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By Gerry Shih

SAN FRANCISCO, April 13 (Reuters) – Five years ago, Justin

Edmund arrived at Carnegie Mellon University, a floppy-haired

freshman, with artistic talent and dreams of joining a venerable

design firm like IDEO or Frog. But during his sophomore year, a

recruiting pitch from a Facebook employee turned his

head, and prompted a detour of his ambitions.

“It didn’t even occur to me that working at a tech company

was something I could do,” Edmund said. “I switched my

trajectory completely.”

So, in 2010, Edmund interned on Facebook’s burgeoning design

team, and, after graduation, landed a job at Pinterest. There,

at just 21, he has played a central role in building the virtual

scrap-booking site into one of the hottest startups on the

Internet.

Edmund isn’t alone. Inspired by the legacy of Steve Jobs and

lured by the promise of the current tech boom, young designers

are flocking to Silicon Valley, where they’re shaking up a scene

long dominated by engineers and programmers.

The new breed of “user experience” designers – part sketch

artist, part programmer, with a dash of behavioral scientist

thrown in – are some of the most sought-after employees in

technology. Entry-level interactive designers at startups are

commanding salaries easily topping $80,000, almost twice the

median pay for primarily print designers of about $45,000,

according to a recent survey by the American Institute of

Graphic Arts.

IN-HOUSE TALENT

Top venture capital firms, from Google Ventures to

Andreessen Horowitz, are hiring in-house designers to help the

young startups in their portfolios. One angel investor has even

established a Designer Fund to identify startups driven by

design talent.

To feed demand, new digital design programs have sprouted

over the past two years, at both elite engineering universities

such as Stanford, and art schools like the California College of

the Arts. The School of Visual Arts in New York has seen

applications for its digital design program soar by 43 percent

since its inception in 2009.

Indeed, the flourishing of digital design reflects the

Valley’s evolution, entrepreneurs and investors say.

In the latest generation of innovation, heavily concentrated

in applications for mobile devices and social networks, and

relying on ever-cheaper cloud-computing services, success

depends not on whiz-bang technology, but rather, on a subtle

sense of how to make features useful and engaging.

The most recent example is Instagram, the slick

photo-sharing app that was snapped up by Facebook earlier this

week for $1 billion. The 12-person company’s founding duo

includes Kevin Systrom, who majored in Management Science and

Engineering at Stanford, and Mike Krieger, who describes his

background as “Human-Computer Interaction and User Experience.”

“There’s a growing recognition that it’s critical for a

company’s first employees to be people with great design sense,”

said Eric Feng, founder of Hulu and Erly, an evite- and

photo-sharing company, and a former partner at venture capital

firm, Kleiner Perkins Caulfield and Byers. “That’s true even if

you look at larger companies like Google and Facebook, who have

moved in that direction.”

To be sure, engineers still occupy a rarefied perch at the

top of the Silicon Valley hierarchy, and are the target of the

fiercest recruiting battles.

VISUAL APPEAL

But even Facebook, famous for a culture that glorifies the

“hacker way,” now talks of integrating “design thinking” into

its products and has steadily beefed up its design studio.

From her team’s brightly-colored studio in Facebook’s Menlo

Park offices, design chief Kate Aronowitz dispatches designers

who are paired with an engineer, a product manager and sometimes

a researcher to conceive new products or improve features such

as user profiles or messages.

The embrace of design starts at the top with CEO Mark

Zuckerberg, who has stressed the importance of building a crack

design team, Aronowitz said.

In a highly competitive recruiting climate, it’s not

uncommon for even Facebook to encounter top design talent

playing hard to get. For the toughest cases, Aronowitz plays her

trump card: She asks Zuckerberg to place a personal phone call.

“When they’re not returning my email, that tends to work,”

said Aronowitz, who herself was poached by Zuckerberg from

LinkedIn in 2009. “I’m lucky to have that in my back

pocket.”

