Int. J. Product Development, Vol. 9, No.

4, 2009 343

The integration of industrial design capability within

UK SMEs: the challenges, opportunities and benefits

Paul W. Wormald* and Mark A. Evans

Department of Design and Technology
Loughborough University
Loughborough
Leicestershire, LE11 3TU, UK
E-mail: [email protected]
E-mail: [email protected]
*Corresponding author

Abstract: The paper presents a case to support the business of Small- and
Medium-sized Enterprises (SMEs) through the building of partnerships
between universities and companies which foster and support the
introduction of industrial design processes in the SMEs. The basis of the
partnership is the use of the UK government’s ‘Knowledge Transfer
Partnership’ (KTP) schemes to initiate and develop in-house industrial design
capability in the SMEs. The paper presents two case studies that raise
design management issues and underline the value of industrial design
expertise for SMEs. It discusses the positive and negative issues centred on the
introduction of graduate-level in-house industrial design expertise for product
innovation in manufacturing-sector SMEs. The paper demonstrates that through
the discipline of industrial design and the mechanism of a well-managed
KTP programme, SMEs can improve their commercial performance and
operate successfully in global markets.

Keywords: industrial design; knowledge transfer partnership; KTP; small- and

medium-sized enterprise; SME; product innovation; product development.

Reference to this paper should be made as follows: Wormald, P.W. and

Evans, M.A. (2009) ‘The integration of industrial design capability within UK
SMEs: the challenges, opportunities and benefits’, Int. J. Product Development,
Vol. 9, No. 4, pp.343–356.

Biographical notes: Paul W. Wormald is a Senior Lecturer and Programme

Leader at the Department of Design and Technology, Loughborough
University, UK. A graduate of the Royal College of Art, he worked for
six years as an industrial design engineer. His research is directed at improving
product design practices and design education, focusing on new product
development. He has supervised UK government knowledge transfer schemes
to create synergies between industrial design and manufacturing industry.

Dr. Mark A. Evans is a member of the academic staff of the Department of

Design and Technology at Loughborough University, UK. He has a Bachelor’s
degree in Design and Technology and a Master’s in Industrial Design.
His PhD focused on the use of rapid prototyping by industrial designers.
Having practiced both as an in-house and consultant industrial designer, his
research activity now focuses on the use of digital design methods and design
management. His overseas appointments include being a Visiting Academic at

Copyright © 2009 Inderscience Enterprises Ltd.

344 P.W. Wormald and M.A. Evans

the Rhode Island School of Design (USA) and an International Scholar at the
Massachusetts Institute of Technology (USA). He continues to practice as a
Consultant and has undertaken industrial design commissions for Honda,
British Airways, Unilever and British Gas.

1 Introduction
1.1 Industrial design capability and SMEs
The accepted definition of a Small- and Medium-sized Enterprise (SME) is a
company with fewer than 250 employees, and less than 25% owned by another
company (Cox, 2005). Cox also defines ‘design’ as that thing which links creativity and
innovation. Industrial design is “... the professional service of creating and developing
concepts and specifications that optimize the function, value and appearance of products
and systems for the mutual benefit of both user and manufacturer” (IDSA, 2008).
It aims to turn abstract concepts into tangible products and has people and users as a
central focus of its activities. Industrial design input can arise from ‘in-house’ designers
or external consultancies. Typically, an SME (given that the management is aware of
industrial design as an activity) is often too small to consider employing a dedicated
industrial designer and may not be inclined to seek out consultant support. This was
certainly the case with the authors’ experiences of the SMEs identified in the paper.
Design is accepted as a facilitator, differentiator, coordinator, integrator,
communicator and a tool for managing change in business, industry and commerce.
Design participates in the selection process and continuous improvement process
of defining a competitive advantage, through managerial, resource and economic
competences (De Mozota, 2002).
Gemser and Leenders (2001) found that the impact of industrial design investments
on company performance was a dynamic relationship and dependent on industry sector,
where sectors with a history of industrial design input faired less well (e.g., furniture)
whereas sectors for which industrial design input was new (e.g., precision instruments)
faired better.
Of ten areas for achieving company success (i.e., commercial survival and progress),
as rated by senior managers in 513 Danish production companies, ‘product development’
was ranked fourth, behind sales (first), market responsiveness (second) and production
management (third) (Harmsen et al., 2000).
In-house competence in product development and, correspondingly, industrial design,
is a long-term process, involving investments in people, knowledge, skills and systems
(Harmsen et al., 2000). This suggests that for SMEs, which tend to operate on a
small scale, with daily business pressures and limited resources away from core activities,
developing in-house competence in industrial design is difficult to attain.
Subrahmanya (2001) discovered that internal technical capability is a decisive matter
in the innovativeness of manufacturing-based SMEs. However, it was found that in the
case of SMEs, where manpower and finance to undertake Research and Development
(R&D) are lacking, innovation is achieved only through external interventions.
 The integration of industrial design capability within UK SMEs 345

