STRATEGY

20142020

FOR THE HUNGARIAN CREATIVE INDUsTRIEs

In recognition of the growing economic importance of the creative industries and their role in the competitiveness of successful communities, and acknowledging the work done to date for the development of these sectors by Design Terminal Nonprofit LLC (later Forum Hungaricum Nonprofit LLC), on 1st January 2014 the Ministry of Public Administration and Justice is establishing Design Terminal National Centre for Creative Industries (hereinafter referred to as Design departmental public body. Design Terminal NCCI is a Hungarian public body for the development of the creative industries. Its mission as described in its Articles of Incorporation comprises the following aims: to support the Hungarian governments economic policy by stimulating the creative industries; to define the opportunities for country branding and economic policy development found in the creative industries; and to enforce the strategic interests of the Hungarian state in

Terminal NCCI), as a fully autonomous non- the sectors mentioned above.

Gergely Bszrmnyi Nagy Strategy Director Budapest, 10 November 2013

The building of Design Terminal as a former bus station in the 1960'

I.

The Mission

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II.  Activities III.  Urban, regional, European and global perspectives IV. V. VI. Transparency and sincerity Strategic partnerships and volunteering  International best practices 

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THE MIssION

The creative industries exist in business sectors in which individual creative capacity forms the basis for activity. According to another definition, they are those economic fields in which the creation of business value involves the creation of cultural value. The stimulation of the creative industries is not primarily a cultural policy goal, however, as it is an economic policy challenge and a geopolitical opportunity. It is an economic policy challenge, because such activity is either impossible or extremely difficult to replace, being based on jobs largely incapable of being outsourced; it is a geopolitical opportunity, because the creation of a critical mass esthrough sector-specific, active cultural consumers and creatorscontributes decisively to a competitive national community, and

helps Hungary become a regional hub on the global map in those sectors which are highly suitable for country branding and which have an increasingly important role in international economy. Hence, the stimulation of the creative industries, the identification and exploitation of opportunities in economic policy and country branding within the creative industries are in the strategic interest of the Hungarian government of the day. According to a recent estimate by the Hungarian Intellectual Property Office, the creative industries (direct or indirect) share of the Hungarian GDP is between 5% and on cheap labour, the EU considers the creative industriescharacterized as they are by original and high-quality products and

of entrepreneurs in the creative industri- 7%. In contrast to mass production based

SZiLvesZteR KOvCs
General Director of the Hungarian State Opera The state machine is necessarily slow, like a follower, a fewor even severalsteps behind the pace of the given age. It is similar to the world of the opera, which tends to mark time though for a different reason while it should be renewed constantly. Design Terminal contributes to this renewaland says by its existence: look, the state can be smart and sensitive to change and youth.

servicesto constitute a dynamic opportunity for the community; this outstanding value has special importance in Hungary, even more than in other countries in Europe. It is sions 2014-2020 budget the single sector of the creative industries will receive 9% more than in the 2007-2013 budget (under which this sector was divided into two parts: media and cultural).1 It is worth mentioning that of all countries on the continent, Hungary is the best-provided with regard to venture capital and Jeremie funds (for financing innovative startups). Therefore, with appropriate initiatives and coordination, the basic conditions

for success are in place. So the timing of the foundation of Design Terminal NCCI is ideal: now is the time for stimulation of the creative industries to take its rightful place among budget. Design Terminal NCCI considers the stimulation of the creative industries to be an economic development challenge. Its mission is defined as an institution contributing to economic policy. Instead of cultural entities, it considers the current and future players of the sectors ecosystem as corporate entities creating cultural assets..

no coincidence that in the European Commis- the other public commitments within the state

 Commission Staff Working Paper Impact Assessment Accompanying the document Regulation of the European Parliament and of the Council establishing a Creative Europe Framework Programme http://ec.europa.eu/culture/creative-europe/documents/ impact_en.pdf (8 October 2013)

ImRe HiLD
venture capitalist, founder of the business accelerator program iCatapult Design Terminal has not only taken its place on Budapests creative map, but has become a leader: a major player in the effort to renew Hungary in terms of form and content. Today the name Design Terminal means innovative and modern, world-class youthful initiatives.

