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UK is losing its design edge

Article Date:  Apr 08 2009
Rising stars of design
Rising stars of design

UK businesses may come under additional pressure as countries in East Asia start to shift away from low-cost production to concentrate on groundbreaking, high-value designs, research has found.

The International Design Scorecard, which was put together by the University of Cambridge and supported bythe UK Design Council, assessed 12 countries based on a series of indicators, including numbers of design graduates and the strength of the design consultancy sector.

Singapore and South Korea both scored particularly high and are expected to become even more competitive in design. The research noted that these countries have the added advantage of a close production base, which in many cases has already shifted to the East.

James Moultrie, from the University of Cambridge’s Institute for Manufacturing, observes: ‘The study is an imperfect first attempt to rank countries’ design performance, but its overall results, which show that the design sector is growing in the Far East in a manner which outstrips many Western countries, are consistent with anecdotal evidence.’

For the meantime, the UK continues to punch above its weight when it comes to design and innovation. Design consultancies have an annual turnover of around £4 billon and the design industry as a whole has a value of around £11.6 billion. The consultancy sector directly employs nearly 62,000 people, with many more designers, perhaps twice this number, employed in the industry.

Moultrie adds: ‘East Asian nations, which have traditionally competed on price and low labour rates, are now increasingly competing through design as well.’

The research measured design capability according to seven indicators: public investment in design, total number of design graduates, number of World Intellectual Patent Office (WIPO) design registrations, number of WIPO trademark registrations, number of design firms, turnover of design services sector and employment in the design services.

The US ranks number one in absolute terms. The UK came fourth and while it retains its leading capabilities in design education, the report raises concerns about a decline in both turnover and employment in the consultancy sector.

Data suggests that the UK design services sector was adversely affected by the dot-com crash in 2001 and it may be that the sector will be further affected by the current economic climate.

By contrast, South Korea is emerging as a ‘new design powerhouse’, ranking second in both absolute and relative terms. Singapore came first in relative terms, suggesting a high intensity of design activity relative to the size of the nation. In both South Korea and Singapore, sustained public investment is enabling the design sector to flourish, as evidenced through a growing number of design graduates and registration of trademarks and designs.

The complete Design Scoreboard report, entitled International Design Scoreboard; Initial indicators of international design capabilities, can be found at www.ifm.eng.cam.ac.uk/service/books/#reports from April 15th.

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