{'fraction_non_alphanumeric': 0.019754768392370572, 'fraction_numerical': 0.0020435967302452314, 'mean_word_length': 5.331896551724138, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
The Effects of Design Competence on Firm Performance

Background: In modern economy, design is known as one of the most important factors that determine firm’s competitiveness. However, there is not much evidence that design could have a positive effect on the firm’s sales. In this paper, we investigate the effects of design competence on firm performance, using an econometric method. Methods: We apply econometric methodology to test whether design could affect firm performance. On the basis of survey data collected from 200 firms in Korea, we estimate the effect of quantitative and qualitative design competence on firm performance by using ordinary least squares. Results: We find that both quantitative and qualitative design competence have a positive effect on firm sales, and the size of the effects is influenced by firm characteristics such as the firm’s industry type and intellectual property rights. Especially, variables such as design investment, design equipment and facilities, design education and training, and intellectual property rights involving design are the major factors that have a positive effect on firm performance. Conclusions: Since design is found to have a positive effect on firm performance, it would be important for the government to actively seek ways to increase the design competiveness of firms. Based on our empirical results, we suggest three policy implications for the government to promote firm’s design competence.