Azadivar et al. (2000) found that management of technological innovation in SMEs

is either non-existent or is undertaken by a single authority, often the company owner,
and that success depends largely on intuition and experience.
In 2005 the UK government commissioned a review of “… how to exploit the
nation’s creativity more fully. The emphasis is on the use made of creative skills by
smaller businesses” (Cox, 2005). In his report of the review, Cox makes a point of
suggesting that, at least in the UK, SMEs are poor at taking advantage of creative skills to
benefit product innovation. One of the main recommendations of the Cox (2005) review
was that “a nationwide programme should be introduced and supported to engage
SMEs and demonstrate the practical benefits of applying creativity”. Cox identified an
existing tool for achieving this; the Design for Business programme, organised by the
Design Council. This programme consisted of a series of levels at which individual
companies could gain design-related input and support for their product development
activities. The Design Council now offers the Designing Demand programme (Design
Council, 2006), which is a similar tool for stimulating company success.

1.2 Investment in human capital, not financial capital, for design

and innovation
Designers have future-oriented visionary skills that can be put to use in generating
and managing the development of new and innovative products and services. Without
formal design or R&D input or facilities, as is mostly the case with SMEs, key problems
are faced in prioritising projects and making decisions on assigning resources to see
projects to completion (Azadivar et al., 2000). An inability to sell innovative ideas to
top-level management is also a weakness as SMEs do not have specialist R&D staff
(Azadivar et al., 2000).
Industrial designers with broad-based product design skills covering not only core
subjects of human factors and styling, but also engineering, materials and processes,
are well positioned to provide the crucial integrating function between marketing and
engineering departments, whether in-house or with external collaborators (Ellis, 1994).
With these skills in mind, industrial designers can be seen as being effective within a
company which is aiming to produce innovative products.
Freel (2005) writes “… the most innovative firms train more staff”. Innovation,
as company-level technological advancement, is achieved not simply through the
presence of competences, but through acquisition, and therefore, to an extent, through the
gains of learning-by-doing (Freel, 2005).

1.3 Benefits of businesses collaborating with design schools

Central St. Martins College, part of the University of the Arts London, has carried out
research into such collaborations. Its report, ‘Bridging the gap’, funded by the
Design Council (2004), found that businesses benefit from collaboration with design
schools through:
• access to a wide skill set
• relevant expertise
• cutting-edge thinking and technological know-how
346 P.W. Wormald and M.A. Evans

• creativity
• having more than one brain on the job
• potential new employees.
The Design Council (2001) report ‘Meeting of minds’ stressed the importance of
human capital and collaboration between academia and business, and reported ways of
achieving collaboration, including the Knowledge Transfer Partnership (KTP) scheme.
It also reported that design can be a key theme amongst KTP programmes, as described
in the next section.
In the Cox (2005) review, the third main recommendation states that: “Closer links
should be established between universities and SMEs.” The report outlines the many
issues and benefits of SMEs seeking relationships with universities and universities
realising the potential gains from involvement with smaller organisations, not just their
traditional partners in large scale industries and commerce. The theme of improving
and utilising design education continued with the report ‘Making the most of design
excellence: equipping UK designers to succeed in the global economy’ (Whyte and
Bessant, 2007).

