesintheDesignSectorsassociatedwiththeSpecialisedDesignandCraftGroupsaresmallerthan10personbusinesses,andsoexportsfromthesebusinessesarenotincludedintheestimatesofexportsfromtheDesignSectors.

14 ExcludingthedesignoccupationsrelatedtoAdvertising.15 Definitionsofthe‘DesignFootprint’maybevariedtoencompassanarrowerorbroaderfootprintbasedonthedataavailable/

approachtaken.16 Sectorsidentifiedforinclusioninthe‘IrishDesignFootprint’whichareassociatedwithArchitecture,SpecialisedDesignand

EngineeringareincludedinCategoryMandB;sectorsassociatedwithDigitalDesignareincludedinCategoryJ;andsectorsassociatedwithCraftareincludedinCategoryB.


Figure 2: Proportion of total persons employed in design occupations in each of the different Categories of Economic Activity (based on NACE Rev 2 classification system).

Source:CentralStatisticsOffice,QuarterlyNationalHouseholdSurvey(QHNS)

Findings on Employment and GVA in Design Sectors 7. ConsideringthethreeDesignSectorsinthe‘IrishDesignFootprint’forwhichdatawasavailable

forIrelandin2011/201217,itwasdeterminedthatthecontributiontototalemploymentandGVAbyfirmswashighestintheEngineeringActivitiesandRelatedTechnicalConsultancySector18,followedbytheArchitecturalActivitiesSector19andthentheSpecialisedDesignActivitiesSector20:thisistypicalacrossotherEuropeancountriesalso21.

8. BasedoncontributionstotheeconomyforbothemploymentandGVA,IrelandperformsbestfortheSpecialisedDesignActivitiesSectorintermsofrankingpositionagainstotherEuropeancountries:onthisbasisthenextbestperformeristheArchitecturalActivitiesSectorandthentheEngineeringActivitiesandRelatedTechnicalConsultancySector.

17 NeithertotalemploymentnorGVAacrossalltheDesignSectorsmappedforthe‘IrishDesignFootprint’cancurrentlybemeasuredforIrelandbasedontheavailableofficialstatisticsforIreland.

18 NACERev271.1219 NACERev271.1120 NACERev274.121 EurostatStructuralBusinessStatistics:DetailedAnnualEnterpriseStatistics.

YEAR

Proportion of designers employed in each NACE Rev 2 High Level Category

0%

2011

2012

2013

2014

20% 40% 60% 80% 100%

B - Mining and Quarrying, C-Manufacturing, D-Electricity, Gas, Steam and Air Conditioning Supply, E-Water Supply

G - Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles

J - Information and Communication

K-L - Financial, Insurance and Real Estate Activities

M - Professional, Scientific and Technical Activities

O - Public Administration and Defence; Compulsory Social Security

29% 28% 7% 18% 3% 3%5%

26% 32% 6% 21% 3% 3%5%

26% 32% 5% 20% 4% 3%5%

26% 29% 6% 19% 3% 3%6%

TheEconomicContributionofDesign 11

Figure 3: Exports from Design Sectors within the Design Groups of the ‘Irish Design Footprint’.

Exports from Design Sectors in Ireland

Design Groups 2008 2009 2010 2011 2012 2013

€m €m €m €m €m €m

Engineering 648.8 620.3 623.6 887.0 858.5 952.6

Architecture 12.7 9.3 9.5 13.5 16.6 c

SpecialisedDesign 17.2 14.3 21.7 33.4 34.2 41.2

Digital 25,352.8 24,944.9 26,199.8 30,653.9 33,699.7 37,360.1

Crafts 44.7 28.0 37.6 38.4 33.4 39.1

26,076.2 25,616.8 26,892.3 31,626.2 34,642.4 (>38,000)

Source:AnnualBusinessSurveyofEconomicImpact2013,DepartmentofJob,EnterpriseandInnovation

Findings on Exports (by agency-client firms) from Design Sectors9. Thetotalexportsbyagency-clientfirmsinDesignSectorsasincludedinthedefinitionforthe

‘IrishDesignFootprint’wasmorethan€34bn22in2012asindicatedinFigure3:19.5%oftotalexportsintheIrisheconomyin201223.

10. Exportsfromtheagency-clientfirmsoperatingintheDesignSectorsincreasedby33%overtheperiod2008-2012,significantlygreaterthantheaverageexportgrowthrateof12.6%foragency-clientfirmsacrossallbusinesssectorsintheeconomyovertheperiod.

