Measuring design investment in firms: Conceptual foundations and exploratory UK survey

The importance of design to company and national performance has been widely discussed, with a number of studies investigating the value or impact of design on performance. However, none of these studies has measured design investment as an input against which performance can be compared. As yet, there is no established way in which design investment might be measured. Without such a method, we cannot develop a reliable picture, akin to that for R&D spending, on the impact of design spending on company performance. This paper presents a conceptual framework for the measurement of design investment and applies this framework in a survey of UK firms. The framework describes design as being part of the creation and commercialization of new products and services. The survey highlights some surprising patterns of design spend in the reported sample and demonstrates the viability of the underpinning framework. A revised framework is proposed that situates design investment in the context of R&D. The model has implications for policy makers trying to understand the role and scale of design in the private sector, for managers wishing to optimize their design investments and for academics seeking to measure the value of design. © 2013 Published by Elsevier B.V.

Everywhere and nowhere: nearshore software development in the context of globalisation

Offshore software development has been identified as one of the most striking manifestations of contemporary globalisation and as evidence of placelessness, the idea that information and communication technologies have rendered location irrelevant. Research in the International Business and Information Systems fields, in contrast, has suggested that all locations are not equal and has identified a number of characteristics that may influence the attractiveness of a location for multinational investment and offshoring, respectively. These literatures, however, focus almost exclusively on quantitative, economic characteristics that are seen as fixed and applying uniformly throughout a whole country. They therefore offer little guidance on the suitability of particular locations as offshoring destinations, especially in countries without a track record in offshore software development. Drawing on two cases of nearshore software development centres set up by offshore service providers in the Caribbean, this paper illustrates that, while the initial decision to establish the ventures reflected a logic of placelessness, characteristics of these particular locations affected their subsequent success. Through the findings, we therefore develop a typology of espoused, unanticipated and remediable locational characteristics, which illustrates that locational attractiveness may vary significantly within countries and that offshore service providers and government agencies can modify locational characteristics to their advantage.