Developing a Smart, Successful Scotland Charlie Woods - Scottish Enterprise World Bank Seminar Riga - 8 June 2004
Introduction Scotland – background Strategic Challenges ‘Smart, Successful Scotland’ Strategy into action
Scotland Aberdeen Edinburgh Glasgow Dundee Inverness Area 79,000 sq km Population 5mn GDP €115bn Employment 73%
Output
Share of GDP
Output
Manufactured Exports Source: SCDI
Manufactured Exports
Research potential
new technologies new international markets/partners more sophisticated consumers pace of change global upturn Opportunities some world class firms key industries existing and emerging research base graduate output international reputation international cities rural environment identity/size Strengths output growth domestic demand productivity business starts growth/global firms business R&D skills demand excluded communities and individuals Weaknesses price competition emerging competitors obsolete skills population change decline/ageing global uncertainty Threats Key strategic issues for Scotland
‘Cumulative Causation’ even more potent in the knowledge economy Income Migration HQs R&D New starts Productivity Innovation Skills
Global Connections greater digital connectivity increased global involvement a globally attractive location more people choosing to live and work in Scotland Growing Business greater entrepreneurial dynamism and creativity more e-business increased commercialisation of research and innovation global success in key sectors 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 Smart, Successful Scotland Long term aspiration - top quartile OECD Top quartile 2nd Quartile 3rd Quartile 4th Quartile Themes and Priorities Measurement Framework
Scottish economy performance gap summary (distance from average of OECD* top quartile) 38, , ,000 99,000 £7,000 14, ,700 £930mn £4.25/hr 140 Euros £1,985mn 209,000 27,000 % * or nearest available comparator Absolute size of gap
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
Growing Business: Priorities and Projects Stimulating commercially successful innovation e.g. Intermediary Technology Institutes (Energy, Life Sciences, Techmedia), Proof of Concept, Enterprise Fellowships, R&D 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 starts9, ,000 High growth starts Account managed improvements Knowledge transfer /05 budget£ mn Growing Business greater entrepreneurial dynamism and creativity more e-business increased commercialisation of research and innovation global success in key sectors
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 High value Inward Investment1,000 -1, /05 budget£ mn Global Connections greater digital connectivity increased global involvement a globally attractive location more people choosing to live and work in Scotland
Learning & Skills: Priorities and Projects: 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 planning175, ,000 Occupational Training 41, ,000 Positive Outcomes from training 16, ,000 SME workforce development 2, , /05 budget £ mn 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
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
Making the connections ‘BioDundee’ Colleges Biotech Consortium Life Sciences ITI Proof of Concept Fund (36% Biotech) Global Connections greater digital connectivity increased global involvement a globally attractive location more people choosing to live and work in Scotland Growing Business greater entrepreneurial dynamism and creativity more e-business increased commercialisation of research and innovation global success in key sectors 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
Sustainable Economic Growth Education Private Partners Skills & Learning Public Partners (EU Partnerships, Local Government, Funding councils etc) Global Connections Growing Business Infrastructure Planning Making the connections Scottish Enterprise Network Research