THE COX REVIEW:

ENHANCING THE ROLE OF CREATIVITY IN DRIVING THE PRODUCTIVITY PERFORMANCE OF SMES IN THE UK

2

The Cox Review will report to HM Treasury by the end of September 2005, its

findings on how best to enhance the role of creativity in raising the productivity

performance of SMEs in the UK.

The Review is led by Sir George Cox, Chairman of the Design

Council. It was commissioned by HM Treasury and has team

support led by the DTI. It is entirely independent.

This document is designed to gather important evidence,

information and views to inform the Review.

In what is becoming a highly competitive world, commercial or economic success – whether for individual businesses or the nation – is going to be increasingly dependent on creativity and innovation. This applies to both products and services, and to every sector imaginable. At stake are not just the lower skilled jobs which we have seen migrating to lower cost economies in recent years, but also the high skilled jobs. In facing such a challenge, the UK clearly has some great strengths. Our record in the creative industries is one of outstanding achievement. In fields such as product design, fashion, architecture, advertising and many areas of the media, the UK is widely acknowledged as being at the forefront of world competition. The problem is that too little of this creativity seems to spill over into British business more widely. It is not a matter of British business being ‘uncreative’ – there are many examples to the contrary – rather it is that it is not making sufficient use of the nations creative talents to produce and market more world-beating products and services. The Review looks at what can be done to address this, focusing particularly on SMEs and on manufacturing.

3

Issued: 28 June 2005 Respond by: 31 August 2005 Enquiries to: Cox Review Team Design Council 34 Bow Street London WC2E 7DL Tel: 020 7420 5289 Email : Coxreview@designcouncil.org.uk

4

CONTENTS

1. Executive Summary 5 2. How to respond 6 3. Summary of questions 8 ANNEX A – The consultation code of practice criteria ANNEX B – Consultation Response Form

5

Executive Summary

Sir George Cox will report, by the 2005 pre-Budget Report1 on how best to enhance UK business productivity by drawing on our world-leading creative capabilities. The review will address two specific issues:

• Firstly it will identify how best to strengthen the relationship between businesses – particularly SMEs - and creative professionals drawn from a range of design, arts and related disciplines. These will include the potential impact on business performance of, among other things, digital media, product and industrial design, the arts and culture, graphics, branding and advertising, publishing, packaging, as well as interior and retail design. Within this, the review will have a particular focus on the role of creativity in modern manufacturing.

• Secondly, the review will look at strengthening the links across university departments and with industry. This will include new forms of courses, services and alliances involving, amongst others, art, design and creative courses, business schools and engineering and technology courses.

The review will propose specific action in both of these areas, for Government, businesses and other institutions, with the objective of raising UK productivity.

1 The pre-budget report is due in September 2005.

6

How to respond

The closing date for this consultation, by which all responses must be submitted, is 31 August 2005. When responding please state whether you are responding as an individual (and in what capacity – e.g. policy maker, consultant, professional etc) or representing the views of an organisation. If responding on behalf of an organisation, please make it clear whom the organisation represents and, where applicable, how the views of members were assembled. Responses should be submitted to: Cox Review Team Design Council 34 Bow Street London WC2E 7DL Tel: 020 7420 5289 Email: Coxreview@designcouncil.org.uk

Additional copies :

You may make copies of this document without seeking permission.

Confidentiality Your response may be made public by the Department for Trade and Industry. If you do not want all or part of your response or name made public, please state this clearly in the response. Any confidentiality disclaimer that may be generated by your organisation’s IT system or included as a general statement in your fax cover sheet will be taken to apply only to information in your response for which confidentiality has been specifically requested. Access to information held by or on behalf of DTI is governed by the Freedom of Information Act 2000. Any requests for information received by DTI in relation to this Consultation will be administered accordingly. We will handle appropriately any personal data you provide in accordance with the Data Protection Act 1998.

7

Help with Queries Questions about the policy issues raised in the document can be addressed to: Cox Review Team Design Council 34 Bow Street London WC2E 7DL Tel: 020 7420 5289 Email: Coxreview@designcouncil.org.uk If you have comments or complaints about the way this consultation has been conducted, these should also be sent to the above address. A copy of the Code of Practice on Consultation is at Annex A.

8

Summary of questions In this consultation document the Government invites responses to the following questions: Consultation Question 1: What, if any, evidence exists Is there evidence that British business, particularly SMEs and manufacturing really are making too little use of our creative industries sector’s capabilities? Consultation Question 2: If there is such evidence, in your view, where is the potential for improvement the greatest?

