BUILDING SCOTLAND’S SCOTTISH ENTERPRISE’S STRATEGIC FRAMEWORK FUTURE TODAY 2019 - 2022
Scottish Enterprise Building Scotland’s Future Today 1 Scottish Enterprise Building Scotland’s Future Today 02 Content
FOREWORD 04-05
IN SUMMARY 06
INTRODUCTION 07-08
STATE OF THE NATION 09-12
FACING INTO HEADWINDS AND UNPRECEDENTED CHANGE 13-15
ENABLING SCOTLAND’S ECONOMIC SYSTEM TO RESPOND 16-23
TRANSFORMING SCOTTISH ENTERPRISE 24-29
OUR FUTURE PLANS 30-47
OUR VISION, PURPOSE AND VALUES 32-33
OUR THREE-YEAR CORPORATE STRATEGY 34-40
OUR 2019/20 OPERATING PLAN 41-47
2019/20 TARGET RANGE 48-50
Scottish Enterprise Building Scotland’s Future Today 03 Foreword
cross the world the definition of economic In recent years, we have focused more on supporting But Scotland, along with many other developed Asuccess is changing. We’re seeing a shift in the a segmented group of businesses and favoured countries, continues to struggle with an uneven mindset of successful nations as they no longer sectors, but we now need an emphatic shift back spread of economic success across its diverse seek only to create wealth; they distribute wealth so towards our original purpose and to make sure we are communities. Deprivation and affluence are all that success and happiness is shared by everyone. playing our part to deliver for the whole economy; too often uneasy bedfellows; persistent, regional working with business to create more, quality jobs pockets of low employment and too few businesses Wellbeing shares centre stage with sustainable that help reduce poverty and support businesses, realising their growth potential are damaging and inclusive economic growth in the Scottish communities and families across Scotland. wellbeing in parts of Scotland. In fact, despite Government’s new National Performance Framework. all of Scotland’s strengths and comparative A powerful statement of national purpose. To do that we need to do three things: build advantages, it is ranked 21st out of the 36 OECD economic resilience; invest in growth; and address countries when it comes to income equality. As Scotland’s national economic development agency, the long-term opportunities and challenges facing Scottish Enterprise must be at the heart of realising our economy. We cannot do this alone. It’s essential These challenges, alongside a complex global this ambition. To do that we need to transform that we work with others, most notably our partners economy, the unknown impact of Brexit, and the the way we work and to remind ourselves why we on the Enterprise and Skills Strategic Board, but impact of automation and artificial intelligence, were created almost three decades ago: to develop also with other stakeholders, with our business mean that more of the same economic Scotland’s economy and create and protect jobs. partners and with our customers, to build a better, development will, at best, deliver more of the same fairer future for all. And we need to do that with economic outcomes. And inequalities will remain. continued humility, empathy and sensitivity. This means the time is right for a new approach. Scottish Enterprise has served Scotland well An approach that taps into Scotland’s past to in recent years in supporting the Scottish build a brighter future today. Government’s Economic Strategy. We’ve worked to secure a reputation as a location of Although a small country, Scotland has centuries choice for significant inward investment and of experience of packing an impressive punch grown exports in lucrative overseas markets. when it comes to economic success. THE TIME IS RIGHT FOR A NEW We’ve also helped build home-grown success APPROACH. AN APPROACH THAT in areas such as robotics and informatics. TAPS INTO SCOTLAND’S PAST TO BUILD A BRIGHTER FUTURE TODAY.
Scottish Enterprise Building Scotland’s Future Today 04 Foreword
As one of the original industrial powerhouses, we We are proud to stand with these companies. have long been a nation of thinkers and innovators, To be the difference together. Likewise, we need our inventions and ideas embraced across the globe. to work hand in hand with partners and friends From whisky, shipbuilding and penicillin, to who share our vision, rallying together in a more television, jet engines and nano satellites, Scotland open and collaborative way so we can maximise has a deep history of innovation that has provided opportunities and tackle the big challenges. the foundation of much of the modern world. We need to be as entrepreneurial as the people and Scotland continues to have the potential to make businesses we support. We need to be a business a big impact on the world stage. Its reputation that moves quickly, questions how things are done is growing as a place to do business – not just and takes brave, insight-driven and evidence-led because of the skills, talent and resources at our decisions to make new things happen. We need to disposal – but because of who and what we are: clearly understand what we do and how we do it, and innovative, progressive, welcoming and dynamic. ensure we have the right culture, talent and skills that foster a new way of working, to deliver for the Businesses of every size in Scotland – from those economy in the short-term while being ready for that are home-grown to those that have chosen to the changes that will be needed in the long-term. locate here – all recognise there is an opportunity to be part of a growing economy that does things The importance of a successful economy cannot be differently. To contribute to sustainability, overestimated. We want all of Scotland’s children, equality and wellbeing while growing their business. and their children, to have the future they deserve. To give something back. To be kind and do good. A future where every community, every family, and every individual benefits from economic success.
We are Scotland’s national economic development agency – building Scotland’s future today. TODAY SCOTLAND HAS THE POTENTIAL TO MAKE A BIG IMPACT ON THE WORLD STAGE.
Steve Dunlop Chief Executive Vascutek
Scottish Enterprise Building Scotland’s Future Today 05 In summary
The ambitious plans set out in our Strategic Framework include: Why this is important:
A stronger focus on creating and protecting quality jobs which One in five people working in Scotland earn less than the real living wage and give people opportunity, security, fulfilment and respect, and a third of part-time workers are low paid. nurtures shared wealth and collective wellbeing. 35% of the working age population live in local authority areas with below Making job-related grants contingent on fair work practices, Scottish average employment rates. including job security and payment of the real living wage. Scotland’s productivity lags most other small advanced economies, Stronger partnerships working to target more investment in the reducing the ability of businesses to raise wages. places where it can make a significant difference to communities and reduce geographical economic inequalities. Scotland needs 70,000 more businesses, 7,000 more exporters and 100 more high-growth businesses to match the best-performing UK regions. New measures to raise the growth ambition of all businesses and boost entrepreneurial spirit across all parts of society. Less than half of Scottish businesses with 10 or more employees invest in innovation.
Redesigning our approach to business support and relationship Although we’re ranked 16th out of 50 countries for international reputation we are management so that access to information, advice and funding is associated with less modern attributes that are less attractive to investors and talent. easy and joined up across the business support system. Scotland’s business base is becoming less resilient – corporate insolvencies Building on the initial success of Brand Scotland to strengthen Scotland’s are almost 10% higher over the past year. international reputation for exports and inward investment, and to open up Scotland to a new generation of talent and global innovators who want to work Only by working collectively with partner agencies, will we help Scotland to move towards with us to address big future economic opportunities and challenges. the top quartile of OECD countries for productivity, equality, wellbeing and sustainability.
Dedicated resources to proactively identify and manage businesses in distress so that Over the next year our plans will: we can intervene earlier with partners to mitigate the impact of economic shocks. Create or safeguard up to 10,500 jobs paying at least the real living wage. Stronger partnerships and new ways of working to achieve shared outcomes with the Strategic Board and our partner agencies. Enable up to £300-£350 million of R&D investment in research and development and up to £200 million of capital investment.
Help businesses to raise growth funding of up to £255 million.
Support international exports worth up to £1.5 billion.
Scottish Enterprise Building Scotland’s Future Today 06 Introduction
Scottish Enterprise Building Scotland’s Future Today 07 Introduction
This Strategic Framework sets out our Our Framework ambitions for the future of Scotland’s is set within the economy and how we will transform the way context of Scotland’s we work – including how we work with others overall economic – to achieve our ambitions. It outlines: agenda – the Scottish Government and The economic context in which we operate, and Enterprise and Skills the opportunities and challenges this presents. Strategic Board’s vision of creating a more The partnership model we work within. successful country with opportunities Our new vision, purpose and values. for all of Scotland to flourish through Our detailed three-year Corporate Strategy increased wellbeing, and one-year Operating Plan, and how we and sustainable will measure progress against these. and inclusive economic growth.
To ensure our Framework delivers effectively, we have worked closely with our agency partners to develop a shared understanding of the environment in which we operate and the outcomes we are pursuing.
