Scottish Enterprise Annual Review 2006/07

Contents

1 Scene Setters Letter to First Minister 2 Chairman’s Foreword 3 Chief Executive’s Report 4

2 Highlights of the Year 6 Our Performance 12 Financial Summary 13

3 Supporting Scotland’s Priority Industries 17

4 Delivering Our Plan Creating a Culture of Enterprise & Developing more Businesses of Scale 22 Increasing Innovation and Commercialisation 28 Ensuring Scotland is a Globally Attractive Location 33 Increasing Involvement in Global Markets 39 Improving the Operation of the Labour Market and Developing People in Work 43 Best Start for Young People 45 Narrowing the Gap in Employment and Reducing Economic Inactivity 47 Careers Scotland 48

Local Delivery Regional Priority Industries 51 Local Enterprise Company Highlights 53

5 About Us Customer First 59 Accessing Our Services 61 Scottish Enterprise Board Members 62 Contact Addresses 64

1 Letter to First Minister

Dear First Minister,

I am pleased to present to you our The Scottish Enterprise Board annual report for 2006/2007. continually strive to ensure our work has a tangible impact on the I am delighted to report that during economy and tied to this is Scottish 2006/07 we met all of our Enterprise's recognition of the need performance measurements and for us to evolve to ensure we this report offers some highlights prioritise our resources to get the of those outputs. By working in best possible return on our partnership, Scottish Enterprise has investment. made a positive impact on areas of Scottish life and work which Both the Scottish Enterprise Board enhances our competitiveness in and the Executive team are a global economy. confident that we are truly focused on areas of work which the This review gives many examples economy dictates are essential to of our activities, but I would draw our future economic prosperity ­ to your attention our investment in priority industries and growing support of life sciences as a prime business. example of how SE is working with a host of private and public sector We look forward to working with partners to help an industrial you in the future. sector realise its full potential. In addition our efforts to encourage more business research and development and gaining economic advantage from new ideas across a variety of industries are also paying Sir John Ward CBE dividends. In my opinion, this is Chairman how Scottish Enterprise delivers real value for Scotland by joining 29th August 2007 up our capabilities and making our assets count for more in the world.

2 Scottish Enterprise Annual Review 2006/07

Chairman’s Foreword

Scotland’s economic performance • The development of a significant continued to improve in 2006/07. GDP financial services district in and business outputs are growing, while cooperation with the City of Glasgow, the level of employment is in the top securing three new major quartile of the OECD, with most employment commitments to the city; forecasts indicating that these trends can be sustained. Scotland also • A focus on wider and larger potential continues to enjoy a competitive position opportunities through metropolitan in creativity, and has significant natural planning, a range of investment resources to support wealth creation as proposals based on the potential of well as many internationally competitive each economic hub. industries. Our challenge is to continue to move However, we continue to have from tracking inputs to measuring opportunities to improve our wealth tangible economic outcomes. The creation in the areas of business starting point is to have a clear research and development, statement of demand from our priority entrepreneurial activity and in building industries and account managed companies of scale. It will be through customers, which will form the basis of resolving these issues that we can close decision making and outcome the productivity gap between Scotland measurement. The Scottish Enterprise and the top quartile of the OECD. These pipelines which cover competitive place, are the areas where Scottish metropolitan hubs, business Enterprise’s strategy is specifically programmes and skill programmes are directed. Our focus is on priority required to respond to this demand. industries at national and regional levels We look forward to supporting the and concentrating on economic Scottish Government as it shapes its metropolitan hubs which are key drivers economic strategy for Scotland and in of wealth creation in a service economy playing our part in securing the full – both seeking to join up the capabilities potential of the countries wealth creating of the silos and geographies to the capability. Whatever change is required, benefit of the economy. we will ensure the substantial capabilities Scottish Enterprise major investments of Scottish Enterprise are brought to bear committed in response to this strategy in effective and efficient delivery. include: I extend my sincere thanks to our • Translational Medicine involving four customers and partners for their highly universities and four NHS Trusts, valued support through the year, and to bringing together all our capabilities the work and commitment of the Scottish to succeed in a globally competitive Enterprise Board and the Board’s across market; the Network for their invaluable contribution to the success and • The creation of the Edinburgh achievement of the organisation. Further BioQuarter infrastructure, involving thanks go to our staff, at all levels and in the capabilities of a major hospital, all locations, for their hard work and two university schools and Scottish resilience in a challenging environment Enterprise, and securing new which has been greatly valued. international investment potential of £250 million with no further public subsidy;

Sir John Ward CBE Chairman 3 Chief Executive’s Report

In the annual report for 2005/06 Institute and the Scottish Centre for I signalled the start of important Regenerative Medicine with 1.4 changes to the way in which million square feet of commercial Scottish Enterprise (SE) delivers life sciences space, will be unique in higher levels of value to our Europe, and is hugely exciting. customers and the Scottish economy. These largely centred on Our support for growing companies the tailoring of our services in was recognised in a report by response to the demands of our key research organisation, Library industries and in developing House, which named SE as the top projects of “metropolitan” scale. investor in European venture capital backed companies in the first part Our commitment to helping grow of 2007 with 17 investments. the Scottish economy is evidenced by achieving or exceeding every one Our R&D Plus programme of the 12 “measures of progress” generated an additional £80.7m of in 2006/07. These demonstrate business research and development where our efforts are making that would not otherwise happen in a real difference. Scotland with an investment of £13.7m in 21 projects. Details of our activities and the economic impact they made are set The number of young people who out in the rest of this review. But moved on to more advanced training I would like to single a few out for or into employment after taking part a special mention: in national training programmes funded by SE was 21,164, nearly The development of the Edinburgh 13% more than in 2005/06. BioQuarter, which is expected to generate £250 million of Our decision to increase investment investment and create 6,500 new in our overseas sales force is also jobs, took a major step forward with paying off with strong overall levels the appointment of Alexandria Real of foreign direct investment into Estate Equities, the largest Scotland during 2006/07. Scottish dedicated life science property Development International secured specialist in North America, as the 59 inward investment projects development partner for the worth more than £313 million and commercial research campus. The creating or safeguarding up to 7,500 creation of this campus, integrating jobs. Nearly 1,800 of these were the Royal Infirmary of Edinburgh, high-value jobs, with over a third the Queen’s Medical Research more R&D investments coming to

4 Scottish Enterprise Annual Review 2006/07

Scotland than the UK and European We await the outcome of these averages. According to the discussions and stand ready to play European Investment Monitor, our part to the full. We continue to Scotland won more R&D projects look forward with both confidence than at any time over the past six and excitement in the opportunities years during 2006, equalling the facing Scotland. number won by London and the South East for the first time. Inevitably, though, the prospect of change can bring with it uncertainty. While the purpose of this review is However I am delighted that despite to look back on the year gone by, it this the staff of Scottish Enterprise would be appropriate to take this have remained dedicated to the opportunity to say something about service of our customers. I thank the future. The new Scottish them for their achievements this Government, which came to power year and their continued in May 2007 has, as might be commitment to the future growth of expected, new aspirations for the the Scottish economy. Scottish economy. I am delighted to see the importance they attach to achieving better and faster growth.

This review demonstrates examples of where SE can make a real contribution to achieving these aspirations. Jack Perry Chief Executive At the time of writing, consultation with business groups, stakeholders and partners is underway on the future of the enterprise networks of Scotland.

5 Section 2 Highlights of the Year

Scottish Enterprise is the main economic development agency for Scotland covering 93% of the population from Grampian to the Borders. The Scottish Enterprise Network consists of Scottish Enterprise and 12 Local Enterprise Companies, Scottish Development International and Careers Scotland. Working in partnership with the private and public sectors the Network aims to build more and better businesses, to develop the skills and knowledge of Scottish people, and to encourage innovation to make Scottish business internationally competitive.

More details of what we have delivered are included later in this review, however the following highlights provide a snapshot of activities during 2006/07:

Edinburgh BioQuarter Major progress was made on the commercial research campus. development of the Edinburgh The BioQuarter is a collaboration BioQuarter, a major project that’s between Scottish Enterprise, the helping to attract global interest in University of Edinburgh and NHS Scotland’s life sciences capabilities. Lothian on the outskirts of This included the appointment of Edinburgh. It is expected to Alexandria Real Estate Equities, the generate £250 million of new private largest dedicated life science sector investment and create 6,500 property specialist in North America, new jobs. as the development partner for the

Investment £23m to be invested over 15 years.

Impact Generating £250m of new private sector investment and up to 6,500 jobs.

High Growth Start-ups During 2006/2007 the High Growth are trading). An evaluation of the Start-up Unit, which focuses on the Unit in Spring 2007 concluded that creation of high-value, technology- the economic impact of these based start-ups, supported 14 new businesses is expected to reach businesses. The Unit has supported over £250m by 2010 with the 74 high growth start ups since it potential to create up to 840 high was set up 5 years ago (of which 52 value jobs.

Investment £500,000 per year.

Impact Over £250m economic value added and more than 800 high value jobs by 2010.

6 Scottish Enterprise Annual Review 2006/07

Investment in Businesses Evidence that Scottish Enterprise’s backed companies in the first part efforts to stimulate investment in of 2007. During 2006/07 the businesses were making their Scottish Co-investment Fund made mark was found in a report by 49 investments worth £6.7m and research organisation, Library attracted £18m from the private House, which said SE was the top sector. The Scottish Venture Fund investor in European venture capital made its first investment of £2m.

Investment £23m has been invested since 2002 by the Scottish Co-investment Fund (SCF).

Impact 162 financial deals have been supported (99 different companies) attracting a further £54.4m from the private sector.

Scottish Manufacturing Advisory Service (SMAS) SMAS dealt with 506 company then Scottish manufacturers enquiries for manufacturing advice estimate that they will realise and carried out 198 one-day savings and benefits worth more Manufacturing Reviews. If all than £23m. recommendations are implemented,

Investment £900,000 in its first year.

Impact Helping manufacturing companies achieve potential savings and benefits of up to £23m.

R&D Plus In the last year, £13.7m was awarded research and development in to 21 Scottish-based companies Scotland that would not otherwise under the R&D Plus initiative which happen. To date the fund has helps to stimulate new research supported projects which have led and development by Scottish to around £163m of new research Business. This generated an and development. additional £80.7m of business

Investment £23m over 4 years.

Impact Supporting £163m of new research and development that would not otherwise happen in Scotland (to April 2007).

7 National Training Programmes Better results were achieved with move on to more advanced training the three main national training or go into training or employment, programmes for young people run by was 21,164 – nearly 13% more than Scottish Enterprise – Skillseekers, in 2005/06. An evaluation of MAs Modern Apprenticeships and Get and Skillseekers showed that Ready for Work. The number 90% of employers value the participating in SE-funded qualification, 86% say staff are occupational training programmes more skilled and 78% believe that at the end of March 2007 was the programmes have made their 38,779. Those in training to achieve staff more productive. a formal vocational qualification,

Investment Around £100m per year.

Impact 40,000 in training each year with a total of 21,000 young people achieving vocational qualifications or moving on to advanced training or training and employment – a 13 per cent increase on 2005/06.

Inward Investment Scottish Development International 7,500 jobs. Scotland secures over (SDI) secured 1,775 planned high a third more research and value jobs exceeding its projected development investments than the range of 1,200 – 1,500. Overall levels UK and European averages with of inward investment in Scotland around one in every seven inward were also strong with a total of 59 investment projects involving R&D inward investment projects worth functions. In addition, the average more than £313 million and project size in Scotland is 30% creating or safeguarding up to above the UK average.

Investment £5.6m in 2006/07.

Impact Attracting a third more research and development investments than the UK and European average, and projects 30% above the UK average.

8 Scottish Enterprise Annual Review 2006/07

Globalscot The Globalscot network which brings Delegates estimated potential new together Scottish businesses with business worth up to £8m as a influential business people overseas result of the conference. To date held its inaugural Globalscot the innovative Globalscot network Conference in Edinburgh in has helped thousands of Scottish September 2006. As a result around organisations and a recent 1,700 new business connections evaluation of the programme were made between Scottish identified over £28m of benefits to companies and Globalscots and the companies taking part. between Globalscots themselves.

Investment £900,000 over three years.

Impact Making international business connections worth more than £28m.

Translational Medicine Research Collaboration (TMRC) TMRC, the unique venture bringing in Glasgow, Dundee, Edinburgh and together Wyeth, one of the world’s Aberdeen, covering a wide range of biggest pharmaceutical companies, therapeutic areas including with four of Scotland’s universities cardiovascular and metabolic and four NHS trusts announced the disease; the central nervous first round of research projects to be system and oncology. Commercial funded through the new £50 million proceeds from the intellectual initiative. Almost £8 million was property generated will be shared awarded to 28 new research projects by partners of the collaboration.

Investment £17.5m to be invested over five years.

Impact £33m private sector investment for new research projects in translational medicine.

9 Clyde Waterfront Local enterprise companies in improved access to the Digital Media Glasgow, Dunbartonshire and Campus at Pacific Quay, which is Renfrewshire are working together home to the new headquarters of to deliver a package of SE investment both BBC Scotland and SMG. Total in excess of £120m over seven investment on the site is £48m. years to help transform the Clyde Glasgow’s International Financial Waterfront. Local authorities in Services District (IFSD) proved Glasgow, Renfrewshire, West popular with financial services Dunbartonshire and Inverclyde and companies seeking to set up the Scottish Executive are partners operations in Scotland, including in the ambitious project which J P Morgan, Barclays, First Data stretches from the outskirts of and Ace INA Services. A review, Glasgow in the east to the Firth of carried out during 2006/07, Clyde in the west. revealed the IFSD is on course to deliver its target of attracting The Clyde Arc, the first new road 20,000 jobs to the area and creating bridge across the Clyde since 1928 two million square feet of quality was opened September 2006. It office accommodation by 2011.

