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measuring Scotland's progress towards A SMART, SUCCESSFUL SCOTLAND
joint performance team
commentary
PERFORMANCE
The report published last year provided a snapshot of Scotland's strengths and showed areas where Scotland's economic performance needs to improve significantly. It showed that performance was mixed. Scotland was doing better than average, or significantly better than average, in just over half of the lead indicators chosen where international comparisons were possible.
As one would expect after one year, the Fraser of Allander Institute finds only limited movement in the lead indicators vis-à-vis comparator OECD countries. The Institute suggests that some progress is being made in moving towards better performance against the indicators.
These findings suggest that the present strategic approach in Smart, Successful Scotland remains broadly correct. Supporting innovation and high skills levels are key actions to achieve improved productivity and competitiveness. Better global connections remain important in order to exploit Scotland's advantages. The last section of this report indicates the actions which are being taken by the Enterprise Networks to promote the improvements that are required.
ACTION TO ACHIEVE A SMART, SUCCESSFUL SCOTLAND
Scottish Enterprise (SEn) and Highlands and Islands Enterprise (HIE) take account of Smart, Successful Scotland and the key messages emerging from performance measurement in drawing up plans for their operations. Both organisations publish Annual Operating Plans which will increasingly take at least a three year forward look. The plans set out proposed activities and outputs and how these relate to the themes and priorities of Smart, Successful Scotland. Both organisations also publish Annual Reports and Accounts which report on achievement of output targets and set out how funds have been deployed. (For details of related documents see Annex B.)
This section does not aim to replace either Operating Plans or Annual Reports but gives a flavour of how Scottish Enterprise and Highlands and Islands Enterprise are responding to the strategic direction provided by Smart, Successful Scotland and the performance measurement framework. Given this common background their actions necessarily have similarities but specific programmes and projects reflect differences in operating environments.
GROWING BUSINESSES
Entrepreneurial Dynamism and Creativity & More E-business
Scottish Enterprise takes action to support an increase in the number and quality of new and existing businesses. The Business Gateway will provide start-up and growth services to businesses of all sizes. Tailored assistance is provided to Key Account Companies to help them innovate and realise their potential. Seminars and access to e-business advisers encourage more firms to market and transact on-line and become e-enabled.
In the Highlands and Islands, business start-up activity was at record levels in the last year, notably in Ross & Cromarty, Moray, Badenoch & Strathspey and Argyll. E-business adoption in the Highlands & Islands has proceeded rapidly, with 76% Internet use and 45% own website use among local businesses. Highlands & Islands Enterprise's efforts will therefore concentrate on expanding awareness of, and demand for, broadband. For business support more generally, Highlands & Islands Enterprise is currently undertaking a Product & Process Review to simplify and modernise the delivery of services to its customers. This includes a streamlined procedure for small applications, a rationalisation of the range of products and the creation of a single customer database for the entire Network.
Increased Research and Commercialisation
SEn's activities help translate the knowledge in our universities into commercial opportunities so as to boost the number of companies spinning out of academic institutions and increase investment in supporting Research, Design & Development (R,D&D) in companies and other organisations. SEn will build on the success of Enterprise Fellowships and the Proof of Concept Fund and will deliver the first stages of the Intermediary Technology Institutes. SEn and HIE also assist existing small- and medium-sized enterprises (SMEs) to develop and introduce new products and processes, including through financial assistance.
Global Success in Key Industries
As well as working at the level of individual firms, SEn and HIE focus on a number of key industries such as biotechnology, opto and micro-electronics, forestry, food and drink and the creative industries. SEn works with these industries to identify their specific requirements and applies resources where they will have the greatest impact. This includes development of initiatives such as the Pacific Quay Digital Media Park in Glasgow and the Centre for Bio-medical Research in Edinburgh. This work will also help provide the right environment to increase the number of Global or European HQs in Scotland through inward investment.
In the Highlands and Islands, the exploitation of opportunities stemming from renewable energy is at the forefront of business development efforts. This follows the opening of the Vestas Celtic factory near Campbeltown for the production of wind turbines and Western Isles Enterprise investment in the refurbishment of the Arnish yard in Lewis. The HIE Network is also pursuing business opportunities which will arise from experience of nuclear decommissioning at Dounreay. This will involve integrated work between SEn and HIE to maximise long-term benefits to the Scottish economy.
GLOBAL CONNECTIONS
Digital Connectivity
Improvements in telecoms will help make Scotland a globally attractive location for international and Scottish businesses. The continued roll-out of ATLAS (Accessing Telecoms Links Across Scotland) will deliver high quality broadband coverage at competitive prices. Pilot projects are looking at ways of extending broadband access across the Highlands & Islands. These include powerline transmission trials in Kintyre and wireless backbone roll-out in the Western Isles.
Globally Attractive Locations
Initiatives such as the regeneration of the Clyde and the Edinburgh Waterfront project improve the quality and perception of Scotland as a place to do business. Provision of bespoke property to inward investors and Scottish businesses alike provides world-class infrastructure. Domestic and international transport links affect Scotland's attractiveness for business and tourism for overseas and British visitors alike. HIE has recently seen improvements in ferry and air routes. The Air Routes Development initiative will improve direct international air links.
