21 Jun 2023
By Stuart Patrick, Chief Executive of Glasgow Chamber of Commerce
The publication earlier this month of the Scottish Government’s new 10-year Innovation Strategy has been rather low key. Perhaps that reflects the length of the document; over a hundred pages, all well-researched and considered but, without an eye-catching fresh initiative. Nor does it offer significant new resources to invest in the country’s innovation ecosystem. The emphasis rather is on setting out priorities for the existing budgets of the various government agencies, such as the Scottish Funding Council, Scottish Enterprise and the Scottish National Investment Bank.
Though the Innovation Strategy did not grab many headlines, it is still a worthwhile read. There are some interesting signals about the direction of Scottish economic development, such as the return of the concept of industry clusters after an absence of well over a decade. The formal analysis of clusters, with its focus on geographical concentration of industry assets and vertical value chains, has seen some clear successes in the past. The Scottish food and drink cluster would be a prime example with current whisky and seafood export figures to prove it.
Also welcome is the recognition that Scotland’s future economy is not only about the redesign of our economy to secure net zero targets. The enormous opportunities in developing a green technology economy are undeniable, and the document specifies four components in hydrogen, offshore wind, built environment transition and the decarbonisation of transport.
However, it is equally a relief to see other cluster opportunities identified in health and life sciences, data and digital technologies and advanced manufacturing. From a Glaswegian perspective, a greater recognition of the opportunities in future medicines manufacturing, precision medicine, fintech, quantum technologies and photonics is encouraging given the evidence we have been gathering of their potential through the Glasgow Innovation Accelerator Partnership.
Welcome too is the emphasis throughout the document on regional innovation assets. There are several case studies describing those assets including the Advanced Manufacturing Innovation District and the National Manufacturing Institute for Scotland next to Glasgow Airport and the University of Glasgow’s Riverside Innovation District. I would also have included the University of Strathclyde’s Glasgow City Innovation District, which is already attracting private and philanthropic investment into the city centre.
These are the assets that demonstrate clusters in action and the progress they are making is one reason I am arguing that the UK and Scottish Governments should allocate at least one of the Chancellor’s Investment Zones to Glasgow.
Last month I observed four gatherings involving over a hundred individuals all playing a role in Glasgow’s burgeoning innovation eco-system. Many of the issues raised are addressed in the Innovation Strategy. Its publication, alongside the comments of the First Minister in advance of its launch, are a good start.
However, more questions remain. Should we have a 10-year plan with strategic bets? The Strategy appears to provide that but with a detailed review of the four clusters and how they are supported to follow.
Have we got to grips with the existence of funding gaps for growing businesses, especially at the scale-up stage? There is a whole chapter devoted to this with further review work and the announcement of a renewed Innovation Investment Programme in early 2024.
Is the current business support system too hard to navigate and too slow to respond? There is a helpful distinction drawn between the work needed to increase the commercialisation of new technology research from our universities and the work to support the adoption of existing technologies. In each case, the Strategy lays out the actions intended to make sure that the support is more appropriate.
But perhaps the most important feature of the Innovation Strategy is the topic itself. This is a document centred on achieving economic growth after so much debate in some parts of government about whether that is an acceptable aim.
Growing clusters of successful businesses in the markets of the future, says Richard Lochhead in his Ministerial Foreword. Absolutely. Yes please.
This article was first published in The Herald on Wednesday 21 June 2023
