Innovation and Inclusive Growth Innovation, in itself, can increase inequality though its distributional impacts Growing movement to support “inclusive innovation” Possible to have both? Some evidence of broad relationship between innovation and less inequality Hopkin et al, (2014)
OECD evidence: tackling inequality – Growing disparities are bad for long term growth. Rising income inequality in the UK estimated to have reduced GDP per capita growth by 9 percentage points between 1990 and 2010. – Recent publication “In It Together: Why less Inequality Benefits All” identifies key policies: Improving job quality Investment in education and skills Reducing gender gaps Design of taxation and welfare
Scotland’s regional patterns – GVA per head Scottish Average
Share of datazones in each LA in the 15% of most deprived datazones in Scotland Scottish Average
Scotland’s Economic Strategy - regional and local focus – Delivering a business environment that supports business growth, with well- designed regulation and planning, and providing support for entrepreneurs and businesses across business sectors and across Scotland (Business Gateway); – Tackling root causes of inequality, with investments in early years, childcare, education, health and social care. – Supporting locally-focused and community-based approaches to economic development, including through local government, the Third Sector, and the work of our Enterprise Agencies; – Supporting investment in infrastructure, transport and digital, to improve accessibility and connectivity across Scotland; – Building on the use of community benefit clauses in procurement. The approach set out in the strategy puts an increased focus on local communities and considers how they connect into supply chains; and, – Strengthening the success and resilience of Scotland’s cities, towns and rural areas through the work of Scottish Cities Alliance and key initiatives such as City Deals, the Rural Development Programme and the Community Empowerment Bill.
Next steps Continued engagement Policy and delivery – Business Pledge – Fair Work – Trade and Investment Strategy/International Framework – Scottish Business Development Bank Updates available at www.gov.scot/economicstrategywww.gov.scot/economicstrategy