Investment £22m of £39m public sector investment along the Clyde since 2003.

Impact Attracted additional private sector investment of £277m since March 2003.

Careers Scotland (CS) Whilst its integration within 2006/07 it worked with 202,433 Scottish Enterprise has been under individuals – an increase of 14,000 review throughout 06/07, CS has from 2005/06 with the largest continued to support people of all increase amongst adult customers. ages to make well informed During 2006/07 CS also, for the choices about work, learning and first time provided face to face training and to be successful within counselling for every S4 pupil the changing labour market. In leaving school.

Investment £43m in 2006/07.

Impact Providing more than 200,000 people with advice on work, education and training.

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Proof of Concept Programme 12 projects representing an projects creating 500 new jobs as a investment of £2.14 million were result. Recent independent evaluation awarded in 2006/07 by the Proof of has estimated that these projects Concept Programme which helps are creating £125 million additional academic institutions capitalise on value for the Scottish economy. their technological innovation. Since its inception it has backed 184

Investment £30m since 1999.

Impact Creating £125m additional value for the Scottish economy.

Business Start-ups and Growing Companies SE supported the creation of 9,334 SE’s account and client managers start ups, which represents around worked closely with 1,684 existing half of those which started in companies during 06/07 providing Scotland in the year. Positive signs advice and services on a range of are the increase in the number business development issues, of starts by women and young from innovation funding and people (42% of these starts were internationalisation to waste by women). management and workforce development.

Investment £62.7m during 2006/07.

Impact Supporting around half of all new businesses in Scotland and working with nearly 1,700 companies to improve sales each year.

Intermediary Technology Institutes The innovative Intermediary over the past four years, some 90 Technology Institutes in life sciences, patents filed, seven IP licensing deals energy and tech-media have already achieved, with more deals continued to pursue new in negotiation. Each of these has technologies in new markets. the potential to propel companies 20 programmes are underway with based in Scotland and the UK to the £117 million in funding committed forefront of new global markets.

Investment £117m invested in new research over four years.

Impact Twenty research programmes underway, 90 patents filed and seven IP licensing deals achieved.

11 Our Performance

The network achieved or exceeded all of its priority measures of progress.

Growing Businesses Aims Forecast Range Actual Business start-ups helped 9,000 - 10,000 9,334 High-growth business 10 - 15 14 start-ups helped Companies receiving dedicated 1,000 -1,200 1,684 support to increase sales IP licences and new collaborative 100 -120 152 ventures supported Value of private investment £2 - £2.50 £2.70 through the Co-Investment Fund per £1 invested.

Global Connections Aims Forecast Range Actual Organisations in priority industries 500 - 600 625 helped to do business internationally* Planned high-value jobs brought to 1,200 - 1,500 1,775 Scotland through inward investment* Additional investment attracted to £2.50 - £3 £3.30 high impact projects per £1 spent

Skills and Learning Aims Forecast Range Actual Individuals receiving advice from 175,000 - 195,000 202,433 Careers Scotland Individuals on occupational 36,000 - 42,000 38,779 training programmes Individuals achieving positive 15,000 - 18,000 21,164 outcomes from occupational training Companies implementing 450 - 500 726 Workforce Development

* These measures reflect Scottish Development International’s all Scotland remit, including the Highland & Island Enterprise area. 12 Scottish Enterprise Annual Review 2006/07

Financial Summary

This summary indicates how we As noted in the management used our cash resources during commentary, our net cash 2006/07 against our strategic expenditure was £912,000, or 0.2%, objectives. As noted in the previous below our related resource budget section of this Review, we achieved allocation. This outturn all our performance objectives, and demonstrates the improvements exceeded targets in many of them. we have made to our financial management and control The detailed Scottish Enterprise arrangements during the year. 2006/07 Annual Report and Accounts This work has continued during are available online at www.scottish­ the current financial year as we enterprise.com/accounts. They continue to develop and improve received an unqualified audit our internal processes and systems. opinion from the Independent Auditor, KPMG. Overall, expenditure in 2006/07 has fallen by £16.2m (3%) compared to The annual report includes a 2005/06 reflecting a corresponding detailed management commentary reduction in the overall resources which refers to the network’s available to the Network. financial performance during the year and its sources of funding.

2006/07 Network Expenditure 2005/06 Network Expenditure total £536.0m total £552.2m

£8m £42.4m £41.7m £81.3m £86m £136.3m £151.6m

£32m £30.8m £109.6m £137m £107.9m £123.6m

Growing Businesses Operational Staff Costs Global Connections Network Support Skills & Learning Severance Costs Network Development

13 Growing Businesses support to growth companies in all sectors who make a Businesses and the people who work disproportionate impact on the in them power the Scottish economy. Scottish economy with SE support. The success of Scotland’s businesses in becoming more 25% of our resources are used in productive and innovative is vital if supporting growing businesses. they are to compete effectively in the Expenditure has focused on business global and local marketplace. The innovation and the commercialisation focus of our activity in this area is in of research, including our key industries, business start up and successful Proof of Concept fund.

£39.4m A Culture of Enterprise £57.3m

£17.9m More Businesses of Scale £22.4m Increased Innovation £79.0m and Commercialisation of Research £71.9m

06/07 05/06

Global Connections Global Connections use 20% of our resources. We have enhanced our Scotland is improving its links overseas presence over the past and position within the global two years to ensure we are fully economy and is an attractive engaged in developing global location for investment, and as markets for Scottish businesses. a place to live, study and work. We have also continued to make Further investment is important to significant investments in high ensure that this position is impact projects, such as the Clyde maintained and developed. Waterfront, to make Scotland a more attractive place for business to invest.

Connecting to the £4.6m Rest of the World £3.9m

Increasing Involvement £18.3m in Global Markets £17.0m £84.7m Ensuring Scotland is a Globally Attractive Location More People Choosing to £84.0m £2.0m Live, Study and Work in Scotland £3.0m

06/07 05/06

14 Scottish Enterprise Annual Review 2006/07

Skills & Learning achievements in 2005/06, we did so at lower cost. The balance of how A prosperous and sustainable we used our resources has also Scotland has to realise the full changed during the year with an potential of its people. This includes increased focus on young people in raising productivity levels as well as the Modern Apprenticeship the number of people in work. programme.

Continued investment in this area Our Skills and Learning activities is vital, as is ensuring that we make also cover the important work the most efficient use of our carried out by Careers Scotland to resources. Not only did we achieve support and enable people of all our performance objectives for the ages to make informed choices year, and surpass most of our about work, learning and training.

Improving the Operation £4.6m of the Labour Market £8.1m

The Best Start for all £81.6m Young People £80.4m

Narrowing the Gap in £16.4m Employment and Reducing Inactivity £23.9m Developing People who £21.0m are in Work £24.6m

06/07 05/06

Network Development improving our information systems. Expenditure in this area has This expenditure relates to the decreased since last year as we investment we make in research completed the development and and development activity to gain a implementation of new Network better understanding of the rapidly information systems. changing world economy and Scotland’s place in it. Network development also includes the investment we have made in

15 Operational Staff Salaries Severance Costs & Employment Costs As noted previously, we continue to Our operational staff work directly consider ways in which we can be with businesses, organisations and more efficient and improve our individuals to support he focus on delivery to customers. To development of Scotland’s meet that objective, a voluntary economy. Face to face contact is severance programme was vital to the delivery of our economic implemented during the last development activity. We are quarter of the financial year. The working to ensure that we focus objective of the programme was to and maximise the resources reduce staff numbers at senior devoted to these front line services. management level. The programme Despite a reduction in headcount, was successful and will result in 39 there was during the year an staff leaving the organisation. Our increase in employment costs total severance cost for the year arising in part from a required was £8m. This was made up of increase in contributions to our severance payments of £3.2m, main employee pension scheme. including pay in lieu of notice, and a payment to the Scottish Enterprise Pension and Life Assurance Scheme of £4.8m, based on an Network Support independent actuarial calculation in relation to future pension benefits. Network Support includes the costs We expect that the costs of the of our premises and support staff. severance programme will be We continue to improve the recouped through savings over a efficiency of our organisation in two year period. order to maximise the resources allocated to front line services. As a result of the on going work in this area, costs have reduced since last year.

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Section 3 Supporting Scotland’s Priority Industries

After extensive consultation and Scotland also has distinctive research, Scottish Enterprise strengths in the enabling identified a number of key technologies of electronics and industries where Scotland can advanced engineering where the demonstrate world class latest technology can be applied technology or natural competitive across multiple markets and advantage, or an existing critical industries to accelerate productivity mass and for which there are long and innovation. term sustainable global markets. Regional priority industries were Energy; financial services; food and also identified. These industries drink; life sciences; tourism and have excellent opportunities for electronic markets, have been growth in specific geographical identified as priority industries. areas. These are: textiles; aerospace; shipbuilding & marine; This industry led approach provides chemicals; construction and forest the context for the delivery of our industries. Work undertaken within plan. In addition, it aims to harness these sectors is led on behalf of the the strengths of the whole of SE Network by a number of Local Scotland, in business, academia Enterprise Companies and is and the government and all its described in the local delivery agencies to deliver effective growth section of this annual review. strategies across these industries. Priority industries highlights during 2006/07 include:

Case Study Energy

Hydrogen Office

Work is underway to develop a world leading, energy efficient Hydrogen office and Demonstration Centre at Fife’s flagship Energy Park in Methil. The £2.8m development will result in a state-of-the-art office unit and demonstration centre powered by an innovative renewable energy and hydrogen fuel cell energy solution. “We are confident that this project will attract international interest Jointly funded by Scottish Enterprise Fife, Alsherra Investments and ERDF, the project will work towards increasing electricity generated and help ensure that Fife and by renewables in Scotland. Scotland are at the front of world developments to provide energy solutions for the future.” Derek Mitchell, Hydrogen Office Demonstration Centre.

Delivering: Potential creation of up to 1,350 new jobs and up to £81million GVA.

17 Energy ■ The majority of new jobs attracted through inward SE’s focus is on assisting companies investment to Scotland in in the oil and gas sector sell their 2006/07 were in the financial expertise to other parts of the services sector with most going world and help commercialise to the International Financial opportunities from technology Services District. SE helped to development, especially in provide people with the skills to renewables. work in the industry by supporting Modern ■ Plans were unveiled to create 27 Apprenticeships and SVQs to individual, high-quality business more than 250 employees in units at the Aberdeen Science financial services across Scotland. and Energy Park in response to demand within the energy sector. ■ Raising the profile of financial The £4.7m investment is part of services and the range of career a wider initiative to expand and opportunities offered by improve the facilities at the delivering Financial Services Science and Energy Park and its Tours to teachers, careers sister science park at Balgownie, advisers, Jobcentre Plus staff, Bridge of Don. career changers and undergraduates in Edinburgh, ■ The Energy Technology Centre, Glasgow and Fife. Over 500 people was launched at the Scottish and 30 companies participated. Enterprise Technology Park in East Kilbride to help small companies and individuals working in sustainable energy Food and Drink and transport technologies to SE’s focus has been on assisting showcase new ideas and turn the industry to innovate to remain research into marketable globally competitive and bring food products. producers closer to food processors ■ The Hydrogen Office at the Energy to achieve greater efficiency in the Park in Methil, Fife, is being set supply chain. up as a world leading energy ■ Extensive work has taken place efficient demonstration project. with leaders and major stakeholders within the food and drink sector this year resulting in Financial Services a new private sector leadership organisation called Scotland The financial services sector has Food and Drink, which was its own strategy prepared by the launched in June 2007. This Financial Services Advisory Board, aims to harness the collective comprising industry representatives resources of one of Scotland's and chaired by the First Minister. most successful sectors in order SE’s focus is on addressing the to create an industry worth skills needs of the industry and £10 billion by 2017. facilitating the physical development of prime business locations.

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Case Study Food and Drink

A.G. BARR plc

SDI’s support to help soft drinks firm A.G BARR plc pursue new international markets continued in 2006 with assistance to help the company exhibit at SIAL (le Salon International de l'Agroalimentaire International) in France - one of the World’s largest trade events for the food and drink sector. A.G. BARR plc used the event to launch its new energy drink IRN-BRU32 “The export guidance and help which was well received securing orders in Greece, Spain, Cyprus and from SDI and SE has been a South Africa. The company also promoted its Strathmore Mineral great asset to us on seizing Water range generating interest and orders from Korea, Holland, business opportunities in new Greece, and Spain. international markets.” Joe Flynn, Business Development Manager - International.

Delivering: Improved export opportunities and sales potential.