STRATEGIC PARTNERSHIPS ARE VITAL IF WE ARE TO BE SUCCESSFUL IN INCREASING SCOTLAND’S PRODUCTIVITY LEVELS, DELIVERING SUSTAINABLE, INCLUSIVE ECONOMIC GROWTH AND CREATING SKILLED JOBS.
Shona Struthers Chief Executive, Colleges Scotland
AxisShield
Scottish Enterprise Building Scotland’s Future Today 08 State of the nation
Scottish Enterprise Building Scotland’s Future Today 09 State of the nation
e know that global economic events We need to build on our successes to create a Wwill continue to have an impact on our more resilient economy with greater business economy over the next three years. The Scottish dynamism and growth ambition. To make this Government’s State of the Economy report tells happen we want to encourage and support more us that economic growth is expected to be slower businesses and sectors to trade overseas, to or relatively weak in many of our key markets – be more innovative, to invest more in people including Europe, the USA and the rest of the UK. and capital, and to access growth funding. We At the same time, we expect growth in Scotland need to learn from and aspire to match the to slow down as a result of low productivity and performance of other small, successful, advanced a reduction in the working age population. economies, such as Switzerland, Norway and Ireland, on the drivers of growth and productivity. Despite this, the labour market is performing If we can achieve that in businesses and sectors well. Scotland’s population is highly qualified across all of Scotland, we can create more and and employment is at a record high with better jobs, and a wealthier, fairer economy. unemployment at a record low.
This creates its own challenges, however:
Skills shortages for some businesses and sectors
Unequal access to the best job opportunities IN TIMES OF INCREASED ECONOMIC UNCERTAINTY, SCOTTISH ENTERPRISE’S ROLE THROUGH ITS Overqualified workers whose talent is not fully utilised SUPPORT AND INTERACTION WITH THE BUSINESS
Low wages caused by low BASE IS CRUCIAL IN ENABLING AND SUPPORTING productivity, and vice versa BUSINESS TRANSFORMATION, RESILIENCE AND However, Scotland is still one of the most ULTIMATELY ECONOMIC SUCCESS FOR SCOTLAND. attractive locations in the UK and Europe for inward investment, thanks to our skills, Gary Gillespie Chief Economist, Scottish Government talent and knowledge. And, there are still significant opportunities for Scottish businesses to sell their goods and services overseas.
EC-OG Energy
Scottish Enterprise Building Scotland’s Future Today 10 State of the nation
Scotland’s economy could be £50bn bigger if we could match
Scottish Enterprise Building Scotland’s Future Today 11 State of the nation
INWARD INVESTMENT
SCOTLAND PERFORMS WELL IN INWARD INVESTMENT Helped by a combination of high workforce quality, supportive business environment and world-leading research
Total number of Leading UK location projects secured outside of London for last year remains global investment higher than any for the sixth year year prior to 2015 out of seven
Scottish Enterprise Building Scotland’s Future Today 12 Facing into headwinds and unprecedented change
Scottish Enterprise Building Scotland’s Future Today 13 Facing into headwinds and unprecedented change
rexit represents a fundamental shift in the Central to our response is the Prepare for Brexit For some businesses, change will be a trigger Brexit Beconomic landscape which will impact on Scotland’s campaign (www.prepareforbrexit.scot) which for them to look at previously unconsidered businesses, sectors, communities and people. aims to support more companies to actively opportunities. New and existing exporters may develop and implement their own Brexit plans. look to access different global markets, employers We want to help Scotland’s businesses plan so they can may invest in workforce development to address adapt to this new landscape. We want them to maintain As we challenge companies to adapt and remain skills gaps, while others may broaden their and grow their competitiveness in the face of both the flexible in their planning for the future, it is vital that recruitment plans to hire talent from new sources. ongoing uncertainty and the longer-term consequences. we are not complacent about the potential nature and scale of the economic implications of Brexit. Our In addition, EU policy and regulation will still shape our We have been working with partners across the enterprise Operating Plan is agile and able to adapt to changing future business environment, regardless of the outcome and skills system, including the Scottish Government, circumstances. In addressing the shorter-term of Brexit. We will continue to work in partnership Business Gateway, and a range of industry bodies, to impact of Brexit, we are also focused on meeting with Scottish Government and other stakeholders mitigate the impact Brexit will have on businesses. our long-term goals for Scotland’s economy. on EU policy engagement and to gather intelligence to support our approach to economic development. We are putting in place support to enable growth businesses and sectors to anticipate and manage We will still actively engage in European networks and economic change, and to benefit from sources build relationships with others beyond our borders to of growing global demand. It is also why we are secure Scotland’s position and influence. We will be determined to help businesses become more generous in sharing our learning and expertise with resilient, coping with short-term challenges others to secure ongoing Scottish engagement in policy while also investing in people, technology and and funding developments that create opportunities markets that will pay dividends over the longer-term. for businesses, universities, colleges and communities.
BY WORKING CLOSELY TOGETHER HERE AND ACROSS OUR INTERNATIONAL NETWORK OF INVESTMENT AND INNOVATION HUBS, SCOTTISH GOVERNMENT, SCOTTISH ENTERPRISE, AND OUR PARTNERS CAN SUPPORT INCLUSIVE GROWTH IN SCOTLAND. Mike Neilson Director, Scotland House Brussels
Scottish Enterprise Building Scotland’s Future Today 14 Facing into headwinds and unprecedented change
Brexit is not the only major global event that Climate change is one of the biggest risks to GLOBAL will influence the long-term shape of our the future resilience of the global economy. economy. Although we know change can bring A move to a low carbon world economy TRENDS uncertainty, many of these trends also present new could deliver huge economic growth and job- opportunities for Scotland to take advantage of. creating benefits for innovative businesses.
The world’s population is getting older, with We have a critical role in shaping and delivering the number of people aged over 60 expected Scotland’s response to this fast-changing to double globally to two billion by 2050. In environment. This is the time to be brave in Scotland we expect the number of those in the our thinking. We must build resilience and traditional working-age to decline by around ensure we realise new opportunities as they 150,000 over the next 20 years. At the same arrive. We need to innovate our way into new time, it’s predicted that the number of people economic territory. And we must be confident aged over 65 years will increase by more than in our ability to work together to do so. 400,000. This will bring opportunities to develop and create new markets, products and services for healthy, productive and active ageing.
Similarly, rapid changes in technology present significant opportunities. And although artificial intelligence, robotics and other forms of THE GLASGOW CITY INNOVATION DISTRICT automation will replace some employment, these technological changes have the potential to boost IS ESTABLISHING AN INTERNATIONAL the global economy by over 25% by 2030 while EXEMPLAR FOR THE CREATION creating new types of quality jobs. We must take advantage of this to drive new jobs in high AND CO-PRODUCTION OF NEW skilled industries, for example, applying these new technologies to transform the competitiveness TECHNOLOGIES, IDEAS AND COMPANIES. of Scotland’s high value manufacturing sector. Prof Sir Jim McDonald University of Strathclyde/ Glasgow City Innovation District
ROVOP
Scottish Enterprise Building Scotland’s Future Today 15 Enabling Scotland’s economic system to respond
Scottish Enterprise Building Scotland’s Future Today 16 Enabling Scotland’s economic system to respond
e have a clear ask from the Scottish At the centre of the government’s aspirations is The Scottish WGovernment to help deliver its purpose and a Fair Work First approach, which recognises that long-term aspirations for Scotland’s economy. successful economies put fair work practices at Government’s the heart of everything they do. This is key if we It has set out its direction and guidance for are to create vibrant economic communities and Economic Agenda this in three main documents, its Programme more quality jobs in every part of Scotland. for Government, Economic Action Plan and Enterprise & Skills Strategic Board’s Strategic Each of these documents recognises the role Plan, along with more recent guidance on plans Scotland’s enterprise and skills system plays in for growing exports - A Trading Nation. creating the right environment to build a strong, inclusive and diverse economy, and crucially, one that promotes wellbeing and attracts investment. They also provide important strategic context which is reflected in our own plans.
