How can design be a platform for the development of a regional cluster in the Region of Southern Denmark?Susanne Jensen & Poul Rind Christensen

Academic Summit: Clusters as entrepreneurial ecosystems

4 September 2013

TCI conference 2013: Designing the future - Innovation through strategic partnerships

How can design be a platform for the development of a regional cluster in the

Region of Southern Denmark?

Susanne Jensen, post doc

Poul Rind Christensen, professor

Department of Entrepreneurship and Relationship ManagementUniversity of Southern Denmark

Background

• Industrial dynamics of the region:– Fall in production activities– Raise in activities facilitating production• Pre-production activities– downstream• Post-production activities - upstream

• A possible new role for design:– Linked to pre- and post-production– Linked to collaboration in global value chains– Demand for new competences

Purpose

Purpose: • What is a design cluster?– Key factors of importance for the formation – Key factors driving the development– The roles of design

Theoretical setting - design

• Design seen as outcome and process• Design as important for innovative activities and

creating value – linking new ways of thinking to specific arenas of

application• Dimensions in designers’ competences and skills: – Practices – the methodological skills used in designers’

work– Cognitive approaches – creative thinking styles– Mindset: Experimental and visual approach

Theoretical setting - clusterFive characteristics that identify a cluster (Ingstrup et al,2009):

• Number of firms• Geographical proximity • Inter-firm relations • Benefits based on synergies from e.g. specialized labour, tacit

knowledge, co-development• Framework conditions favouring collaboration

Three common factors of clusters (Pedersen, 2005) : • They are coherent • They have a common (technological) knowledge base• They have a common pool of specialized labour

Criteria's for a design cluster

• Size of potential cluster: is there a critical mass?

• Interaction and information flows developed

• Favourable conditions or sources of advantages

• Availability of a knowledge base in design including the existence of relevant knowledge institutions

The empirical study• Firm data on design suppliers from Statistics Denmark• The firm database CD Direct• Survey data From the Danish Industrial Authorities in 2010• Data on enrolments of students at design educations from the

Coordinated Enrolment System at higher educations• Policy documents and information on public initiated projects with

a design focusTable 3: Design suppliers based on the Danish Industrial Classification codes 2007;

NACE/DB07 code Name 71.11.00 Architectural activities 73.11.10 Advertising agencies 73.11.90 Other advertising activities 74.10.10 Industrial design and product design 74.10.20 Communication design and graphic design 74.10.30 Activities of interior decorators and room design

Source: Statistics Denmark.

Region of Southern Denmark

Results and discussionSuppliers of and demand for design services

• Region of Southern Denmark: 517 design firms with 2,284 employees; 1.3 per cent of the total number of firms; average size 4.4 employees

• Denmark: 3,422 firms with 22,079 employees; 1.8 per cent of the total number of firms ; average size 6.5 employees

• One third of firms within architectural activities; Nearly half in advertising

Figure 3. The Design Ladder and Danish firms’ use of design, 2010, per cent

Source: The Danish Industrial Authorities, 2011.

Results and discussionDesign knowledge base?

• More than 250 new students start at a design education in 2013 in the Region of Southern Denmark

Table 5. Employees’ education and work with design in Danish firms, 2010 The Region of Southern

Denmark Denmark

Firms with at least one designer employed 18.5 20.5 Firms where at least one employee works with design even though not having a design education

46.7 48.0

Firms that have bought design services externally 58.5 56.2 Firms that assess their employed designers to have the necessary skills to a very high and high degree

70.0 76.1

Collaborate with external partners on design 57.0 55.5 Source: The Danish Industrial Authorities, 2011.

Results and discussionInformation flows and favourable conditions

• Regional Growth Forum: Experience industry including design is one of three appointed areas for future industrial development

• Projects: Design2innovate, Designers’ cooperation etc.• SDU design

Table 7. Design collaboration partners for Danish firms, 2010 Collaboration partners The most important collaboration partner Region of Southern

Denmark Denmark Region of Southern

Denmark Denmark

Firms 30.9 30.0 24.2 23.8 Universities 7.7 7.0 1.9 2.7 Public institutions 4.0 4.3 0.7 1.4 Customers 22.6 21.6 19.5 18.4 Other 5.4 5.0 3.5 3.7 No collaboration 43.0 44.5 - - Source: The Danish Industrial Authorities, 2011.

Conclusion: Wishful thinking design cluster or ..?

Table 1: The state of development of clusters Type of cluster Critical mass Interaction and

information flow developed

Self-reinforced/ organic development

Favourable conditions or sources of advantages

Working clusters Yes Yes Yes Yes Latent clusters Yes No Yes Yes Potential cluster Some Some Some Some Policy driven clusters No No Some Some ‘Wishful thinking’ clusters

No No No No

Source: Based on Enright, M.J. 2003.