Developing a Smart, Successful Scotland

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Developing a Smart, Successful Scotland

• Charlie Woods - Scottish Enterprise
• World Bank Seminar
• Riga - 8 June 2004

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Introduction

• Scotland background
• Strategic Challenges
• Smart, Successful Scotland
• Strategy into action

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Scotland
Inverness
Aberdeen
Dundee
Edinburgh
Glasgow
Area 79,000 sq km Population 5mn GDP
115bn Employment 73
4
Output
Output
5
Output
Share of GDP
6
Output
7
Manufactured Exports
Source SCDI
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Manufactured Exports
9
Research potential
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Key strategic issues for Scotland
Strengths
Weaknesses

• output growth
• domestic demand
• productivity
• business starts
• growth/global firms
• business RD
• skills demand
• excluded communities and individuals

• some world class firms
• key industries
• existing and emerging
• research base
• graduate output
• international reputation
• international cities
• rural environment
• identity/size

Opportunities
Threats

• new technologies
• new international markets/partners
• more sophisticated consumers
• pace of change
• global upturn

• price competition
• emerging competitors
• obsolete skills
• population change
• decline/ageing
• global uncertainty

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Cumulative Causationeven more potent in the
knowledge economy
Productivity
Income
Migration
New starts
Skills
Innovation
RD
HQs
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Smart, Successful Scotland
Themes and Priorities
Measurement Framework
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Scottish economy performance gap
summary(distance from average of OECD top
quartile)
Absolute size of gap
7,000
14,000
133,700
930mn
4.25/hr
140 Euros
1,985mn
209,000
27,000
99,000
38,000
144,000
115,000

or nearest available comparator
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The Scottish Enterprise Network

• Purpose a strong economy - sustainable economic
  growth
• Pursuing national priorities - sensitive to local
  needs and opportunities
• Addressing market failure
• Focussed on the customer
• Working with partners
• A catalyst for more/better/faster investment
• Finance/knowledge/connections
• Projects integrated for maximum impact

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Growing Business Priorities and Projects

• Growing Business
• greater entrepreneurial dynamism and creativity
• more e-business
• increased commercialisation of research and
  innovation
• global success in key sectors

• Stimulating commercially successful innovation
• e.g. Intermediary Technology Institutes (Energy,
  Life Sciences, Techmedia), Proof of Concept,
  Enterprise Fellowships, RD incentive
• Realising high growth potential in companies
• e.g. account/client management, Co-investment
  fund, investment readiness, high growth start up
  unit, advanced e-business
• Stimulating greater entrepreneurial activity
• e.g. Business Gateway
• Industry focus for integrating action
• Energy, Biotech, Microelectronics, Tourism,
  Financial Services, Food Drink, Forest
  products, Creative Industries
• Headline progress measures 2004/05
• Business starts 9,000 - 10,000
• High growth starts 150 - 200
• Account managed improvements 340 - 400
• Knowledge transfer 100 - 120
• 2004/05 budget 125 - 135mn

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Global Connections Priorities and Projects

• Supporting and attracting global businesses
• e.g. knowledge-in/knowledge-out, Scottish
  Development International, Global Companies
  Development programme
• Global business infrastructure
• e.g. Broadband for Scotland, Route Development
  Fund
• Major strategic place development
• e.g. Investment plan (Clyde Regeneration, St
  Andrews World Class etc)
• Attracting and retaining talented people
• e.g. Talent Scotland, Fresh Talent
• Headline progress measures 2004/05
• Business Internationalisation 720 - 850
• High value Inward Investment 1,000 -1,300
• 2004/05 budget 125 - 135mn

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Learning Skills Priorities and Projects

• Learning Skills
• improve the operation of the labour market
• the best start for all young people
• narrow the unemployment gap
• improve demand for high quality in-work training

• Realising workforce potential
• Young People - MAs, Skillseekers, Get Ready for
  Work, career education
• Adults - MAs, Training for Work, PACE, career
  education
• Business - BLAs, IiP, industry skill plans
• Reducing information failures in the labour
  market
• e.g. All age careers planning and support, Future
  Skills Scotland
• Stimulating an enterprise culture
• e.g. Enterprise in Education
• Headline progress measures 2004/05
• Career planning 175,000 - 190,000
• Occupational Training 41,000 - 46,000
• Positive Outcomes from training 16,000 -
  19,000
• SME workforce development 2,300 - 2,600
• 2004/05 budget 185 - 195mn

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Cross cutting priorities

• Sustainable Development
• increased resource productivity
• new green business opportunities
• Social Justice
• stimulating employment opportunities close to
  under-performing areas
• helping people close to the labour market access
  opportunities
• Rural Development
• mainstream programmes tailored to market
  failures and unrealised potential in rural areas
• Transport
• economic intelligence for transport investment
• incentives to prove new routes
• Equal opportunities
• addressing unrealised economic potential
  e.g. business starts by women

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Making the connections
BioDundee
Colleges Biotech Consortium
Life Sciences ITI Proof of Concept Fund (36
Biotech)
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Making the connections
Skills Learning
Global Connections
Growing Business
Private Partners
Sustainable Economic Growth
Scottish Enterprise Network
Public Partners (EU Partnerships, Local
Government, Funding councils etc)
Infrastructure Planning
Education
Research