In a similar vein, in the boating industry, the shift from wood to fiberglass has allowed the exploration of a great deal of new solutions in the design of boats. Today, the frontier is represented by the new composite materials, like carbon fiber and Kevlar, which make new geometries possible thanks to their particular combination of resistance and lightness. In many of these cases, the introduction of the Computer-Aided Manufacturing system (CAM) - which is the use of computer-based software tools that assist engineers and machinists in manufacturing or prototyping product components - also played a crucial role.

6. Discussion

The results show that innovation activity in industrial design requires firms to coordinate a number of factors: (i) different types of knowledge and competences; (ii) inter-functional relationship within the firm, and (iii) external relationships. Designers play obviously a central role in industrial design activity. A major characteristic of this sector is that quite often designers are external to the firm. We showed that this is so for specific reasons crucially related to knowledge, and that firm pursue specific strategies and organizations to cope with that. It arises that a key reason for firms to hire external designers is linked to the knowledge they are able to bring into the firm from other industries. Crucially, some of this knowledge is tacit in nature (e.g. new concepts, direct experience) thus very difficult to get for the firm. It emerges that this relationship is a very peculiar one. It cannot be regarded as simply outsourcing or a spot collaboration without interaction. On the contrary, designer consultants develop a close and durable relationship with the firm they work for. This is a necessary requirement as they need a great deal of firm-specific knowledge, as well as continuous interaction with other functions of the firm along the product development process, in order to be able to carry out their activity.

7.Concluding remarks and policy implications

The results also suggest some implications in terms of measurement methodology. The important steps forward of the third edition of the Oslo Manual in terms of incorporating non-technological innovation as a fundamental form of innovative activities (OECD, 2005) have been already

recognized (Smith, 2005). However, design is considered a sub-product of marketing innovation.8

This is also reflected in the CIS harmonized questionnaire, which includes a question about design only as part of marketing innovation, and therefore an output. In light of our results, it is reasonable to suggest including a specific question regarding design separate from marketing innovation and emphasizing its specific nature. 9 This should be done once a more accurate definition of design is provided. A suggestion would be to amend the definition of design in the next revision of the Oslo Manual, emphasizing its nature of process and source of innovation.

This paper’s findings have also policy implications. To begin with, a general acknowledgement of the role that design can play in fostering innovation and firms’ competitiveness would be a fundamental first achievement (European Commission, 2009). A central point that should be taken into deep account by policy makers is the importance of qualified human resources in this field. Design activity requires a highly skilled base of human resources ranging from designers to engineers, to craftsmen. The set of competences designers need to have is quite broad, ranging from materials to production techniques, technology and marketing. Universities and the education system as a whole, together with the vocational training system, should be well aware of the increasing importance design is going to play in the coming years as a source of competitiveness for the firms. It has to be borne in mind that the knowledge, competences and skills which lie behind these rising forms of innovation differ from those related to R&D activities. Policies should therefore recognize the importance of design-based competences, along with R&D-based ones, as long as we believe these forms of innovation are going to play a major role in fostering competitiveness and growth, as well as generating new job opportunities in advanced countries in the coming years.