SCOTLAND’S KEY RESOURCE IS ITS PEOPLE. FAIR WORK CREATES THE CONDITIONS WHERE PEOPLE’S SKILLS, TALENTS, INGENUITY AND COMMITMENT ARE DEPLOYED OPTIMALLY, TRANSFORMING PEOPLE’S WORKING LIVES AND BEYOND; BUILDING HIGH PERFORMING, INNOVATIVE BUSINESS ORGANISATIONS; AND CREATING AN INCLUSIVE, SUCCESSFUL AND SUSTAINABLE SCOTLAND. Professor Patricia Findlay Co-Chair, Scotland’s Fair Work Convention
Miller Fabrications
Scottish Enterprise Building Scotland’s Future Today 17 Enabling Scotland’s economic system to respond
he Enterprise and Skills Strategic Board has Enterprise & Ttasked the enterprise and skills agencies with The Board’s policy missions are: collectively helping Scotland move towards the Skills Strategic top quartile of OECD countries for productivity, Future Skills Needs equality, wellbeing and sustainability. Building a more demand-led skills system that better responds to the current Board and future skills needs of employers and individuals. Achieving this ambition would mean more Business Creation and Growth spending power for individuals, improved Creating a nation of dynamic and high achieving entrepreneurs, with a focus on business competitiveness and profits, inclusivity, and provide a new structure of support for business scale-up. and consequently higher tax revenues to help fund better public services. Business Models and Workplace Innovation Harnessing the full potential of progressive business models, workplace innovation The Board’s Strategic Plan outlines how a joint- and fair work to enhance productivity, equality, wellbeing and sustainability. agency approach can help towards achieving Exporting this shared ambition for Scotland. Over the WE’RE DELIGHTED Increasing export growth by increasing the number of exporters, next three years, we will further collaborate including greater reach at regional level, and the value of exports. with Highlands and Islands Enterprise, Skills TO BE WORKING Development Scotland, the Scottish Funding Identified within the Strategic Plan, Scottish Enterprise has Council and the new South of Scotland COLLABORATIVELY WITH a specific role to play in: SCOTTISH ENTERPRISE Enterprise Agency to develop this approach. Developing a single business portal. TO FORGE STRONG The Strategic Plan and the Scottish Government’s Economic Action Plan both identify initial Promoting progressive business models and innovative work practices. RELATIONSHIPS, actions for the agencies to take in pursuit of our shared vision. Our commitment to deliver INTERNATIONAL Delivering with partners a national exporting service, these is reflected throughout our plans. using Scotland is Now branding. CONNECTIONS, The Board’s Strategic Plan includes four Using our data and digital capability to align agency offers SUCCESSFUL INNOVATION, separate policy missions, which the agencies and enhance services to customers. AND THE FUTURE will work towards collaboratively. Encouraging and enabling a shift to a more demand led skills system that SKILLS NEEDED FOR better responds to the current and future skills needs of individuals and ECONOMIC PROSPERITY. supports companies to grow, innovate and export.
Karen Watt Chief Executive, Scottish Funding Council
Scottish Enterprise Building Scotland’s Future Today 18 Enabling Scotland’s economic system to respond
This table shows how the agencies will collaborate STRATEGIC BOARD ACTION HIE SE SDS SFC and contribute towards achieving the actions Establish a campaign to foster entrepreneurship and ambition across society, with particular and recommendations focus on inclusivity (inc. women, minority ethnic groups, rural considerations etc). set out in the Strategic Board’s Strategic Plan. Create a main online entry point as part of a wider transformation to a truly digitally- enabled business support service providing rapid, tailored support. In taking these activities forward, we are Boost overseas acquisitions through specialist support for scale up from a new public/private/ SNIB collaboration. developing new forms of joint decision-making Co-ordinate a national exporting service – a one Scotland approach to export delivery organisations and services. and ways of working with our partner agencies. Explore new public/private sector partnerships which will provide support to scale-up, and refresh export support resources.
Develop digital, sales and international language training programmes for exporters.
Deliver an ‘Innovating Workplaces’ campaign to create awareness of productivity issues of business models, workplace innovation and Fair Work.
Utilise data-led approaches to proactively identify and support sectors and firms who can exploit opportunities for growth or to enhance their resilience.
Co-ordinate a programme of business models and workplace innovation activity that is driven by agency-fluid teams.
Implement the 5-stage skills alignment model and a one system approach for learners and employers.
Define the meta-skills for use in future skills provision.
Review greater scope for working with Business Gateway, specifically the best way to support start-ups.
Build on existing Brexit readiness work to strengthen Scottish-level response.
Support Scotland’s businesses response to challenges by levering maximum funds from the Industrial Strategy Challenge Fund.
Scottish Enterprise Building Scotland’s Future Today 19 Enabling Scotland’s economic system to respond
The Board’s Strategic Plan’s actions have new In support of the Strategic Board’s Strategic Cross-agency ways of working and collective ways of working at their core. Plan, Scottish Enterprise aims to: These aim to ensure all agencies work together The enterprise and skills agencies are ambitious for Scotland. To achieve our to help companies reach their potential, Provide an uncluttered support environment shared vision and outcomes will require our collective efforts and resources. regardless of where they are in Scotland. with clear eligibility criteria, better Partnership working has long underpinned our work and values as an cross-agency working and effective organisation, however, we know that to achieve our vision and that of the At the heart of this activity is the customer. signposting and referral processes. Strategic Board, new ways of cross-agency working and deeper, more Businesses have been clear that they find it difficult meaningful collaboration will be not just desirable, but necessary. to access the right support at the right time and Simplify access to support by developing that they sometimes feel passed from pillar to common customer experiences supported This approach will see us working with the people who are best placed to achieve post. They report that even when they do engage by common business processes and our shared outcomes. We are already committed to cross-agency methods it can feel confusing and overly bureaucratic – maximising the use of digital technology. of working, including: or that they need to try to meet a set of criteria that is not relevant for them or their business. Use and share data more effectively to Supporting business adoption of innovative workplace practices. inform and improve service design, enable It’s clear that if we are to truly deliver for all of Scotland’s intelligent targeting of support and resources, Developing a single business portal. businesses we need to address this. So, we are working and facilitate assessment of impact. closely with Highlands and Islands Enterprise, Scoping the next phase of funding and development Skills Development Scotland, the emerging South Support the delivery of flexible and of the Innovation Centres. of Scotland Enterprise Agency and Business tailored solutions alongside new Gateway, to make it more straightforward for universal products and services. Delivering the Prepare for Brexit campaign. customers to access the help, funding and advice we provide. Together we are developing an intuitive The overall strategic context provided by the The increased focus on cross-agency collaboration will not detract from our and straightforward customer experience for the Scottish Government and the Strategic Board is existing reliance on partnership working at national, regional and local levels. tens of thousands of businesses and employers reflected throughout our three-year Corporate We remain fully committed to joining our combined strengths, expertise who come into contact with us each year. Strategy and our one-year Operating Plan. and resources to achieve the best outcomes for all our customers.
