This item was published during the term of a previous administration that ended in April 2007
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Minister addresses business in Japan
21/10/2003
An audience of Japanese business
people in Tokyo will be told tomorrow that innovation and
knowledge are what matter for Scotland's economic
development and that sustainable economic growth cannot be
founded on having the cheapest labour costs.
Speaking at the British Embassy in
Tokyo, Enterprise Minister Jim Wallace will acknowledge
that he is "preaching to the converted" when it comes to
promoting the benefits of exploiting knowledge and
innovation to an audience in Japan. He will also make the
case for
increased links between Scotland and Japan
which could provide significant economic benefits for both
countries.
The Minister is speaking during a
reception for key Japanese investors and business
representatives at the British Embassy in Tokyo as part of
his week-long visit to the Far East.
Mr Wallace will say:
"We need to have a whole range of new
business partnerships between Scotland and the rest of the
world built on innovation, technology, and skilled people.
This more holistic approach will allow us to
identify and address opportunities that were previously
less apparent.
"All of our experience over the past
two decades tells us that innovation is crucial to economic
development. Sustainable economic growth cannot be founded
on having the cheapest cost of labour - we cannot
realistically compete on cost alone, and would not want to
given the quality of life we want.
"All we observe around us tells us
that sustainable economic growth depends on the
exploitation of knowledge and we are determined to build on
our reputation for innovation
.
"In December last year, we announced
the formation of three new research institutes, called the
Intermediary Technology Institutes.
These are organisations that are designed to
foster and support a climate of innovation in three key
industries: the life sciences, energy, and information and
communications technologies.
We plan to invest £450 million in these
three research institutes over the next ten years.
"The money will be used to commission
research from Scottish and other universities leading to
the generation of new, commercially exploitable
intellectual property (IP) that can be used to seed the
technology portfolio of new start-up companies in Scotland
or add to the technology portfolios of existing companies -
whether they are Scottish-headquartered companies or
overseas-headquartered companies operating in Scotland and
prepared to exploit that IP in Scotland.
"The thriving links that exist between
Scotland and Japan have significantly enriched both
countries. Japan is Scotland's seventh largest export
market and still the most important market in the Far East
for Scottish companies. As the world's second largest
economy, it offers important business opportunities for a
wide range of Scottish companies in priority industries,
such as life sciences and microelectronics. One such
company which is taking advantage of these opportunities is
Inveresk Research Group in East Lothian. The firm conducts
high quality development services for the pharmaceutical
industry worldwide, and has been working with Japanese
companies for over 25 years.
"I want to see more Scottish ventures
investing in Japan now and in the future. In Scotland, we
have long had a significant Japanese inward investment
community including Shin-etsu, Mitsui Babcock and OKI. We
also have an encouraging range of partnerships between
Japanese companies and universities in Scotland. Just one
example of this is a biomedical research partnership
between the Universities of Glasgow and Strathclyde who are
working with one of Japan's major pharmaceutical companies.
Other projects involving Japanese companies are currently
being explored through Pharmalinks, another joint
initiative between the two universities.
"We believe the track record shows
that by focusing on specific opportunities of common
interest, both countries can work together for their mutual
benefit."
The Minister will also say:
"Two years ago we launched the
Executive's Global Connections Strategy here in Japan. This
outlined our future international priorities focused on
taking Scottish knowledge, skills and ideas out to the rest
of the world and to bring global knowledge into
Scotland.
"We must ensure that Scotland is
globally connected and that we are able to take full
advantage of the available international opportunities.
"Through Scottish Development
International - a joint venture between the Executive and
Scottish Enterprise - we are taking forward a range of
initiatives to help business develop and implement
globalisation strategies. These will also assist in the
development of trading links, global alliances and
strategic partnerships."