2 The Knowledge Transfer Partnership (KTP) scheme

2.1 Summary of KTP
The aim of the KTP scheme is to strengthen the competitiveness and wealth creation of
the UK by the stimulation of innovation in business through collaborative partnerships
with the UK knowledge bases (e.g., universities).
The Teaching Company Scheme (TCS) was started in 1975 and ran until 2003, when
it was replaced by the current KTP scheme. KTP schemes are collaborative agreements
between companies and universities for technology transfer and training. Each KTP
programme is part funded by a government grant (40% or 60%) to the Knowledge Base
Partner, with the balance of costs incurred in supporting the programme being met by the
Company Partner.
For each KTP Associate engaged for two years on a programme, no matter what
the size of the company, the total funding available is in the region of £94,000.
The funds are used to support the employment of the Associate, who works with the
company to realise its commercial (and often strategic) aim of introducing new or
improved products, services, or processes, or for identifying new market opportunities.
The Associate’s background has to have some connection with the core activities of the
individual programme (e.g., marketing, engineering, design). The programme will aim
to employ a graduate of a specific discipline, and also with the potential to develop
high quality skills in project management and communication skills. Management
responsibility for each KTP programme is held jointly between a senior manager within
the company and a supervisory academic at the university. Associates work in the
company as if they are company employees (standards of behaviour, hours of work, etc.)
but their contract of employment is, in fact, with the Knowledge Base Partner. As such,
they are university employees.
 The integration of industrial design capability within UK SMEs 347

To maintain full interest and involvement of all throughout the Partnership, and to
ensure maximum benefits, a KTP project should:
• be of strategic importance to the company
• require expertise from the Knowledge Base Partner
• be a challenge for the Associate.
On recruitment, a KTP Associate becomes responsible for management of the project,
drawing on the expertise of the academics involved in the Partnership, facilitating
knowledge transfer, and implementing it within the Company Partner under the
supervision of, and with input from, company staff. An Associate can be thought of as an
‘agent of change’ – a catalyst – by applying their own recent ‘learning’ in an appropriate
discipline helping the company to introduce new products or processes, or to develop or
improve existing products or processes, or whatever their predefined work plan requires.
Lipscomb and McEwan (2001) found that UK SMEs, with limited financial
and human resources to develop their own R&D, are well known to benefit from
TCS/KTP schemes.

2.2 Objectives of KTP

The following commercial objectives are set for KTP schemes:
• to facilitate the transfer of knowledge and the spread of technical and management
skills and to encourage investment in training and R&D
• to provide business based training, supervised jointly by personnel in the knowledge
base and in business, for high calibre graduates intending to pursue a career
in industry
• to enhance the levels of research and training in the knowledge base that is
relevant to business by stimulating collaborative R&D projects and forging
lasting partnerships.
The following objectives are typically set for staff based at the Knowledge Base Partner
within KTP schemes:
• developing business-relevant teaching materials
• publishing high quality research papers
• successfully supervising postgraduate degree candidates
• gaining ideas and business support for further research and consultancies
• identifying opportunities for undergraduate and postgraduate projects
• deepening collaborations with developing businesses.
Universities also benefit through potential new revenue streams (in the case of
commercially exploitable intellectual property) and extensive promotion and publicity,
since successful KTP schemes are often disseminated widely.
348 P.W. Wormald and M.A. Evans

Economic Consultants SQW Ltd., in their TCS Evaluation Report in 2002, said:
“Whilst the overall measure of success for a specific Programme must be
against objectives, involvement in a TCS Programme also has the potential
to deliver a wide range of benefits to the Company Partners’ business
performance.” (DTI, 2004)
The most widely reported effect was an increase in the overall value of the company
(52% mentioned), closely followed by increased overall sales (46% mentioned), sales in
existing domestic markets (41% mentioned) and increased profitability (42% mentioned)
(KTP, 2004).