■ The Scottish Food & Drink secure an order from Waitrose. Conference 2007: Exclusive Since April 2005 the project Opportunities in February, has delivered £2.44m in highlighted ways in which additional sales. Scottish producers can supply ■ their products to the foodservice Profit without Subsidy is a industry - one of the biggest and planning toolkit to guide farm fastest growing parts of the food and agricultural businesses in industry with around £1 of every the preparation of sustainable £3 spent on food in the UK on business strategies, bringing eating out. together farmers, advisors and processors to stimulate new ■ The Premium Market thinking in the search for Development Project which helps profitable, long-term sustainable food and drink companies exploit food production, a key aim of the retail markets in the UK and Forward Strategy for Scottish Europe provided 22 companies Agriculture. Developed by the with in-depth support to grow Scottish Agricultural Organisation their business in retail and Society Ltd (SAOS) and Scottish foodservice. Award winning Agriculture College SAC in haggis maker Macsween won an conjunction with Scottish order to supply haggis for diners Enterprise, and Highlands and on the Orient Express. Another Islands Enterprise, twenty initiative within the project, the workshops were held in 2006/07 Meet the Buyer programme with a total of 397 participants which introduces food and drink across SE’s area. businesses to retail and food services customers helped SuperJam, a company set up by an Edinburgh teenager

19 Edinburgh BioQuarter

Life Sciences ■ The Translational Medicine Research Collaboration (TMRC) – SE’s focus is on growing a larger the unique venture bringing proportion of profitable, sustainable together Wyeth, one of the enterprises that can fund research world’s biggest pharmaceutical and be a source of investment for companies, with Scotland’s new ventures. finest medical research centres and NHS trusts announced the ■ Major progress was made on the first round of research projects Edinburgh BioQuarter to be funded through the new development, leading to the £50 million initiative. Almost appointment of Alexandria Real £8 million was awarded to 28 Estate Equities, the largest new research projects covering a dedicated life science property wide range of therapeutic areas specialist in North America, as including cardiovascular and the development partner for the metabolic disease; the central commercial research campus. nervous system and oncology. This is a collaboration between Scottish Enterprise, the University of Edinburgh and NHS Lothian on the outskirts of Edinburgh Tourism which is expected to generate SE’s focus is on building a culture £250 million of investment and of innovation in the industry and create 6,500 new jobs. developing the tourism ”product” ■ The launch of the £60m Scottish to improve visitor experiences and Centre for Regenerative ensure that Scotland remains a Medicine which SE is funding popular destination by improving alongside the Scottish Executive the quality and experience on offer. and University of Edinburgh, is the culmination of efforts to develop world-class facilities in stem cell science in Scotland.

20 Scottish Enterprise Annual Review 2006/07

■ Scottish Enterprise’s work with ■ Tourism Intelligence Scotland, the tourism industry to help it a major new joint initiative with create innovative products has VisitScotland and Highlands and seen over 3,800 individuals from Islands Enterprise to promote around 2,600 companies take the effective distribution of part in a range of events and tourism market intelligence to business development industry, was established and programmes. This includes the has produced its first publication, Tourism Innovation Development on the walking market, which Awards (TIDA) which in 2006/07 has been disseminated to led to the delivery of 11 new high 8,000 businesses. value tourism products to market such as electronic podcasts to help visitors find out more about exhibitions at art galleries and exclusive short- stay holidays aimed at small groups of whisky enthusiasts in Scandinavia, Germany, France and the low-countries. Ten rounds of TIDAs have been granted since the awards started in 2002 resulting in nearly £500,000 of investment to help bring 38 new tourism products and concepts to market.

21 Section 4 Delivering Our Plan Growing Businesses: Creating a Culture of Enterprise & Developing more Businesses of Scale

What we want to achieve recent years, start-up rates in Scotland remain disappointing The success of businesses in compared with other economies. Scotland is critical to the Scottish Addressing this challenge, by economy. With just under 95% of providing effective help and businesses in Scotland employing encouragement to those considering less than 10 employees it is starting a business, remains a key essential that more grow to challenge for Scottish Enterprise become substantial operations and its partners. This includes providing significant employment. additional effort to increase the number of start-ups by specific SE therefore focuses its support on groups, such as women, disabled services which can help businesses people and ethnic minorities. to grow, by becoming more efficient, innovative and able to compete in international markets. What we delivered Creating the new businesses which in time will grow into successful In 2006/07 SE supported the global operations is also important. creation of 9,334 start ups, which While there has been a gradual represents 44% of all businesses improvement in Scotland’s started in Scotland in the year. entrepreneurial performance in

Case Study High Growth Business Start Up

M Squared

M Squared, a Glasgow-based laser technology company, developed its relationship with Scottish Enterprise's High Growth Start-up Unit in 2004, prior to the company's launch in May 2006. The relationship continues to prove valuable to the company, with the HGSU providing commercial expertise and advice, help in raising investment and an introduction to the former chief engineer of a leading Scottish “I believe the advice and support electronics manufacturer, who has subsequently become a director we receive from HGSU have been with M Squared. During the last year, the company has moved to new instrumental in helping us get to premises and secured a £700,000 investment package with Scottish where we are today.” Enterprise's help. The company currently employs 10 staff in high value jobs with half of its employees educated to PhD level. The Dr Graeme Malcolm, company hopes to increase this to 30 employees, with 80 per cent CEO M Squared. holding a qualification above a degree, in two to three years' time.

Delivering: Business assistance for a high growth start-up. 22 Scottish Enterprise Annual Review 2006/07

Case Study Business Gateway

Amazing Days

Amazing Days Scotland is a one-year-old company which offers excursions such as the Southern Highlands by sea-plane or Argyll by quadbike. The Kilmarnock-based company has enjoyed tremendous success in the corporate entertainment and tourism industry. Ross McKinnon, director of Amazing Days Scotland, approached Business Gateway for help when he was thinking about starting his “The help and advice from business. At 25 years old, Ross realised he didn’t have a lot of business Scottish Enterprise has helped experience and needed some free and impartial advice and guidance. me realise that planning is key Business Gateway helped Ross develop his ideas into a business plan, to getting things right first time which highlighted some areas that needed additional work. With a low for my business.” cost loan from the Prince’s Scottish Youth Business Trust, Ross was Ross McKinnon, Director of soon running his own business and using his initial business plan to Amazing Days Scotland. influence his plans to expand and grow Amazing Days Scotland in the future.

Delivering: Creation of new business in a priority industry.

Positive signs are the increase in The unit’s significant technical and the number of starts by women commercial experience, provides and young people (42% of these intensive hands-on support to high starts were by women) and nearly growth businesses. It can also draw 9 per cent of start-ups in on a range of private sector experts disadvantaged areas. with specific experience. An evaluation of the Unit was carried The Business Gateway, which is out in Spring 2007 which concluded first point of contact for all that the unit target of 55 new services provided to business by businesses with a combined Scottish Enterprise and partner valuation of £275m by the end of organisations, has been remodelled the third year of trading was likely to improve levels of service. New to be met. The report added that features include the introduction of the impact on the economy of these a call-handling and research businesses is expected to reach as function. The new service comes much as £256million by 2010 with into effect in October 2007. potentially up to 840 high value jobs.

One way in which SE seeks to The Equality Matters in Business support high quality business project, launched in 2006, aims to start-ups is the High Growth highlight the business benefits to Start-Up Unit. During 2006/2007 the unit, which provides a national- level approach to the creation of high-value, technology-based business start-ups, supported 14 new businesses.

23 small to medium enterprises of Scotland and received 50 start up adopting diversity into their enquiries, eight of which have workplaces. It addresses all subsequently been registered as equality strands – Gender, Race, trading co-operatives. These cover Age, Disability, Religion/Beliefs and a variety of areas including Sexual Orientation. renewable energy, forestry, agriculture, financial services, Scottish Enterprise is an active health, retail and property. supporter of the Prince’s Scottish Youth Business Trust (PSYBT), During 2006/07 SE has adopted investing an average of £1.1m over sustainable development practices the last 3 years. PSYBT delivers across its business and there are low-cost loans and advisory increasing opportunities to support support to start-ups by people in economic and environmental the 18-25 age group. An evaluation investment which will increase during 2006/07 showed that in the productivity and innovation. last 3 years, PSYBT made 2,070 awards totalling £6.3m which were One initiative, the LEAN worth up to £22.6m to the economy. Management programme, which looks at a range of business A key strength of PSYBT’s success operations and processes and is its strong integration with the makes recommendation to Business Gateway at the local level. increase profit margins in the form of efficiency savings and Co-operative Development productivity improvements, helped Scotland was launched in 2006 to 23 Glasgow-based businesses grow the co-operative sector across across a range of industry sectors, the whole of Scotland. In its first achieve productivity savings of year it has supported 18 business more than £2.5m. development projects across

Case Study Account Managers

FMC Technologies

FMC Technologies Ltd, which manufactures some of the world’s most sophisticated subsea oil production equipment, has been supported by Scottish Enterprise Fife to implement a leadership development programme and undertake a significant £14million capital expansion programme at its Dunfermline plant. The company, which now employs approximately 600 staff in “SE Fife’s support has helped Dunfermline, has achieved considerable growth with a turnover in drive forward our expansion excess of £100 million and more than doubling its assembly and test programme to expedite strong capacity while also significantly increasing machining and specialised growth for our world-class design welding processes. and manufacturing facility.” Through implementing the SE programmes the Dunfermline site is David Currie, Managing Director, fast earning a reputation as a centre of excellence. FMC Technologies.

Delivering: Growing business safeguarding 600 jobs and achieving a turnover in excess of £100m.

24 Scottish Enterprise Annual Review 2006/07

Case Study Scottish Co-investment Fund

Touch Bionics

Spun out of the NHS in 2003, Touch Bionics has developed the i-LIMB Hand which is at the forefront of prosthetic technology and is the first component of the i-LIMB System to be launched as a commercial product. The i-LIMB Hand looks and acts like a real hand with five individually powered digits providing unsurpassed grip and dexterity to patients “We at Touch Bionics have who have suffered the loss of a hand. enjoyed tremendous support SCF initially invested alongside Archangel in 2004 and has continued from SEEL’s Growing Business to provide financial support to the company as it has grown, with the Team not only financial, but most recent investment in February 2007 as part of the £780k round led perhaps more importantly in again by Archangel. These funds were used to raise the profile of the terms of advice and networking company and its leading edge technology, whilst also enabling the within the Scottish Community.” development of the cosmetic glove to more accurately replicate the Stuart Mead, Chief Executive. appearance of skin. Additional support has been provided from the Scottish Executive through SMART, SPUR and RSA in previous years.

Delivering: Access to finance for growing companies.

SE also has dedicated account A constraint to growth among managers who work closely with high-potential businesses is access businesses to make the to finance. SE works with private improvements needed to deliver sector partners to support growth. The aim is to raise the investment through a variety sales of each growing business of initiatives. we work with by at least £800,000 after 3 years. For early stage businesses, the Scottish Seed Fund provides SE’s account and client managers investments from £20,000 to worked closely with 1,684 £100,000. During 2006/07 the companies during 06/07. Scottish Seed Fund invested £1.6m in 22 deals. For small and Ensuring that SE’s advisors are ambitious companies, the Scottish properly equipped to provide advice Co-investment Fund provides to businesses remains a priority for funding of between £50,000 and SE, and during 06/07 a number of £500,000 to finance deals up to professional development £2m, in partnership with the private programmes run to support sector on a matched funding basis. account & client managers across the Network. One of these, Premier Adviser, won a UK National Training Award and, as a result, Scottish Enterprise was nominated as an Employer of the Year by the Institute of Leadership and Management.

25 Last year the Scottish Co-investment products for print, imaging and Fund made 49 investments worth other applications. £6.7m, which attracted an additional £18m from the private sector. Evidence of Scottish Enterprise’s efforts to stimulate investment in During 2006/07 for every £1 that the new businesses is highlighted in a Scottish Co-investment Fund report by research organisation invested it attracted up to £2.70 Library House which stated that from other funding sources. This Scottish Enterprise was the top demonstrates the effectiveness of investor in European venture capital the Co-investment approach in backed companies in the first part sharing risk with commercial of 2007 with 17 investments. investors and encouraging the development of the venture funding The Scottish Manufacturing market infrastructure in Scotland. Advisory Service (SMAS) was established with the Scottish The Scottish Venture Fund is an Executive and Highlands & Islands equity investment initiative which Enterprise to develop and improve seeks to co-invest between Scottish manufacturing £500,000 and £2 million in risk competitiveness by providing capital deals in Scotland that are support through a team of dedicated normally between £2 to £5 million manufacturing specialists. (but up to £10 million if required). The manufacturing sector remains The first company to receive funding important to the economy, through the Scottish Venture Fund accounting for 16 per cent of (SVF), which began operating in Scotland’s output, 70 per cent of October 2006, was Intense Ltd, the the country’s exports and 11 per developer of next generation laser cent of employment. There are

Case Study Scottish Venture Fund

Intense Ltd

Scottish Enterprise Lanarkshire worked with Intense Ltd to support its acquisition of a US-based optoelectronics company to enable it to access the lucrative US defence market. The Scottish-grown technology company was the first to receive funding through the Scottish Venture Fund, securing £2 million which helped them to attract a further equity investment deal of £7 million. Alex Ballantyne, Chartered Engineer The funding package and acquisition ensures that Intense Ltd remains “Thanks to the Scottish Venture at the forefront of its industry sector, developing next generation laser Fund, we have been able to move products. into our next phase of growth to take advantage of significant The company has also benefited from funding for a research and development project, business growth support and investment from global opportunities.” the Scottish Co-investment Fund. Scott Christie, CEO, Intense Ltd.

Delivering: Providing Scotland’s growing technology companies with access to significant investment.

26 Scottish Enterprise Annual Review 2006/07

Case Study SMAS

Woollard and Henry

Woollard and Henry, a traditional Aberdeen-based engineering company which has been providing highly crafted engineered products to the paper industry for over 135 years, has diversified and developed a new personnel capsule for the offshore oil and gas industry following support from Scottish Manufacturing Advisory Service (SMAS). In addition to helping the company identify its key strengths and core “SMAS service so far has been abilities with a view to pursuing new markets, SMAS support was given excellent, bringing expertise and to assist the company to gain the minimum requirements for working specialism to areas outwith our in the oil and gas industry, including accreditation in ISO (International normal areas of comfort. SMAS Standards Organisation) and FPAL (First Point Assessment). has given some very real and SMAS then introduced Woollard and Henry to a major international tangible benefits to this supplier of personnel carriers Reflex marine, which led to them joining organisation.” forces to produce ‘The Frog’™, a capsule used to safely transfer up to three personnel at a time to offshore sites. The new business is Fred Bowden, MD, projected to increase Woollard and Henry’s turnover by more than Woollard and Henry. 20 per cent.

