1. Developing a Smart, Successful Scotland Charlie Woods - Scottish Enterprise World Bank Seminar Riga - 8 June 2004

2. Introduction Scotland – background Strategic Challenges ‘Smart, Successful Scotland’ Strategy into action

3. Scotland Aberdeen Edinburgh Glasgow Dundee Inverness Area 79,000 sq km Population 5mn GDP €115bn Employment 73%

4. Output

5. Share of GDP

6. Output

7. Manufactured Exports Source: SCDI

8. Manufactured Exports

9. Research potential

10.  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

11. ‘Cumulative Causation’ even more potent in the knowledge economy Income Migration HQs R&D New starts Productivity Innovation Skills

12. 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

13. Scottish economy performance gap summary (distance from average of OECD* top quartile) 38,000 144,000 115,000 99,000 £7,000 14,000 133,700 £930mn £4.25/hr 140 Euros £1,985mn 209,000 27,000 % * or nearest available comparator Absolute size of gap

14. 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

15. 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 - 10,000 High growth starts 150 - 200 Account managed improvements 340 - 400 Knowledge transfer 100 - 120 2004/05 budget£125 - 135mn Growing Business greater entrepreneurial dynamism and creativity more e-business increased commercialisation of research and innovation global success in key sectors

16. 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 Investment1,000 -1,300 2004/05 budget£125 - 135mn Global Connections greater digital connectivity increased global involvement a globally attractive location more people choosing to live and work in Scotland

17. 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 - 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 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

18. 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

19. 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

20. 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