The Recent Growth Performance of US Firms in the Industrial Design Sector: An Exploratory Study

• Published in: Industry and innovation 2008-02, Vol.15 (1), p.1-17
• Main Authors: Vanchan, Vida, MacPherson, Alan
• Format: Article
• Language: English
• Subjects: Business growth; competitive factors; Competitiveness; Core competencies; Diversification; Economic growth; Enterprises; Human capital; Industrial design; Product testing; service diversification; Small & medium sized enterprises-SME; Strategic planning; Studies; U.S.A; US industrial design firms
• ISSN: 1366-2716; 1469-8390
• DOI: 10.1080/13662710701524015

This paper assesses the competitive factors associated with company growth in the US industrial design sector. This small but technologically advanced sector delivers critical innovation inputs to firms that produce durable goods. Evidence from a survey of 85 US design companies suggests that competitive success hinges upon service diversity. Specifically, the most commercially buoyant companies have diversified their service offerings beyond product or component design. These firms have developed strategic competencies in fields such as contract research, prototype development, product testing, technological forecasting, market analysis and even advertising. Although most US design companies are small-to-medium-sized enterprises, successful firms do not differ from their less successful counterparts in terms of employment size, occupational structure, regional location or market focus (client sectors). Instead, the key differences lie in service diversity and the quality of human capital. The paper concludes with a brief discussion of the implications of the empirical findings for future research on the dynamics of the design industry.