Lecture at the conference of Prezi, LogMeIn and Ustream, held in Design Terminal, spring of 2013

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ACTIVITIEs

AttiLa COsOvaN
Red Dot Award-winning designer, teacher at Moholy-Nagy University of Art and Design In todays Budapest, Design Terminal is the take-off and landing field of the design and creative industries. Those who are willing to do something good and believe in the unlimited nature of human creativity can use this as their departure andarrival point. This place cannot produce bad work.

Local and foreign innovators at Design Terminal, spring of 2013

In international literature there is no uniformly accepted definition of the creative industries: there is no rule for the exhaustive listing of its sectors. Beyond the institutional assumptionwhich defines a creative industry as an economic sector with parallel cultural and business valueDesign Terminal does not seek to enumerate the various subsectors. Instead, it selects their fields of activity based on three principles: it seeks to stimulate those sectors where: (1) Hungary possesses an important tradition, and therefore undisputed industry credibility; (2) there is evidence of contemporary potential, meaning a considerable number of talented young individuals; and (3) effectiveness of a

sector (due to its international importance) could dramatically contribute to positive development of how the country is perceived. In 2012, while still a non-profit organization, Design Terminal identified the following fields as conforming to these principles: (1) innovative technologies; (2) design and industrial design; (3) fashion; (4) urbanism and urban planning. During the period 2014 2020 other fields could be added, should all these criteria be met simultaneously. Within the context of the activities specified in its Articles of Incorporation, and as an institution with (1) initiating, (2) supporting, and (3) hosting roles, in these fields Design Terminal NCCI performs the following tasks:

Tams LisZKai
inventor, developer of the first Hungarian 3D printer As an engine of the Hungarian creative industry, Design Terminal was the first to unite and show to the public theendevours of Hungarian 3D technology. Due to this initiative, unprecedented attention was focused on theemerging technologies and their Hungarian experts, tothebenefit of all participants

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ACTIVITIES

Talent searching

Education and training

SECTORS

ENGAGEMENT
Event management

Innovative Technologies Design and industrial design Fashion Urbanism and urban planning

INITIATOR Public opinion-forming

Policyproposals

Entry to the market SUPPORT Professional partnerships

HOST

Hosting institution

Design Terminal contributes to the entry to domestic and international markets of startups in the creative industries, and to their successful business activity.
Design Terminal NCCI establishes a Board responsible for investor relations, whose sole aim is building relationships between the businesses in the Hungarian creative industries and investorseither individual or institutional. The Board offers pre-selected startups the opportunity to participate in regular local or international investors meetings, and contribute to their appropriate participation in international expos and fairs. It also creates and operates a professional database on

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competitive Hungarian businesses in the creative industries, and investors and venture capitalists potentially interested in this field. In parallel, it gives well-edited and timely information to both the creative industry

and the investment community. In addition it informs and advises creative industry startups on the various competitions forming part of the European Commissions Creative Europe framework programme.

Through its talent-searching activities, Design Terminal draws consumers and investors attention tothemostpromising players in various sectors ofthecreativeindustries
Talent searching is a sectorial incentive that simultaneously offers young entrepreneurs debut opportunities while meeting demand for innovation from the general public including potential consumer target groups. It also establishes new role models and gives investors an insight into the world of talented individuals from the latest generations. Andlast but not leastit demonstrates the states constructive engagement in the creative industries. Therefore Design Terminal NCCI not only continues the talent-searching activity it started while it was a non-profit organization, but further develops it. Thematic talent competitions will cover all the creative fields that Design Terminal NCCI is involved in, targeting secondary school students and undergraduates; they will in all cases be open to Hungarians living beyond the borders, and where appropriate they may be open to other Central European nationalities as well. Design Terminal NCCI establishes the Creative Entrepreneur of the Year Award, with an international jury and appropriate financial resources; this is designed to recognize individuals achievements and positively impact the whole creative industry sectors ability to attract talent and investment.

