Redi is a project managed by 5 partners active in the field of design and innovation. Follow the green light at www.apci.asso.frRedi is co-funded by the European Union, under the European design innovation initiative

REDI: WP 1 Support design driven innovation in Europe:a survey and critical analysis of best practices

Task 1.1 Survey and evaluation of design support programmes (APCI)

Case study:Design Pilot (Design-driven innovation programme, Norwegian

Design Council)

The architecture of the model (why, articulation, stakeholders, financing…)

Historical, political and strategic context (regarding design & innovation)

A survey conducted by the UK Design Council shows that 32% of all British enterprises have introduced a new product or service over the last three years. Among enterprises that use design methods in their business development process, the corresponding figure is 67%! The British survey shows the huge potential there is in innovation methods focusing on a methodical and user-focused approach to the ideas stage. Design-driven innovation employs such an approach, but only a small percentage of Norwegian companies currently use this method in their innovation work.

The Design Diagnosis survey undertaken on behalf of the NDC in 2009 shows an identical tendency in Norway. The survey showed that companies that actively make use of design in their processes had twice the level of innovation of other companies, across all business sectors. Furthermore, the survey showed that four times as many design users applied for patent protection, compared with companies that do not use design in their innovation processes.

Design-driven innovation has been launched as a new initiative in innovation policy in the ‘innovation white paper’ that the Government presented to Parliament in Autumn 2008. The Norwegian Design Council was given the responsibility for developing and introducing a business-oriented programme with the title ‘Design-driven Innovation Program’ (DIP). Such an initiative has never before been undertaken in Norway. Norway is also the first country in Europe to launch a dedicated programme addressing design-driven innovation.

Programme objectives

The aim of the DIP is to strengthen industry’s ability to include user needs in a systematic way in the idea phase of innovation projects – and to use design from the start to translate and visualise what possibilities and product/service ideas might arise from this increased user insight.

DIP is a three-year programme which began in 2009 with follow-up in 2010 and 2011.

The funds made available to the NDC are earmarked for specific projects, which together make up DIP in 2009:

1. Design Pilot : a programme that provides financial support for enterprises wishing to implement pilot projects based on design-driven innovation.

2. Design Diagnosis : a national study to investigate the actual differences that exist in wealth creation between users and non-users of design in Norwegian enterprises.

3. Design Effect : a new award from the Norwegian Design Council that measures the effect of design in order to obtain and make available evidence and cases demonstrating the benefits of design projects in

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businesses and the public sector.

The purpose of such support is:- to gather new knowledge and experience about the practice of design-

driven innovation methods, both for the individual enterprise and at the national level;

- to contribute to the development of specific methodical tools and procedures that can form the basis of consultancy and business-related service programmes;

- to help participating enterprises develop specific and competitive innovation as a result of the project and methodology.

Alignment of the project with other support programmes (innovation, business…)?Connections to the framework of resources available to support innovation in businesses (grants, loans, vouchers, etc.)

The Norwegian Design Council is a strategic body, so it doesn't offer funding or endorsements directly to individuals. However, it has established some funding schemes through its partnership with Innovation Norway and the Norwegian Research Council (SkatteFUNN)

‘SkatteFUNN’ was launched in 2002 and is Norway’s largest initiative within R&D in industry. The scheme applies to all taxable businesses in Norway. It offers tax deduction for business enterprises engaged in research and development activity on their own or in collaboration with others. The eligible projects must have the goal of obtaining new knowledge, information or experience that can contribute to new or better products, services or production methods. The scheme is open to all branches of industry and all types of companies — regardless of size.

Organisational structure and governance: lead partner & stakeholders/partners (roles in the project)

The Norwegian Design Council (NDC) has developed a programme construction, which takes into account all legal aspects connected to Government support regulations. The programme does not require notification.

A Programme Board has been set up, with the responsibility of overseeing all procedures, as well as approving the handling of applications and funding. The Programme Board comprises representatives from NDC, the Research Council of Norway (RCN) and Innovation Norway (IN).