11. TheDesignSectorsthatareassociatedwiththeDigitalGroupareadominantsourceofexportsforIreland.Agency-clientfirmsoperatingwithintheDesignSectorsoftheDigitalGrouprepresent97%oftotalexportsbyagency-clientfirmswithintheDesignSectorsofthesixGroupsinthe‘IrishDesignFootprint’.TheDesignSectorsintheDigitalGroupaccountfor19%oftotalexportsfromIrelandin2012andtheseexportsarepredominantlyassociatedwiththeFDIbaseinIreland.

12. OutsideoftheDigitalGroup,exportsbyagency-clientfirmsintheotherDesignSectorswasestimatedas€0.94bnin2012or0.54%oftotalexportsintheeconomyin2012:thesectorsintheCraft,ArchitectureandSpecialisedDesignGroupsaccountedfor~€85million24,and~€860millionwasaccountedforbythesectorsintheEngineeringGroup.

22 Itisnotedthatexportsareonlyestimatedforfirmswith10ormorepersonsemployedandonlyforagencyclientfirms,thusthefiguresquotedastheexportvalueoftheDesignSectorsinIrelandunderrepresentsthetotalvalueofexportsfromthesesectors.

23 2012dataisreportedhere,asexportdatafortheArchitectureGroupwasnotavailablein2013forconfidentialityreasons,andsomoredetailedreportingofexportsatGrouplevelisnotfeasiblefor2013.

24 Itisrecognisedthatexportsfrombusinesseswithlessthan10personsengaged,andnon-agencyclientfirms,arenotincludedinthisfigureforexports.AsmanybusinessesinthesectorsrelatedtotheseDesignGroupshavelessthan10personsengaged,thisexportfigureisanunderrepresentationofthecontributionfromthecohortofbusinessesinthesesectors.


13. Basedona‘likebylike’comparisonofexportsfromDesignSectors25in2013,itwasdeterminedthatexportsfromtheDesignSectorswerehigherforIreland26thantheestimateofexportsfortheUK.

25 ItisnotedthatexportsrelatedtotheEngineeringActivitiesandRelatedTechnicalConsultancySector(NACE272.12)isnotincludedforeithertheUKorIrelandinthiscomparisonofexportvalue.

26 ExportsfromIrelandbyagencyclientfirmsintheDesignSectorswere>€37.8bnin2013–excludingtheEngineeringGroup.ExportsfromasimilarsetofDesignSectorsintheUKin2013was€9.8bn(thoughwhenanestimatewasmadeofthevalueofexportsfromtheWiderEnterpriseBase,thenthetotalvalueofdesign-relatedexports–DesignSectorsplustheWiderEnterpriseBase–wasreportedas€34bnfortheUK).

13

3. Characteristics of the Design Workforce in the Total Economy

Basedonthedesignoccupationsdefinedinthe‘IrishDesignFootprint’itwasfoundthatindividualsworkingindesignrolesinIrelandareemployedrightacrosstheeconomy,andthusemploymentindesignrolesisnotlimitedtoemploymentintheDesignSectors27,28.

Figure 4: Characteristics of the Design and Total Workforce in Ireland in 2014

Ireland: 2014

Design Workforce Total Workforce

Gender 75:25male:female

54:46male:female

Age 91%<55years 83.6%<55years

Qualification 66%withthirdlevel 54%withthirdlevel

Part-time 10% 23%

Nationality 21%non-nationals 14.8non-nationals

Employment Status 23%selfemployed 17%selfemployed

Source:NationalSkillsBulletin2015,ExpertGroupforFutureSkillsNeeds-basedonCSO,QHNSdata.

AsindicatedinsummaryinFigure4,thedesignersworkingintheIrisheconomytendtobeyounger,morecommonlymale,moreengagedinfull-timeemployment,andattainhigherlevelsofthirdlevelqualificationswhencomparedtotheaverageofthenationalworkforceinemployment(thoughsomedeviationsfromthisprofileareobservedwhenviewedattheDesignGroup/occupationlevel).OutsideoftheDigitalGroup,designersalsotendtobemoreentrepreneurialinnaturethanthegeneralworkforceasisreflectedbythehigherlikelihoodofdesignerstobeself-employed.