Delivering: Improved competitiveness in manufacturing companies.

currently 9,175 registered manufacturing companies in Scotland employing 255,000 people.

In 2006/07 SMAS dealt with 506 company enquiries for manufacturing advice and carried out 198 diagnostic reviews which, if all recommendations are implemented, represent a Gross Value added for Scottish manufacturers of £23.4m.

27 Delivering Our Plan Growing Businesses: Increasing Innovation & Commercialisation

What we want to achieve Scottish Enterprise offers a range of incentives and advice to encourage Productivity, an important investment in innovation and determinant of economic growth research and development by and an indication of business businesses in Scotland. It does this competitiveness, is below both the by supporting innovation both in the UK average and that of a number uptake of R&D by business and the of competitor nations. Scottish creation of businesses from the ideas output per hour worked is 98.6% in our academic establishments. of that of the UK as a whole, and is 92% of the top quartile of OECD countries. What we delivered Businesses need to innovate and The R&D Plus scheme supports improve their productivity to stay large companies engaged in ahead of their competition. This can research and development be in products, services and activities in Scotland. It is the first production processes. To many scheme of its kind in the UK, and businesses, even relatively simple focuses on companies engaged in innovations such as the adoption of new and innovative research into new waste management techniques products and processes which or a fresh approach to management demonstrate real potential for can yield productivity gains which global commercial success. support their competitiveness and help them grow. To date it has led to around £163m of new research and development Improving levels of business that would not otherwise happen in research and development is Scotland. In the last year, £13.7m recognised as a key driver of was awarded to 21 companies economic growth. Despite a long under R&D Plus. This generated tradition of innovation, and some additional business research and signs of improvement, Scotland lags development in Scotland of £80.7m. behind the rest of the UK and well These include projects with life behind the top performing countries sciences company Vascutek and such as Sweden and Finland. aviation engine manufacturers Evidence also shows Scottish small Rolls Royce. and medium sized enterprises Innovation is not limited to hi-tech (SMEs) are less likely to introduce or manufacturing industries. The new products and processes than need to innovate crosses all aspects those in other countries. The of the Scottish economy with SME's challenge we face is to encourage being a key focus for Scottish more businesses to recognise the Enterprise. A particularly good importance of innovation and helping example of how innovation can help them, where appropriate, to do so.

28 Scottish Enterprise Annual Review 2006/07

Case Study R&D Plus

DuPont Teijin Films

DuPont Teijin Films, the world’s leading producer of polyester films, is expanding its research and development activities at Dumfries, helping safeguard 300 existing positions at the company’s plant. The company is developing leading edge technologies in speciality polymers and films for use in a wide range of health, security, electronics, displays and packaging applications. “This is a major investment in new capabilities and one that will The new investment is being supported by Scottish Enterprise with an R&D Plus grant of £1.175m towards a total project cost of enable the Dumfries site to take a approximately £20m invested by DuPont Teijin Films. leadership position in exploring emerging markets with speciality new products. SE’s contribution to the overall costs has been critical in our decision to focus these R&D programmes at Dumfries.”

Dr Moray Mackenzie, DuPont Teijin Films.

Delivering: Safeguarding 300 jobs.

in the service sector is the work with management expertise within the the tourism industry to generate future generation of farm business new ideas to help Scotland owners. Ten groups of around compete in the global market. 15 businesses took part across the SE network during 2007. The net impacts delivered by tourism innovation initiatives so far In addition to innovation within are considerable – nearly £15m in businesses, an important source turnover for the industry, of new ideas and technologies generating over 190 new jobs in the is Scotland’s world class sector with additional Gross Value universities and other specialist Added (GVA) estimated to be £6.1m technology bodies. – ten times the actual cost of the programme to the public purse. The Proof of Concept Programme helps turn Scotland’s technological Encouraging business innovation in breakthroughs and innovations rural areas, where diversification is within Scotland’s universities, key to the future of farming and research institutes and NHS related businesses, is also Boards into business opportunities important. The Planning to including licence agreements. Succeed programme launched at the end of 2006 is designed to improve the growth potential of agricultural businesses by enhancing the level of business

29 The programme provides funding to Six Enterprise Fellows were developers of innovative products supported under the Enterprise and processes in cutting edge Fellowship programme during technologies, to take their ideas 2006/07, bringing the total from the drawing board and supported to date to 76. Funded by advance them to the stage at which Scottish Enterprise and delivered they can attract the necessary by the Royal Society of Edinburgh private sector investment to go to as another means of translating the next stage of development. the excellence in Scottish research into new businesses and products, In the last year, 12 new projects the programme provides representing an investment of academics with funding to develop £2.14 million were supported by an idea, business training to help Proof of Concept Programme prepare a business plan bringing the total since its inception to and take the idea forward, and 184 with over 500 new jobs created provides access to networks of by the projects. Of these, 35 spinout/ mentors, business experts and start-up companies and 32 licences professional advisors. have been created in Scotland. An independent review of the Awards of £22.1m to completed p rogramme showed that a total of projects were matched with £44.7m £70million was invested in 44 new of public/private investment companies with a programme cost (£18.3m private & £26.4m public). of £4m. Recent independent evaluation has estimated that these projects are SE also has a role in supporting the creating £125 million additional infrastructure which is required to value for the Scottish economy.

Case Study Proof of Concept Programme

University of Strathclyde

The enormous growth in mobile communications and consumer entertainment markets has led to increasingly complex “microchips”. Billions of these chips are now produced annually; and the expense of testing correctly is a large part of their overall cost. With support from the Proof of Concept Programme, researchers at the University of Strathclyde developed a breakthrough automatic test “The Proof of Concept procedure which drastically reduce the costs of testing. The programme allows us to take our successful project was commercialised in January 2007 with the technological breakthroughs and launch of ATeeda limited and trials are currently taking place with innovations out of the lab and major chip manufacturers. transform them into real businesses that can grow and expand in Scotland.”

Dr David McBeth, Director, Research and Innovation.

Delivering: Economic advantage from new technology.

30 Scottish Enterprise Annual Review 2006/07

create the environment in which start-up companies, as well as innovation can flourish. Examples of more established businesses our initiatives include: which need to be on the Foresterhill campus. ■ The Roslin Cells Centre is a major collaborative initiative by The Intermediary Technology SE Edinburgh and Lothian, Institutes in energy, life sciences University of Edinburgh and and tech-media aim to substantially Roslin Institute to create the first increase the number of high-growth useable stem cell line in Europe, technology companies in Scotland and to support the proposed by pursuing new technologies in Scottish Centre for Regenerative new markets at a very early stage Medicine. It will build on the of their development. expertise and resources which the Roslin Institute has developed Four years since its inception, in recent years for the derivation ITI Scotland has 20 programmes of new human embryonic stem underway with £117 million in cell (hESC) lines. funding committed, some 90 patents filed, seven IP licensing ■ The Institute of Medical Science deals already achieved, with more and Technology (IMSaT), deals in negotiation. Each of these a collaboration between the has the potential to propel Universities of Dundee and companies based in Scotland and St Andrews, received funding to the UK to the forefront of new support the commercialisation of global markets. its research. The Institute has been able to identify a pipeline of ITI Energy 25 commercialisation projects. ITI Energy has eight active R&D Of these, 5 projects are now programmes underway with a actively seeking industrial commitment of £28m. The current partners. portfolio is targeting opportunities in renewable power, oil and gas ■ Aberdeen's first business applications, power management incubator units specifically and energy storage. Projects include targeting the life sciences sector, the development of a battery are being created by the management system for electric University of Aberdeen with vehicles, a new abrasion-resistant support from Scottish Enterprise plasma coating for industrial pipes, Grampian. The £2.25 million a revolutionary composite pipeline venture will support growth and structure and a large scale battery attract foreign investment to the system. In early 2007, ITI Energy region, as well as encouraging commenced its latest R&D the commercialisation of programme to develop the research by homegrown Orangutan wind turbine lifting talent. Based at the heart of device, which is set to dramatically Aberdeen's professional and improve the efficiency of academic medical science maintenance operations on community at Foresterhill - one wind turbines. of Europe's largest healthcare campuses – the purpose-built one-storey complex will house

31 ITI Life Sciences ITI Techmedia ITI Life Sciences has invested ITI Techmedia has currently £52 million in five active R&D initiated seven R&D programmes programmes and has five with an investment of £37m. It commercial licence agreements to recently announced a commercial date. The latest commercialisation licence agreement for its games- licence has been signed with based learning R&D programme, Cognia EU Ltd and will enable which allows Dundee-based TPLD Cognia to develop a new database (Team Play Learning Dynamics) to product that will streamline use the resulting new technology researchers’ access to essential that will greatly simplify the scientific information to enhance process of developing content for drug discovery and development. training and educational purposes. In January 2007 ITI Life Sciences It has recently completed a commenced its most recent second programme concerning programme, investing £9.5m to anti-counterfeiting systems and is develop human stem cells for currently investigating a start-up pharmaceutical research with the vehicle to commercialise the University of Glasgow and Swedish research. ITI Techmedia’s latest biotech company Cellartis AB. programme is investing £3.5m to develop a new backlight technology platform using polymer optics which is set to improve quality, power efficiency and price point for flat panel televisions and screens.

Case Study Marine Energy Collaboration

Green Cat Renewables

Lanarkshire-based Green Cat Renewables Ltd is one of three businesses to be awarded support from the new Marine Energy Collaboration Fund which aims to help marine renewable device developers reduce costs and improve the performance of their devices by accessing relevant advice from others. The company is developing a novel wave energy device which uses the “The Scottish Enterprise funding minimum number of stages of energy conversion from sea wave to has not only enabled the project electricity. The new turbine could offer advantages over competing to go ahead but has opened doors products through its simple design and relatively low capital cost. for us and generated great interest in what we do.”

Gavin Catto, Director, Green Cat Renewables.

Delivering: New opportunities for renewable technologies.

32 Scottish Enterprise Annual Review 2006/07

Delivering Our Plan Global Connections: Ensuring Scotland is a Globally Attractive Location

What we want to achieve Scotland must also ensure that it has the right business Establishing Scotland within the infrastructure such as land, global economy as a place with property, utilities, transport and which, and in which, to do business telecommunications. is key to economic growth. Much of the work of SE, in In order to do this, Scotland must partnership with others such as play to its strengths, particularly local authorities, is therefore around priority industries where it geared to providing the physical already is, or has the potential to environment which allows be, a global player. businesses to thrive. This includes providing business and industrial However there are several property, improving transport links, challenges we must tackle to achieve bringing derelict land back into this. We must also keep up with productive use and creating high continually evolving technologies quality public areas in town and and ways of doing business to city centres. improve competitiveness.

Tied to this is the possession of knowledge – whether skills within What we delivered the workforce, innovation in technology, science in universities In 2006/07 SE attracted over £3 in or business models – which is investment for every pound it emerging as a critical asset in invested itself. economic growth. Examples of these kinds of While many forms of knowledge partnership projects are included can be found and fostered in throughout our annual review. Scotland, attracting inward Others include: investment is an important way of ■ In 2006/07, work began on the bringing additional commercially first phase of the £200 million valuable knowledge to Scotland. redevelopment of the 1,125 acre SE’s network of overseas offices former Ravenscraig steelworks plays a vital role in this by site. The redevelopment, due to promoting Scotland as an excellent be completed by the end of June place to live, work, study and do 2009, will include a multi-million business. Increased investment in pound regional sports facility and overseas staff in recent years has the relocation of Motherwell paid off as Scotland continues to College to a new, state-of-the­ prove a popular choice for art campus. Regeneration and businesses seeking to establish Renewal Magazine has recently operations in Europe. confirmed that Ravenscraig is 33 Clyde Arc, opened September 2006

the largest physical regeneration partnership project and further project in the UK in terms of development is planned to meet size, and sixth in terms of demand from companies in the investment value. electronic markets sector. £1.8 million of infrastructure works to ■ Developments along the River deliver the next phase of Clyde from the outskirts Glasgow development began in 2006, in the east to the Firth of Clyde in including four new buildings on the West are being co-ordinated the site and ground works for through landmark regeneration 10,000 sq metres of commercial projects. Local Enterprise space with scope to accommodate Companies in Glasgow, 270 new jobs. The initial Dunbartonshire and Renfrewshire investment should attract more are working together to deliver than £16 million of private sector a package of Scottish Enterprise money. Total investment on the investment in excess of site is £48 million so far, including £120 million over seven years to the construction of the Clyde’s help transform the Clyde first new surface-level road Waterfront. The initiative should bridge since 1928, the Clyde Arc, generate over £440m in added which opened in September value per annum for Scotland's 2006. Work has also begun on economy by 2027/28. In addition regenerating the Tradeston area to Scottish Enterprise Glasgow, on the south side of the Clyde the other members of the between the Kingston Bridge and Strategic Partnership Board for George V Bridge. the Clyde Waterfront are the Scottish Executive, Glasgow City ■ SE is also working with Glasgow Council, Renfrewshire Council, City Council and South West Dunbartonshire Council Lanarkshire Council to tap into and Inverclyde Council. By March the potential along an extended 2010, public investment of £39m M74 corridor to create the Clyde will have levered private Gateway which will open up investment of £227m. access to new development sites to the east of the city. Up to ■ The new BBC Scotland and SMG 21,000 jobs and 10,000 new homes HQs on Pacific Quay mark a are expected to be created as a major milestone for this huge result. During 2006 a partnership

34 Scottish Enterprise Annual Review 2006/07

Case Study Linking Opportunity and Need

Linking Opportunity and Need (LOAN)

Twenty job seekers from Fife took part in an innovative training programme to equip them with valuable qualifications and experience of the construction sector. Scottish Enterprise Fife’s Linking Opportunity and Need (LOAN) Construction pilot programme was geared to link employment opportunities created by major regeneration projects with local “The programme gave me the unemployed people. opportunity to prove that I could One trainee, 27- year-old Andy Beveridge from Anstruther had been work in construction. I was out of work for a couple of years before starting on Scottish Enterprise offered a position at Gilmartin's Fife’s LOAN programme. after two weeks of proving Andy was one of twenty trainees to participate in the programme. myself. I got a job out of it and that was the biggest thing for me.” Two construction contractors delivering Energy Park Fife and St Andrews World Class improvements for Scottish Enterprise Fife signed Andy Beveridge, LOAN trainee. up to provide places for job seekers interested in pursuing a career in the construction sector. Within a short time of working with construction firm Gilmartin's, Andy was offered a position with the company.

