| Scotland: Towards the Knowledge Economy |
| foreword | |
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The
Competitiveness White Paper1 pub-lished last December stressed
the importance of the knowledge-driven economy. The UK,
and particularly Scotland, cannot compete in the modern
market place on the basis of a low-cost, low-skills
workforce. The Scottish Parliament will need to
capitalise and build on the ingenuity, creativity and
scientific excellence of our higher education
institutions, our people and our companies, if we are to
modernise our economy and create products and processes
that will give us sustained competitive advantage. In the many visits I have undertaken, I have been greatly impressed by the wealth of talent, creativity and expertise in our universities and research institutes. Scotland has a world-class science base: we have an excellent record in scientific publication. But too often in the past we have failed to convert that into products and processes for Scotland's economic benefit. I am pleased to say that that has been changing rapidly and very significantly over recent years. All of Scotland's universities, higher education institutions and research institutes realise the importance of commercia-lisation of the outputs of science and, indeed, on certain measures, some compare favourably with prestigious universities in the United States. Following the joint Scottish Enterprise/Royal Society of Edinburgh Commercia-lisation Enquiry, the resulting Technology Ventures Initiative has also been helpful in raising the profile of commercialisation over the last two years. |
| In Government we have also been busy. We have made it a priority to invest in our science base. The Joint Infrastructure Fund has produced £600 million to re-invest in our scientific infrastructure, which had been depleted over many years. The University Challenge Fund has provided £50 million for commercialisation projects - and I was delighted to note just a couple of weeks ago that Scotland had mounted two of the fourteen successful bids. Out of the £50 million total, we received £5.5 million; £3 million for a Glasgow/Strathclyde consortium and £2.5 million for Edinburgh University with a number of research institutes. The Science Enterprise Challenge will provide £25 million for Centres of Enterprise in universities across the United Kingdom to encourage an entrepreneurial attitude in our academics and our students. I am very hopeful that Scotland will succeed in this Challenge too. The greatest contribution from higher education to our economy will come from graduates who leave higher education with a desire to create wealth. | |
| The Competitiveness White Paper took as its theme Building the Knowledge Driven Economy, and the package of measures described in the White Paper represents a systematic attempt by Government to build such an economy. Scottish Enterprise has also published its new strategy. The same ideas and imperatives informed that process and, indeed, some of the main recommendations in the White Paper have already been acted on by Scottish Enterprise: in particular the injunction that Government, business and academia come together to ensure that our economy benefits more directly from the huge public investment in scientific research. | |
In
the light of this activity, I announced to the Scottish
Grand Committee in January that we intended setting up a
Knowledge Economy Taskforce to accelerate collaboration
between industry and the universities, and encourage
further action by the Scottish Parliament. Over a two
month period the work of the taskforce has been to look
at four related issues:
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| There are, of course, many more dimensions to the Knowledge Driven Economy than these, but if we can make early progress on these four aspects we will be well on our way. This report sets out the views of the taskforce on the four issues. | |
| I also wish to express my thanks to Ian Graham-Bryce, Crawford Beveridge and John Sizer for agreeing to work closely with me and for their invaluable help and advice. The taskforce also benefited from the expert help of PricewaterhouseCoopers and Booz, Allen and Hamilton whose considerable pro bono efforts should be acknowledged. | |
| I am confident that this report will be a valuable contribution to what is a crucial element of Scotland's economic future and I commend it to the new Scottish Parliament as a basis for taking forward action. | |
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| Lord Macdonald Minister for Business and Industry |
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