Funding (budget and resources)

NDC is financed by the Norwegian Ministry of Trade and Industry (MTI) and is part of the ministry's policy to increase the competitiveness of the Norwegian trade and industry.

The MTI granted 10 million NOK to NDC in both 2009 and 2010, earmarked for the implementation of the Design-driven Innovation Programme. In 2009, the 18 selected projects received an overall budget of 6 million NOK.

Region (geographical coverage)

The organisations can be located anywhere in Norway.

The beneficiaries (modalities, requisites, selection of providers…)Targets (intermediaries, SMEs, designers…)

The programme aligns itself with established businesses that want to strengthen their competitiveness or service level by creating new solutions for their users.

Client selection criteria/process

Under Design Pilot, grants for projects can be given to all legal entities, such as product and service offering companies, organisations, public businesses, and private or public institutions, such as educational and research institutions. Both large and small businesses or groups can apply. Grants are not given to individuals, sole traders, or non-VAT registered companies.

Funding is only given to projects where at least one company takes part. It is assumed that this company is either responsible for the project or is the main collaborating partner.

Foreign collaborators, such as businesses, knowledge centres or design agencies, can also enter into projects under the programme. The deciding factor is whether the projects contribute to advancing design-driven innovation in Norway.

Criteria for funding

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1. Starting with users’ needs : Special emphasis is given to how well a project develops and tries out methods to uncover users’ realised and nonrealised needs.

2. Application of design competence : The use of design competence is central to the programme. It is therefore a requirement that design competence is actively utilised in carrying out the project.

3. High level of newsworthiness : The degree to which the project’s methods or approaches differ from general practice, is innovative, and involves thinking in new and untraditional ways is an important consideration.

4. Measurable effect : The project should give concrete and lasting results. In other words, its aims should be clearly described through highlighting its goal, or the problem it intends to solve.

5. Usefulness for others : Another consideration is how relevant and useful for others is the knowledge gained from the project. This means the degree to which the contents of the project are relevant for a broader circle of participants than those directly involved in the project will be analysed.

6. Communication of results to a wider audience : The main intention of Design Pilot is to obtain more knowledge and information about methods and processes linked to design-driven innovation as an innovation method. It is important therefore that all experience and process materials are made available to the Norwegian Design Council.

7. Additionality : The degree to which the project is additional is analysed. That is, if the project will be cancelled, or reduced in scope without funding from Design Pilot.

Marketing: ways of recruiting (call for proposals, promotional tools, conferences, exhibitions…)

NDC has developed an electronic application form, which includes all the variables needed to perform serious and credible handling of applications. The application form also contains current tips and advice on filling out all of the application form fields.

A group consisting of representatives from NDC, RCN and IN evaluates the applications according to the programme’s strategic and academic intentions, programme criteria, research quality and the applicant’s creditworthiness. The stated reasons for reductions and funding are presented to the Programme Board.

Cost and commitment for the participant

Design Pilot only supports projects that apply for more than 100,000 NOK from the programme. The project must be completed within the end of the year following the grant.

Private businesses and companies may receive up to 50% of the total cost incurred during the idea phase of the project, while public sector organisations may receive up to 75%.

The development or implementation phases are not covered by Design Pilot – only the ideation phase.

The financial contribution of the participant includes salary expenses for the organisation’s personnel that are involved in the ideation phase of the project.

The methodology and service overview (collective, sectorial, individual; tools, processes, diagnostic, matchmaking, workshops, mentoring, trainings…; levels, steps): objective, content, target group, number of participants, time frame, cost, etc.Presentation The programme supports individual projects that involve users and use design

methodology in the development of new products and services. Support is given to the idea phase in an innovation process, where the final goal is to develop entirely new solutions for products or services. It is a condition that design is central, and that businesses use their own or hired design expertise in the project. If a project’s purpose is only to realise an existing idea, concept or invention, it will not receive funds from Design Pilot.