Themoredetailedsetoffindingsaresetoutbelow.1. WorkersacrossallDesignGroupsaremostlymaleatapproximately75%ofthedesign

workforceemployedin2014.Thiscomparestothemalerepresentationof54.3%ofthetotalworkforceinemploymentinQ42014.

2. Designersmostlyworkfull-time,withapproximately90%ofthetotaldesignworkforceinemploymentbeinginfull-timeemploymentin2014.Thisishigherthantheoverallproportionoffull-timeworkersinemploymentacrosstheeconomy,whichwasestimatedas77%ofthetotal1.94millionpersonsinemploymentinQ42014.

3. Designersarerepresentedbyalargerproportionofyoungerworkersthanthenationalaverage.Overall,theproportionofthedesignworkforceinemploymentin2014thatwereaged>55yearswas8.7%.Incomparison,thoseaged>55yearsaccountedfor16.4%ofthetotalinemploymentinthecountryinQ42014.

27 FulldetailscanbefoundinThe‘IrishDesignFootprint’:EconomicValueandCharacteristics,DJEI,2016.28 Seefinding6inprevioussection.

14

4. Onefifth(21%)ofthedesignersinemploymentinIrelandin2014werenon-nationals.Incomparison,non-nationalsaccountedfor14.8%oftotalemploymentacrossthefulleconomyinQ42014.

5. Designersdemonstrateahigherlevelofthirdlevelqualificationsthanthenationalaverageinemployment.Overall66%ofthedesignworkforceinemploymentin2014hadthirdleveleducation.Thiscomparesto54%ofthoseinemploymentinQ42014inthetotaleconomyhavingathirdlevelqualification.However,itwasdeterminedthattheproportionofworkerswiththirdlevelqualificationsintheCraftDesignGrouparebelowthenationalaverage,asaretheworkersinweb-designoccupations.

6. OutsideofdesignersintheDigitalGroup,designersaremorelikelytobeself-employedthanotherworkersinthetotalIrishworkforce.Furthermore,theseself-employeddesignersaremorelikelytoworkalonethanworkersinotheroccupationsinIreland.

7. ThedesignworkforcecharacteristicsarefoundtobesimilarintheUKandIreland,relativetothenationalworkforcecharacteristicsineachcountry.


15

4. Profile of Businesses in Design Sectors

TheDesignandCraftCouncilofIreland,aspartoftheID2015initiative,undertookabusinessprofilingexercisefocusingprimarilyonbusinessesinthemoretraditionalDesignSectorsandsub-sectors,whichincluded:

• Architecture• Communication/GraphicDesign• Product/IndustrialDesign• Animation• Craft

However,aprofileofbusinessesinanemergingsub-sectorofdesign(termedhere‘DesignforElectronicMedia’29)wasalsoundertaken.

Theresearchindicatesthatthereisastrongregionalspreadofdesignbusinessesandaprolificnumberofstart-upsacrossthesegmentsstudied.However,theresearchalsopresentsapictureoffragmentationandconstrainedproductivitywhichisrelatedtosmallbusinesssizeandscale,andlongevityofbusinesses.

Themoredetailedsetoffindingsaresetoutbelow.1. Thecraft-relatedbusinessesrepresentamajorityofthedesignbusinessesinIreland,atover

70%ofthedesignbusinessesinthepopulationstudied.

2. DesignbusinessesintraditionalDesignSectorsandtheemergingsub-sectorof‘DesignforElectronicMedia’arespreadacrossthecountry,butthereisasignificantlyhigherdensitylocatedinDublinthaninotherregionsasindicatedinFigure5.Thenotableexceptiontothisisforcraft-relatedbusinesseswhicharefoundtobemoreevenlydispersedacrossthecountry.

3. Thereisastrongstart-upcultureacrossthetraditionalDesignSectorsandthe‘DesignforElectronicMedia’sub-sector:start-upsrepresentedalmost1in5businessesacrossthepopulationstudied.

4. Basedonthepopulationstudied,designbusinesseswerefoundtobeyoungwithalmost2/3ofthemlessthan10yearsold.

5. ThetraditionalDesignSectorsandthesub-sectorof‘DesignforElectronicMedia’arecharacterisedbyahighproportionofsmallandmicrobusinesses.

