Scotland s International Trade and Investment Strategy

Transcription

1 Scotland s International Trade and Investment Strategy Putting Scotland on the map internationally Putting international ambition on the map in Scotland 1

2 Scotland. Famous for the Loch Ness Monster and digital expertise. Our track record for innovation is legendary. We ve got quite a reputation for invention, innovation and creating some unbelievable stuff. MRI scanning. Radar. The microwave oven. Whisky. It s a long list. And it s still growing. In every sector from electronics to life sciences, we strive to set standards. Our passion for success and hunger to win, combined with our worldclass academic institutions, outstanding research and superb facilities are financially irresistible. We can develop your products and expand your business. And that s precisely why companies invest in Scotland. To see what we can do for your business, visit SCOTLAND. SUCCESS LIKES IT HERE. Example of Scotland s global marketing campaign

3 Contents 1. SDI Board Foreword 3 2. The Importance of International Trade and Investment 4 3. Global Competitive Advantage: Track Record and Future Prospects 5 4. A Prosperous Outward-Focused Scotland 7 5. Increasing International Trade 9 6. Attracting Inward Investment Priorities: by Sector and Geography Putting Team Scotland into Practice Delivery Conclusion 20 1

4 Scotland. The home of whisky and wave-powered energy. We ve a very productive obsession with water. We ve got quite a reputation for invention, innovation and enjoying the good life. MRI scanning. Keyhole surgery. The beta-blocker. Whisky. It s a long list. And it s still growing. In every sector from renewable energy and finance, to electronics and our pioneering work in life sciences, we strive to set standards. We have world-class academic institutions, outstanding research and superb facilities. And passionate people with a hunger to win. We can develop your products and expand your business. And that s precisely why companies invest in Scotland. To see what we can do for your business, visit SCOTLAND. SUCCESS LIKES IT HERE. Example of Scotland s global marketing campaign 2

5 1. SDI Board Foreword There is a consensus that international trade and investment is increasingly important if we are to accelerate Scotland s economic recovery. As the world becomes more connected and trade more open, the international opportunities for Scottish businesses increase. At the same time increasing imports will lead to greater competition in domestic markets. Therefore trade and investment affect every industry and every business in Scotland and need to be an integral part of our growth plans. In today s world staying at home is not the safe option. Businesses that increase their competitiveness and diversify their customer base are more likely to have greater long-term security and sustained growth. Productivity is key to Scotland s sustainable economic growth. We know that companies that trade internationally are generally more productive than their peers, and public sector support to help this expansion boosts productivity further. Additionally, entering international markets drives innovation as businesses are exposed to new ideas and new opportunities. Many Scottish companies already enjoy considerable success overseas. We need more Scottish businesses to expand into markets outside of Scotland and increase their rate of growth. We must also work more intensively with Scotland s most ambitious companies to accelerate their international growth, particularly in fast-growing emerging markets. Similarly foreign investors are more productive, engage in more research & development and invest more in staff development. We must continue to encourage them to locate and expand in Scotland and develop their Scottish supply chain. We must target our efforts on strategic foreign investments which will significantly contribute to the growth of our key sectors. The global transition to a low carbon economy for instance, offers particular inward investment opportunities for Scotland which we must seize, with offshore wind being an immediate priority. Scottish Development International is the trade and investment arm of the Scottish Government, Scottish Enterprise and Highlands & Islands Enterprise and has a critical role to play in harnessing the collective effort of all Scottish players to contribute to a more outward-looking and globally-connected Scottish economy. This Trade and Investment Strategy sets out the objectives, goals, priorities and drivers to which we all need to contribute to as part of Team Scotland, to ensure that we take full advantage of global opportunities and ensure we maximise the economic benefits for Scotland. Mike Neilson Lena Wilson Alex Paterson Director General Chief Executive Chief Executive Enterprise and Environment Scottish Enterprise Highlands and Islands Enterprise Scottish Government 3

6 2. The Importance of International Trade and Investment This strategy sets out the opportunities and priorities for Scotland to achieve a significant increase in trade and investment performance. This will positively contribute to securing Scotland s prosperity in today s global economy. Scotland, within the global context, is a small market with relatively slow domestic growth forecast in the medium term. Increased exploitation of international markets is critical to the acceleration of Scotland s sustainable economic growth through increased international trade and attraction of further foreign investment. In 2009 Scotland exported 21.1 billion of goods to overseas markets. The ratio of overseas exports to total turnover in Scotland is around eight percent. Exports to the rest of the UK are estimated to be 44.5 billion. Foreign investors In Scotland employ over 600,000 staff and have a turnover of over 145 billion. By nature they tend to be key exporters and Scotland is often their European base. These investors benefit Scotland by bringing new innovative practices, investing in research & development, upskilling their Scottish workforce and driving improvements in the supply chain. The number of foreign investors is growing year on year as the world becomes more open and markets more connected. As international trade barriers continue to reduce we are also seeing the world order change, with emerging economies forecast to see the most growth including China, India, Brazil and the Middle East. The recent global economic crisis has accelerated this trend, with growth in emerging fast-growing economies forecast to be more than double that of developed economies. Increased trade also means imports are likely to increase, leading to more foreign competition for domestic companies. Therefore Scottish businesses must increase their competiveness and seek out the markets which offer the best returns. As businesses expand overseas they become more innovative as they learn and adopt new ideas. This further increases their competitiveness and growth. Scotland has some key competitive advantages from its academic excellence and skills base to its business infrastructure and natural assets. The Scottish Government has a key role to play in supporting Scottish businesses to go international and in attracting investors to Scotland. This strategy outlines the Scottish Government s international trade and investment ambitions. The delivery will be led by Scottish Development International (SDI) which is the trade and investment arm of the Scottish Government, Scottish Enterprise (SE) and Highlands and Islands Enterprise (HIE). A whole range of public and private sector partners also play a critical role in supporting greater trade and investment including skills development, research capability, infrastructure development and regulators. In the last year there has been significant discussion regarding the importance of international trade and investment for Scotland. This has: been of central importance to the Scottish Government s Economic Recovery Plan been the focus of an inquiry by the Economy, Energy and Tourism Committee which led to a parliamentary debate; the topic of the National Economic Forum in May 2010 and a topic at the Business in Parliament event in Nov. 2010, and received greater priority in the plans of SE, HIE and a key range of business organisations and partners. There is broad consensus on the direction and priorities needed to support greater trade and investment in Scotland and the work done on this over the last year has helped to shape this strategy. It is imperative that Scotland takes full advantage of every opportunity by exploiting its global competitive advantages. 1. Global Connections Survey