2.3 Design as a key theme amongst KTP programmes

It is worth noting that KTP (or TCS when it started) was originally conceived as a
mechanism for transferring science and engineering-derived technology, but that it has
now widened to encompass more general technology transfer. Over the past ten years the
inclusion of design-related knowledge transfer has grown significantly as a component of
KTP programmes.
A search in January 2006 of KTP programmes revealed that out of a total of
1036 active projects, 89 were classified under the heading ‘design’. Design, as a
main component of KTP programmes, is near the top of the list of the 20 sectors of
economic activity identified by the KTP organisation (see Table 1). The Cox (2005)
review mentions the KTP scheme, stating that one in nine partnership programmes now
explicitly focuses on design and creativity.

Table 1 Breakdown of KTP projects by sector

Sector Number of programmes

Computing (excluding Manufacturing) 149
Management Science 128
Electrical/Mechanical Engineering 111
Design 89
Marketing 85
Process Engineering 84
Manufacturing Engineering 64
Other 56
Advanced Information Technology 46
Science (excluding Biological) 41
Materials 30
Electronic Commerce 28
Biology/Biotechnology 27
Food Processing 23
Clean Technology 22
Quality 21
Civil Engineering 12
Social Science (excluding Management) 8
Multimedia 7
Agriculture 5
 The integration of industrial design capability within UK SMEs 349

Themes can be identified amongst the 89 ‘design’ projects: improvements to products;

improvements to design and manufacturing processes; enhancement (or establishment)
of in-house design capabilities; development and embedding of New Product
Development (NPD) knowledge; development of modern product design strategies;
research, refinement and implementation of 3D Computer Aided Design (CAD)
capability within core business areas; introduction of CAD and/or Computer Aided
Manufacture (CAM). There is limited reference to the specific discipline or activity of
industrial design. Product sectors represented by KTP projects are diverse, spanning, for
example; clothing, textiles, automotive, ceramics, sports equipment, telecommunications
and medical devices.

3 Methodology

The literature review demonstrates the importance and potential effectiveness that
design input can have for companies. It also indicates how changes, such as bringing
in design, can be difficult to manage in SMEs. The literature also demonstrates how
schemes such as KTP can be effective at introducing new processes into companies,
particularly SMEs.
Having undertaken an historical and contextual review of the contribution of design
to UK manufacturing and the nature of KTP, further research attempted to add detail
that is lacking in the published sources that relates specifically to the discipline of
industrial design.
The main research question to be addressed was what could be identified (beyond the
literature review), as positives and negatives, about the use of KTP programmes to embed
industrial design activities and processes within an SME.
Drawing on the authors’ experiences of managing design-related KTP programmes
case study investigation attempted to add useful detailed information. Also, it was
hoped that, from the case studies, literature findings could be validated by triangulation.
Additionally, the case studies would allow for a comparison between contrasting business
sectors involving industrial design activity.
Case studies have been described as an approach to research as opposed to a
research method (Moore, 1983), with a capability, “to describe and understand the
phenomenon ‘in depth’ and ‘in the round’ (completeness). In this role, case studies serve
a useful purpose, since many important issues can be overlooked in a more superficial
survey” (Birley and Moreland, 1998). In addition, the way in which data are collected
and analysed “implies the collection of unstructured data, and qualitative analysis of
those data” (Gomm et al., 2000).
The principle of an in-depth investigation into the integration of industrial design
capability within SMEs through the use of case study methods forms the core of
this study. This was made possible as the authors undertook the roles of knowledge base
supervisors for two KTP programmes that took place from 2001 to 2005 with the
companies Esprit and Rototek. Data collection was facilitated not only through
direct participation, but activity was monitored through minuted monthly meetings
between the Academic Supervisor, Company Supervisor and Associate plus quarterly
Local Management Committee meetings that also included the Lead Academic and
KTP Consultant. In addition, detailed grant applications and final reports ensured that the
350 P.W. Wormald and M.A. Evans

