evidence from israeli firms elad harison tami … from israeli firms elad harison tami warshavski...
TRANSCRIPT
Evidence from Israeli Firms
Elad Harison
Tami Warshavski
Shenkar College of Engineering and Design
Email: [email protected]
WH
Y I
NV
ES
TIN
G I
N D
ES
IGN
?
NE
W F
IND
ING
S O
N D
ES
IGN
AN
D B
US
INE
SS
PE
RF
OR
MA
NC
E
GO
OD
DE
SIG
N I
S G
OO
D B
US
INE
SS
FA
CT
S A
ND
FIG
UR
ES
Th
e c
reati
ve in
du
str
ies a
re a
mo
ng
th
e m
ost
dyn
am
ic s
ecto
rs in
th
e w
orl
d
eco
no
my
no
wad
ays.
Th
e c
reati
ve in
du
str
ies a
re g
row
th s
ecto
rs t
hat
co
nti
nu
e t
o p
rovid
e m
ore
job
s, an
d a
dd
in
cre
asin
g v
alu
e t
o p
rod
ucts
an
d s
erv
ices.
On
a g
lob
al scale
, exp
ort
s o
f cre
ati
ve p
rod
ucts
an
d s
erv
ices in
th
e p
eri
od
20
02-2
00
8 h
ad
an
an
nu
al avera
ge g
row
th o
f 14
%
Co
mp
an
ies in
oth
er
ind
ustr
ies, w
ork
ing
clo
sely
wit
h t
he c
reati
ve in
du
str
ies
are
12
% m
ore
in
no
vati
ve.
Th
e o
rgan
izati
on
Cre
ati
ve A
fric
a h
as d
on
e c
ase s
tud
ies in
Nig
eri
a a
nd
Co
ng
o s
ho
win
g t
hat
cre
ati
ve in
du
str
ies c
an
pla
y a
majo
r ro
le in
dri
vin
g t
he
eco
no
my
an
d a
dd
ressin
g t
he issu
e o
f p
overt
y in
Afr
ican
co
un
trie
s.
Th
e D
an
ish
Bu
sin
ess A
uth
orit
ies C
en
ter
of
Cu
ltu
ral an
d E
xp
eri
en
ce E
co
no
my
(C
KO
) D
en
mark
GO
OD
DE
SIG
N I
S G
OO
D B
US
INE
SS
FA
CT
S A
ND
FIG
UR
ES
Th
e D
ES
IGN
IN
DE
X r
ep
ort
sh
ow
s c
learl
y t
hat
bu
sin
esses w
hic
h
invest
in d
esig
n o
ut-
perf
orm
th
eir
pe
ers
. T
he e
vid
en
ce is u
neq
uiv
ocal:
Desig
n-l
ed
co
mp
an
ies h
ave p
rod
uced
dra
mati
cally
bett
er
sh
are
-pri
ce
perf
orm
an
ce f
or
their
investo
rs, n
ot
just
for
a f
ew
we
eks o
r m
on
ths
bu
t co
nsis
ten
tly
over
a s
olid
decad
e.
Th
e r
ep
ort
sh
ow
s t
hat
the d
iffe
ren
ce b
etw
een
desig
n-a
ware
bu
sin
esses a
nd
th
e r
est
is n
ot
just
marg
inal – t
heir
sh
are
pri
ces h
ave
ou
tru
n k
ey
sto
ck m
ark
et
ind
ices b
y a
fu
ll 2
00
per
cen
t.
Desig
n
Co
un
cil U
K
INN
OV
AT
ION
SU
RV
EY
IN
TH
E I
SR
AE
LI
IND
US
TR
Y
RE
SU
LT
S A
ND
AN
ALY
SIS
Th
e r
ese
arc
h h
as b
ee
n c
on
du
cte
d in
20
13 u
nd
er
Te
mp
us I
DE
A
fra
mew
ork
, a
imin
g t
o r
eve
al th
e in
no
vati
on
an
d d
esig
n d
yn
am
ics
wit
h Isra
eli In
du
str
y w
ith
a s
pe
cia
l fo
cu
s o
n S
ME
s
ACT
Sh
en
kar
RE
SE
AR
CH
ME
TH
OD
OLO
GY
Data
co
llecti
on
via
a r
esearc
h q
uesti
on
nair
e.