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TEDxBudapest conference on the future of the city, held in Design Terminal, spring of 2013

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Through its education and training activity, DesignTerminal contributes to the business skills of the various players within the creative industries.
Design Terminal NCCI is developing an independent educational portfolio with the aim of making the latest in sector-specific, business-building knowledge available to every Hungarian creative industry entrepreneur and enabling them to develop their related skills and competences, while promoting the creative industries amongst younger generations. The following projects are included in the educational portfolio: an accredited creative entrepreneurship training scheme in cooperation with the Moholy-Nagy University of Art and Design (MOME); a Central European summer university with international participants and lecturers aiming to give basic knowledge and competences; an optional course at the National University of Public Administration, where future civil servants can become acquainted with the creative industries as an economic sector. For the youngest members of its target group, Design Terminal NCCI develops Mini Terminalits skills development atelier founded in 2012as well as its thematic summer camp established within the Erzsbet Program. For secondary students planning their career choice, Design Terminal NCCI promotes the creative industries and value-added jobs based on creativity and entrepreneurship. Design Terminal NCCIs Advisory Board will select four Hungarian university students studying in the related fields to receive annual scholarships for the most talented young creative industry professionals. Finally, Design Terminal NCCIs own annual internship programme will provide four university students with experience in the field of project management, communication and international relations.

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Mentoring young graphic designers at Behance Portfolio Review, spring of 2013

Education of future civil servants at the National University of Public Service

Accredited creative entrepreneurship training in cooperation with Moholy-Nagy University of Art and Design

Skill development for the youngest generations as part of the Erzsbet Programme and Mini Terminal

EDUCATION PORTFOLIO

Central European creative industry summer university

Design Terminal scholarships for under-graduates

Creative industry basics for high-school students

Through its event-management activities, DesignTerminal establishes and operates centralfairs,exhibitions and conferences relatedtothecreativeindustries.
Design Terminal NCCIs ambitions do not stop at the organization of international-level trade fairs, expos and conferences: in every field of its activities it wishes to establish Central European flagship projects. It is important that Hungary act as an initiator at an international level, because as a result of new EU policy for the period of 2014-2020, restructuring and an exciting environment (a so-called buzz) is expected in the regions

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creative industry. If the creative industries most important summits take place in Hungary a win-win situation will occur. In addition to its flagship events, as part of its strategy Design Terminal NCCI aims to bring to Hungary the international creative industries most relevant license-events, which are already established in the worlds most important intellectual centres.

The institution will undertake the task of obtaining for Budapest by the end of the decade the one-year designation of World Design Capital; this will include all the preparatory and application work with the cooperation of the industry.

JuDit OsvRt
project leader of Budapest Design Week In just a few years Design Terminal has become a major player in Hungary, as a result of its purposeful strategy anditsconsistently executed communication. Design and fashion are about talented individuals, and Design Terminal isable to communicate easily with these young people. Itspeaks to them through those media and gives them the assistance that they accept and are able to use. But all this would be useless without the professionals in the background managing Design Terminal with a business approach, keeping in mind the needs of investors to help bring together thecreative industries various players.

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The stand of Leonardo at the first 3D printing exhibition held in Design Terminal, summer of 2013 18

Through its awareness-raising marketing communication activity, Design Terminal increases domestic and international consumer confidence in the products of the Hungarian creative industries.
One cannot expect any player in the creative industries to engage in communication outside its own brand, product or service; none can give an overall picture of the economic, consumer, professional and investing opportunities in the creative industries, in addition to defining the sectors role in Hungarys 21st century image. This task is the responsibility of the Hungarian state, to be undertaken by its institution, Design Terminal NCCI. In the fields highlighted in this strategy, Design Terminal NCCI leads awareness-raising campaigns regarding selected products and services of the Hungarian creative industries, customized to individual and corporate target groups. These campaigns increases consumers knowledge and contribute to increased knowledge of the market among those large Hungary-based companies that require local creative industry suppliers.