By “users”, the NDC means, for example, consumers, customers, other companies, specialist environments, organisations, suppliers, patients, or

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citizens.

Examples of projects that can be supported by Design Pilot:- Product development towards consumers- Product development towards companies- Service development within private industry- Service development within the public sector

Programme team

The Norwegian Design Council has a consultancy service (Design Consulting) where their consultants may assist in establishing and carrying out design based business development projects (4 business consultants).

The consultants are available for companies who want to use design in:- Product and service development- Market communications (packaging design, branding, corporate identity

projects etc.).

The consultants can assist in:- Identifying opportunities for design in the company- Evaluation of the companys' current use of design- Counselling in use of design in development projects- Counselling in the organization of designprojects- Developing design briefs- Finding the right designer or design agency- Workshops and seminars

External competencies taking part to the project developmentProcess Design Pilot focuses on the idea phase , as well using design competence to

translate information about the user into concrete ideas, concepts and opportunitie, that will then be taken through development, commercialisation and implementation phases.

Below is a general description of the process for which a support can be obtained

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Duration of the programme Started 2009After the programme…

Other toolswww.inclusivedesign.no : This practical web guide aims to give business and designers an introduction to Inclusive Design by presenting methods, tools and processes that can be easily adopted and implemented in everyday practice

The implementation and the deployment of the programmeDuration of the project

The Design-driven Innovation Programme (DIP) has a long-term perspective. It was launched in 2009 and is still in action.

Phases of the programme

The structure of the programme has not been substantially modified since its launch.

Sustainability of the project (next steps)

N/A, the programme relies on public funding.

Transferability of the programme (regional, national, European)

The specific application criteria and the limitation of the support to the initial phase of the new product/service development could require substantial adaptation to different contexts.

Intellectual property issues (open source /tools, processes, methods)

N/A

Conception of closer collaborations with other business/innovation support programmes?

The programme involves the NDC, the Research Council of Norway (RCN) and Innovation Norway (IN)

The evaluation of the programme (achievements and effectiveness)Results When launching the Design-driven Innovation Programme (DIP), only a few

businesses used the design-driven methodology in their innovation work in Norway. The source of the problem is thought to be that because this is a new method in an early growth phase, information and knowledge dissemination to companies about these processes is undeveloped. The programme has been

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established to stimulate competence-building and investments in the idea phase, based on systematic user studies and design methodology.

In its fist year (2009), 180 applications to the Design Pilot programme were received from 50 different industry branches. With its focus on user involvement and design in the idea phase, Design Pilot has clearly met a great need in the market.

In total, Norwegian businesses applied for 79 million NOK through Design Pilot in 2009. The budget for Design Pilot did not account for such an astoundingly large response. However, there was enough to offer grants to 18 exciting projects with an accumulated budget of 6 million NOK.

The large response shows a great interest in trying out new methods of innovation that put the user in the driver’s seat.

Moreover the Design Diagnosis 2009 showed that, unbelievably, 83% of Norwegian companies do not carry out user analysis as part of their innovation work – so we can safely conclude that Design Pilot may be the start of a new development. This is promising for Norwegian companies’ approach to innovation and future competitiveness.

Partnerships issues

Businesses feedbacks

Design Diagnosis clearly shows that design will be among the new tools businesses should use to ensure success, regardless of industry sector.

The survey shows the three most important reasons companies invest in design:

- To offer added value to their customers- To enter new markets- To develop products and services of higher quality

Designers’ point of viewKey programme assets (positive aspects, good practices…)Lessons learnt (improvement axes, areas of change…)Case studiesCase study 1Case study 2For other case studiesContact, informationsWebsite www.norskdesign.noContacts Skule Storheill, Director R&D and Innovation programme

ss@norskdesign.no , T: +47 23 29 25 54 / +47 901 03 361Sources

‘Design-driven Innovation Programme’, June 2010

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