TOGETHER WE ARE DEVELOPING AN INTUITIVE, CLEAR AND EASY TO NAVIGATE SYSTEM FOR THE TENS OF THOUSANDS OF SCOTTISH BUSINESSES AND EMPLOYERS
Scottish Enterprise Building Scotland’s Future Today 20 Enabling Scotland’s economic system to respond
Delivering a sustainable Scotland’s Scotland’s and inclusive economy Enterprise & Skills Strategic Economic Economic Strategy Board’s Strategic Plan Agenda
Economic Action Plan; Programme for Government; Strategic Plan’s Mission Actions & Recommendations Fair Work First; Rural Economy Action Group Alignment & Collaboration Strategic Direction & Actions Strategic Board’s Performance Framework National Performance Framework Shared Outcomes
Desired Outcomes And Indicators Of Purpose: Create more, better jobs that nurture shared wealth and collective wellbeing National Wellbeing
Scottish Enterprise three-year corporate strategy: Scottish Enterprise one-year operating plan: Working with partners to create the conditions to build: Working with partners to drive growth through: 1. Vibrant economic communities across Scotland 1. Attracting, creating & protecting quality jobs and talent 2. Scotland’s reputation and reach 2. Driving research & innovation investment Scottish 3. Resilience and growth in Scotland’s businesses, 3. Stimulating capital investment Enterprise’s sectors and regions 4. Giving more businesses across Scotland the best chance Response 4. Future economic opportunities that will to fulfil their potential drive international advantage 5. Growing export value and exporters
Enabled By A Partnership Wider collaboration with public, private, academia and third sector to deliver priorities and shape future opportunities Approach
Scottish Enterprise Building Scotland’s Future Today 21 Enabling Scotland’s economic system to respond
e also need to look beyond our public sector Nurturing an entrepreneurial, aspirational Collaborating more Wpartnerships when it comes to collaboration. society that empowers every citizen with talent, There is a huge amount that others can and do ideas and passion to become tomorrow’s business widely to build our contribute. We need bold visions – ideas, innovation leaders, so that we can compete with other high- and a can-do approach to addressing some of our performing nations. In particular, democratising future economy biggest economic opportunities and challenges. entrepreneurship so that anyone feels able to start their own business regardless of where We want to bring together the brightest and best they grew up or where they were educated. minds from across Scotland – and beyond – to build a bright economic future. We will work with We need 70,000 more businesses, 7,000 others to develop a new approach to create a more more exporters and 100 more high growth resilient and thriving economy, building on our businesses to match the best UK regions. existing work around major economic opportunities and our track record in foresight and futures work. The scale, dynamism and ambition of the business base has limited Scotland’s We will also continue to build our engagement performance in innovation, investment, with EU partners, through Scotland House exporting and generating quality jobs. Brussels, Scotland Europa and its members. Scotland’s disadvantaged areas and groups will By pooling talent from the public, private, benefit from higher levels of entrepreneurship. voluntary and academic sectors, as well as UK and international partners, we can address some of the biggest issues we face, for example: IT IS PARAMOUNT THAT WE CREATE IN SCOTLAND THE PRECONDITIONS NECESSARY FOR A THRIVING ECONOMY IN THE 21 ICENTURY. Benny Higgins Strategic Advisor, Scottish National Investment Bank
BAE Systems
Scottish Enterprise Building Scotland’s Future Today 22 Enabling Scotland’s economic system to respond
Driving enterprise in low carbon Focusing on productive, healthy ageing to With the advent of the ‘fourth industrial By inviting others from around the world to innovation, recognising the huge bring more people in their 50s and 60s revolution’, building a human future that work with us to address these issues, we will benefits that could be realised from into quality jobs and purposeful activity. uses the opportunities and benefits of position Scotland as a pioneer in developing Scotland’s rich natural resources while Opportunities to invest in innovation that technology, automation and artificial solutions to global issues. We need new, contributing to the country’s world- allows older people to live a fuller life. intelligence to add to our humanity bold and brave approaches to tackle these leading climate change targets and and to create competitive advantage. issues. By working together with others addressing the climate emergency. The proportion of the population Growing industry to ensure technology across the globe and by sharing our data aged 65 and over is expected to is deployed to enhance human skills expertise and academic IP with the world’s Our low carbon industries have the rise from 19% to 25% by 2041. in quality jobs, not to replace them. innovators, Scotland has the potential to potential to grow to over £30 billion usher in a new era of open enlightenment; by 2027 and tap into global growth We have one of the lowest employment Up to 230,000 Scottish jobs could be becoming a world-leading international of over $30 trillion by 2040. rates in the UK for people over at risk from automation but our strong research hub and attracting investment 65, increasing downward pressure expertise in robotics, informatics and in products that fuel inclusive growth. Climate change is the biggest challenge on the working population. data provides potential for new jobs. facing the planet and Scotland can be at the The input from our business community forefront of tackling this global mission. Matching countries like Sweden would mean Automation will transform the workplace will be key here. We need to engage 200,000 more people in employment – while only 5% of roles could be fully with businesses more effectively to We can position Scotland as a force and an extra £8 billion in the economy. automated today – 60% of jobs involve ensure our activity is relevant to them. for global development, building on tasks that could be automated. We want to tap into their experience successes such as the hydro nation The challenge will open up opportunities and know-how, so we can collectively partnership with Malawi and India. for innovation in products and services in Automation can also transform develop the very best solutions to current areas such as health, housing and care. productivity and job quality – if the economic opportunities and challenges. UK invested at the same level of leading countries, manufacturing productivity could increase by 22%.
Robot density in the UK (71 robots per 10,000 employees) make it the only G7 country below the global average.
Create high quality jobs and build international reputation by capitalising on Scotland’s strengths in data analysis and insight.
Scottish Enterprise Building Scotland’s Future Today 23 Transforming Scottish Enterprise
Scottish Enterprise Building Scotland’s Future Today 24 Transforming Scottish Enterprise
s a small nation with huge potential, we need Fairness, empathy and integrity will be at our core Ato be ready to face the challenges ahead while so we can deliver in a way that is both inclusive The challenges in the For the first time, most households living in being in the best position possible to exploit the and long-term. We will embrace change and not economy are evolving: poverty have at least one person in work. 65% of new opportunities that these changes present. be afraid to take calculated risks. And we will children in poverty live in a working household. celebrate success and learn from our mistakes. This means Scottish Enterprise needs to adapt 1 in 5 people working in Scotland earn less to support this economic change. We need to Our programme of change is guided by this than the real living wage. A third of part-time make the same ask of ourselves as we do of the Strategic Framework. It sets out our new workers are low paid and over half of young businesses we support – to be able to respond vision, purpose and values, along with our people (18-24) earn below the living wage. quickly to challenges, embrace opportunity ambitious three-year Corporate Strategy, and makes thing happen. As a result we are and our priorities for the year ahead. Scotland’s gender pay gap is falling but undertaking a significant programme of women working full-time in the private sector transformation that will equip us to: The Framework reshapes who we are and who still earn on average 17% less than men. we are for. It will maintain our focus on our Step up and set a new pace vision: an economically vibrant Scotland making The rise of new business models and a positive impact on the world. It is focused automation are impacting on the Make the most of our talent and experience on driving the changes in our economy that certainty and security of jobs. will have a long-term positive impact on the Drive organisational productivity and efficiency persistent challenges that hold Scotland back. Challenges also vary across Scotland: Less than 70% of working age adults Stay proactive and build resilience A competitive, productive economy is essential are in employment in Glasgow, while in for success – but distributing that economic Aberdeenshire the proportion is over 80%. success more evenly across Scotland’s communities will make the difference. As a result, creating 15% of workers earn less than the more quality job opportunities across all of living wage in Edinburgh, while 30% Scotland is our focus for long-term growth. do in Dumfries & Galloway.
Scottish Enterprise Building Scotland’s Future Today 25 Transforming Scottish Enterprise
We will work to support the creation of While individuals might differ in what they In creating the right conditions that will more ‘quality jobs’ across all of Scotland. want from a job, there are important objective support more quality jobs, our Strategic characteristics of a quality job that businesses and Framework aims to develop: The Fair Work Convention’s Framework, policy makers can support, deliver and benefit from. describes fair work as: Business dynamism – growing more scale-up We define a quality job as being one where businesses and more entrepreneurial talent, Work that offers all individuals an effective voice, workers ‘have a say’ and can influence and change skills and ideas opportunity, security, fulfilment and respect; practices. It relates to how people can access that balances the rights and responsibilities of jobs and progress once they are in one. It’s about Inward investment – driving up Scotland’s employers and workers and that can generate the employment conditions they experience, reputation so people want to come here to benefits for individuals, organisations and society. the work they do and how they are treated. live, work, study and invest, creating and taking up higher value job opportunities
Resilience and support – building an approach that facilitates growth and ambition
Longer-term thinking that fuels inclusivity – building capability in our economic communities that will address barriers and opportunities.
ION Geophysical
Scottish Enterprise Building Scotland’s Future Today 26 Transforming Scottish Enterprise Digital and Data
A cornerstone of our transformation is enterprise architecture and technology, where we are laying the foundations to deliver exemplar experiences for our customers and become a data driven organisation.
We are not doing this alone. Fundamental to the Enterprise Architecture and Technology Strategy is the co-creation of customer experiences, services and capabilities with the businesses we serve and the public and private sector partners we work with.
Guiding our work is enterprise architecture design principles that set the standards, policies and future ways of working and bring a system view of how business processes, data, applications and technology work together to deliver customer centric services.
