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Primary concept and development work takes place at the Billund headquarters, where the company employs approximately 120 designers. The company also has smaller design offices in the UK, Spain, Germany, and Japan which are tasked with developing products aimed specifically at these markets. The average development period for a new product is around twelve months, split into three stages. The first stage is to identify market trends and developments, including contact by the designers directly with the market; some are stationed in toy shops close to holidays, while others interview children. The second stage is the design and development of the product based upon the results of the first stage. As of September 2008 the design teams use 3D modeling software to generate CAD drawings from initial design sketches. The designs are then prototyped using an in-house stereolithography machine. These prototypes are presented to the entire project team for comment and for testing by parents and children during the "validation" process. Designs may then be altered in accordance with the results from the focus groups. Virtual models of completed Lego products are built concurrently with the writing of the user instructions. Completed CAD models are also used in the wider organisation, for marketing and packaging.

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