achievement of the required aims and objectives was fully documented. The final activity
of the data collection involved structured interviews with senior management and the
former associates one year after completion of the Esprit programme, and two years after
the completion of the Rototek programme. This provided reflection and an insight into
the longevity and progress of the outcomes.
Whilst the KTP programmes discussed in this study had similar aims and objectives
(i.e., to introduce an industrial design capability within an SME), the natures of the two
businesses were quite different. As a marketing-driven company, Esprit was operating
in a business environment in which almost all of its manufacturing was undertaken in
Far East Asia. In contrast, as a technology-driven manufacturer, Rototek was developing
its own in-house production processes and was directly manufacturing products and
components at its factory in Newark in the UK.

3.1 Case Study 1: Esprit

3.1.1 Background: Esprit
Esprit is a company concerned with offering products for swimmers. Around the UK,
Europe and worldwide, swimmers know the names of the companies that make up the
Esprit Group. Under the brand and company names of SWIMSHOP, World of Service,
WIN, and O. E. Component Service Ltd., swimmers can buy everything imaginable for
their sport. For 25 years the company has sold a wide range of products, including trunks,
caps, goggles, pool shoes, pool games and training aids. Many of the specialist swimming
products are made with partner companies in France, Malaysia, Taiwan and China.
Esprit can be regarded as an SME – as it employs around 30 people and is wholly
owned by its management personnel. The sales turnover for the company, prior to the
KTP programme, was in the region of £5m.
In 2001 the managing director of Esprit concluded that to further grow the company
it needed to have a professional in-house industrial design capability. He also realised
that the designer should be using the latest technology to design, develop and realise
products. Hence, introducing 3D CAD technology was a necessary component of the
desired changes.
Through previous undergraduate student project collaboration, Esprit was aware of
the reputation of the Department of Design and Technology at Loughborough University.
The company therefore approached the Department and worked towards the development
of a proposal for a new KTP programme. The application was successful, and a product
designer was employed to work on a two-year contract. The Associate was an ideal
person for this post, as he had a first-class BSc degree in Sports Equipment Design and
Development from Salford University in the UK.

3.1.2 Pre-KTP input: Esprit

Prior to the KTP programme, design and development activities in Esprit came about
through a combination of ‘back-of-the-envelope’ sketching and long-distance working
with collaborating designers and engineers in factories in Far East Asia. The processes
tended to be slow and were hampered by difficult lines of communication and a lack
of consistent documentation. There was virtually no use of any up-to-date design tools
such as CAD, or structured procedures for product concept design. The processes tended
to be driven by marketing and sales issues, plus necessary product safety standards.
 The integration of industrial design capability within UK SMEs 351

As an example, the design and development of a new pair of swimming goggles might
have commenced with a marketing need formulated by one of Esprit’s client brands.
Discussion with Esprit’s partner company in Taiwan, through video conferencing or
face-to-face meeting after intercontinental travel, would result in a prototype being
generated in Taiwan. The design would then be developed through back and
forth discussion between Taiwan and the UK, and Esprit and its client. This was
time-consuming and sometimes resulted in less than satisfactory product outcomes.
Company personnel were used to working with outside industrial designers.
These were usually employed by client companies. However, there was dissatisfaction
with the processes of integrating the outside industrial designers’ work into the
company’s design to manufacture supply chain. Often this dissatisfaction was due to lack
of immediate access to design skills at critical points in the development and manufacture
of a new product.