Qu
esti
on
nair
es w
ere
dis
trib
ute
d t
o a
pp
rox. 13
00
po
ten
tial
resp
on
den
ts (
SM
Es in
vari
ou
s in
du
str
ial secto
rs)
via
MA
I.
Resp
on
se r
ate
~ 1
0%
(n
o r
em
ind
ers
).
Rig
oro
us s
tati
sti
cal an
aly
sis
wit
h s
ign
ific
an
ce level o
f 5%
.
ACT
Sh
en
kar
CO
ND
UC
T Q
UA
LIT
AT
IVE
AN
ALY
SE
S!
Sig
nif
ican
t eff
ects
were
fo
un
d in
fir
ms c
on
du
cti
ng
qu
alita
tive
an
aly
ses lead
ing
to
hig
her
deg
ree o
f in
no
vati
on
(as r
eco
gn
ized
by
pate
nt
gra
nts
an
d p
rizes)
.
No
sig
nif
ican
t eff
ects
of
qu
an
tita
tive a
naly
ses o
n in
no
vati
ve
ou
tpu
t w
ere
reveale
d.
A p
ossib
le e
xp
lan
atio
n:
Qu
alita
tive a
naly
ses p
rovid
e d
eep
un
ders
tan
din
g o
f th
e m
ark
et
an
d its
para
dig
ms a
nd
hen
ce e
nab
le s
tru
ctu
rin
g n
ew
an
d in
no
vati
ve
para
dig
ms.
On
th
e o
ther
han
d, q
uan
tita
tive a
naly
ses p
rovid
e t
he p
resen
t
“sn
ap
sh
ots
” o
f th
e m
ark
et
an
d d
o n
ot
ad
dre
ss m
ajo
r p
ote
nti
al
ch
an
ges a
nd
bre
akth
rou
gh
s.
ACT
Sh
en
kar
TR
AD
ITIO
NA
L L
EA
RN
ING
CH
AN
NE
LS
AR
E P
RO
VE
N L
ES
S E
FF
ICIE
NT
FO
R I
NN
OV
AT
ION
No
sig
nif
ican
t lin
ks w
ere
fo
un
d b
etw
een
part
icip
ati
on
in
co
nfe
ren
ces
an
d f
air
s a
nd
th
e in
no
vati
ve o
utp
ut
of
firm
s.
Ho
wever, t
hese a
cti
vit
ies m
ay
pro
ve b
en
efi
cia
l fo
r o
ther
pu
rpo
ses,
su
ch
as m
ark
eti
ng
, sale
s, b
ran
din
g a
nd
rep
uta
tio
n.
A p
ossib
le e
xp
lan
atio
n:
Tra
dit
ion
al le
arn
ing
ch
an
nels
are
less a
pp
rop
riate
fo
r d
evelo
pm
en
t
of
inn
ovati
on
, as t
hey
targ
et
exis
tin
g c
on
texts
.
Sim
ilar
fin
din
gs s
tati
ng
lack o
f sig
nif
ican
t eff
ects
of
firm
em
plo
ye
es
on
in
no
vati
ve o
utp
ut
aff
irm
it.
“sn
ap
sh
ots
” o
f th
e m
ark
et
an
d d
o n
ot
ad
dre
ss m
ajo
r p
ote
nti
al ch
an
ges a
nd
bre
akth
rou
gh
s.
ACT
Sh
en
kar
EM
PLO
YIN
G I
NN
OV
AT
ION
MA
NA
GE
RS
DO
ES
NO
T P
RO
MIS
E
INN
OV
AT
ION
30
% o
f th
e r
esp
on
den
ts e
mp
loy
in
no
vati
on
man
ag
ers
.