29 Thisemergingsub-sectorisbasedonamixofactivitiesincludingthoseassociatedwithProgrammingandGraphic/Communicationdesign.Whilebothofthesesectors/sub-sectorshavebeenconsideredseparatelyfortheeconomicmeasurementitisrecognisedthatanewsub-sector‘DesignforElectronicMedia’isdevelopingwhichmaynotbereflectedinitsownrightintheNACE2codingsystemofbusinesssectors,andisthusworthincludingintheprofilingexercise.Thissectorwasdefinedtoreflectbusinessesinmultimediadesign,userexperiencedesign,webdesign,appdesignandinteractiondesign.

16

Figure 5: Number of Design Businesses in each county in Ireland.

Source:ProfileofBusinessintheTraditionalDesignSectors,January2016,AReportfortheDesignandCraftCouncilofIreland,byConKennedy.

Donegal

101

110

219

125

408102

85 59

50

44

60

139 122

88

92

7249 38

7529

23 24

LeitrimSligo

Mayo

Galway

Clare

Limerick Tipperary

Waterford

Kilkenny Wexford

Carlow

Wicklow

Kildare

Offaly

Laois

Westmeath

LongfordRoscommon

Meath

Dublin

Louth

Monaghan

Cavan

Kerry Cork

126

161

1381329


17

5. The Role of Design in Businesses in the Wider Enterprise Base in Ireland

ResearchwasundertakentoexaminetheroleandimportanceofdesigninfirmsintheWiderEnterpriseBaseinIrelandforwhichdesignisnotaprimarybusinessfunction(i.e.insectorsoutsideoftheDesignSectors)30.Forthepurposesofthisresearch,designactivitiesinfirmsinthefollowingsectorswereinvestigated:

• AdvancedManufacturing• FoodandDrink• MedicalDevicesandPharmaceuticals• ICTHardwareandSoftware• Environment:Construction,EnergyEfficiency,Waste• Services

TheevidencehighlightsthatthereisacohortofbusinessesinIrelandthatoperateoutsideoftheDesignSectorsbutplaceastrongemphasisondesign-relatedactivity.Thereisagreementamongstthesedesign-activefirmsthatdesignis:

• Keyindevelopmentofnew/improvedgoods/services• Importantinachievingcustomersatisfaction• ImportanttoIreland’sbusinessreputation• Importanttoafirmscompetitiveness,andthatinvestingindesignresultsinincreased

profitabilityandexportshare.

However,theanalysisalsorevealsthatthesebusinessesaremuchfurtheradvancedintheirengagementindesignthanthebroaderpopulationoffirmsinIreland.

Theresearchprovidesfordemonstrationofgoodpracticesofdesigninfirms,which,ifdevelopedinnon-design-activefirmswithintheWiderEnterpriseBase,couldsupportincreasedlevelsofdevelopmentofnew/improvedgoodsandservices,thusdrivingimprovedcompetitivenessinthefirmbaseinIreland.

Thekeyfindingsinrelationtodesign-activefirmsinIrelandintheWiderEnterpriseBasearesummarisedasfollows:

1. Thesefirmsconsiderdesignaskeytocompetitivenessandinnovation,customersatisfactionandimportanttoIreland’sbusinessreputation.Amajorityofdesign-activefirmsrespondingtoasurveyconsideredthatdesigncanincreaseacompany’sprofitability(83%offirms)andexportshare(73%offirms).Thesefindingsarebroadlyconsistentacrossdesign-drivenfirmsofdifferentsize,sectorandownership.

2. Theroleofdesignasanelementofthegoods/servicedevelopmentprocessisconsideredparticularlyimportant,withdesignbeingemployedacrossmultiplestagesofthegoods/servicedevelopmentcontinuumfromconcepttoimplementation.Furthermore,77%ofthefirmsrespondingtoasurveyconsidereddesigntobepartoftheR&Dprocess.

30 Anumberofsoftware-relatedbusinesssectorsweremappedasDesignSectorsinthe‘IrishDesignFootprint’duetothehigherlevelofdesignersconsideredtobeworkinginthesesectors.However,itisrecognisedthatincomparisontotheotherDesignSectorsofsignificanceforIreland,theprimarybusinessfunctionsoftheenterprisesinthesesoftware-relatedsectorsisnotoneofdesign.Forthatreason,softwareisalsoincludedforstudyinthisinvestigationoftheroleofdesignintheWiderEnterpriseBase.

