Focus: Scotland
Scotland is a dynamic European nation
and is one of the region’s most vibrant
economies, voted European Region of
the Future 2008/9 by the Financial Times
fDi Magazine.
The nation has long been at the forefront
of innovation. Scotland is home to medical
breakthroughs such as penicillin and
the MRI; it has the largest concentration
of universities in Europe and it is also
home to the heavy manufacturing and
engineering industries that built the
industrial revolution.
And now, in a new century, Scotland has established itself as a leader in strategic, knowledge-driven sectors, including life sciences, renewable energy, financial services, digital media, education, and the creative industries. These diverse and thriving industries have helped Scotland’s economy enjoy sustained growth in recent years. And they make it a robust, high potential economy amidst the challenging economic circumstances of a global recession.
Scotland’s new economic ambitions are coupled with a renewed national conversation all about the country’s constitutional future. Its political life revolutionized in 1998 by the establishment of Scotland’s first parliament in 300 years; a decade later the parliament is now led by Scottish National Party leader Alex Salmond, who was elected First Minister of Scotland in 2007.
The new government’s ambitions for Scotland include ensuring that it is an attractive home for inward investment, lowering the tax burden, investing in infrastructure and working progressively to make Scotland a much more competitive location for both indigenous and overseas companies.
Focus on Strategic, High-Growth Sectors
Scotland’s diverse economy is marked by a focus on strategically important sectors that demonstrate high-growth potential over the long-term. Together, new technology, financial and business services, tourism, education and health industries account for a large percentage of Scotland’s gross domestic product.
The country’s renewable energy companies are widely lauded as international leaders in their fields. And independent research by Evidence, the research impact consultancy, found that Scottish scientists lead the world in key areas of science and medicine.
Life Sciences
Scotland’s life sciences industry is one of the most successful in Europe, showing annual GVA growth rates of 8% per year. With more than 620 life science organizations and more than 31,000 employees, Scotland’s life sciences industry generates more than £3bn annually. Recent successes include the $1bn Edinburgh BioQuarter, designed to support Scotland’s world-leading capabilities in areas such as drug discovery and development, stem cell science, medical technologies, translational medicine, bioinformatics and specialist manufacturing.
Scotland has also had recent large-scale investments from some of the world’s leading Clinical Research Organizations, including PPD Development and ICON plc, a global provider of outsourced development services, which opened a new operation in Edinburgh, initially creating 60 new jobs.
Energy
The energy sector is one in which Scotland has long-standing expertise. The North Sea is home to major oil and gas fields, with new fields being exploited currently due to Scotland’s vast experience in subsea technologies.
Active in more than 40 countries, Scotland’s subsea technology is now so prevalent that virtually every subsea development worldwide has Scottish technology at its core. Scotland’s oil and gas industry is long-established, and the push to exploit new fields and maximize output from marginal reserves is driving technological advances that become features of the global market.
Scotland also leads the world in pioneering alternative energy sectors, such as wave/ tidal stream, offshore wind, hydro and fuel cell technology. In addition to an existing installed capacity of 1.3 Gigawatts (GW) of hydro-electric schemes, Scotland has an estimated potential of 36.5 GW of wind and 7.5 GW of tidal power, 25% of the estimated total capacity for the European Union, and up to 14 GW of wave power potential, 10% of EU capacity.
The world’s largest wind turbine was assembled in 2006 and is currently undergoing testing in the North Sea, and the $30m European Marine Energy Centre in Orkney is a world first in harnessing the power of waves and tidal streams. The Scottish government has also created the opportunity to award one of the biggest international innovation prizes in history through its plans for the Saltire Prize – a £10m challenge prize for advances in wave and tidal energy.
Talented workforce
A highly-skilled workforce also contributes to Scotland’s strength in a diverse range of financial services sectors that directly employ over 100,000 people while generating £7bn annually for the economy in recent years. More than half of the world’s top 20 financial organizations have established substantial operations in Scotland, including BNP Paribas, and Scotland’s skills base has encouraged J.P. Morgan to create over 1,000 jobs in the nation and Morgan Stanley to house 750 employees in Glasgow.
Investing in Scotland
Scotland has long been recognized for its high quality of life, dramatic landscapes, friendly people and vibrant cities. But Scotland’s world-leading universities, a skilled workforce and a deep commitment to public and private collaboration have seen its economy grow and thrive into one of Europe’s most exciting prospects. Bringing all of these strands together is Scottish Development International, a government-funded organization that helps international businesses tap into Scotland’s innovation, resources and knowledge base. When many global companies are seeking the perfect combination of skills, innovation, support and value, Scotland is the location that many firms will be happy to call home.
For more information, contact:
Scottish Development International at: www.sdi.co.uk
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