No
sig
nif
ican
t lin
ks b
etw
een
th
e p
resen
ce o
r th
e lack o
f in
no
vati
on
man
ag
ers
in
fir
ms a
nd
th
e m
easu
red
deg
ree o
f in
no
vati
on
.
Po
ssib
le e
xp
lan
atio
n:
Inn
ovati
on
is o
f an
hap
hazard
natu
re a
nd
it
is r
ath
er
dif
ficu
lt
to g
overn
. F
urt
her, o
rgan
izati
on
s a
re in
ne
ed
of
exte
rnal, r
ath
er
than
inte
rnal, r
eso
urc
es t
o e
nri
ch
th
eir
in
no
vati
ve o
utl
oo
k a
nd
co
nte
xts
.
ACT
Sh
en
kar
BU
T R
EC
RU
ITIN
G
EX
TE
RN
AL
EX
PE
RT
S
FO
ST
ER
S I
T!
Sig
nif
ican
t lin
ks w
here
fo
un
d b
etw
een
th
e f
ollo
win
g e
xte
rnal
reso
urc
es a
nd
th
e d
eg
ree o
f in
no
vati
on
:
Desig
ners
(le
ss t
han
9%
of
the r
esp
on
den
ts e
mp
loy
th
em
).
Exte
rnal co
nsu
ltan
ts (
less t
han
8%
of
the r
esp
on
den
ts e
mp
loy
th
em
).
Acad
em
ic c
on
su
ltants
(le
ss t
han
6%
of
the r
esp
on
dents
em
plo
y t
hem
).
Co
op
era
tio
n w
ith
acad
em
y in
researc
h a
nd
pro
jects
(3
9%
of
the
resp
on
den
ts in
R&
D; o
nly
7%
in
desig
n).
Stu
den
t -
ind
ustr
y p
roje
cts
(m
ostl
y f
ree! B
ut
on
ly 1
7%
pu
rsu
e t
hem
).
ACT
Sh
en
kar
DE
SIG
N A
ND
R&
D
GO
ES
HA
ND
IN
HA
ND
Co
mp
an
ies t
hat
esp
ecia
lly
invest
in R
&D
an
d in
no
vati
on
,
invest
als
o in
Desig
n!
Th
e a
cti
vit
y o
f R
&D
has s
tro
ng
im
pact
on
mark
et
sh
are
(bo
th lo
cal an
d g
lob
al)
Bo
th B
2B
an
d B
2C
co
mp
an
ies invest
in D
esig
n.
Po
ssib
le e
xp
lan
atio
n:
Desig
n c
an
co
ntr
ibu
te t
o t
he d
isco
very
of
new
op
po
rtu
nit
ies
wit
hin
th
e r
esearc
h a
cti
vit
y, an
d f
or
the im
ple
men
tati
on
an
d
testi
ng
of
new
id
eas.
ACT
Sh
en
kar
INS
IGH
TS
FR
OM
LO
CA
L C
OM
PE
TIT
OR
S,
NO
T F
RO
M G
LO
BA
L P
EE
RS
Sig
nif
ican
t lin
ks b
etw
een
learn
ing
fro
m lo
cal (I
sra
eli f
irm
s)
an
d im
pro
ved
deg
rees o
f in
no
vati
on
.
No
sig
nif
ican
t lin
ks w
ere
fo
un
d b
etw
een
glo
bal fi
rms a
nd
the in
no
vati
ve o
utp
ut.
Po
ssib
le e
xp
lan
atio
n:
Lo
cal sp
ecia
lizati
on
an
d c
on
texts
of
tech
nic
al kn
ow
-ho
w c
reate
bett
er
learn
ing
an
d c
reati
ve e
ffects
.
It is p
rofi
tab
le t
o b
e a
part
of
the “
sta
rt-u
p n
ati
on
”
Can
th
e a
ud
ien
ce o
ffer
mo
re in
sig
hts
?