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3. Designinthesecompaniesischaracterisedbyhighlevelstrategiccommitment,developmentofinternaldesigncapacity,collaborationwithexternalpartnersinthethirdlevelsector,andselectiveuseofexternaldesignservices.

4. Therearesubtledifferenceswithregardstotheperspectiveandlevelofengagementinvariousaspectsofdesigninaccordancewithfirmsize,firmownershipandindustrysector.

5. Thesefirmstendtoadopta‘matureapproachtodesign’with80%ofthedesign-activefirmsthatrespondedtoasurveyviewingitaseitherkeytoproduct/servicefunctionality(Stage3oftheDesignLadder)orwiderstrategy(Stage4oftheDesignLadder,seeFigure6).

6. ThesefirmstakeamuchmorematureapproachthanistakenmoregenerallybythetotalenterprisebaseinIreland(31%offirmsadoptingamatureapproach-activeatStage3orStage4oftheDesignLadder),theUK(42%offirmsadoptingamatureapproach)andacrossEurope(32%offirmsadoptingamatureapproach)asisindicatedinthedatapresentedintheDesignLadderillustrationinFigure6.

7. Giventheirmatureuseofdesign,fewofthesedesign-drivenfirmsreportedsignificantbarrierstousingdesignintheirbusiness.Ofthosebarriersidentified,theprimarybarriersaretheavailabilityoftimeandfinanceandthedifficultyinmakingthecasefordesignactivityinternally.

8. Theeconomicimpactsofdesignareevidentinitsroleingeneratingandsafeguardingbusinessactivityinthesedesign-activefirmsandlinksbetweendesignandemploymentgrowthinthesefirmswasalsodemonstratedintheresearch.

Figure 6: Use of the Danish Design Ladder Model to: A) Benchmark design maturity of the total enterprise base in Ireland [IE (General)], against enterprises in the US, UK and across Europe; and B) Compare design maturity of the total enterprise base in Ireland with that of a cohort of design-active innovative firms in the Irish enterprise [IE(Innovative)].

Source:FlashEurobarometer41:INNOBAROMETER2015-THEINNOVATIONTRENDSATEUENTERPRISES,EuropeanCommission,2015andCMISurveyofIrish-basedfirmsIE[Innovative]).

STAGE 1NO DESIGN

STAGE 2DESIGN AS

STYLING

STAGE 3DESIGN AS

PROCESS

STAGE 4DESIGN ASSTRATEGY

EU: 55% US: 63% UK: 45%IE (General): 54%IE (Innovative): 4%




‘A mature approach to design’ indicates that firms view design as a process for product/service development (Stage 3) or key to wider business strategy (Stage 4).

The Danish Design Ladder was developed as a tool to measure the level of design activity and determine the degree of strategic importance attributed to design in businesses. This measurement system is currently considered the best practice model for international comparisons of design in the enterprise base.


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6. Policy Framework for Design in Enterprise in Ireland

TheevidenceconfirmsthatdesignplaysasignificantroleintheIrisheconomyintermsofabsoluteeconomicimpactandfromaregionaldimensionofeconomicactivity.A‘PolicyFrameworkforDesigninEnterpriseinIreland’wasdevelopedbasedontheopportunitiesidentifiedforadvancingtheroleofdesigninsupportofbusinessandeconomicsustainabilityandgrowth.Thefollowingsixelementsconstitutethis‘PolicyFrameworkforDesigninIreland’:

1. Increased use of Design-Driven Innovation in the Wider Enterprise Base ThereissignificantopportunitytofurtherenhancetheinnovationeffortoffirmsinIrelandandconsequentlythecompetitivenessofthefirmbasethroughdrivingforgreaterlevelsofengagementindesignacrosstheWiderEnterpriseBase.Thefocusshouldbeondrivingdesignactivitiesrelatedtodevelopmentofgoods/servicesandstrategydevelopment.

TheStatehasaroletoplayinraisingawarenessofdesignanditspotentialimpactamongstthesefirms.Furthermore,barrierscitedbycompaniesintheresearchwerefinance-relatedandtime-related.Thus,thereisaneedtoensurethatStatesupportsofferedforinnovationactivitiesareeligiblefordesignactivitiesrelatedtodevelopmentofproducts/services.Thereisachallengefordesign,likeotherknowledgebasedassets,insecuringfinance,andalternativefundingoptionsneedtobekeptunderreview.