• Can you give examples of particular business sectors, whose productivity

could be enhanced by greater use of creative capability? • Are there, in your opinion, particular business sectors that this lack of use

of our creative industries sector’s capabilities is particularly relevant to? If so, which sectors are they?

• Which creative skills are most directly relevant? (eg. product design,

advertising, software, product packaging, branding or others)?

• Which aspects of business do these affect? (such as new or improved products or services, new markets, new routes to market, new processes)?

Consultation Question 3: Why is British business not making more use of the creative industries? Is it for any of the following reasons, or are there others? Please explain your answer or, if relevant, give further examples.

• Do not think of using creative industries

• Do not believe there is a good costs/benefits argument?

• Lack of previous success in this field?

• Risk aversion?

9

• Cultural/communication issues?

• Difficulty in getting financial backing for innovation?

• Other pressures on the business?

• Difficulty in accessing the necessary skills?

• What else? Consultation question 4: What, if anything, can be done to address these issues? Who is best placed to do it (either Government or others)?. Please give reasons.

Are there areas where the lack of use of the creative industries by British Business is already being tackled by a different source? What has been tried before and failed? Consultation question 5: What do you see as are the priorities when addressing how to encourage more creativity into British business? Please explain your answer.

10

ANNEX A – The consultation code of practice criteria 1. Consult widely throughout the process, allowing a minimum of 12 weeks for written consultation at least once during the development of the policy. 2. Be clear about what your proposals are, who may be affected, what questions are being asked and the timescale for responses. 3. Ensure that your consultation is clear, concise and widely accessible. 4. Give feedback regarding the responses received and how the consultation process influenced the policy. 5. Monitor your department’s effectiveness at consultation, including through the use of a designated consultation co-ordinator. 6. Ensure your consultation follows better regulation best practice, including carrying out a Regulatory Impact Assessment if appropriate. The complete code is available on the Cabinet Office’s web site, address: www.cabinet-office.gov.uk/servicefirst/index/consultation.htm

12

ANNEX B: CONSULTATION RESPONSE FORM

The Department may, in accordance with the Code of Practice on Access to Government Information, make available, on public request, individual

The Cox Review

Response Form The closing date for this is 31 August 2005

13

consultation responses. This will extend to your comments unless you inform us that you wish them to remain confidential. Please tick if you want us to keep your response confidential Name Organisation (if applicable) Address Return completed forms to: : Cox Review Team,

Design Council 34 Bow Street London WC2E 7DL Tel: 020 7420 5289 Email: Coxreview@designcouncil.org.uk

Please tick one box which best describes you:

Small Enterprise (please specify size)

Medium Enterprise (please specify size)

Large Enterprise (please specify size)

Representative Organisation

Trade Union

Interest Group

Local Government

Central Government

University or other Educational Establishment

Other (please describe):

14

Question 1 Page 8

Comments:

15

Question 2. page 8

Comments:

16

Question 3. page 8

Comments:

17

Question 4. page 9 Question 5 Question asking for rating score of various aspects of proposals and space for comments. Eg (On a scale of 1 to 5, 5 being the highest, grade your overall approval of the proposals. Question 5. page 9

Comments:

Comments:

18

Do you have any other comments that might aid the consultation process as a whole?

Please use this space for any general comments that you may have, comments on the layout of this consultation would also be welcomed.

Thank you for taking the time to let us have your views. We do not intend to acknowledge receipt of individual responses unless you tick the box below.

Comments:

19

Please acknowledge this reply ANNEX The Consultation Code of Practice Criteria 1. Consult widely throughout the process, allowing a minimum of 12 weeks for written consultation at least once during the development of the policy. 2. Be clear about what your proposals are, who may be affected, what questions are being asked and the timescale for responses. 3. Ensure that your consultation is clear, concise and widely accessible. 4. Give feedback regarding the responses received and how the consultation process influenced the policy. 5. Monitor your department’s effectiveness at consultation, including through the use of a designated consultation co-ordinator. 6. Ensure your consultation follows better regulation best practice, including carrying out a Regulatory Impact Assessment if appropriate. The complete code is available on the Cabinet Office’s web site, address http://www.cabinetoffice.gov.uk/regulation/consultation/index.asp Comments or complaints

If you wish to comment on the conduct of this consultation or make a complaint about the way this consultation has been conducted, please write to Cox Review Team, Design Council, 34 Bow Street, London WC2E 7DL or telephone him on 020 7420 5289 or email to: coxreview@designcouncil.org.uk