Electronics |
RECOMMENDATION | COMMENT |
21. There is a need to develop more value added activity in Scotland. This should include funding and tax incentives for research and development for all companies. | Following the tax credit for SMEs announced in the 2000 Budget, the Chancellor announced in the 2001 Pre Budget Report that consultation would begin on the detail of a similar scheme for large companies.
The Electronics Industry Action Plan, published in October 2001, recognises the importance of Regional Selective Assistance in supporting companies to invest in higher value areas such as design and development. The recent review of Regional Selective Assistance endorses this stance and recommends an increasing focus on companies involved in the commercialisation of new technologies. |
22. There is a need to address skill shortages, particularly IT and software skills and apprenticeship training. | Scottish Enterprise has developed a 'Software Academy' to provide a focus for software skills sources and to identify employers' needs. 'Summer Schools' courses were also provided in the financial year 2001/2 in Glasgow and Renfrewshire and an e-learning module on soft skills required by software graduates is being developed.
The Executive is funding work being carried out by the electronics sector to map existing skills provision, identify gaps and suggest solutions. The Executive has encouraged the use of 'all age' Modern Apprenticeships which have been targeted at specific sectors including electronics. |
23. Government intervention is needed to help develop infrastructure and skills which can develop and position Scotland as a world leader in e-commerce. | The aim of the Executive's Broadband Strategy, published in August 2001, is to make broadband connections more affordable and pervasive. The focus of the strategy is on aggregated broadband procurement for the public sector which will support modern public services and encourage further investments in infrastructure in the more rural parts of Scotland, to the wider benefits of businesses and individuals. |
24. Support is required for the development of the logistics infrastructure, including the development of more direct flights from Scotland to the USA and European centres and the upgrading of key road links. | The Executive is focusing on what needs to be done to build on the success to date in attracting new direct routes. This is aimed at ensuring that any opportunities for the development on those new direct air services that are best for Scotland are not lost.
The Executive, in association with British Airways Authority, Scottish Enterprise, the Strategic Rail Authority and Department for Transport, Local Government and the Regions, has commissioned a study into rail links to Glasgow and Edinburgh Airports. The consultants' final report is expected in the autumn (2002). |
25. There is a need for more focused support for indigenous companies and assistance to start-ups including tax incentives and incubator units. | The UK Government has introduced tax credits for R&D for SMEs and plans to introduce a similar scheme for large companies. The Enterprise Network has a range of incubator units in place.
The Review of Regional Selective Assistance, published in February 2002, recommends an increased focus on Scottish firms and this is being acted upon to deliver more coherent support to start-ups and indigenous companies.
Scottish Enterprise has recently announced their intention to introduce a new high-growth start-up initiative to provide specialist support to innovative entrepreneurial start-ups. This is a key action in the New Approach to Entrepreneurship strategy. |
26. There should be a shift in emphasis in inward investment to provide differential support for high skill jobs and value add activities. | The review of Regional Selective Assistance also recommends more focus and support for higher value investments. The new scope for job creation will enable more support for high quality jobs where capital expenditure is limited. |
27. A liaison board should be created to continue dialogue between the new Scottish Executive and industry. | The Executive maintains a dialogue with industry through a number of existing channels. We see no advantage in creating another body which would only duplicate this work. |