1. Industrial Strategy: government and industry in partnership
Scottish Business Board
26 November 2012

2. Industrial strategy activity
Why do we need to act?
Industrial strategy activity
The Heseltine review

3. In the medium/long-term, structural changes in the international economy will impact the UK
Globalisation and rise of BRICS are changing UK’s relative position in global economy.
Developing countries are competing higher up the value chain, threatening the UK’s traditional comparative advantage.
The UK’s previous growth model fuelled by debt was unsustainable.
If the UK stands still there is a danger we will be left behind.
A stable macro business environment is key to enabling growth.

4. Government spending cannot drive growth – we need to look at other sources
Contribution to GDP from Government activity grew from 0.3% between to 0.7% between , becoming the second most important driver of growth.
The deficit means Government spending cannot contribute to growth to the same degree.
Business investments and exports will have a critical role in driving growth in the coming years.
We need to reflect this change and align Government intervention strategically and systematically, using all the levers Government has to support the environment for growth

5. Industrial strategy activity
Why do we need to act?
Industrial strategy activity
The Heseltine review

6. …..we must lay out a strategic vision for where our future industrial capabilities lie, and how to deliver them
Key messages:
A whole of government approach
Cabinet, No10 and ChX fully supportive
A spectrum of support for all sectors
Partnership strategies with key sectors
Cross-cutting themes:
Access to Finance
Technology
Procurement
Skills

7. A spectrum of support for all sectors
A light touch approach where policies are working well, or where there is less scope for Government to make a difference.
Strategic partnerships with specific sectors that have real impact.
Light touch
Action
Sustained
co-ordination
Strategic partnership
Government sets the business environment (eg tax, IPR, skills), but no sector specific policies
Government provides sector specific regulation, support and co-ordination
Government shapes, procures and oversees
Businesses in the sector know who to contact if there’s a problem
- Immediate response, eg, real estate
Government takes action to facilitate a response to a specific issue
- Short-term, eg opportunities for tourism in 2012, steel, and energy intensive industries
Sustained co-ordination, dialogue and action, eg sector councils
- Medium-term, eg respond to the chemical strategy, Creative Industries Council
A strategic industry / Government partnership
- Long-term, eg Aerospace Growth Partnership, Automobiles, Life Sciences

8. Strategic partnerships the sector strategies
Early 2013
Spring 2013
Summer 2013
Aerospace
Automotive
Construction
Professional
Business
Services
Agri-tech
Information
Economy
Nuclear
Education
Renewables
Oil and Gas

9. Sector strategy principles
Developed for business – not concentrated on Whitehall policy levers.
Co-created with business –industry taking a core role in shaping development and long-term delivery. Cross-government consultation and buy-in.
Shared long term vision – where we are now, where we want to be, and how we will get there. A full SWOT analysis as well as horizon scanning.
Private Sector Leadership – spanning development and delivery, although existing priorities and commitments need to be recognised and incorporated.
Action oriented – with explicit and specific pledges from government and business about what will be done to deliver the strategy.
Delivery – each document should state how the strategy is to be delivered

10. Cross cutting themes Technologies
long-term plans for innovation investment.
support emerging disruptive technologies on an ongoing basis.
Eight Great British Technologies:
Advanced materials and Nanotechnology
Energy Storage
Regenerative Medicine
Big Data and energy-efficient computing
Synthetic Biology
Robotics and Autonomous Systems
Agri-science
Space

11. Cross cutting themes Access to finance
action through a range of schemes, Enterprise Finance Guarantee, Business Finance Partnership etc.
business bank to increase diversity and support competition.
Procurement
greater clarity for business. Pipelines of £70bn of future contracts across 13 sectors published in April.
developing capability assessments with industry
Skills
giving employers more direct control of vocational skills spend
Employer Ownership Pilot generated £98m private investment for Government’s £67m. Will support nearly 11,000 new apprenticeships and 27,000 vocational courses.

12. Scotland… Key messages: A need to gather evidence.
Consult on policy development in sector strategies.
Engage with both officials and the private sector in Scotland.
We can learn from work that has already taken place in Scotland

13. Industrial strategy activity
Why do we need to act?
Industrial strategy activity
The Heseltine review

14. The Heseltine review No Stone Unturned - published 31 October
Key messages
Localism – building on our strengths
Whitehall – a confident, strategic centre of Government
Government and growth – catalyst, enabler, partner
Private sector – broadening the capacity for excellence
Education and skills – the foundation for growth and prosperity
89 recommendations
Government has welcomed the report, and indicated that it plans an initial response around Autumn Statement