Touch Bionics
Scottish Enterprise Building Scotland’s Future Today 27 Transforming Scottish Enterprise Digital and Data
customer Improve the Trade experiences Investment and and services Network USE SCOTTISH Improve the Online GOVERNMENT Business Services, Channels DIGITAL 1ST Advice & Funding STANDARDS Online Channels key part of the changes we are making is Aour digital transformation. The continuous development of digital services – designed hand- in-hand with users – will transform the experience ROLL OUT SERVICE DESIGN & we offer our customers and ensure they get ASSURANCE AUDITS what they need now and in the future. And the way we handle and use data will drive improved decisions, better services and future innovation.
CO-CREATION IMPROVE & MANAGE IMPROVE CURRENT DIGITAL EARLY ENGAGEMENT OUTSOURCED ASSISTANCE ONLINE CAPABILITIES CONTINUOUS ENVIRONMENTS ENGAGEMENT
Scottish Enterprise Building Scotland’s Future Today 28 Transforming Scottish Enterprise Digital and Data
data and Form the Data DEVELOP actionable & Security THE DATA Board QUALITY insights STRATEGY
Prepare Data Sharing Agreements sable, accessible data that enables insights Uand informs decisions is critical. IMPROVE THE DELIVERY The key priority is obtaining accurate, quality OF DATA AND and timely data, that is secure and trusted ANALYTICS to make evidence based decisions.
Best results are achieved when the entire organisation UPDATE takes responsibility for the quality of the data, DATA AND INFORMATION underpinned by standards, protocols and governance. SECURITY POLICIES
ACCURATE DATA Introduce the New Data Quality QUALITY & TIMELY DATA Measurement System
EVIDENCE BASED OPEN UP CONFIRM DATA FOR THOSE WITH DATA DECISIONS EXTERNAL USE RESPONSIBILITIES
Scottish Enterprise Building Scotland’s Future Today 29 Our future plans
Scottish Enterprise Building Scotland’s Future Today 30 Our future plans
Economic development is as wide and varied as it is complex. The time is right for our new approach to how we support the thousands of companies across Scotland and seek out new international opportunities. In response to the shared vision and ambition outlined and to ensure that we focus on and deliver what Scotland needs of us today and in the future, we have distilled our Strategic Framework into three parts:
1 Our Vision, Purpose and Values
2 Our three-year Corporate Strategy
3 Our 2019/20 Operating Plan
Nova Innovation Our delivery of the Strategic Framework will be underpinned by strengthened collaboration and partnership: locally, regionally, nationally and internationally. Economic partnerships are vital to achieving our ambitions and fundamental to maximising our regional opportunities. We will continue to actively contribute in a wide range of partnerships and collaborations. These range from community planning and growth deal planning to national partnerships with Highlands and Islands Enterprise and the new South of Scotland Enterprise Agency – delivering stronger outcomes for Scotland.
Scottish Enterprise Building Scotland’s Future Today 31 Our vision, purpose and values
1 Our Vision, Purpose and Values
e have spent some time considering What we wanted to capture in our vision and Wwhat the Scottish economy needs from purpose are our ambitions for the economy and Scottish Enterprise. Our environment is for Scotland, and to crystallise what we do and changing so rapidly around us that we must why. We do many things in Scottish Enterprise, think about how we best serve the enterprise and we need to clearly articulate what all of our community in Scotland. We need to follow work amounts to. Quality jobs are a proxy for the through these words with actions; not only will health of the economy and help deliver greater we change what we do, but we will also have inclusivity and wellbeing. A focus on jobs also to embrace a new way of doing things where acts as a useful reminder of what the legislation bravery and collaboration go hand in hand. that set up Scottish Enterprise says about our role: ‘furthering the development of Scotland’s As with any change, it starts from within, economy and in that connection providing, which is why we looked to our own staff to maintaining and safeguarding employment’. help shape our new vision, purpose and values. Together these bring greater clarity to who we are, greater focus on the job we are here to do, and greater transparency on how we will carry out our work to support the economy, communities and people of Scotland.
Scottish Enterprise Building Scotland’s Future Today 32 Our vision, purpose and values
OUR VISION OUR PURPOSE An economically vibrant Scotland Create more, better jobs that nurture making a positive impact on the world. shared wealth and collective wellbeing.
OUR VALUES Be Brave Be Fair We will be fearless and ambitious in our decision-making, We will act with the highest standards of integrity and delivering for our economy and our communities. We will empathy, and champion diversity and sustainability. celebrate together when we succeed and learn together when we fail. Be The Difference Be Our Best We will proudly stand shoulder to shoulder with others to We will expect the highest standards of ourselves unlock our collective potential and to make a real impact. and offer excellence when working with others.
Scottish Enterprise Building Scotland’s Future Today 33 Our three-year Corporate Strategy
2 Our three-year Corporate Strategy
o achieve a lasting, positive impact on AMBITION ONE: AMBITION TWO: TScotland’s economy there are major shifts we Build vibrant economic communities across Build Scotland’s reputation and reach need to make to address long-term challenges Scotland, spreading increased wealth and wellbeing. in strategically important markets. and prepare for future opportunities – building a foundation for steady, long lasting growth Why? Why? for all. Our evidence and insights into other Because, by tapping into the contribution of Because, we want more people, businesses and successful small economies points to where our people and places, we’ll help ensure their organisations to benefit from Scotland being a we must invest to make that difference: economic growth and prosperity across Scotland. welcoming, outward-looking, connected nation.
Currently: Currently:
35% of the working-age population live in local The awareness of Scotland as a location authority areas with below Scottish average for trade and investment falls well behind employment rates. If employment rates in our international competitors. these areas matched the Scottish average, WE WILL WORK IN over 50,000 more people would be in work. We need to refresh the propositions we use PARTNERSHIP WITH OUR to encourage people and businesses from Building globally competitive assets across the globe to trade and invest with us. STAKEHOLDERS AND across all regions, enhances Scotland’s reputation, reach and proposition as a Although we’re ranked 16th out of 50 COMMUNITIES TO ENSURE place to live, work, study and invest. countries for international reputation we are OUR RESOURCES ARE associated with less modern attributes that There are opportunities to help communities are less attractive to investors and talent. PROPERLY TARGETED TO and regions to build and develop new and existing assets, and to develop better Our export base is relatively narrow in WHERE THEY CAN MAKE links to similar assets in other areas. terms of the number of companies and THE MOST DIFFERENCE. sectors who trade overseas. We can achieve much more if we extend our reach Allan McQuade into other new and existing markets. Business Infrastructure, Scottish Enterprise
Scottish Enterprise Building Scotland’s Future Today 34 Our three-year Corporate Strategy
AMBITION THREE: AMBITION FOUR: Build resilience and growth in Scotland’s Build future economic opportunities that businesses, sectors and regions. will drive our international advantage.
Why? Why? We will only be able to secure sustained success if We will only be able to optimise Scotland’s Our three-year Corporate Strategy sets out our we build foresight and adaptability into our work, economic performance if we make the most of intent, showing how in working with our public to help manage threats and exploit opportunities. all of our assets, including people and natural sector partners, universities, private sector resources, where Scotland has a competitive edge. and others, we will invest in the foundations Currently: that will allow our economy to grow. This will Currently: provide opportunities for more people to The structure of our ‘traditional’ workforce benefit from and contribute to that growth – is changing – by 2041 the number of people The world’s population is getting older creating more quality jobs – and will help build in traditional working age groups (16-64) and will offer opportunities to develop a brighter future for the next generation. is forecast to decline (by 147,000) and the new products and services for healthy, number aged 65+ is expected to increase productive ageing in global markets. by 413,000). Businesses will need to adapt to be able to access the right talent. The types of job opportunities are changing - automation will transform the workplace. Scotland’s business base is becoming While only 5% of current roles could be fully less resilient – corporate insolvencies are automated, we know that 60% of jobs involve almost 10% higher over the last year. tasks that could be automated in the future.
Sectors and businesses need to be fit for the Automation will, however, create new types future. The scale, dynamism and ambition of quality jobs and help businesses become of the business base has limited Scotland’s more competitive and productive. performance in innovation, investment, exporting and generating quality jobs. Scotland’s natural assets, world class research and skills can drive the development Scotland has a smaller business base relative of new, low carbon technologies and to population than most other UK regions services for global markets. – we would have 70,000 more registered businesses if we matched the UK Q1 rate.
