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ECONOMIC AND BUSINESS DEMAND
13. A key challenge for Scotland is to bring about radical change in cultures and performance to increase business research and development, and business demand for and use of the science base in ways which help support growing businesses and sustainable economic growth. Science can help business respond to the new challenges such as moving to a low-carbon economy. Many existing businesses use science to solve their problems, develop new products, exceed their customers' needs and increase competitiveness - but not enough.
14. The Innovation Framework and the new delivery focus of Scottish Enterprise and Highlands and Islands Enterprise will present a new approach to boosting innovation performance in Scotland - moving beyond science and technology to impact on areas such as services, business model innovation and procurement. This will address the key issue of how - over time - to work with businesses in Scotland to help them increase their absorptive capacity 2 for science based innovation. Equally, the science base must understand and respond to what businesses require in order to support their growth. The extent to which science can immediately underpin higher levels of research and product development and innovation will vary across the key industrial sectors. A broad, sectorally focused, business-led approach is necessary to identify strategically important projects which have real business benefits and the capacity to contribute to higher and sustainable economic growth. ITI Scotland is already pursuing intellectual property potential within three global market sectors: digital media and communications; life sciences; and energy. A key element of this framework for science is to signal that Government will, through the Scottish Funding Council, Scottish Enterprise and Highlands and Island's Enterprise:
- Prioritise both research excellence and strategic knowledge exchange by:
- Increasing investment in knowledge exchange faster over time in order to support industry-led strategic projects which will help key business sectors articulate their research needs and better utilise science to deliver increased and sustainable economic growth.
- Optimise the economic contribution of intellectual property from publicly-funded research by:
- Working with Universities Scotland and business to enhance the way intellectual property from public sector research is managed in order to optimise economic benefits for Scotland. An outline proposal from Universities Scotland to create a single forum for all available IP from Scottish universities is being developed. A substantive proposal will be considered early in 2009.
- Encourage research collaborations between business and academia that focus on growing businesses in Scotland by:
- Tasking Scottish Enterprise and Highlands and Islands Enterprise to assist businesses to identify research collaboration opportunities where businesses can share knowledge, costs, risks and benefits of their R&D and innovation activities, for example through participation in European R&D programmes.
- Ensure Scotland is well positioned to take advantage of emerging science-based market opportunities by:
- Utilising industry expertise to identify emerging market opportunities where Scotland has both the research capacity and commercial potential to exploit scientific advances.
15. Government will also:
- Promote overseas investment in Scotland's R&D base by:
- Tasking Scottish Development International to work with key partners (including universities, Interface, research pools and industry bodies) to target and grow inward investment which links the requirements of international business with the research excellence of Scotland's academic researchers, including new strengths identified by RAE 2008.
- Influence the creation of the most appropriate fiscal and taxation regime to stimulate business innovation and R&D that will contribute to Scotland's sustainable economic growth.
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