As a professional partner, Design Terminal contributes to other institutions high-quality initiatives, thus enhancing the competitiveness of the Hungarian creative industries.
As a professional partner, in 20122013 Design Terminal Nonprofit LLC was already contributing to the success of numerous initiatives initiated by other institutions (for instance Budapest Design Week, Hello Wood etc.); this involvement is worth pursuing. The presence of Design Terminal NCCI, as a partner institution for the state in relevant professional initiatives for the creative community, guarantees that in these sectors the relevant economic policy viewpoints are represented, while reflecting the Hungarian states intention for and engagement in collective action. Although as an autonomous non-departmental public body, it doesnt provide simple support, Design Terminal NCCI takes on sub-tasks and coordination tasks to become a constructive, effective player in the creative industries non-profit and business processes.

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Xmas fair of Hungarian designers at Design Terminal, winter of 2012

As a hosting institution, Design Terminal provides avenue for the most important community events oftheHungarian creative industries.
The central location of Design Terminal NCCIs headquarters makes the institution suitable as a host, and thus sends a powerful symbolic message to members of the local creative sphere: the Hungarian state contributes to their efforts and knows about and values their achievements. In line with Design Terminal NCCIs guiding principle, according to its capacity, it will host the creative industries community and public interest events free of charge. The institution will also welcome local sectorial players own business events, such as product shows, exhibitions, press conferences and other events. In this case, Design Terminal NCCI provides a discount from the normal rental proportionate to the development phase of the company in question. Design Terminal NCCIs various event venues are also available for hire by private entities and institutions outside the creative sphere. A fee different from the list price can be offered in special cases (for example based on a sponsorship or supporting agreement).

Portraits of successful young entrepreneurs in the windows of empty shops, a joint campaign of Design Terminal and the capital in the autumn of 2013

DesiGN teRmiNaL's avaiLaBiLitY A Design Terminl teltettsge

Number of days with event activities Aktv esemnynapok szmnak alakulsa

320

350 300 250 200 150 100 50 0

11 20 12 20

90 40

13 20

PteR ZBOji
president, European Entrepreneurship Foundation As a virtual market square, Design Terminal provides a home for creative forces. As an increasingly powerful magnet, it attracts those who want positive change, based not on obligation, but on their own creativity.

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Design Terminal provides Hungarian economic policymakers with timely and accurate information about the creative industries and their performance.
Design Terminal NCCI provides information and policy proposals related to the creative industries to Hungarys governmental bodies, economic policy-makers and institutions measuring the economys performance. In addition, it takes charge of the effective communication of macro and sectorial economic objectives in the creative sphere. Design Terminal establishes partnership with the Ministry of National Economy, the State Secretary for External Economic Relations and Foreign Affairs at the Prime Ministers Office, and the Hungarian National Bank; in addition it strengthens partnerships with the Hungarian Intellectual Property Office, the Balassi Institute, the Hungarian Investment and Trade Agency, the National Cultural Fund and the National Innovation Office.

Central and South-East Europe final of the talent searching competition of Singularity University, held in Design Terminal, spring of 2013

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III

URBAN, REGIONAL, EUROPEAN AND GLOBAL PERsPECTIVEs

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MiKLs Kiss
graphic designer, award-winning identity designer I have paid attention to Design Terminal since the beginning: I have seen it day after day struggling for its existence. Iconsider a very important institution, the work of which is useful for every creative field. Especially now when Budapest has suddenly become a focus of interest and holds such potential that its development requires such an institution.