A lower proportion (1.2%) of Scottish businesses achieve high growth than other UK regions.
Scottish Enterprise Building Scotland’s Future Today 35 Our three-year Corporate Strategy
ambition one What we will focus on: What we will see:
Working with A more dynamic, ambitious and diverse entrepreneurial community across Scotland. Build vibrant partners to invest in infrastructure, assets New uses for existing assets e.g. Michelin. economic and companies as a means of creating Leveraging existing assets to the benefit of the wider community e.g. Bioquarter. communities good jobs with value in thriving places New globally competitive assets e.g. Advanced Manufacturing Innovation District. across where people want Scotland, to live and work. Regional development partnerships that deliver better economic outcomes for all of Scotland’s communities. spreading Regional prospectuses that attract the right kind of investment (jobs and capital) increased and support long-term regional growth. wealth and A strong pipeline of businesses accessing investment tools that facilitate patient wellbeing. capital to reflect the long-term nature of our vision and mission.
WORKING IN SCOTTISH ENTERPRISE’S PROACTIVE PARTNERSHIP FOR APPROACH AND WILLINGNESS TO WORK WITH LOCAL AND INTERNATIONAL PARTNERS REGIONAL AND WILL ULTIMATELY HELP CREATE REAL AND NATIONAL BENEFIT WELL PAID JOBS FOR OUR COMMUNITIES. Cllr John Alexander Leader, Dundee City Council
Scottish Enterprise Building Scotland’s Future Today 36 Our three-year Corporate Strategy
ambition Two What we will focus on: What we will see: Build Scotland’s Bringing together ‘Open enlightenment’ proposition that invites leading global innovators to access assets, networks, Scotland’s data expertise and work with us to develop and test ideas. reputation campaigns and product initiatives in targeted Targeted ‘Scotland is Now’ campaigns that are fully integrated with proposition, and reach in geographical areas that product and deployment of assets. leverage the Brand strategically Scotland platform and Digital and physical networks that empower Scots and those that love Scotland important our global networks. across the world to drive advocacy and generate leads and introductions. markets. Strategic relationships that secure or drive investment that bring quality jobs to Scotland. Increased value of Scottish exports and number of Scottish exporters.
New forms of investment to and from Scotland with a focus on capital and innovation.
Increased focus on talent attraction by promoting Scotland as a place to live, study and work. CONNECTING TO MORE MARKETS WE KNOW THAT OUR INTERNATIONAL NETWORKS HAVE & INVESTMENT THE ABILITY TO SUPPORT ENTREPRENEURIAL ACTIVITY OPPORTUNITIES AND AMBITION. WE WILL LOOK TO MAKE BETTER USE OF THIS CRITICAL SOFT POWER TO HELP DELIVER A MORE DYNAMIC AND GLOBALLY COMPETITIVE ENVIRONMENT IN SCOTLAND, SUPPORTING INCLUSIVE, ECONOMIC GROWTH. Julie Morrison Global Networks, Scottish Enterprise
Scottish Enterprise Building Scotland’s Future Today 37 Our three-year Corporate Strategy
ambition three What we will focus on: What we will see: Build resilience Treating the root causes A common delivery system centred on business needs, as part of the Business Support of business distress and Partnership Programme. and growth leveraging data, insight and good judgement A national centre of excellence for grant management – tapping into artificial intelligence in Scotland’s to forensically target and technology development to transform customer experience. the right growth businesses, opportunities. New delivery partnerships across Scotland’s regions to better harness and align public and private sectors and sector support to businesses and connect them with the right investment opportunities. regions. An overhaul of our relationship management approach – building new capacity and increasing flexibility to mobilise more opportunities and build ambition and resilience.
Dedicated resources and new partnership delivery models to manage economic transitions and shocks proactively.
PROACTIVE TAKING A MORE FLEXIBLE AND PROACTIVE INTERVENTION APPROACH TO SUPPORT CUSTOMERS MEANS WE TO ADDRESS CAN MOBILISE AND RESPOND FASTER IN FUTURE, CHALLENGES, DELIVERING INCREASED RESILIENCE ACROSS SCOTLAND’S BUSINESSES, SECTORS AND REGIONS. RAISE AMBITIONS Anke Heggie & REALISE Business Services & Advice, Scottish Enterprise OPPORTUNITIES
Scottish Enterprise Building Scotland’s Future Today 38 Our three-year Corporate Strategy
ambition four What we will focus on: What we will see: Build future Securing long-term, A partnership with Scottish National Investment Bank (SNIB) that unites the economic patient investment development community around core enterprise missions, crowds in investment economic into enterprise and makes it as easy as possible for ambitious companies to access the finance ‘missions’ that will they need to grow. opportunities address long-term barriers to growth. The bringing together of talent, skills and investment across public and private sector that will partners, including academia. drive our A Team Scotland approach to identifying opportunities in the UK Industrial Strategy international and the co-ordination of strong collaborative projects that secure this funding. advantage. Leveraging long term patient capital to create globally competitive products and companies and address vital long term societal challenges.
The use of insights and intelligence that identify opportunities for global partnership and investment. STIMULATING INTENSIVE, WITH OUR PARTNERS, WE HAVE ACCESS TO A CONSIDERABLE AMOUNT OF DATA AND COLLECTIVE INTELLIGENCE. WE WILL USE THIS INSIGHT MORE ACTION EFFECTIVELY TO IDENTIFY THE BEST FUTURE OPPORTUNITIES FOR SCOTLAND, AND TO MAKE EVIDENCE-BASED INVESTMENT DECISIONS. Kenny Richmond Insights and Economics, Scottish Enterprise
Scottish Enterprise Building Scotland’s Future Today 39 Our three-year Corporate Strategy
We will track progress against the To help achieve its purpose, the Example NPF indicators: three-year Corporate Strategy by NPF sets out a number of National reporting the contribution we make Outcomes that describe the kind Economic growth to Scotland’s National Performance of Scotland it aims to create. Framework and the Strategic Scotland’s progress against these Productivity Board’s performance framework. outcomes is measured through a set of National Indicators that Economic participation Scotland’s National Performance include a range of economic, social Framework (NPF) is for all of and environmental indicators. Employees on the living wage Scotland and its purpose and aims are to: The Enterprise and Skills Strategic International exporting Board is developing a performance Create a more successful country framework to assess Scotland’s Innovative businesses progress towards achieving higher Give opportunities to all levels of productivity, equality, High growth businesses people living in Scotland wellbeing, and sustainability. The Board’s framework will develop Entrepreneurial activity Increase the wellbeing of shared agency outcomes and people living in Scotland use relevant National Indicators Spend on research and development from the NPF. We will work Create sustainable and with the Scottish Government’s Carbon footprint inclusive growth Analytical Unit to assess Scottish Enterprise’s contribution to these. Skills under-utilisation Reduce inequalities Contractually secure work A DETERMINATION TO HELP MORE SCOTTISH COMPANIES TO INCREASE THEIR INTERNATIONAL TRADE WILL SUPPORT THESE FIRMS IN CREATING MORE, BETTER PAID JOBS ACROSS THE LENGTH AND BREADTH OF SCOTLAND. Mark Hallan Innis & Gunn Europe, Middle East and Africa markets, Scottish Development International
Scottish Enterprise Building Scotland’s Future Today 40 2019/20 Operating Plan
3 Our 2019/20 Operating Plan
cottish Enterprise’s three-year Corporate The Operating Plan details our operational areas SStrategy confirms our long-term ambitions of focus under five key objectives that together to help drive a more sustainable, inclusive will help deliver the longer-term ambitions economy, focused on the wellbeing of all. in the three-year Corporate Strategy: We must also focus on the short to medium- term actions that need to be taken now if Objective One: attract, create and protect we are to build the dynamism, capacity and quality jobs and talent that will support capability in the economy that will move us wellbeing across Scotland. along the path to achieving our overall goals. Objective Two: drive research and innovation Throughout 2019/20 we will continue to investment in businesses and sectors. move towards a new way of working which strongly reflects our new vision, purpose and Objective Three: stimulate capital investment values. Working with our partner agencies, in local, regional and national economies. we will deliver for the whole economy – creating more, quality jobs that will support Objective Four: give more businesses across communities and families across Scotland. Scotland the best chance to fulfil their potential.