2. Building Scale in the Design SectorThechallengesinhibitingproductivityacrossthetraditionalDesignSectorsstudiedareassociatedwithbusinesssurvival,sizeandscaling,andfragmentation.Akeyopportunityforaddressingtheseissuesisthroughseekingtoachievethebenefitsofeconomiesofscale.

Toaddressthisopportunity,thereisarolefortheDesignIndustry,togetherwiththeDesignandCraftCouncilofIreland,intermsofdevelopingacoherentandconsolidatedmechanismforrepresentationofthevariousDesignSectorsandsupportingnetworkingandcollaborationactivitiesacrossdesignbusinesses.

3. A Step-Up in the Engineering Design SectorTheresearchindicatesanopportunityforincreasedeconomicimpactfromdesigninIrelandbyfocusingonincreasingactivityintheEngineeringActivitiesandRelatedTechnicalConsultancySector.ComparisonofGVAandemploymentimpactmeasurementsacrossEuropeancountriesfortheEngineeringActivitiesandRelatedTechnicalConsultancy,ArchitecturalActivitiesandSpecialisedDesignSectorsindicatesthatIrelandperformsbestonacomparativebasisforSpecialisedDesign,followedbyArchitecture,andhasthelowestrankingforEngineeringDesign.

GiventhatinabsolutetermstheEngineeringActivitiesandRelatedTechnicalConsultancysectoristypicallythebiggestcontributortoGVAandemploymentineachEuropeancountry(ofthethreeaforementionedsectors),thisfindinghighlightsthatthereisaneconomicopportunityforIrelandandfurtherattentionshouldbefocusedonachievingastep-upinthisEngineeringDesignSector.


4. Supporting Entrepreneurship in the Design SectorsDesignenterprisesarebroadlybasedacrossIrelandandthereisastrongcadreofyoungfirmsinkeytraditionalDesignSectors.Thereisaroleforthefundingbodiesinsupportingentrepreneursindesignwhohaveambitiousplans:throughexportssupportsfromEnterpriseIrelandforthoseconsideringinternationalexpansion;aspartoftheentrepreneurshipprogrammesoftheLocalEnterpriseOffices;andviaprogrammesoftheDesignandCraftsCouncilofIreland.

5. Developing Skills and Talent in DesignDevelopingastrongDesignIndustryandincreasingtheengagementindesign-driveninnovationintheWiderEnterpriseBasewillhelptoretain,attractandnurturedesigntalentinIreland.Akeyelementinstrengtheninganyindustryisensuringthattheappropriateskillsetsarebeingdevelopedtohelptheindustrytothrive.

Additionally,anumberofmorespecificopportunitieswerehighlightedthroughtheresearch:connectingandtransferringskillsofdesignersacrosstheDesignSectorsandtheWiderEnterpriseBase;anddevelopingimprovedbusinessskillsamongstdesigners.

Toaddresstheopportunitiesassociatedwithskills,therearerolesfor:• Fundersineducationandtraining,andpolicymakers–inreviewingtheeducational

offeringsfordesigncoursestoensurethattheyarefitforpurposeandreflectthecareeropportunitiesthatnowexistforgraduatesinnewandemergingareas.

• TheDesignIndustryitselftogetherwiththeDesignandCraftsCouncilofIreland–intermsofdevelopingclearercareerpathsfordesigners;andsupportingnetworkingandcollaborationactivitieswithparticipationfromdesignbusinesses,designers,andtheWiderEnterpriseBase.

6. More Females in Design RolesBasedonananalysisoftheworkforceindesignoccupationsacrosstheeconomy,theresearchalsoindicatesopportunitiestoincreasetheparticipationoffemalesindesignroles.

Tosupporttheshiftinthebalanceoffemaleparticipationinthedesignworkforce,thereisarolefortheStatetoplayinincreasingawarenessandpromotionofdesignrolesinIrish-basedenterprises.ThereisalsoarolefortheDesignIndustryitselftogetherwiththeDesignandCraftCouncilofIrelandindevelopingclearercareerpathsfordesigners.

DepartmentofJobs,EnterpriseandInnovation,

23KildareStreet|Dublin2

Eircode:D02TD30

tel:+35316312121

email:[email protected]

web:http://www.djei.ie

policy framework for design in enterprise in ireland (january 2016)

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