Design investment as crucial to business success as R&D, says UK Trade Secretary
The UK's Trade and Industry Secretary, Alistair Darling, has called on businesses to spend more on the design of their products and services, in addition to investing in research and development (R&D) and skills. Doing so will increase their global competitiveness. Research by the Design Council shows that, over a 10-year period, UK companies making use of design out-performed by 200% the top 100 companies listed on the London Stock Exchange. It is estimated that for every GBP 100 (€150) a design-alert business spends on design, turnover is increased by GBP 225 (€332). But too many UK companies spend little or nothing on design. According to figures issued by the Design Council for 2004-2005, 69% of UK companies spent nothing on design, which indicates that design-led planning is not part of mainstream business thinking. '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,' said Mr Darling. 'Design is good for the bottom line but with only a fraction of UK businesses investing in design, they are missing a huge opportunity,' Mr Darling added. But help is at hand with the UK government's 'Designing Demand' programme, which seeks to help small and medium enterprises (SMEs) make better use of design. '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,' said Mr Darling. Furthermore, the Design Council is expected to start work with partners and leading experts in business, academia and design to examine progress towards harnessing the UK's creative capabilities to support the country's productivity, performance and sustainability. A report of their findings will be submitted to the Secretary of State for Trade & Industry by February 2007.
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