Objective Five: grow export value and the number of exporters.
Heriot Watt
Scottish Enterprise Building Scotland’s Future Today 41 2019/20 Operating Plan
These objectives signal a change in how Capital investment is a significant challenge for Supporting the shift in emphasis, we operate. They reflect how we will Scotland. We must go further, with partners, our Operating Plan includes: balance our refreshed purpose against to stimulate demand in our business base our existing commitments. As a result, and develop more place opportunities and Making job-related grants contingent on fair we have expanded our measurement propositions. This will help attract the right kind work practices and considering whether to apply framework and operational area of focus. of investment in communities which can fully this more widely across all grants and services. maximise assets to create value and quality jobs. We will continue to measure our success in Deploying face-to-face expertise more flexibly attracting jobs through inward investment. In these uncertain times, we must focus more across Scotland, brokering connections to However, we have expanded this measure on building a successful, resilient business base. raise ambition, realise growth opportunities to include the creation and protection This must be equipped to respond positively to and mitigate economic risks and shocks. of indigenous jobs across communities the challenges and opportunities of the global with a clear focus on ‘quality’. economy, creating a solid foundation for growth. Focusing investment (including international investment) on future economic opportunities Driving research and innovation remains a priority Growing exports remains a priority. We will and communities where place-making area. As well as raising company ambitions develop fresh approaches aimed at increasing can make a significant difference. around R&D and innovation, there will be a trade in key markets, while building Scotland’s focus on building international partnerships reputation and networks overseas. Stimulating entrepreneurship and business and infrastructure to sustain increased levels creation in Scotland through a more cohesive of R&D over the medium and longer term. We will consider wellbeing and fairer economic systems approach. opportunity in everything we do. We will look at how we can better deliver activity across our Evolving the ‘Can Do Innovation’ campaign objectives so that more of Scotland’s people can encouraging more companies to invest in benefit from economic success. We will be brave innovation and developing more opportunities in the decisions we make, prioritising activity that to attract R&D investment. best delivers against our vision and purpose and that will help us achieve our stated outcomes.
Scottish Enterprise Building Scotland’s Future Today 42 2019/20 Operating Plan
Objective 1 Why this is important: What will be different: What we will do: This will include:
Attract, create 470,000 employees (19%) A focus on Fair Work Broaden pipeline of long- Evolving Global Scots to a more and protect earn below the real living wage. First, linking support to term inward investment jobs comprehensive network proposition. quality jobs the creation of better (new and existing investors) and talent that Scotland has a highly educated quality jobs considering pay, across regions in Scotland. Building propositions and population (4th in the OECD). workplace environment, skills developing campaigns to foster will support However, 225,000 employees utilisation, and job security. Target investments to ambition and entrepreneurship wellbeing across underutilise their skills. drive sustainable growth across Scotland, uniting Scotland. Creating more job for all that fuels future organisations across the community. 35% of the working age opportunities for those more economic opportunities. population live in local authority challenged communities Implementing Fair Work First Activities within this objective areas with below Scottish and for more diverse Further grow the jobs pipeline by – job related grants contingent will support the following average employment rates. groups of individuals. working with scaling companies on fair work practices and Strategic Board missions: to unlock and accelerate consider wider application What we will focus on: Creating jobs for the their growth potential. across all grants and services. Business creation and growth future, stimulating demand Working with businesses to attract, and investment linked to Stimulate entrepreneurship Developing support and advice Business models, work create and protect quality jobs and economic opportunities. and business creation in for businesses to support fair work place innovation address skills gaps, targeting areas Scotland through a more practices, including employing of future economic opportunity. cohesive systems approach. disadvantaged groups. Future skills needs Work with more businesses Increasing awareness and support to develop fairer and more for employee ownership (EO) SOCIAL ENTERPRISES MAKE A SIGNIFICANT FINANCIAL progressive workplace practices as an inclusive business model AND SOCIAL CONTRIBUTION TO OUR ECONOMY. AS THE that will boost productivity. and supporting new industry leadership group ‘Scotland for EO’. NUMBERS CONTINUE TO GROW ACROSS SCOTLAND, Work alongside our partner agencies to meet the current and Delivering a Rural Economic THIS BUSINESS MODEL DEMONSTRATES RESILIENCE future skills needs of businesses. Action Plan and provide IN THE FACE OF CONTINUING CHALLENGES FOR OUR mentoring support for young people in rural communities. ECONOMY, PUBLIC SERVICES AND COMMUNITIES.
Darah Zahran Social Economy, Scottish Enterprise Scottish Enterprise Building Scotland’s Future Today 43 2019/20 Operating Plan
Objective 2 Why this is important: What will be different: What we will do: This will include:
Drive research Scotland’s overall and business Combined strategic thinking Continue to support businesses to Evolving the ‘Can Do and innovation R&D investment rates lag most and insight across partners stimulate demand and investment Innovation’ campaign investment other countries (OECD Q3). to target opportunities. in R&D and connect them to a encouraging more companies in businesses richer mix of financial vehicles. to invest in innovation and Business R&D investment Products and services developing more opportunities and sectors. is growing, but is highly that raise ambitions and Connect more businesses to to attract R&D investment. concentrated – 50% drive R&D and innovation our R&D assets (including Activities within this objective by 10 companies. to create quality jobs in Innovation Centres and our Delivering company support will support the following businesses and sector assets. universities) to increase their for the innovating workplaces Strategic Board missions: Less than half of Scottish skills and innovation capabilities. programme via a cross- businesses (with 10+ employees) Targeted and tailored agency campaign and team. Business creation and growth invest in innovation. proposition and prospectus Attract R&D investment building to attract to Scotland. Developing projects and Business models, work What we will focus on: innovation investment. national assets such as place innovation Invest in new capability National Manufacturing Matching capabilities, assets and Work to attract more and assets to capitalise on Institute for Scotland, Exporting supply chains to opportunities international investment supply chain opportunities Medicines Manufacturing that drive national benefits. in R&D/innovation. and target communities that Innovation Centre. are underperforming.
Scottish Enterprise Building Scotland’s Future Today 44 2019/20 Operating Plan
Objective 3 Why this is important: What will be different: What we will do: This will include:
Stimulate capital Business capital investment Embedding long-term growth Focus investment (including Partnering with the investment in rate lags nearly all OECD for all in investment decisions. international) on future economic Scottish Government’s new local, regional countries (OECD Q4). opportunities and communities Infrastructure Commission and national Making investment work for where place-making can make to help identify key strategic Scotland’s capital stock people and places – targeting a significant difference. infrastructure investment. economies. level is below many other under-invested communities. countries (OECD Q3). Build national and regional Working with the Scottish Activities within this objective A more joined-up prospectuses that attract inclusive Government to promote will support the following Weak capital investment/low partnership approach to and sustainable investment support for strategically Strategic Board missions: capital stock is impacting on developing and selling from the UK and overseas. important sectors such as dynamism, productivity, wages investment opportunities. Cyber Security and Resilience, Business creation and growth and the creation of quality jobs. Leverage investment tools FinTech and Energy. Fully exploiting existing that increase conditions What we will focus on: assets to create value for patient capital. Developing the Economic and quality jobs as well Asset Management Register. Stimulating the right kind of as building new assets. Stimulate demand by demand through compelling more businesses to invest local, regional and national More focus on the attraction in capital for growth. investment prospectus. of international capital. Support the effective development and implementation of city and growth deals.