ACT
Sh
en
kar
MIX
ED
AG
E
EF
FE
CT
S
Ag
e is n
ot
an
ob
sta
cle
fo
r o
pera
tio
n in
th
e lo
cal m
ark
et
–
bo
th y
ou
ng
an
d e
xp
eri
en
ced
co
mp
an
ies c
an
pro
sp
er.
Sig
nif
ican
t ad
van
tag
e t
o e
xp
eri
en
ced
fir
ms in
glo
bal m
ark
ets
.
Po
ssib
le e
xp
lan
atio
n:
Larg
e s
cale
op
era
tio
ns r
eq
uir
e a
learn
ing
cu
rve
that
the s
mall Isra
eli m
ark
et
pro
vid
es.
Bu
sin
ess p
racti
ces o
n a
glo
bal scale
req
uir
e larg
er
exp
eri
en
ce.
Learn
fro
m t
he Isra
elis –
th
en
go
glo
bal!
ACT
Sh
en
kar
SU
MM
AR
Y
LE
SS
ON
S F
OR
FIR
MS
Sh
ift
reso
urc
es f
rom
in
tern
al m
ech
an
ism
s (
e.g
. in
no
vati
on
man
ag
ers
) to
ward
s e
xte
rnal ro
le p
layers
(e.g
. d
esig
ners
an
d
acad
em
y).
Co
nd
uct
qu
alita
tive r
ath
er
than
qu
an
tita
tive m
ark
et
researc
h.
Inn
ovati
on
is less lik
ely
to
em
erg
e f
rom
part
icip
ati
on
in
fair
s
an
d c
on
fere
nces.
Part
icip
ati
on
in
lo
cal in
du
str
ial co
mm
un
itie
s a
s m
ean
s f
or
a c
om
peti
tive s
tro
ng
ho
ld in
glo
bal m
ark
ets
.
Learn
fro
m t
he Isra
elis –
th
en
go
glo
bal!
ACT
Sh
en
kar
Tra
dit
ion
al
str
ate
gy
ap
pro
ach
1.
Lo
gic
al th
inkin
g
2.
Inte
rnal so
urc
e o
f in
sp
irati
on
3. U
se a
naly
tical an
d q
uan
tita
tive
pro
cess b
ased
on
th
e p
ast
as
pri
mary
to
ol (n
um
bers
dri
ven)
Re
ac
tive
Incre
me
nta
l p
rod
uct
deve
lop
me
nt
Tra
dit
ion
al
str
ate
gy
ap
pro
ach
1.
Cre
ati
ve T
hin
kin
g
2.
Exte
rnal C
ollab
ora
tio
n
3. O
pen
In
no
vati
on
mo
del
4. U
se c
reati
vit
y b
ased
on
futu
re e
ven
ts a
s a
pri
mary
to
ol
(in
sig
hts
dri
ven)
Pro
ac
tive
Bre
akth
rou
gh
in
no
vati
on
SU
MM
AR
Y
LE
SS
ON
S F
OR
FIR
MS
ACT
Sh
en
kar
LE
SS
ON
S F
OR
PO
LIC
Y M
AK
ER
S
Ackn
ow
led
ge D
esig
n a
s e
co
no
mic
secto
r. D
esig
ners
can
pro
vid
e
a c
om
peti
tive e
dg
e.
Esta
blish
Nati
on
al O
rgan
izati
on
to
in
cre
ase a
ware
ness a
bo
ut
desig
n.
Fo
rmin
g s
up
po
rt p
rog
ram
s f
or
ind
ustr
y-d
esig
ners
- acad
em
y
co
llab
ora
tio
ns –
a n
ati
on
al p
rio
rity
!
Inte
gra
te D
esig
n w
ith
in R
&D
pro
gra
ms.
Less t
rad
itio
nal ap
pro
ach
to
ward
s t
he s
up
po
rtin
g
qu
alita
tive r
esearc
h.
Str
en
gth
en
ing
lin
ks b
etw
een
fir
ms in
sim
ilar
or
clo
se s
ecto
rs.
ACT
Sh
en
kar