Delivering: Upskilling the labour supply to meet the demand in priority industries.

agreement was signed and plans space and 260,000 sq. ft. of retail announced to form an Urban space; create quality public open Regeneration Company (URC) to space and urban design coordinate regeneration throughout; establish a new activities in the area and deliver home for Edinburgh’s Telford key regeneration projects. A College; and provide a new business plan for the Clyde marina that will reinforce Gateway URC was submitted to Edinburgh's position as one of the Scottish Executive early in the world’s leading visitor 2007 and the first stage of destination. redevelopment is underway. ■ Over the past year, a Borders ■ The Waterfront Edinburgh Adventure Sports Strategy has project is one of Britain's largest been developed to promote the urban regeneration schemes and Borders as one of Europe’s is led by SE Edinburgh and Lothian leading destinations for activities and City of Edinburgh Council. such as mountain biking, diving, The project is transforming cycling and equestrianism. A key derelict, contaminated land priority is developing the right around Granton into a world- infrastructure required to class living and working increase the number of people environment. Over the next using the mountain bike tracks 10-15 years the project will create 9,400 new jobs; build 5,300 new homes; create over 1 million sq. ft. of commercial

35 at Glentress and Traquair form and the Scottish Executive is Forests. SE Borders has been considering what support can be working with partners and given to encourage new businesses already operating in international links in the future. the area to identify the potential of a permanent uplift facility, In addition to creating the which would enable the Borders conditions which allow businesses to compete with locations such in Scotland to grow, Scottish as Les Gets in France and Enterprise also seeks to attract Whistler in Canada. new investment to Scotland.

A major challenge faced by SE and Business support in the international all its partners in the area of arena is largely led by Scottish regeneration is ensuring Development International (SDI) disadvantaged areas and groups which is jointly operated by the benefit from this investment. This Scottish Executive and Scottish is achieved through a consistent Enterprise. SE’s network of application of the Linking overseas offices plays a vital role in Opportunity and Need (LOAN) this work through focused targeting approach for our Strategic and the development of strong Investment Plan and of other relationships. SDI attracts inward regeneration projects with investment to Scotland and also employment creation and economic promotes Scotland as an excellent development potential. place to live, work, study and do business. Business infrastructure is of course not confined to “bricks and mortar.” Increased investment in overseas staff in recent years is Scotland’s transport infrastructure demonstrating its value as Scotland is frequently cited by businesses as continues to prove a popular choice critical to their success, and while for businesses seeking to establish SE has no direct responsibility for operations in Europe with over a transport projects, we are involved third more R&D investments than in a number of ways. the UK and European averages coming to Scotland. Around one in One example of this is support for every seven inward investment new direct air routes for Scotland projects coming to Scotland through the Route Development involves R&D functions. In Scotland Fund (RDF) which was managed by the average project size is 30% Scottish Enterprise on behalf of the above the UK average. Scottish Executive. Six new routes have started during 2006/07 with This trend continued in 2006/07 announcements of a further three to with SDI securing 1,775 planned North America and five to Europe. high value jobs - defined as jobs in These provide underpinning research, design or development or support to industry growth in with a salary of 20% or more above Scotland, in particular to financial the Scottish average (which services, energy and tourism. Since equated to £29,159 in 2006/07). its inception in 2004, around 40 new While SE’s main focus is on high routes have been created with value jobs, this only tells part of the support from the fund. Due to story. Inward investment into changes in EU legislation, the fund Scotland was excellent last year can no longer operate in its present with a total of 59 inward investment

36 Scottish Enterprise Annual Review 2006/07

Case Study Inward Investment

Cellartis

Scottish Enterprise Tayside’s business growth and competitive place teams worked closely with Scottish Development International and ITI Life Sciences to attract Swedish stem cell company Cellartis to open a new R&D and manufacturing facility in Dundee creating highly-skilled jobs and enhancing Scotland’s reputation in the life sciences sector. The teams from Scottish Enterprise Tayside gave wide-ranging help “The team at Scottish Enterprise and support to the company – which secured Regional Selective Tayside presented a compelling Assistance - including securing the design and procurement of case for locating our company in appropriate laboratory space at McLaggan House at Dundee Medipark the city and continues to provide and interim accommodation at Dundee Technology Park. They also tremendous support as our gave practical help to Cellartis staff making the move from Sweden to project develops.” Scotland in terms of advice on a number of issues. Mats Lundwall, Chief Executive Officer.

Delivering: Creation of high-value jobs by inward investor.

projects in 2006-07 assisted by SDI, It is particularly rewarding to see with planned total investment of existing investors expand their more than £313 million creating or operations, as this is a strong safeguarding up to 7,500 jobs. endorsement of their original decision to choose Scotland. Among the new companies to Examples of this in 2006/07 include: choose Scotland in the last year are: ■ JP Morgan (Americas) expanded ■ Cellartis (Sweden) announced a its existing facility which is new investment to establish an a dedicated software provider for R&D and manufacturing facility JPM Chase globally. (200 new for human embryonic stem cell jobs all were high value). products and services. (Total jobs were 75 of which 65 were ■ Barclays (UK) established a high value). Global hub location for its Wealth Management Division (Total jobs ■ Ace INA Services UK Ltd were 500 new (35 high value) (Americas) created a new and 800 safeguarded (48 as centralised facility to handle its high value)). insurance operations for Europe. (Total jobs were 420 of which 41 ■ UPM Kymmene (Finland) is to were high value). invest £59 million in a new biomass combined heat and ■ First Data (Americas), a major power plant (CHP) at its provider of electronic commerce, Caledonian paper mill in Irvine, established a card management facility. (Total jobs were 433 of which 15 were high value).

37 Ayrshire. (10 new high value jobs There were over 8,000 new and 360 jobs safeguarded (159 registrations by individuals with key high value)). This project is of skills interested in working in major importance to the Ayrshire Scotland in 2006/07. economy. It will also make a significant contribution towards A survey of Talentscotland in targets for generating Scotland's 2006/07 highlighted the value energy requirements from placed on the service by users with renewable sources by 2010. 80% saying that the information provided by Talentscotland Attracting individuals from improved their views of Scotland overseas, including Scots who have and 73% report an improved succeeded abroad, is a highly perception of Scotland as a career effective way of boosting Scotland’s choice. Two thirds have already talent pool. The Talentscotland applied for a job and more than one initiative was set up to capitalise on in three say that they would not this by promoting Scotland as a have learned of the job opportunity desirable location in which to live without the help of Talentscotland. and work. Originally supporting high tech industries such as life sciences and microelectronics, it has added financial services during 2006/07. 2007/08 will see further diversification into the energy sector.

Case Study Inward Investment

IFSD/Barclays

Latest independent economic data reveals that Glasgow’s International Financial Services District (IFSD) is well on track to reach its target of attracting 20,000 jobs to the city. The research, carried out by EKOS for the economic development agency revealed that, halfway through its ten-year life, the project is on course to deliver promised jobs outputs and new accommodation Frank McGraham, Chief Operating Officer, comprising two million square feet of grade A office accommodation Barclays Wealth with Jack Perry, CEO, SE by 2011. “The unstinting support we have As it celebrates its fifth anniversary, the IFSD has been held up as a had clearly shows a lot of work success story for public and private sector partnership working and has gone in from agencies like SE has firmly put Glasgow on the map as a centre for financial services Glasgow to make this one of the expertise across the globe. UK top locations in this sector.” Ramsay Urquhart, Barclays Wealth.

Delivering: Building Glasgow as UK leader in financial services.

38 Scottish Enterprise Annual Review 2006/07

Delivering Our Plan Global Connections: Increasing Involvement in Global Markets

What we want to achieve Islands Enterprise’s area as SDI provides services for businesses According to the Scottish Executive’s across the whole of Scotland. annual Global Connections Survey, Scottish exports in 2005 were Nearly 260 companies attended estimated to be worth £18.6 billion 36 exhibitions, missions and fact- - up £0.9 billion on 2004 - with the finding trips around the world. In US continuing to be the top order to ensure companies get the destination for exports. China was most from this support, all events in the top 20 destinations for the and missions are carefully selected first time at number 13. to match the specific needs of the participants. Examples include: Pursuing new international markets can be a daunting task for Scottish ■ Bio 2006 – 20 Scottish companies so help is provided to organisations attended the supply additional resources and world’s biggest life sciences new skills, lessen risk and show in Chicago at which a new encourage them to take that step. Life Sciences Scotland brand was Support is tailored to individual unveiled. This demonstrated companies and focused on Scotland’s joined up approach to priority industries. developing the sector and for marketing to global investors and potential overseas partners.

What we delivered ■ The Great Wall World Renewable Energy Forum - six Scottish In 2006/07 625 organisations were renewable energy companies helped to internationalise, exhibited at a major international including 87 from Highlands and conference in Beijing for the first

Bio 2006 39 time ever as part of a renewable customers for their own energy trade mission to China innovative products or identify led by SDI. new products or processes which can help their own ■ 3GSM – SDI helped 40 productivity and competitiveness. organisations attend the world’s largest communications event ■ During 2006/07 12 companies with 1,300 exhibitors in Barcelona. were selected for the Global Companies Development ■ ESE - More than 100 companies Programme which accelerates and organisations from across the international growth of Europe, including 13 from emerging global companies Scotland, took part in an across a wide range of industries. international business event A further 10 companies hosted on the Scottish stand at completed the programme European Seafood Exposition during the year. The main focus 2006 - the biggest seafood is to build management team industry event anywhere in the capability, focusing on world. The event, organised by international vision and strategy. SDI in collaboration with IRC Organisations emerge with a Scotland, allowed companies business plan to becoming fully operating within the seafood globalised businesses. industries to identify potential

Case Study Global Companies Development Programme

Stirling University

The University of Stirling recently graduated from the Global Companies Development Programme which it used to develop its Internationalisation Strategy to enhance its recruitment of overseas students and to broaden both the number of countries from which they are drawn and the range of subject areas into which they are recruited. Dr Jim McGeorge, Director, Strategic As a result it produced an extensive action plan which identified where Planning and Governance, and Mari significant opportunities lay and set challenging objectives for future Thornton, Director, Communication activities. This had an immediate positive impact, with the University and Development achieving a 40% growth in overseas student numbers in 2007/2008, “In today’s global marketplace, bucking the UK trend. leading universities need to become increasingly outward looking. The Global Companies Development Programme helped refocus our international efforts, identify where future opportunities lay and how best to capitalise on them.” Professor Christine Hallett, Stirling University Principal & Vice Chancellor.

Delivering: International business opportunities.

40 Scottish Enterprise Annual Review 2006/07

Case Study Globalscot

10BaseCom

Attempts by Irvine-based 10BaseCom, which provides support services to several large electronics manufacturers, to meet world giant IBM had frequently failed until introduced to Globalscot Ian Crawford. Ian Crawford met 10BaseCom when he was on a visit to Scotland and that meeting saved the company months of work. He was able to Steve and Anne Brannagan confirm that IBM would be interested in the services they had to offer, “Our experience has been very and gave them the names and contact numbers of the people they good. I think that the network needed to speak to. As a result, 10BaseCom have developed a offers a fantastic opportunity for considerable amount of business with IBM. Scotland. Ian’s support was invaluable to us when we needed it most. He gave us some very good advice and made the necessary introductions, and the rest was up to us.”

Steve Brannagan, Managing Director, 10BaseCom.

Delivering: Access to influential international business people to realise growth ambitions.

■ SE’s energy team is supporting China, India and the Baltic states of the development of Subsea UK, Latvia, Lithuania and Estonia. As a the trade body for this key sub- result a number of companies who sector in which Scotland has a had not previously used the services market lead. There are now of SDI and the enterprise networks, almost 200 members with target attended trade missions to the markets including West Africa, Baltic and took advantage of the Brazil and the Gulf of Mexico. knowledge of SDI staff based overseas. Four companies which The need to highlight the attended an event in Aberdeen on opportunities available to Scottish opportunities in Canada have now businesses in specific overseas conducted business there. markets, as well as the services available from SDI and its partners The innovative Globalscot network, such as SCDI and Business Gateway which connects ambitious Scottish International, led to the roll out companies with influential business during 2006/07 of the Geographic leaders around the world who can Market Awareness Programme. provide advice, access and More than 500 businesses attended encouragement, now has over events across Scotland from the Borders to the Highlands and Islands, and countries covered included the USA and Canada,

41 900 members across all of In addition to the conference, SE Scotland's priority industries and ran a series of local events at which target markets. Globalscots from Scotland and overseas shared their expertise and To date Globalscot members have contacts with Scottish companies. helped thousands of Scottish Globalscot membership will organisations in areas such as the continue to increase, where development of business plans, possible in those priority industries access to new markets, strategic and key markets which are intelligence and a global currently under-represented. perspective. A recent evaluation of the programme identified over Scottish Enterprise also has an £28m of benefits to the companies International Advisory Board made taking part. up of senior international business figures from a variety of sectors A highlight of 2006/07 was the who provide guidance and advice on inaugural Globalscot Conference in international markets. Edinburgh in September, which resulted in around 1,700 business connections made between Scottish companies and Globalscots and between Globalscots themselves. Ninety-five per cent of Scottish companies taking part made new and important connections with Globalscots at the conference and of these 60% expect it to result in new business with at least one Globalscot. Estimates of the potential new business the conference is likely to generate go as far as £8m.