3.1.3 KTP input: Esprit

At the start of the KTP programme between Loughborough University and Esprit,
the industrial designer was installed in the company to begin the process of building up
an in-house design function. Early on in the programme he was engaged on several live
projects so, along with visits to clients and manufacturers, he was quickly embedded and
useful to the company. He was also instrumental in investigating, evaluating and utilising
a 3D CAD system as a core tool for his design activities. New design and development
procedures and strategies were developed and refined to make use of both the CAD
technology and the opportunities of having an in-house, ‘online’ industrial designer.
Technologies that were new to the company, such as rapid prototyping were explored and
evaluated. During the two years of the programme the Associate made several trips to
Taiwan, Malaysia and China to meet designers at Esprit’s partner companies in those
countries. This travel and some of the investigations into rapid prototyping were financed
from the government grant which enabled the KTP programme.
The KTP programme provided a structure, a well-defined project plan. Sometimes
this clashed with the working culture of the company, as it was not flexible enough to
cope with changes in the company’s commercial objectives. A small trial was set up to
test a new design to manufacture methodology. However, because of outside commercial
pressures, the company’s product development plans had to change during the period of
the KTP trial, and the trial had been altered. This is typical of the tensions that can arise
between the aims and objectives of a KTP programme and the commercial imperatives of
a company. These issues are often heightened in an SME, when projects, deadlines and
personnel are tightly entwined.
In the immediate financial period following the completion of the programme, the
company enjoyed the following financial benefits: sales turnover increased by £700,000,
exports rose by an estimated £550,000, and profit before tax increased by approximately
£70,000. Although there is no claim that these benefits are wholly the result of the
KTP programme, the managing director of Esprit acknowledged, in the final report
of the programme, the critical significance of the KTP activities in his company’s
commercial performance.
352 P.W. Wormald and M.A. Evans

3.1.4 Post-KTP input: Esprit

The most important design tool used, in terms of its impact on company business,
was 3D CAD. An in-house industrial designer, working with the latest 3D CAD tools,
is now able to exploit relevant computer-based technologies for design, development and
communication. This was a significant change in the practices and methodologies for
product design and development utilised before the KTP programme. It resulted in an
improved ability to respond speedily and effectively to new product design demands.
This improved ability enabled Esprit to increase its business, taking advantage of
commercial opportunities that would have been very difficult to consider before the
KTP programme. The company can now handle product development from start to finish,
including packaging design and photography for promotions, with a reduced overall time
of about 30%. The design facilities have strengthened the Company’s relationship with
existing clients and enabled business relationships to develop with several new European
and international customers. It has also allowed the Company to design more products for
its own brand, ‘WIN’.
An issue which arose from the research interview with the former Associate was
the extent to which he became more than just an industrial designer for the company.
Once he was properly embedded in the company business (e.g., getting to know, and
be known by, clients) the senior management left him to handle much of the liaison
and workload surrounding product development. He noted that he would welcome more
professional development in commercial business skills and knowledge.
Since the end of the KTP programme, the former Associate has developed and
enhanced IT-based skills, not just CAD, which have proven highly useful to Esprit.
They have been successfully utilised in areas such as web design, product packaging,
presentation to clients, graphic design, photography and online communication with
customers, clients and manufacturing partners.
The commercial benefits of having an in-house industrial design capability continue
to be felt by Esprit. New manufacturing facilities in Malaysia and China have given the
company the opportunity to explore different products and manufacturing techniques.
Having a reliable, highly competent employee able to deal with design and development
work has allowed the senior managers of the company to address strategic, longer-term
goals of the company.

3.2 Case Study 2: Rototek

3.2.1 Background: Rototek
Rototek was formed in 1993 to exploit the production capabilities of a custom-built,
state-of-the-art rotational moulding machine that surpassed the features of many that
were available commercially at that time. The company quickly established itself as a
high quality technical rotational moulder and orders soon outstripped the capacity of
the original machine and premises. In 1996 the company moved to new premises on
the outskirts of Newark in Nottinghamshire, UK. Today, Rototek employs 40 people and
operates 4 machines, 24 h per day, 6 days per week. The largest machine operated by the
company is capable of moulding components up to 6 m in length.
The KTP programme was initiated in 2001 to exploit the commercial advantage
of establishing an in-house industrial design capability. The aims were two-fold:
to provide professional design support for those clients with defined product proposals;
 The integration of industrial design capability within UK SMEs 353

and to enable the company to develop its own original product range. Through the use of
specialist skills in 3D CAD, digital presentation techniques (including web authorship)
and effective design management, the company sought to exploit both reactive and
proactive product manufacturing opportunities.

