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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).
PolicyFrameworkforDesigninEnterpriseinIrelandJanuary20168
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.
PolicyFrameworkforDesigninEnterpriseinIrelandJanuary201610
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.
PolicyFrameworkforDesigninEnterpriseinIrelandJanuary201612
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.
PolicyFrameworkforDesigninEnterpriseinIrelandJanuary2016
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
PolicyFrameworkforDesigninEnterpriseinIrelandJanuary2016
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%
EU: 14% US: 8% UK: 13%IE (General): 15%IE (Innovative): 16%
EU: 18% US: 15% UK: 20%IE (General): 17%IE (Innovative): 39%
EU: 13% US: 14% UK: 22%IE (General): 14%IE (Innovative): 41%
‘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.
PolicyFrameworkforDesigninEnterpriseinIrelandJanuary2016
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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.
PolicyFrameworkforDesigninEnterpriseinIrelandJanuary201620
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]
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