42 Scottish Enterprise Annual Review 2006/07

Delivering Our Plan Skills and Learning: Improving the Operation of the Labour Market and Developing People in Work

What we want to achieve Geography - addressing the local and regional variations in the Although more Scots are in work Scottish labour market. and are often working longer hours, our economy is not growing at the rate we would anticipate. What we delivered Developing the skills of the workforce and enabling business In 2006/07, SE supported 726 to use those skills more effectively companies to develop their to become more productive workforce and to support growth. depends not only on increasing the skills of young people entering the This included supporting the training labour market but also on improving of 4,500 adults through Modern the skills of those already working. Apprenticeship, the delivery of 170 programmes to support leadership In order to ensure SE was making a development, 161 companies to difference where it mattered a new achieve Investors in People Skills strategy was developed in recognition and support to 30 2006/07. This followed a review of companies across a range of priority our work in the skills arena and industries to attract and retain jobs consultation with other bodies as in Scotland. This individually tailored well as industry and business support ranges from training to representative groups. boost technical and craft skills through modern apprenticeships to The strategy recognises that leadership and ICT development. improving the skills of the workforce increases prosperity and productivity. Aligning skills programmes with Research shows that skills underpin the wider business and investment innovation, drive enterprise, unlock plans of growing Scottish companies investment and allow businesses to has also been a priority for 2006/07. adapt to competition. Thirty companies, across a range of The strategy identified three priority priority sectors, have been areas that need to be addressed to supported with an investment of grow the Scottish economy: £2m through Training Plus which supports training required to create Growth - skills interventions will or safeguard jobs in Scotland. These support the issues of competence, include BAE Systems in aerospace, culture, capability and capacity O2 in financial services, Lynch within businesses and industries, Quality Meats in food and drink. Groups - training for the Developing the rural workforce is economically inactive, young people an important part of SE’s work. and the exisiting workforce, and

43 Following a successful pilot in including 82 additional plumbing SE Borders and SE Dumfries and apprenticeships. More than 400 Galloway, Scottish Enterprise ran a adult Modern Apprentices have Rural Leadership Programme for 60 completed qualification and 338 individuals in four groups across the managers undertaken advanced Scottish Enterprise area to enhance skills training. In total nearly 16,000 leadership skills and improve construction workers have benefited understanding of the policy making from training through the action plan. process in the rural sector. In addition, a pilot project, Women In Agriculture, One way in which SE seeks to ran in Tayside and Grampian to improve the operation of the labour provide 30 women in farming with market is in providing better some of the business management information, advice and guidance on and practical skills necessary to emerging skills needs and trends improve business performance and to help businesses, individuals and exploit new business opportunities. educational authorities and institutions prepare for the future. The funding of £2.7m from SE Futureskills Scotland, (FSS) part of towards the creation of the Scottish Scottish Enterprise and Highlands Construction Centre was announced & Islands Enterprise, has carried in 2006. Its aim is to drive forward out the most extensive studies of innovation within the industry by employers in Scotland ever helping it modernise and act as a undertaken to chart their future needs platform for sharing information and works with Careers Scotland to and best practice. disseminate this information.

Last year an independent interim The Scottish Labour Market 2006 study of the £35 million Construction and labour market projections Skills Action Plan revealed that the to 2014 can be found at industry had delivered 800 new jobs www.futureskillsscotland.com

Case Study Modern Apprenticeship

Sheraton Grand Hotel and Spa

Sheraton Grand Hotel and Spa in Edinburgh introduced its Modern Apprenticeship programme with funding from Scottish Enterprise Edinburgh and Lothian five years ago in order to improve staff morale and increase productivity. Currently there are 15 employees studying for their MA qualification while working in the reception, housekeeping, food and drink service Dawn Stanley, Modern Apprentice departments within the hotel. The company has already supported “Working in partnership with 13 employees to complete the three year programme. SE Edinburgh and Lothian has By delivering the programme in-house, Sheraton has ensured that the benefited us greatly with funding vocational training meets the needs of its business and since its to support our commitment to introduction, the training programme has helped to improve customer training and development.” service and satisfaction as well as reduce staff turnover rates.

Elaine Morrison, Training and Development Manager

Delivering: A highly skilled and qualified workforce for a leading hospitality company.

44 Scottish Enterprise Annual Review 2006/07

Delivering Our Plan Skills and Learning: Best Start for Young People

What we want to achieve in a wide range of industries and Get Ready for Work which is a It is vital that young people develop vocational route into employment the skills and attitudes that will for young people with additional help them thrive in the workplace support needs. and become the entrepreneurs and employees of the future. These programmes show notable Central to this is fostering a ‘can performance improvements on do’ culture and equipping young 05/06 as a result of a people with the skills most needed reprioritisation exercise which in a growing economy. focused attention on training for young people. Scotland’s youth unemployment rate is 13.9%, 4.5 percentage points The number participating in higher than the best performing occupational training programmes OECD economies. However those funded by SE at the end of March aged 16-19 not in education, 2007 was 38,779. employment or training (NEET) is At the start of the year SE aimed to above the UK rate of 14%, and get between 15,000 and 18,000 of equates to some 36,000 young those in training to: achieve a people in Scotland. During 2006/07 formal vocational qualification; growing concern about the number move on to more advanced training; NEET led SE to increase its focus on or go in to employment, but actually 16-18 year olds. achieved 21,164 nearly 13% more than in 2005/06. What we delivered An evaluation of the Modern Apprenticeships and Skillseekers Scottish Enterprise supports over Programmes showed very 15,000 businesses and encouraging results with around approximately 40,000 trainees per 80 per cent of employers saying year through the three main that the training is good or national training programmes for very good. young people - Skillseekers, which offers vocational training for young The same number stated that people at the very start of their productivity had increased as a careers; Modern Apprenticeships result of involvement with the which train people to craft, training. In addition of every £1 technician and professional levels invested in the programmes,

45 Up to 2,000 engineering Modern Apprentices are projected to be recruited over the next decade by BAE Systems on the Clyde and Babcock Engineering Services at Rosyth.

£8.88 is levered from the private sector; completion rates for all three programmes has increased year on year and comparisons between Scotland and England continue to show significantly superior performance in Scotland.

The national training programmes are funded by Scottish Enterprise but delivered by independent training providers. During 2006/07 Scottish Enterprise carried out a single procurement exercise for the National Training Programmes (NTPs) for financial year 2007/08 to drive better performance and increase efficiency. Over the next two years we aim to drive achievement rates up from 67% in 2006/07 to 75% by 2010.

46 Scottish Enterprise Annual Review 2006/07

Delivering Our Plan Skills and Learning: Narrowing the Gap in Employment and Reducing Economic Inactivity

What we want to achieve What we delivered Adult unemployment in Scotland In 2006/07, Scottish Enterprise impacts upon the level of economic supported over 6,000 unemployed growth and our wider aspirations adults through the Training for for society. Employment rates in Work programme providing Scotland are at historically high training linked to job opportunities levels and unemployment rates in the local labour market. Over have fallen, however there are still 53% of Training for Work leavers pockets of high unemployment and subsequently entered a job and of some social groups remain those, 92% remained in significantly under-represented in employment three months later. the labour market. Scottish Enterprise has also Moreover, unemployment data participated in the development of hides economic inactivity where plans for the three City Strategy individuals, for a variety of reasons, pilot areas in Glasgow, Edinburgh are not in work. Over 600,000 and Dundee. The city strategy people of working age are currently partnerships are funded by the inactive in Scotland, over 100,000 of Department of Work and Pensions them in Glasgow alone. This level of and aim to reduce the number of inactivity contributes to social workless people claiming benefits. exclusion and acts as a barrier to The Training for Work programme growth. The causes of economic will provide the vocational skills inactivity are varied and complex. element of the support offered to Addressing them requires support, assist people back into work. advice and training focused around individual needs. The opportunity to boost the output of the economy through increasing the proportion in work is significant.

47 Delivering Our Plan Skills and Learning: Careers Scotland

What we want to achieve the world of work. Activities such as Science and Technology Matters Careers Scotland provides expert, and the Space School delivered impartial career guidance to help with partners like NASA have people of all ages to understand motivated over 16,000 young people today’s dynamic and changing to consider further learning and labour market, and make well careers in science, technology, informed choices about work, engineering and maths. learning and training throughout their working lives. During 2006/07, we also provided additional support to over 2,500 This work includes ‘a guarantee’, young people who, for various introduced during 2006/07, that all reasons, would find it more difficult statutory school leavers (S4 pupils) to achieve a successful transition receive a face to face consultation from school to training, further with a Careers Scotland Adviser education or work. For example before leaving school. over 80% of individuals who took part in our Activate project, which provides intensive support to small What we delivered groups of young people as they approach their school leaving date, From January of this year, and into consistently secure and sustain the first months of 2007/08, our work opportunities. staff provided one to one support to 96% of S4 school leavers The annual School Leaver (11,060 pupils). Destination Return carried out by Careers Scotland on behalf of the In meeting this ‘guarantee’ we were Scottish Executive each year tracks able to further develop our the progress of young people partnership working with schools leaving school – over 52,000. 84.7% and other agencies as well of young people leaving school in identifying and engaging young 2005/06 moved into work, learning people who require targeted or training. A follow up exercise in support to make a positive March 2006 showed that 96% of the transition from school. We will original cohort had sustained a evaluate the impact of our work in positive destination for six months. this area in the coming months. And for those young people who were not in employment, education In our wider work with schools, we or training (NEET) at the first survey, engaged with a total of 281,590 38% had progressed into pupils. This was achieved through employment, education or training one to one support and a range of by the time we followed up activities which aim to help young six months later. people to understand more about

48 Scottish Enterprise Annual Review 2006/07

A young person and Careers Scotland Advisor working together on a Career Plan of Action

Careers Scotland also aims to During 2006/07, we continued to make a clear contribution to provide access to our services and achieving a real reduction in the products in different ways and at number of 16-19 year olds who are different levels to meet the range of not in employment, education or needs presented by our very diverse training. As part of our focus on the customer base. NEET group, we engaged 28,000 unemployed 16-19 year olds. Of The refreshed website, launched in these, 11,361 individuals had more October 2006, has encouraged complex needs or faced a range of 7,500 new users to register each barriers to achieving success in the month, meaning more and more labour market, more than we had people are accessing on line tools anticipated. We supported 9,619 of such as CareersMatch and CV these individuals to improve their builder. Providing practical advice employability with over 7,000 and links to opportunities and other moving into employment, education labour market information, 83% of or training. 4,816 of these young users say that they will act on what people were sustaining a positive they have learned from using the outcome after three months. website. Over 22,500 on line CVs have been completed since The role and contribution of the January 2007. Career Scotland Key Worker in empowering the most disadvantaged Over 200,000 people of all ages young people to find and sustain sought our support to make employment, training and other choices about career development, opportunities is widely recognised. work, learning or training. The During 2006/07, our key workers opening of a number of new, high supported and engaged over 4,000 of profile Careers Scotland centres the most vulnerable young people.

49 such as those in Glasgow and ■ People who engage with us act Edinburgh city centres, helped us on what they have learned. achieve this, as has higher than Males under 20 returning the expected engagement with schools most positive response at 95.1% and young people in school. We also and males 20 and over the worked with over 6,000 more lowest response rate at 84.9%. unemployed adults, aged 20 years and over, as a result of improved ■ The greatest impact in our work partnership working and the is with males under 20, followed opening of our new centres. by females under 20, followed by females 20 and over and lastly A long term customer tracking males 20 and over. exercise involving 4,000 people of all ages was carried out during Lastly, we have continued to 2006/07. provide valued support to adults who are facing redundancy through Analysis has revealed that: involvement in PACE partnerships (Partnership Action for Continuing ■ The main reasons for contacting Employment) and through our Careers Scotland were to find Redundancy Advice Service. We out more about employment/ supported over 6,000 individuals in training/education opportunities this situation during 2006/07, with and to seek support to ‘plan a re-employment rate of over 74%. my future’.

■ Customer satisfaction levels were consistently high – over 90%.

■ People who engage with us learn from their experience – males under 20 recorded the greatest levels of learning at 96.7% and males 20 and over the lowest level of learning at 87.7%.

50 Scottish Enterprise Annual Review 2006/07

Delivering Our Plan Local Delivery Regional Priority Industries

Scotland’s regional industries – These regional industries are aerospace, chemicals, construction, supported by a lead Local forest industries, shipbuilding and Enterprise Company in the marine, and textiles – remain a focus geographic region where the for Scottish Enterprise in further industry already has a strong developing opportunities for presence, however the scope of Scotland’s economic growth. our support is Scotland-wide.