Increased Involvement in Global Markets
Scottish Development International (SDI), the Scottish Enterprise/Scottish Executive joint venture, has a pan-Scotland remit to increase involvement in global markets. SDI focuses both on increasing exporting activity and on increasing the number of companies with wider global links (such as joint ventures and overseas alliances). Inward investment activities focus on attracting high value and R,D&D-related projects. The Globalscot project is establishing an international network of individuals who want to contribute to Scotland's economic success.
Choosing to Live and Work in Scotland
Linked to other activities to make Scotland a globally attractive location, SEn is working to enhance Scotland's image as a place for people to live and work. SEn's activities focus not just on retaining economically active people, but also on attracting skilled people to the country. Talent Scotland and Bio-Dundee will attract highly skilled people to Scotland in specific clusters.
HIE sees the establishment of a University of the Highlands & Islands (UHIMI) as a key means of improving not just skills but attractiveness of the area as a place to do business, live and work. The HIE Network is working in close collaboration with UHIMI, the Scottish Higher Education Funding Council (SHEFC) and the Executive to map out the path to future university status and, towards that end, has agreed to invest a further 800,000 jointly with UHIMI in a range of academic development initiatives.
SKILLS AND LEARNING
Improving the Operation of the Scottish Labour Market
SEn and HIE work to help individuals and businesses develop and apply skills and knowledge so as to increase competitiveness. Central to this is an effective labour market where supply and demand can be quickly matched to ensure employment rates are high and skill shortages are reduced. To help achieve this, Careers Scotland and Future Skills Scotland provide advice and information to individuals and businesses making decisions in the labour market.
The Best Start for Young People
SEn and HIE provide young people with learning opportunities. Programmes such as Modern Apprenticeships offer training which raises the skills level of our young people and contributes to the productivity of businesses. Initiatives such as Get Ready for Work, focus on engaging those young people who have dropped out of training, education and employment in the opportunities available. Young people also benefit from the support provided by Careers Scotland.
Narrowing the Gap in Unemployment
SEn also helps to ensure that fewer adults are economically inactive so that growth is balanced across different localities and groups. By connecting job creation activities and personal skills development activities people are helped to overcome barriers to finding and keeping a job. For example, Modern Apprenticeships for Adults, Training for Work and workforce development plans for specific industries, e.g. construction, provide training to meet the specific demands of businesses. Programmes such as the New Futures Fund and Programme for Basic Skills work with the most disadvantaged to help them move closer to the labour market. With low unemployment across many parts of the Highlands and Islands, programmes to support the unemployed into work increasingly focus on particular client groups facing multiple barriers to employment.
Improved Demand for High Quality In-work Training
SEn will work with employers and individuals to increase their understanding of the values and benefits of learning and training and to promote a culture of lifelong learning. Focus on small and owner-managed businesses will be achieved through new initiatives such as Business Learning Accounts, the Business Advisory Service and Investors in People. In the HIE area, there is strong demand for workforce training with assistance to SMEs including a Management Leadership Programme. This strengthens the link between skills development and business performance.
STRENGTHENING COMMUNITIES
Highlands and Islands Enterprise has an additional objective of strengthening communities which builds on the social development remit of the predecessor body, the Highlands & Islands Development Board. HIE has set out its approach to this and other themes in A Smart, Successful Scotland - the Highlands and Islands Dimension.
The Community Energy Unit provides support for the development of local energy solutions, with project officers distributed around the area. Interest in community land issues has been strengthened with the passage of the Land Reform (Scotland) Act 2003 through the Scottish Parliament and the Community Land Unit will continue to provide support for community land initiatives. Initiative at the Edge (Iomairt aig an Oir) assists local groups to produce development plans and implement a range of small-scale community projects.
HIE will be actively involved in the proposed Scottish Year of Highland Culture which has been supported by Ministers and which will temper disappointment at Inverness not being included on the short-list of cities for the European Capital of Culture 2008. Gaelic language development is moving forward with the establishment of Bord na Gaidhlig and discussions with the new body on joint working with the HIE Network have commenced.
INTEGRATING ACTIVITY
There are close connections between the Smart, Successful Scotland themes and priorities and each cannot be viewed in isolation. Although initiatives and projects may be "classified" under one category, they will invariably contribute to a number of other areas. For example, the Clyde Regeneration initiative will not only contribute to Scotland being a globally attractive location but will provide employment opportunities for Glasgow's people, whilst the Pacific Quay element of the initiative will contribute to global success for the creative industries cluster.
In addition, SEn and HIE work closely together where appropriate. The Intermediary Technology Institute for energy will complement HIE's interest in renewable energy as a business opportunity. Increasingly, Scottish Enterprise and Highlands and Islands Enterprise are also the point of access for companies to schemes of support administered directly by the Scottish Executive. LECs advise companies to apply for SMART, SPUR and Regional Selective Assistance where this is appropriate to their needs and build this into a wider package of support.
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