3.2.2 Pre-KTP input: Rototek

Before the recruitment of the Associate (who had a degree in industrial design),
all product development was undertaken using non-digital techniques. There was
no CAD, and no employee had the skills and knowledge to exploit the potential of
adding value through product styling and more effectively addressing the needs of the
user. Communication of early concepts was difficult without the visualisation skills of an
industrial designer, and opportunities to inspire and motivate potential clients were in
some cases lost. There was also the absence of an individual in the company that would
take responsibility for design to manufacture, acting as an interface between the technical
director, clients and toolmakers.

3.2.3 KTP input: Rototek

Once the KTP Associate was in-post, it became a priority to commission a 3D CAD
system that was suited to the needs of the company. Having short-listed appropriate
vendors, a system was purchased and installed three months into the programme.
By the fourth month, clients and toolmakers were receiving product visualisations and
3D geometry.
The second year of the programme saw a consolidation of the achievements of the
first year, with hits on the website increasing from 4 to 18 per day and the generation
of an expanding portfolio of products, including furniture exhibited at ‘100% Design’
in London. The programme concluded with the Associate taking responsibility for the
design of a total of 28 new mouldings from 14 different clients. By the end of the
programme industrial design had been fully integrated into the culture of the company
and the Associate’s efforts were acknowledged by the KTP organisation through the
award of a Business Leader of Tomorrow prize. In addition to benefits for the company,
the University received sponsorship for 65 undergraduate projects, hosted a rotational
moulding conference and several academic papers were authored.

3.2.4 Post-KTP input: Rototek

At the conclusion of the KTP programme, the outcomes and benefits to both knowledge
base and company partners exceeded expectations. This was in part due to the need for
such skills within the company, their receptive attitude to innovative design techniques,
and also the fact that the expertise of the university was directly related to the objectives
of the programme. However, significant credit was also given to the Associate who
initiated the organisational change using his powers of foresight (particularly in CAD
selection), perception, persuasion and drive. Not only did the Associate enjoy this
challenging role, he was rewarded with a full-time position within Rototek as Product
Design Manager.
Specific benefits for the company that were identified at the end of the programme
included: improved liaison with clients and suppliers (particularly toolmakers) through
the use of 3D computer models; enhanced product design capability through realistic
354 P.W. Wormald and M.A. Evans

modelling, visualisation, and specification of component geometry; a dedicated design

manager responsible for overseeing product development from concept to production;
and the use of industrial design to facilitate adding value to manufactured output in terms
of enhanced appearance and awareness of user needs.
Two years after the end of the programme, during the interview initiated by the
authors, it was confirmed that these benefits were not short-lived and continue to be
delivered on both a managerial and financial level. The former Associate was still in post
as Product Design Manager and significant investment had been made in terms of factory
floor space and rotational moulding equipment. Having reflected on the KTP programme,
the feature of the programme that was considered to be of least benefit was the
management training. This was somewhat ironic as the introduction of management skills
remains a key feature of KTP programmes, with significant time and effort allocated to
its delivery.
The company is now moving forward having doubled the size of its premises
and invested £250,000 on the purchase and installation of a fully automatic rotational
moulding machine that can cut cycle time by up to 75%. The machine, specified by
Rototek, is the first gas-powered machine of its kind and work is currently underway to
develop a range of products that will exploit its manufacturing capabilities.