Regional Industry Update Aerospace Two major players in the aerospace sector were supported with their expansion (SE Ayrshire) plans at Prestwick. GE Caledonian is investing £28 million in its Prestwick operations, safeguarding the jobs of the current workforce and preparing the facility for the company’s next generation of jet engines. Goodrich is extending its facilities at the Aerospace Park and creating 250 new jobs. The report of the AeIGT (Aerospace Innovation and Growth Team - a partnership between UK government, academia and industry) and the resultant technology validation and innovation networks programmes are now being implemented. SE is also supporting activities in skills development, research and development and process excellence that respond to Scottish needs in the overall UK programmes. The Department of Trade and Industry (DTI) highlighted the sector’s challenges within their UK National Aerospace Technology Strategy (NATS) at an event in Glasgow hosted by SE which was the start of a series of events highlighting the changing technology landscape faced by aerospace and defence industries in Scotland.

Chemicals The Scottish Chemicals Regulatory Forum has been set up to improve the (SE Forth Valley) regulatory environment and help give Scotland a competitive advantage when attracting new projects. Working in conjunction with the industry, SE has assisted with the development of a Chemical Sciences Scotland initiative and brand to help promote the sector both in Scotland and internationally. A ‘roadshow’ which introduced Scottish Enterprise’s Proof of Concept Programme to university chemistry departments has generated three successful applications, the first ever applications with a chemical designation.

Construction An industry-led strategy is in place to drive improvement in Scotland’s (SE Glasgow) construction sector. ‘Achieving Construction Innovation and Excellence in Scotland’ is delivered by a partnership of SE, Highlands and Islands Enterprise and the Scottish Construction Forum. In 2006, plans were unveiled for a Scottish Construction Centre which aims to drive forward innovation within the industry by playing a key role in helping the industry modernise and acting as a platform for sharing information and best practice. 51 Regional Industry Update Forest Industries In line with the Forestry Cluster strategy to stimulate investment of £100m with (SE Dumfries & Galloway) 1,000 associated jobs by 2008, the annual rate of investment in Scotland’s forest industries has doubled. SE has assisted directly with several of the recently announced investment projects valued at £180m. These plans will safeguard and create substantial new employment in the industry well in excess of the jobs target. With several additional large scale investment projects in the pipeline – especially in the field of wood fuel, where current plans exceed £200m – expansion to meet increased timber production continues.

Shipbuilding/Marine This sector comprises two main elements, ship building and ship repair and (SE Glasgow) vessel management. An action plan for the Shipbuilding/Marine Sector, centred on future military ship programmes, especially the proposed new aircraft carrier for the Royal Navy, is now being implemented. Linked to this is SE’s Scottish Marine Technologies Training Project (SMTTP) to coordinate the activities of multiple agencies in the engagement, recruitment and training of the required workforce for the industry. SMTTP will also support the re-skilling of the shipbuilding workforce in the longer term to help meet the needs of related sectors such as naval ship refit, renewable energy, marine engineering and construction where there are identified skills shortages.

Textiles In February 2007 the Scottish Textiles team supported the launch (SE Borders) of the new industry strategy, which aims to build on Scotland’s long and distinguished history and reputation in producing high quality material whilst reinforcing its strengths in design and innovation. It has also worked with the industry to increase its international presence by participating in high profile events such as Dressed to Kilt at LA Fashion Week and Tartan Week in New York. Additionally, the team encouraged greater innovation in the sector by launching the Textiles Lab initiative in October 2006, which is supporting Scottish textiles companies to collaborate to design new fabrics or fashions.

52 Scottish Enterprise Annual Review 2006/07

Delivering Our Plan Local Delivery Local Enterprise Company Highlights

Scottish Enterprise Ayrshire

■ Business Gateway assisted ■ 2,263 individuals participated in ■ 30 businesses internationalised 625 businesses to start up. occupational training their activities. New business starts included programmes funded by SE. ■ SEA worked in partnership with 259 starts by women and 98 ■ 1,590 individuals achieved a North Ayrshire Council, starts from residents in positive outcome from training Communities Scotland and the disadvantaged areas. programmes funded by SE. Scottish Executive to help set up ■ Bespoke assistance was ■ 490 adults on SE funded and develop the Irvine Bay provided to 214 businesses with programmes were supported in Urban Regeneration Company. significant growth potential. a move into employment. ■ The Kilmarnock Regeneration ■ 10 businesses achieved business ■ 63 businesses implemented Strategy was finalised in benefits through environmental workforce development to partnership with East Ayrshire

SES programmes and significant support growth. IONS Council and we supported the

savings were recorded by eight T ■ A higher skills programme was proposed Kilmarnock College participants attending the launched through the local relocation. Ayrshire Environmental Construction Skills Action Plan ■ In partnership with South Management Group. through which 39 site Ayrshire Council a strategy was ■ The focus on Aerospace helped supervisors achieved their Level delivered to develop Ayr Town

WING BUSINES secure the planned expansion of 3 VQ in Site Supervision and Centre to support the growth of GE Caledonian and Goodrich. Management. OBAL CONNEC the regional tourism economy. GRO SKILLS AND LEARNING GL

Scottish Enterprise Borders

■ Business Gateway assisted 213 ■ 397 individuals participated ■ 20 businesses internationalised businesses to start-up, including in occupational training their activities. 99 new businesses by women. programmes funded by ■ As a result of delivering the ■ 47 businesses were supported to Scottish Enterprise. Network Strategic Investment make more effective use of ICT ■ 267 individuals achieved a Plan locally, SEB attracted to achieve business growth. positive outcome from training £6.55m additional investment ■ 10 businesses achieved business programmes funded by Scottish by working with our public and benefits through environmental Enterprise. private partners.

SES ■ ■ programmes. 76 businesses implemented IONS 8,112 sq m of business ■ 50 new ventures were supported workforce development T accommodation in high in rural areas. programmes to support growth impact projects was provided. and productivity. ■ 173 young people achieved a positive outcome from

WING BUSINES vocational training and development. OBAL CONNEC SKILLS AND LEARNING GRO GL

53 Scottish Enterprise Dumfries and Galloway

■ Business Gateway assisted ■ 511 individuals participated in ■ 12 businesses internationalised 320 businesses to start up. occupational training their activities. New business starts included programmes funded by SE. ■ 184 sq m of business 123 starts by women. ■ 479 individuals achieved a accommodation in high impact ■ Bespoke assistance was positive outcome from training projects was provided. provided to 70 businesses with programmes funded by SEDG. ■ Katalyst Projects Ltd was significant growth potential. ■ 19 graduates and established to take forward ■ 27 businesses helped to make undergraduates undertook ambitious plans to regenerate more effective use of ICT to projects with local companies. Gretna, Lockerbie and

SES achieve business growth. ■ 41 businesses implemented Annan area. IONS

■ 24 new ventures in rural areas workforce development to T ■ Stranraer Breakwater phase 1 were assisted which contributed support growth. contract was awarded. towards the diversification of the ■ 43 adults participated in SEDG rural economy. programmes which helped them ■ 11 businesses achieved business move into employment.

WING BUSINES benefits through environmental

programmes. OBAL CONNEC GRO SKILLS AND LEARNING GL

Scottish Enterprise Dunbartonshire

■ Business Gateway helped ■ 2,386 individuals participated in ■ 25 Dunbartonshire based 546 new businesses to start up, occupational training companies within priority of which 193 were started programmes funded by SE. industry sectors by women and 36 in ■ 1,216 individuals achieved a internationalised their activities. disadvantaged areas. positive outcome from training ■ Over 15,669 sq m of business ■ Intensive support was provided programmes funded by SE. accommodation in high impact to 87 businesses to improve their ■ 479 adults on SE funded projects was provided, business performance. programmes were supported including office space at ■ 14 businesses participated in in a move into employment, Clydebank and the Vale of Leven environmental activities to 137 of whom were in Industrial Estate. achieve business benefits disadvantaged areas. ■ Launch of the Loch Lomond including energy efficiency ■ 1,031 young people achieved Aquarium took place, typically measures which resulted in cost a Modern Apprenticeship, attracting around 500 or more savings of £357k. SES vocational qualification or visitors each day and confirming IONS

progressed to a job, further T Loch Lomond Shores as a education or training. premier visitor destination. ■ ■ Undertook 55 engagements Major progress was achieved at with businesses to develop Clydebank Waterfront with the their workforce and support completion in the summer 2007, business growth. of the Clydebank College building WING BUSINES

OBAL CONNEC and new enterprise centre. GRO SKILLS AND LEARNING GL

54 Scottish Enterprise Annual Review 2006/07

Scottish Enterprise Edinburgh and Lothian

■ Business Gateway assisted ■ 5,186 individuals participated in ■ 82 businesses internationalised 1,760 businesses to start up. occupational training their activities. New business starts included programmes funded by SE. ■ As a result of delivering our 785 starts by women and 124 ■ 2,317 individuals achieved a Network Strategic Investment starts from residents in positive outcome from training Plan locally, £45.4m additional disadvantaged areas. programmes funded by SE. investment was attracted by ■ Bespoke assistance was ■ 421 adults on SE funded working with our public and provided to 300 businesses with programmes were supported in private partners. significant growth potential. a move into employment. ■ 5,050 sq m of business ■ 36 businesses achieved business ■ 166 businesses implemented accommodation in high impact benefits through environmental workforce development activity projects was provided. programmes. to support growth.

SES ■ 53 knowledge transfer projects IONS

(collaborative ventures and T licences) were supported. ■ Business Gateway Edinburgh & Lothian reached the landmark number of 21,000 Start Up

WING BUSINES businesses, which it has helped

since 1991. OBAL CONNEC SKILLS AND LEARNING GRO GL

Scottish Enterprise Fife

■ Scottish Enterprise Fife invested ■ £6.8 million was committed to ■ 26 Fife-based businesses within around £3.5 million supporting skills development. priority industry sectors the growth of businesses in ■ 2,369 individuals participated in internationalised their activities. the region. occupational training ■ As a result of delivering our ■ Business Gateway assisted programmes funded by SE Fife. Network Strategic Investment 701 new businesses to start up. ■ 342 adult participants achieved Plan locally, we leveraged New business starts included a positive outcome from training £14.5m additional investment 313 starts by women and 50 programmes funded by SE Fife. by working with our public and starts from residents in ■ 1,476 individuals achieved a private partners. disadvantaged areas. qualification from an occupational ■ 7,000 sq m of business ■ Account Management service training programme funded by accommodation in high impact supported 70 businesses. SES Scottish Enterprise. projects was provided. ■ IONS T 15 businesses achieved business ■ 64 businesses implemented benefits through environmental workforce development to programmes. support growth. ■ 18 new ventures in rural areas contributed towards the diversification of the rural. WING BUSINES

economy. OBAL CONNEC SKILLS AND LEARNING GRO GL

55 Scottish Enterprise Forth Valley

■ Business Gateway assisted 613 ■ 1,550 individuals participated in ■ 29 businesses internationalised businesses to start up, which is occupational training their activities. a 7% increase compared to last programmes funded by SE. ■ As result of delivering our year. New business starts ■ 955 individuals achieved a Network Strategic Investment included 297 starts by women, a positive outcome from training Plan locally, £1.49m additional 5% increase from last year, and programmes funded by SE, investment was attracted by 19 starts from residents in almost double the number working with our public and disadvantaged areas. helped last year. private partners. ■ Bespoke assistance was ■ 276 adults on SE funded ■ 8,089 sq m of business provided to 141 businesses with programmes were supported in accommodation in high impact significant growth potential. a move into employment. projects was provided. ■ 27 companies achieved cost ■ 34 businesses implemented ■ Working in partnership with savings totalling = £806,504 with workforce development to Glasgow University, we have potential to realise a further support growth. contributed towards the building £96,000 through environmental ■ The Get Ready For Work costs of the Rowardennan programmes. programme helped 633 young Scottish Centre of the Natural ■ SES Rural Enterprise Facilitator Environment and Ecology. The

people across the Forth Valley IONS Programme was launched in area with 10 providers investing T building has achieved an March 2007. This is a £1.4m and securing a 58% "excellent" BREAM rating - multi-partner programme positive transition into the highest rating for the designed to encourage and Employment, Training and environmental sustainability support new business start-ups Further Education. of a building. and existing businesses in the WING BUSINES

rural areas of Stirling. OBAL CONNEC SKILLS AND LEARNING GRO GL

Scottish Enterprise Glasgow

■ Business Gateway helped ■ 9,938 individuals participated in ■ Over 61 organisations within start-up 1,156 new businesses. work-based training. priority industry sectors 429 were started by women and ■ Over 8,000 individuals internationalised their activities. 228 in disadvantaged areas. participated in Modern ■ 35,629 sq m of business ■ Bespoke assistance was Apprenticeships, with 2,400 accommodation in high impact provided to 145 businesses with completions during the year. projects was provided. significant growth potential. ■ 1,181 adults were supported into ■ Over £173m of additional ■ 57 knowledge transfer projects employment. 601 were from investment was attracted on site (collaborative ventures, licences) disadvantaged areas. in high impact projects. were supported. ■ 24,000 individuals undertook ■ The Hub Building at Nova

SES ■ 74 businesses made more training in the construction IONS Technology Park occupied by the effective use of ICT to achieve sector; over 10% of the Scottish T Wood Group creating 250 high business growth. workforce. value jobs. ■ The International Financial ■ 434 unemployed individuals ■ First private sector development Services District celebrated its were supported into full-time of 2,790 sq m started on Digital 5 year milestone. 13,000 new sustainable construction Media Quarter at Pacific Quay.