WE WILL USE OUR TALENTED PEOPLE, DATA ANALYTICS AND INSIGHTS, PARTNER NETWORKS AND COLLABORATIONS IN INNOVATIVE WAYS TO PROACTIVELY SUPPORT COMPANIES AND SECTORS Jan Robertson Scottish Investment Bank, Scottish Enterprise
Scottish Enterprise Building Scotland’s Future Today 45 2019/20 Operating Plan
Objective 4 Why this is important: What will be different: What we will do: This will include:
Give more Lower proportion (1.2%) of A more holistic business Encourage more businesses Managing the transition businesses Scottish businesses achieve high support system, where access to to raise external funding and supporting the across Scotland growth than other UK regions. insight, information, advice and to invest in future growth establishment of SNIB. the best chance funding is easy and joined up. plans and opportunities. Just 17% of Scottish SMEs Supporting investment for the to fulfil their sought external finance in Face-to-face expertise will be Broaden access to growth funds Building Scotland Fund and potential. 2017, and 13% had a need but deployed more flexibly across and support products across Scottish Growth Scheme. did not apply for it (14,000 Scotland, brokering connections Scotland through digitally- Activities within this objective discouraged borrowers). to raise ambition, realise growth enabled delivery models. Creating a dedicated specialist will support the following opportunities and mitigate support focus on key steps Strategic Board missions: Low demand for external economic risks and shocks. Connect businesses to new in the scale up and expansion funding reflects low levels of opportunities and facilitate process to increase the number Business creation and growth capital and R&D/innovation A new model for business funding solutions to help of overseas acquisitions. investment and exporting. grants will be delivered in them realise them. Business models, work 19/20, offering transparency, Supporting sectors and place innovation What we will focus on: consistency and speed in Raise the ambition and firms that can exploit eligibility and decision-making. international outlook of more opportunities, or need to Exporting Stimulating demand for and businesses, strengthening the enhance their resilience. encouraging investment in A dedicated resource pipeline of scaling companies. more businesses and ideas and partnership delivery Ramping up ‘Prepare that leverage competitiveness model to manage economic Stimulate and link companies’ for Brexit’ support. and our international transitions and closures. investment and growth comparative advantages. plans to regional assets and A stronger focus on stimulating opportunities to stimulate demand for growth funding strong geographic clusters. through the Scottish Investment Bank (SIB) initially Maximise the opportunities and then through the Scottish presented by the establishment National Investment Bank of SNIB to build a strong (SNIB) once it is established. ecosystem of investment support and advice across Scotland.
Scottish Enterprise Building Scotland’s Future Today 46 2019/20 Operating Plan
Objective 5 Why this is important: What will be different: What we will do: This will include:
Grow export Whilst the value of Scottish A stronger focus on Deliver expert advice Supporting the Scottish value and the exports continues to grow those companies and about markets, sectors and Government’s new export number of as a % of GDP, they have markets that offer the how to trade, by providing plan ‘A Trading Nation’. exporters. remained static and are below greatest opportunity. insight and intelligence, the levels of our competitors. investment and connections Increasing our resources Better utilisation of our at home and in priority in priority markets. Activities within this objective Fewer than 6% of Scottish global trade specialists, markets across the globe. will support the following businesses sell overseas but many networks and partners. Expanding and increasing Strategic Board missions: more have the potential to export. Co-ordinate and deliver, with the contribution of our A new approach to leveraging partners, a global calendar of international networks Business creation and growth Companies that export all of Scotland’s resources and international market events. (including GlobalScot) tend to be more innovative, assets around global events in priority markets. Exporting productive and competitive to stimulate increased trade. Continue to develop and and create more, better jobs. deliver digital trade services Delivering more intensive Enhanced collaboration with as an effective mechanism for support for those exporters What we will focus on: partners in Scotland to build reaching more companies. with the greatest potential awareness and ambition of and a peer to peer Working more intensively with those exporting for all companies Develop and harness mentoring programme. companies, networks and markets in all parts of Scotland. international networks to that offer the greatest potential enhance the ambition and Ramping up ‘Prepare to grow exports from Scotland. reach of companies. for Brexit’ support.
EXPORTING CAN BE A DAUNTING PROSPECT FOR SMEs WITH PRODUCTS OR SERVICES THAT HAVE GLOBAL APPEAL. HOWEVER, WITH THE RANGE OF SUPPORT PROVIDED BY SCOTTISH ENTERPRISE, THEY CAN ENTER NEW MARKETS WITH INFORMED CONFIDENCE. Laura Birrell Founder, Sticky Heelz
Scottish Enterprise Building Scotland’s Future Today 47 2019/20 Target Range
Scottish Enterprise Building Scotland’s Future Today 48 2019/20 Target Range
ehind these primary outcomes is a fuller We will measure our performance of the one-year Operating Plan by Bperformance framework which we will use to track reporting progress on a number of primary outcomes as set out below: and monitor not only what we deliver, but how we deliver. Analysis and insights from the performance Low High framework allows us to better understand what works, and what has the greatest impact on Scotland’s Planned new/safeguarded jobs paying at least the real living wage 8,000 10,500 economy. We will also use the framework to monitor how inclusive our actions are by tracking a number Planned R&D investment by businesses and sectors £300m £350m of indicators aimed at giving us more insight into how far our activities reach in terms of people and place. Planned capital expenditure by businesses and sectors £150m £200m The indicators in our performance framework align Growth funding raised by businesses £160m £255m to both Scotland’s National Performance Framework and the Strategic Board’s performance framework, Planned international export sales £1.25bn £1.50bn allowing the enterprise & skills agencies to demonstrate Scotland’s progress towards achieving higher levels of productivity, equality, wellbeing, and sustainability.
And we will continue to work closely with our partner agencies, and Highlands & Islands Enterprise in particular, to further align our measurement approaches. For example developing common measures on how to more effectively monitor and evaluate inclusive growth.
Scottish Enterprise Building Scotland’s Future Today 49 2019/20 Financial Summary
PLANNED INCOME 2019/20 PLANNED INVESTMENT 2019/20 PLANNED INVESTMENT 2019/20
Scottish Government Funding £M Quality Jobs & Talent £M Export Growth £M Grant in Aid - Resource allocation (baseline) 133.8 Entrepreneurship and Companies of Scale 4.8 Export Support 8.4 Anticipated in-year transfers (net) 9.3 Growth funding including Inward Investment 19.2 International Networking and Marketing 3.1 Total anticipated - Resource Allocation 143.1 Workplace Development 7.1 Overseas Premises & Facilities Management 6.8 Grant in Aid - Capital allocation (baseline) 42.0 Staff costs 14.2 Staff costs 9.8 Anticipated in-year transfers - Capital 6.8 Quality Jobs & Talent Total 45.3 Export Growth Total 28.1 Anticipated in-year transfers - Capital - Additional R&D Funding 15.0 Research & Innovation Investment Service Development & Transformation Financial Transactions 68.5 Innovation Support 8.3 Business Technology Support and Development 9.1 Anticipated in-year transfers - Financial R&D Support 42.0 Marketing, Research and Transactions - Energy Investment Fund 20.0 Investment in R&D and Innovation assets 15.3 Stakeholder Engagement 2.2 Total anticipated - Capital Allocation 152.3 Staff costs 4.5 Staff costs 10.1 Total anticipated Scottish Government Funding 295.4 Research & Innovation Investment Total 70.1 Service Development & Transformation Total 21.4
Other Business Income Capital Investment Running the Business EU Funds (excluding Scottish Investment Bank) 4.5 Placemaking Investment 23.8 Domestic Premises & Facilities Management 10.9 Property Disposals 8.5 Property portfolio management 5.2 Corporate Services, including Legal, Travel etc 5.1 Property Income 5.0 Sectoral Development 8.9 Staff costs 7.9 Other Business Income Staff costs 11.4 Running the Business Total 23.9 (excluding Scottish Investment Bank) 10.3 Capital Investment Total 49.3 TOTAL CASH INVESTMENT 342.2 Scottish Investment Bank Income 18.5 of which: Business Growth & Resilience Scottish Loan Fund 2.6 Access to Finance 68.9 Scottish Enterprise plan to utilise resource income derived Other SIB Funds, including Scottish Business Growth Services 8.3 from Financial Transactions funded expenditure to support Co-investment and Venture Fund (Other Income) 14.9 Economic Resilience Support 12.2 the overall operating plan. Energy Investment Fund Income 1.0 Staff costs 14.7 Total Other Business Income 46.8 Business Growth & Resilience Total 104.1 Up to £20m of funding is available for the Energy Investment TOTAL INCOME 342.2 Fund (EIF) but final expenditure will be dependent on the progress of low carbon projects during the financial year.
Scottish Enterprise Building Scotland’s Future Today 50 Scottish Enterprise HQ Atrium Court 50 Waterloo Street Glasgow G2 6HQ
www.scottish-enterprise.com
Scottish Enterprise Building Scotland’s Future Today 51