3.3 Discussion on case studies

The case studies revealed quite similar experiences from the two KTP programmes.
The companies were satisfied with what had been achieved; both had indicated that they
had experienced improved commercial performance during and after the programmes.
It is acknowledged that from the pre-KTP position then almost any positive change
would have improved the company’s situations. Improvements through design input
might have been achieved by ‘buying in’ expertise from consultants and government
agencies. However, the companies do acknowledge that they have gained something
extra from the KTP programmes. They have developed a diversity of capabilities that
add new dimensions to what they can offer to clients and partners. Through the KTP
programme the companies had the opportunity to develop an employee, and relevant
technologies and processes with minimal financial risk. They had access to a wide range
of university-level expertise. Both case studies indicated that careful management and
negotiation of programme activities are important for success. There is no guarantee that
everything will work out as planned.

3.4 Other KTP programmes

It is worth recording some reflections on other KTP programmes that the authors have
been associated with. Between 1999 and 2007 there were two further KTP programmes
that the authors acted as academic supervisors on. Both programmes had some element
of design within their overall project aims, although not specifically industrial design.
Both programmes included significant other aims, such as implementation of IT systems
and CAD/CAM technologies.
Neither of these other KTP programmes achieved the apparent success of the Esprit
or Rototek programmes. There was not the commercial success of significantly improved
financial performance, nor the success which might be measured by the associated
benefits to the company, university or employed associate.
 The integration of industrial design capability within UK SMEs 355

The authors consider that the reasons behind the lack of obvious success of these
other KTP programmes have mainly to do with the attitude and support of the relevant
companies. The companies need to be interested in the long-term future of the in-house
industrial design activities, plus the development of the associate. It was realised that
these aspects were lacking in these KTP programmes.
Another useful reflection is that the conclusion of a KTP programme can be an
uncertain time for the company and associate. The associate is faced with the possibility
of unemployment and the company is faced with losing the benefits of having the
additional ‘expert’ staff. It may be that the additional cost of employing the associate
cannot be justified by an SME and that may make the company question the value of the
KTP programme if it has come to rely on the work of the associate.

4 Conclusion

The paper has demonstrated that KTP programmes can work for SMEs, to bring in
creativity to promote innovation in the companies. The paper provides supporting
evidence that the creative knowledge, skills and abilities inherent in well-trained
industrial designers can make a significant contribution to the innovation needed for
success in SMEs. The literature and many national bodies such as the UK Design
Council, make it clear that ‘design’ can provide benefits. This study investigated how it is
possible to achieve successful industrial design input within a small company.
The industrial designer, working initially as a KTP associate, is an agent for change,
facilitating innovation in products and processes through the application of specialist
design skills (rather than any specific university technology transfer). Through the KTP
programme there can be unexpected, and diverse, benefits to the associate. In the case of
the authors’ experiences, these benefits have included information input, ambassadorial
role, web design, broad-based design skills, initiating corporate change, being ‘fresh
faced’ and mouldable to company’s requirements. The case studies revealed that it is
often the specific skills that most recent UK industrial design graduates will have, such as
drawing and visualisation, CAD modelling and rendering, and digital communication that
are highly valued in companies.
There are challenges to be overcome in a successful KTP scheme. A partnership
between a university department and an SME needs to be carefully managed to be
successful. In this paper the importance of Loughborough University’s Department of
Design and Technology staff knowledge and skills in industrial design and CAD has been
shown to be critical to the partnership. The associate may be the main component of
the mechanism for change, but the input of the KTP’s academic supervisors makes a
significant contribution to these changes.
There can be tensions between the expectations of the associate, the requirements
of a government-funded highly structured programme, and the day-to-day commercial
pressures of a small company.
In addition to the enhancement of the skills of the KTP associate, who benefits from
personal and professional development, the skills of many company personnel are likely
to be enhanced as a result of the project helping the company to make a step change.
356 P.W. Wormald and M.A. Evans

There must be lessons and implications for SMEs worldwide, not just in the UK.
Benefits can arise from partnerships with university industrial design departments.
The success of those partnerships is likely to be boosted by government supported
schemes and the employment of recently-graduated industrial design students.
Further studies could investigate additional, potentially relevant issues, such as
how the business of consultant industrial design views the place of schemes like KTP
affecting their working relationships with SMEs.

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