WING BUSINES jobs achieved to date. employment through the Construction Skills Action Plan. OBAL CONNEC GRO GL SKILLS AND LEARNING

56 Scottish Enterprise Annual Review 2006/07

Scottish Enterprise Grampian

■ Business Gateway assisted 938 ■ 2,059 individuals participated in ■ 103 High Potential businesses businesses to start up. New occupational training internationalised their activities. business starts included programmes funded by SE. ■ As result of delivering our 444 starts by women. ■ 1,277 individuals achieved a Network Strategic Investment ■ Bespoke assistance was positive outcome from training Plan locally, £2.84m additional provided to 265 businesses with programmes funded by SE. investment was attracted by significant growth potential. ■ 164 adults on SE funded working with our public and ■ 20 businesses achieved business programmes were supported in private partners. benefits through environmental a move into employment. ■ 2,400 sq m of business programmes. ■ 29 businesses implemented accommodation in high impact ■ ‘Celebrating Success’ customer workforce development to projects was provided. event attended by over 80 support growth. ■ Funding approval of Energy account managed businesses. ■ Leadership Development Development Centre ■ SES 11 knowledge transfer projects Programme delivered to senior contributing to the public- IONS

(collaborative venture, licences) management personnel from a T private venture to secure £25 were supported. range of companies with very million of new investment in positive feedback obtained. Aberdeen Science Parks. ■ Training for Work and Opportunity Gateway

WING BUSINES initiatives reduced local

unemployment gap. OBAL CONNEC GRO SKILLS AND LEARNING GL

Scottish Enterprise Lanarkshire

■ Business Gateway assisted 1,122 ■ 6,430 individuals participated in ■ The Lanarkshire Branding businesses to start up. New Scottish Enterprise’s project went from strength to business starts included 424 occupational training strength with the launch of starts by women. programmes. www.lanarkshire.com ■ Bespoke assistance was ■ 3,339 trainees moved into a ■ 60 businesses assisted to provided to 116 businesses with positive destination. internationalise their activities. significant growth potential. ■ An additional 31 businesses ■ Network Strategic Investment ■ A number of sustainable engaged in Workforce Plan attracted an additional environmental programmes Development activities to £7 million investment through delivered significant business support their growth. public and private partners. benefits to 11 companies. ■ More than 2,000 trainees ■ High impact projects benefited ■ Tailored support helped involved in Modern from the provision of 10,500 sq m companies launch and Apprenticeships. of business accommodation. implement 30 new products, services and processes. ■ Three successful business start­ SES

up companies were recognised IONS at the national Biggart Baillie T Innovation Awards. ■ A series of Knowledge Transfer events encouraged more collaboration between

WING BUSINES Lanarkshire businesses and the education community. OBAL CONNEC GRO SKILLS AND LEARNING GL

57 Scottish Enterprise Renfrewshire

■ Business Gateway helped start­ ■ 3,130 individuals participated in ■ 38 businesses assisted to enter up 647 new businesses of which occupational training new international markets. 237 were start-ups by women. programmes funded by ■ Delivering our Network ■ Bespoke assistance to 84 Scottish Enterprise (SE). Strategic Investment Plan, businesses with significant ■ 1,936 individuals achieved a attracted £1.8 million additional growth potential was provided. positive outcome from training investment by working with our ■ 5 businesses achieved business programmes funded by SE. public and private partners. benefits through environmental ■ 333 adults on SE funded ■ Riverside Inverclyde Urban improvement programmes. programmes were supported in Regeneration Company and ■ 3 knowledge transfer projects a move into employment. investment for initial projects

SES (collaborative ventures, licences) ■ 48 businesses implemented was launched. IONS

were supported. workforce development to T ■ The Glasgow Airport ■ The Hillington Park Innovation support growth. Development Framework and Centre goes from strength to Action Plan was approved by strength, resident companies local partners. doubled their sales turnover last year. WING BUSINES OBAL CONNEC GL SKILLS AND LEARNING GRO

Scottish Enterprise Tayside

■ Business Gateway assisted ■ 2,537 individuals participated in ■ 53 businesses internationalised 693 businesses to start up. occupational training their activities. New business starts included programmes funded by SE. ■ As result of delivering our 297 starts by women and ■ 2,521 individuals achieved a Network Strategic Investment 51 starts from residents in positive outcome from training Plan locally, £12.5m additional disadvantaged areas. programmes funded by SE. investment was attracted by ■ Bespoke assistance was ■ 169 adults on SE funded working with our public and provided to 122 businesses with programmes were supported in private partners. significant growth potential. a move into employment. ■ 4,590 sq m of business ■ 22 businesses achieved business ■ 23 businesses implemented accommodation in high impact benefits through environmental workforce development to projects was provided. programmes. support growth. ■ With SE Tayside assistance, ■ 6 knowledge transfer projects numerous mobile investment

SES (collaborative ventures, licences)

IONS projects chose Tayside as a were supported. T location creating over 425 new jobs and attracting private sector investment of over £42 million across a wide range of key sectors - including life

WING BUSINES sciences, digital media, tourism

OBAL CONNEC and financial services. GRO SKILLS AND LEARNING GL

58 Scottish Enterprise Annual Review 2006/07

Section 5 Customer First Putting the Customer at the Heart of the Business

Service Excellence Following the conclusion of this work the Network has been taking In November 2006, Scottish forward a programme of actions Enterprise underwent an including; voicemail practice, assessment to ensure that it handling of web enquiries, and continued to meet the Charter improving the SE’s complaints Mark standard, the government’s procedure. award for customer service excellence. From the assessment of particular note was SE’s continuing commitment to customer service: Listening to our Customers There is a strong emphasis Early in 2007 SE commissioned on putting the customer at independent research to gather customer views on SE’s the heart of the business; performance and service.

consultation with customers This research has been insightful and staff and listening to and has helped clarify a number of their views is well developed. important aspects that affect customers including; how we Good partnership working is manage expectations and how we “embedded in the way Scottish can better communicate what we do. Enterprise works and there is evidence that this is still improving. Services are provided in a flexible way, taking account of the choices, needs and preferences of customers. Staff at all levels in the organisation make a priority of good customer service. Charter Mark Assessor

” 59 Taking Action Equal Opportunities We continue to measure ourselves Ensuring equal opportunities against our Customer Charter for practices are embedded in all our our response times for telephone projects, programmes and policies calls, the payment of invoices, is a priority for SE. Every major and dealing with complaints. Our project has a mandatory results for the last two years are requirement to have an equality shown below. impact assessment carried out to ensure that any adverse effects on Our response times for 2005/2006* under represented groups are and 2006/2007*: identified and addressed. We also publish a separate Equal Telephone Opportunities annual report in (calls answered within 15 seconds) January which sets out our work in this area and highlights our 89% compliance with the public sector 2005/06 duties for race, disability and 90% 2006/07 gender. Our latest report can be accessed here: http://www.scottish-enterprise.com/ Invoices publications/equalopportunities (valid invoices paid within 30 days) report2006.pdf.

93% 2005/06 94% 2006/07 We want to hear from you We value and welcome customer Complaints feedback on any matter relating to (reply to complaints within 5 working days) our business and there are a number of ways you can do this: 98% 2005/06 ■ Comments can be made on 100% 2006/07 the Customer First section of our website at www.scottish-enterprise.com

*average figure for Local Enterprise Companies ■ and Atlantic Quay Business Units Call the Network Helpline 0845 607 8787.

We publish our results against our customer standards at regular intervals throughout the year on the Customer First section on our website. Copies of Customer Charter are available at our reception areas and online at: www.scottish-enterprise.com/ customerfirst

60 Scottish Enterprise Annual Review 2006/07

Accessing Our Services Getting in Touch

Scottish Enterprise provides a Our main aims are: range of products, services and ■ advice to our business customers partnership investments between and individuals in Scotland. These Scottish and other companies to services can be accessed through open new channels to markets, any of our main channels:. technologies and products. ■ increasing trade growth by encouraging the expansion of Business Gateway Scotland’s portfolio for first class exported goods and services to Web: www.bgateway.com new markets. Helpline: 0845 609 6611 ■ helping to strike licensing deals Business Gateway is a one-stop between Scottish and overseas shop for businesses in Scotland, companies and universities. whatever their size, allowing them ■ to easily access all publicly funded the attraction of direct investment, business support services. concentrating on research, design and development projects These services are aimed at both with high knowledge content. start-ups and existing businesses. They offer a wide range of support Scottish based customers can also including advice on issues ranging find out more about our international from planning and financing a new services through Business Gateway business, to managing human International – www.bgateway.com resources, to providing intelligence or 0845 609 6611. on sustainability, growth and internationalisation. Careers Scotland High quality online services can be accessed through the Web: www.careers-scotland.org.uk Business Gateway. Helpline: 0845 8 502 502 Careers Scotland provides a range of career planning services to people Scottish Development in Scotland – whatever their age, International background or circumstances. Careers Scotland works through Web: www.sdi.co.uk other organisations, including local Helpline: 0141 228 2828 authorities, schools, colleges, SDI is a joint venture between voluntary sector organisations and Scottish Enterprise, Highlands and businesses. The service also covers Islands Enterprise and the Scottish Scottish Enterprise Highlands and Executive. SDI helps business Island Enterprise. exploit Scotland’s key strengths in knowledge, high level skills, technology and innovations.

61 Scottish Enterprise Board Members

Scottish Enterprise Board Members are appointed by Scottish Ministers to be responsible for the overall direction of the organisation. The Executive Board, who report to the Chief Executive, implement policies and programmes to deliver network priorities.

Sir John Ward CBE Jack Perry Chairman Chief Executive

Frank Blin CBE Douglas Lamb Head of UK Regions, Managing Director Boxshop Ltd. PricewaterhouseCoopers. Chair of Scottish Enterprise Investment Committee and Co-investment Fund Chair.

Colin McClatchie Donald MacRae FRSE Former Managing Director, Scotland & Strategy and Finance Director, Lloyds TSB Ireland, News International Newspapers Scotland plc. Chair of Scottish Enterprise Ltd. Non-executive director of Beattie Performance Committee. Communications and Dunfermline Press Group. Chair of Scottish Enterprise Remuneration and Nominations Committees.

62 Scottish Enterprise Annual Review 2006/07

Pat Denzler Barbara Duffner OBE Former restaurateur and hotelier. Senior non-exec and Chair of Remuneration Past President, East of Scotland Committee Student Loans Company. Board Businesswomen’s Club. Member Judicial Appointments Board Scotland. Member of Court of University of Glasgow. Public Interest member of the Institute of Chartered Accountants Scotland. Holds other positions as chair of professional conduct Committees.

Fred Hallsworth Charlie Morrison Former Senior Client Service Partner, Former Vice President, IBM Europe, now Deloitte and council member, CBI. Chairman, Greenoak Solutions Ltd. Co-founder of the Cambridge Network and Chair of Scottish Enterprise Operations holds a number of TMC and Life Sciences and Finance Committee. non-executive director appointments. Chair of Scottish Enterprise Audit Committee.

Ray Perman Professor Timothy O'Shea, Chairs the Access to Finance Expert Group Bsc, PhD, FRSE, for the Department of Business, Enterprise Principal of University of Edinburgh. and Regulatory Reform and is Chair of Board member of ITI Scotland Ltd and Scotland Europa. Holds a number of non- the British Council. executive positions including Chair of Social Investment Scotland. Adviser to the Scottish Executive on Enterprise Education.

Executive Board Jack Perry Hugh Hall Chief Executive Chief Financial Officer Janet Brown Lena Wilson Managing Director, Industries Chief Operating Officer (stood down 23 March 2007) Charlie Woods John Phillips Director of Strategy and Managing Director, Corporate Services Chief Economist (stood down 29 June 2007) 63 Contact Addresses

The network of 12 local enterprise Scottish Enterprise Fife companies plays a crucial role in Kingdom House delivering the operational activities Saltire Centre of Scottish Enterprise. They all have Glenrothes a local responsibility for the areas FIFE KY6 2AQ they serve and form a key resource Tel: 01592 623000 for the network’s customers. Fax: 01592 623149 Direct Fax: 01592 623134.

Scottish Enterprise Scottish Enterprise Ayrshire Scottish Enterprise Forth Valley 150 Broomielaw 17-19 Hill Street Laurel House Atlantic Quay KILMARNOCK KA3 1HA Laurelhill Business Park GLASGOW G2 8LU Tel: 01563 526623 STIRLING K7 9JQ Tel: 0141 248 2700 Fax: 01563 543636 Tel: 01786 451919 Fax: 0141 221 3217 Fax: 01786 478123 Scottish Enterprise Borders Bridge Street Scottish Enterprise Glasgow GALASHIELS TD1 1SW Atrium Court Tel: 01896 758991 50 Waterloo Street Fax: 01896 758625 GLASGOW G2 6HQ Tel: 0141 204 1111 Scottish Enterprise Dumfries Fax: 0141 248 1600 and Galloway Solway House Scottish Enterprise Grampian Dumfries Enterprise Park 27 Albyn Place Tinwald Downs Road ABERDEEN AB10 1DB DUMFRIES DG1 3SJ Tel: 01224 252000 Tel: 01387 245000 Fax: 01224 213417 Fax: 01387 246224 Scottish Enterprise Lanarkshire Scottish Enterprise Dunbartonshire New Lanarkshire House 2nd Floor, Spectrum House Dove Wynd Clydebank Business Park Strathclyde Business Park Clydebank BELLSHILL ML4 3AD Glasgow G81 2DR Tel: 01698 745454 Tel: 0141 951 2121 Fax: 01698 742183 Fax: 0141 951 1907 Scottish Enterprise Renfrewshire Scottish Enterprise Edinburgh 27 Causeyside Street and Lothian PAISLEY PA1 1UL Apex House Tel: 0141 848 0101 99 Haymarket Terrace Fax: 0141 848 6930 EDINBURGH EH12 5HD Tel: 0131 313 4000 Scottish Enterprise Tayside Fax: 0131 313 4231 Enterprise House 3 Greenmarket DUNDEE DD1 4QB Tel: 01382 223100 Fax: 01382 201319

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