Scotland’s Economic Strategy Summary

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Photo Credits:

Cover
Graduates – Graduates, Calton Hill, Edinburgh
Smokies – Iain R Spink’s Original Smokies, Arbroath Harbour
Aberdeen Harbour

Content pages

The Kelpies – The Helix, Falkirk
Whisky Inverlochlairg, Loch Lomond and The Trossachs National Park
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© Crown copyright, 2015

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First published by the Scottish Government, March 2015
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Published by the Scottish Government, March 2015

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Foreword

Since 2007, this Government's central purpose has been to create a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth. This remains the Government's ambition to which all our efforts and actions are directed and is at the core of our Economic Strategy.

Scotland's Economic Strategy sets out an overarching framework for how we aim to achieve a more productive, cohesive and fairer Scotland. It forms the strategic plan for existing and all future Scottish Government policy.

Creating greater prosperity and fairness is a shared national endeavour. Only by working in partnership with the wider public sector in Scotland, the third sector, trade unions, businesses and communities, will we be able to create a society where the benefits of economic growth are shared more equally and where future economic growth is stronger and more sustainable.

Nicola Sturgeon MSP
First Minister of Scotland

Overview

The purpose of the Scottish Government and its partners remains to make Scotland a more successful country, with opportunities for all to flourish, through increasing sustainable economic growth.

Scotland's Economic Strategy focuses on the two mutually supportive goals of increasing competitiveness and tackling inequality and our approach to delivering this is underpinned by four priorities for sustainable growth.

Four Priorities

Investing in our people and our infrastructure in a sustainable way;

Fostering a culture of innovation and research and development;

Promoting inclusive growth and creating opportunity through a fair and inclusive jobs market and regional cohesion; and

Promoting Scotland on the international stage to boost our trade and investment, influence and networks.

Scotland's Economic Framework

Our four priority areas – investment, innovation, inclusive growth, and internationalisation – are underpinned by a number of the Scottish Government's key policies which will help us achieve our mutually supportive goals of competitiveness and tackling inequality.

Scotland's Strengths

Scotland is a wealthy and productive country. We have:

A highly-skilled workforce and a long-standing reputation for innovation;

Internationally recognisable brands and products, and companies competing successfully in global markets;

Strengths in a diverse range of sectors including Food and Drink, Financial and Business Services, Life Sciences, Energy, Tourism and Creative Industries.

Whilst the Scottish economy has many strengths, we must continue to take action to reduce inequality

Whilst income inequality in Scotland is lower than in the UK as a whole, it remains too high. Of the 34 OECD countries, the UK is ranked 29th in terms of income inequality (ie 6th worst) and Scotland would rank 20th;

International evidence shows that inequality has a negative impact on long-term growth and prosperity. The OECD estimate that rising income inequality in the UK reduced GDP per capita growth by 9 percentage points between 1990 and 2010;

This is why creating a fairer society is not just a desirable goal in itself, but is essential to the sustained, long-term prosperity of the Scottish economy.

Scotland has a strong economic base, which we will build on to create an economy where:

There is high Participation and Productivity;

Employers and employees invest in a shared vision;

Fair Work is rewarded; and

Economic success is recognised and celebrated by all.

Key Actions in Our Four Priority Areas

1. Investing in our People, Infrastructure and Assets in a Sustainable Way

1. INVESTING IN OUR PEOPLE, INFRASTRUCTURE AND ASSETS IN A SUSTAINABLE WAY

Investment – whether in our people, infrastructure or businesses – is key to driving long-term improvements in competitiveness and in creating opportunities for everyone in society to benefit from these improvements.

This strategy sets out how we will:

Invest in Scotland's people at all stages of life to ensure that we have a well-skilled, healthy and resilient population and an innovative, engaged and productive workforce;

Provide the physical and digital connectivity needed to ensure that all of Scotland is open to the national and global economy and is able to access high quality public services;

Invest in Scotland's infrastructure to help Scottish businesses to grow, innovate, and create good quality employment opportunities;

Prioritise our investment to ensure that Scotland protects and nurtures its natural resources and captures the opportunities offered by the transition to a more resource- efficient, lower carbon economy; and

Invest in strengthening the success and resilience of local communities.

2. Fostering a Culture of Innovation

2. FOSTERING A CULTURE OF INNOVATION

Innovation is a fundamental driver of long-term competitiveness and sustainable growth. More innovative economies are more likely to have the capacity to be more resilient to changing economic conditions and have greater ability to succeed in international markets.

This strategy sets out how we will:

Support the development of highly-innovative businesses across the Scottish economy;

Encourage more of Scotland's diverse business base to engage in innovation and research and development as part of their day-to-day activities;

Continue to support the high-impact, world-class research of Scotland's universities and improve levels of commercialisation of academic research;

Develop with key partners, such as business organisations and trade unions, innovative approaches to developing progressive workplace practices; and

Develop and deliver new approaches to public service reforms and make better use of our public procurement to drive innovation.

3. Promoting Inclusive Growth

3. PROMOTING INCLUSIVE GROWTH

A more cohesive economy that improves the opportunities, life chances and wellbeing of every citizen in our country, not only improves outcomes for individuals and households, but is a critical driver of improved economic performance over the long term.

This strategy sets out how we will:

Promote Fair Work and build a labour market that provides sustainable and well-paid jobs;

Address long-standing barriers in the labour market so that everyone has the opportunity to fulfil their potential;

Tackle cross-generational inequality through, for example, improved childcare, boosting attainment and early years interventions that give every child a fair start in life; and

Realise opportunities across Scotland's cities, towns and rural areas, capitalising upon local knowledge and resources to deliver more equal growth across the country.

4. Internationalisation

4. INTERNATIONALISATION

Scottish economic success will be realised through strengthening our links with the global economy and the opportunities this brings for increasing trade, attracting investment and sharing expertise.

This strategy sets out how we will:

Support Scotland's exporters to grow into new markets and expand their presence in key traditional markets such as the EU and North America;

Encourage a more export-orientated focus across all businesses and sectors in Scotland, and, in particular, amongst our small and medium-sized enterprises;

Create the underlying conditions which will continue to make Scotland a major destination for investment;

Use Scotland's influence in Europe and, more widely, to support our international ambitions and to continue to make the case for Scotland to remain a member of the EU;

Promote Scotland's international brand and showcase both Scotland and Scottish goods and services internationally, and secure major international cultural and sporting events; and

Publish an International Framework, which will set the context for how the Government, its Agencies and Public Bodies, engage externally to promote Scotland – its economy and broader interests – and influence the world around us.

How Do We Drive Change?

Leadership

Leading change and demonstrating best practice.

Partnership

Between all parts of the public sector, employers, the third sector and trade unions.

Focus

Tailoring policies to reflect our four priorities – innovation, inclusive growth, investment, and internationalisation.

Delivery

Aligning the whole Public Sector behind a common vision: One Scotland Partnership.