Design Terminal NCCI is a national autonomous non-departmental public body of the Hungarian state, the activities of which support the economic goals of the Hungarian government of the day. Design Terminal NCCI is an urban institution, because global competition between creative ecosystems is mostly between metropolises. The performance of cities which use appropriate tools to encourage emerging creative startups positively affects their countries competitiveness as a whole (for example Tel Aviv in Israel, Tallinn in Estonia or even Austin in Texas). Therefore, Design Terminal NCCI gives assistance to decision-makers and institutions of the City of Budapest to acquire the necessary knowledge on the local creative ecosystem and to develop good practices. It is important, however, that creative urban ecosystems consciously build on educational, production or any other creative capacities that are based outside the city. Thus the aim of Design Terminal NCCI is to enhance mobility

between investment capital (key to an entry to the international market) and attention linked to Budapest and talented individuals or high-quality professionals from any area of Hungary. Design Terminal NCCI is a Central European institution aiming to position Hungary as the regions creative hub. As a non-profit organization, Design Terminal has already demonstrated that the expansion of national initiatives to regional summits is a benefit both for local talent and the countrys image. In addition, it develops cultural cooperation between CEE countries and puts the region on the global map of creative decision-makers. Hence, Design Terminal NCCIs objective is to achieve a regional character for all of its suitable flagship projects. Design Terminal NCCI is a European institution that recognizes and promotes the European Commissions 2014-2020 aims linked to the development of the creative industries. Priorities I and II of the Economic Development and Innovation Operational

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WOjCieCh DZieDZiC
Head of Department, School of Form (Pozna, Poland) Initiatives of the Design Terminal create a platform for meeting and exchange of ideas for Central European region. Exchange of ideas promotes and encourages new initiatives helping young talent. Well-structured international support helps to gain broader perspective and awareness which in turn makes designs more relevant and advanced. Cooperating with other Central European institutions empowers the region and promotes creativity which is engine for development.

Programme (EDIOP) offers an especially good opportunity, aiming to establish a supporting business environment and to enhance research and development. Design Terminal NCCI takes part in the planning and coordination of the EU budgetary periods national projects related to the creative industries. It consciously uses community funds in its flagship projects. It seeks to cooperate with similar institutions in other EU Member States, and establish an appropriate relationship with local representatives of the

European Commission and other European institutions. The main message of Design Terminal NCCIs stimulating activities is to emphasize the direct availability of the international world market for 21-century creative startups based in Hungary. Local talent does not need to leave the country even if the products and services are targeting the global market (good examples are Prezi, Ustream or Tipton Eyewear all globally successful companies that are based in Budapest).

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First Monday, the most important monthly event of the Hungarian startup community, held in Design Terminal, summer of 2013 Photo: Eszter Gordon

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Tams Szcs
Head of Representation of the European Commission in Hungary

The European Unions growth strategy and new programme called Creative Europe contribute to utilisation of the industrys potential. One of its important elements is to contribute to the creative sectors products reaching as many countries as possible within the European international market. Since its establishment, Design Terminal has played an important role not only in the Hungarian, but also in the Central European creative sphere: with its fresh, innovative projects, it contributes to the promotion of the creative industries, to dialogue between the sectors players, and tonetworking not only in Hungary but in the wider region. Thisactivity accords excellently with the European Commissions objectives.

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Urbanism conference on the renewal of Budapest's public spaces, held in Design Terminal, winter of 2012

IV

TRANsPARENCY AND sINCERITY

Design Terminal NCCI is committed to the principles of rational, transparent and measurable operation. In the spirit of rationalism, the institution simultaneously avoids the duplication of other autonomous non-departmental public bodies capacities and activities which already exist in an appropriate form in the private sector. According to the principle of transparency, Design Terminal NCCI will define individual indicators in order to measure the efficiency of their long-term activities. Based on these

indicators, it produces an annual report on their effectiveness and professional, economic and material income. From 2014, Design Terminal NCCI produces an annual Failure Report, signed by the general director, which includes a list and analysis of those decisions in the current fiscal year that were subsequently proved to be wrong (from a strategic or professional point of view), in order to draw lessons for the upcoming years. It will be the first national autonomous nondepartmental public body to do this.