The spotlight fell squarely on the design team last

November, when Facebook credited Nicholas Felton, one of its

data-visualization experts, with conceiving the Timeline

interface which has become one of Facebook’s most significant

overhauls in recent years.

For fledgling startups, it’s even more critical to

understand how design affects user behavior, said Dave McClure,

an angel investor who cited the example of Mint, an online tool

for managing personal finances acquired by Intuit in

2009.

Jason Putorti, the startup’s designer founder, lent the Mint

interface “much more warmth,” which was crucial for a startup

that dealt with sensitive information, McClure said. Design, he

added, “made the app feel trustworthy, comforting, functional.”

Last year, McClure put down money to create the Designer

Fund, a program that identifies entrepreneurs with strong design

backgrounds and offers seed money and mentoring from experienced

founders like Putorti and Chad Hurley, of Youtube. The fund,

headed by Enrique Allen, a 25-year old graduate of Stanford’s

design school, has partnered with more established venture

investment firms like Khosla Ventures, Andreessen Horowitz and

Kleiner Perkins.

“We’re reshaping a lot of how you build a company,” McClure

said. But, he added, “there’s still a resource and talent

shortage” for interaction designers.

SCOUTING FOR ARTISTS

Finding exceptional design talent, though, is not a simple

matter. Last year, Kalvin Wang, the co-founder of Ridejoy, a

service that arranges carpools, said he spent several

“incredibly hard” months recruiting an interaction designer.

Dirk Cleveland of Riviera Partners, a Silicon Valley

headhunting firm, said startups have trouble finding a design

“unicorn” – the rare designer with the interactive digital

skills that many app startups require.

“It’s literally the toughest position to fill right now,”

Cleveland said. “That equation of supply and demand is out of

balance. Engineering education has progressed, and startups have

learned to do more with limited resources, but I don’t think

that’s the case for design.”

Even though he sifted through 150 resumes, Wang said, “There

are so many startups and so many tech companies that are

snapping them up. It’s slightly ridiculous.”

Ridejoy interviewed candidates from Toronto, New York and

the Midwest, and ultimately hired a Parsons School of Design

graduate living in Omaha.

“You do really have to look outside Silicon Valley,” Wang

said. “For Bay Area designers, they have literally hundreds of

options and they’re going to work at a place where they know

people, or a big name like Google.”

The sizzling job market hasn’t escaped the notice of design

schools across the country.

Liz Danzico, founding director of the School of Visual Arts’

masters program in Interaction Design, said the original goal

was simply to understand where the new innovation economy field

was going. “Experience is now the material, not ceramic or

plastic,” she said.

Still, Danzico expected most graduates to stay in New York

– the traditional hotbed of design. She was “really surprised”

to find, in a survey of her first graduating class, that almost

half ended up on the West Coast at companies including Apple

, Facebook, Twitter and Yelp.

Meanwhile, at Carnegie Mellon, Kelly Lau-Kee, a junior

industrial design major, said “there’s huge buzz generated by

the students, the employers, even the professors” about the

prospect of work in Silicon Valley.

On any given day, Lau-Kee said, she’ll spot pictures on

Facebook and Instagram shared by friends currently employed by

startups. They paint a heady picture of life in California, of

snazzy workspaces, hip coworkers and sunshine spilling into

every frame.

“A lot of people like the mentality of work and play, which

the startups advertise really well,” she said. “It’s a culture

we really want to check out.”

Wayne C. Chung, the chair of Carnegie Mellon’s industrial

design program who taught Edmund, the young star at Pinterest,

said the new economics of the profession was evident on college

grounds. Traditional design firms, buffeted by the last

recession, have noticeably cut back on recruiting, while tech

companies have maintained a visible presence on campus, he said.

After this semester, Chung expects another sizeable

contingent of his graduates to make their way West to Silicon

Valley.

“In their hearts and eyes,” Chung said, “they don’t see

anything else as nearly as exciting.