The Deputy Mayor of Beijing and his business delegation at Design Terminal, winter of 2012

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STRATEGIC PARTNERsHIPs AND VOLUNTEERING

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Design Terminal NCCI is a community institution. The concept of community is a key one for the success of entrepreneurs, makers in the creative industries. Although they use their individual creativity in their activities, their effectiveness is enhanced by education, competition, cooperation, cultural environment and the energy of the community. Therefore a community-based approach plays an important role in the leadership philosophy of Design Terminal NCCI. The institution confirms the strategic partnerships it has agreed as a non-profit organization, and will even agree new ones to contribute to the creation and constant strengthening of a complex creative industry ecosystem. The institution maintains its small, interdisciplinary Advisory Board, which

already exited in its time as a non-profit organization. The Board reviews Design Terminal NCCIs strategic plan annually, and basis. In addition, it will share comments regarding the institutions most important issues. Beyond its strategic partnerships, Design Terminal NCCI would like to set an example to other autonomous non-departmental public bodies through the charity side of its activities and its employees voluntary work. The institution confirms the strategic partnership with Hungarian Interchurch Aid (HIA) that it agreed in 2013 as a non-profit organization, and integrates social solidarity into all suitable projects, in a way suggested by HIA.

employees, trendsetters and opinion- the plans implementation on a quarterly

Charity auction at Design Terminal, winter of 2012

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Common project of Design Terminal and the Hungarian Interchurch Aid helping flood victims, summer of 2013 Photo: Istvn Kirly

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INTERNATIONAL BEsT PRACTICEs

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 he Netherlands T Creative Industries Fund

Launching its operations on 1 January 2013, this is an executive agency for the Dutch Governments policies. Its projects focus on developing and showcasing a wide range of innovation-focused entrepreneurship. The Funds main focus areas are architecture, urban design, landscape architecture, product design, graphic design, fashion and e-culture. Dutch Design Fashion Architecture (DutchDFA) is a four-year (2009-2012) strategic programme which was announced in 2009, in close collaboration with the Dutch Creative Council, the Federation of Dutch Creative Industries and the NL Agency, with the aim of building international partnerships in order to reposition the focus areas of Dutch creative industries (design, fashion and architecture). This successful programme has been developed as the continuation of a strategic concept, The Creative Industries Internationalization Programme (2013-2016), which continues to serve the international promotion of particular areas within the creative industry in the Netherlands, mainly in architecture, design and e- culture.

 stonia E Enterprise Estonia, Tallinn Business Incubators, Tartu Centre for Creative Industries, Tallinn Creative Hub Development Centre
Enterprise Estonia is one of the largest national institutions, dealing with the support of start-up businesses. In addition to providing financial support, its remit includes technical advice and training can be used by the not-for-profit sector equally. The importance of the institution is clearly highlighted, as its main task is the management and allocation of EU financial assistance. In 2006 the City of Tallinn founded its own institution for encouragement of the sector, known as Tallinn Business Incubator; this aims to support sustainable start-up businesses. The organization currently operates three incubators, and its mission is to increase business and entrepreneurial competencies. The principle means of support are professional coaching, training, workshops, networking events and educational panels. Tallinn Creative Hub Development Centre operates in the capital also, aiming to build partnerships, promote knowledge transfer and create synergy among areas within the creative industries. The Tartu Centre for Creative Industries was founded in the city of Tartu in 2009. As the coordinating body for the south of Estonia, it deals with tasks related to the promotion of the creative industries. Its principal activities are providing information, training

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organization, legal and economic support. It is worth noting that Estonian, Latvian and Lithuanian creative industry institutions have worked in close collaboration to create are

regional development concept for the whole creative industry sector, which could be a model path for Central European cooperation initiatives.

 nited Kingdom U The Design Council

The mission of the Design Council is to make a reality of the creative industry sector as a source of economic potential and a force for community-forming. It has a broad partnership network, from designers up to large corporations and government institutions. Through technical cooperation the Council is involved in projects and initiatives which boost the economy, promote the use of creative products and services and emphasize their influence on daily life. Its aim is to display innovation and entrepreneurship as a new mentality that contributes to social and economic development, both in business and public service.

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1051 BUDAPEsT, ERZsBET TR 13. CONTACT DEsIGNTERMINAL.HU WWW.DEsIGNTERMINAL.HU FACEBOOk.COM/DEsIGNTERMINAL TWITTER.COM/DEsIGNTERMINAL

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