7 3. Global Competitive Advantage: Track Record and Future Prospects Scotland is a country rich in opportunity and bursting with innovation, with many competitive qualities that make it an attractive place to do business, invest, learn, live and work. Scotland s economy remains strong, diverse and resilient and the country s vibrant business environment continues to grow exports and to attract inward investment. Scotland has particular global strengths in: Innovation, talent, education and academic excellence More research is conducted in Scotland than any other country, relative to wealth per head of the population Scotland has the highest concentration of universities in Europe with every Scottish institution undertaking worldleading research and over half of all research in Scotland rated as internationally excellent. Scotland s academics produce one percent of all research publications in the world ranking Scotland third in the world for the number of research publications published per head of the population Scotland has the highest educational attainment of any part of the UK which provides a ready resource of quality employees. World-class industries and businesses Scotland has globally competitive sectors and businesses, including: Energy: Scotland is at the forefront of innovation in the energy industry. Diverse and vibrant, the Scottish energy industry enjoys a reputation for world-class research, development and production in a number of energy sectors including: Oil & Gas, Wind, Marine, Carbon Capture & Storage, Smart Grids, Fuel Cells and Bio- Energy Life Sciences: Scotland is home to one of the most rapidly growing life sciences communities in Europe. Scotland has long been known as home to world-class and life-changing scientific innovation with more than 620 organisations employing over 31,000 staff Creative Industries: a thriving sector with both indigenous strengths in the games industry and global companies such as IBM which are operating successful businesses in Scotland Financial and Business Services: one of the fastest growing sectors of the Scottish economy and internationally recognised as the most important UK financial centre outside London Food and Drink: of huge importance to the Scottish economy, contributing 10 billion worth of annual sales and growth and accounting for 27 percent of Scotland s exports Tourism: makes a significant contribution to Scotland s economic prosperity employing over 200,000 and generating over 5.2 billion annually. By focusing on where specifically we can and do compete with the best, we can both attract further investment and exploit trade opportunities. A great place to invest, learn, live and work Large numbers of high-value jobs have been created through inward investment in recent years as international businesses recognise the advantages that Scotland has to offer. Whether investors are looking to take advantage of world-renowned Scottish expertise or our enviable natural resources, or to make cost savings, investing in Scotland makes sense. 5

8 Future prospects The IMF forecasts that most growth in 2011 and 2012 is likely to come from emerging economies including China (10 percent), India (eight percent) and the Middle East (five percent), with developed nations showing slower growth e.g. US (three percent), Eurozone and UK (one percent) and Japan (two percent). We are already witnessing an underlying structural repositioning of the global economy and the emergence of new trading partners. At home, the continuing weakness in domestic demand is unlikely to improve in the short term. This situation reinforces the importance of exploiting international demand and gives increased impetus to our International Trade and Investment Strategy. The competitive exchange rate allows Scottish businesses to be even more competitive in foreign markets. At the same time we are seeing international trade grow at a faster rate than global GDP. This means greater imports as well as greater exports. All of this sets out significant opportunities for Scotland in an increasingly competitive global economy. Scotland needs to compete even more aggressively to attract investment and support Scottish companies to trade internationally. Energy 6

9 4. A Prosperous Outward-Focused Scotland The Scottish Government s Economic Strategy focuses on creating a more successful country, with opportunities for all of Scotland to flourish, by increasing sustainable economic growth. The International Framework, driven by the Government Economic Strategy, details the need to place Scotland as a responsible nation and partner on the world stage. The Economic Strategy and International Framework both highlight the significant role of key sectors which have highgrowth potential, have the capacity to boost productivity and can help expand Scotland s areas of international competitive advantage. Scottish Enterprise and Highlands and Islands Enterprise business plans directly contribute to the Government Economic Strategy and incorporate the activities of Scottish Development International. This is detailed below along with the significant contribution other public and private sector partners play as part of Team Scotland. Government purpose: International ambitions: Increasing international trade and investment: Scotland s unique selling points: Delivery led by Scottish Development International the international trade and investment arm of the Scottish Government, SE and HIE Government Economic Strategy creating a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth International Framework Scotland as a responsible nation and partner on the world stage Trade and Investment Strategy Purpose Putting Scotland on the map internationally Putting international ambition on the map in Scotland Objectives Increasing international trade Attracting inward investment Promoting Scotland as an attractive place to do business and invest, learn, live and work. Scotland - Success likes it here Talent, education and academic excellence Innovation nation World class sectors and businesses A great place to invest, learn, live and work SDI Vision To be the world s leading trade & investment organisation, inspiring greater international growth for Scotland, and delivering as part of Team Scotland TEAM SCOTLAND Supporting Scotland s sustainable economic growth through international trade and investment Public Scottish Government Scottish Enterprise Highlands and Islands Enterprise Local Authorities Universities & colleges Other agencies UKTI Scotland Europa Private Business organisations Industry organisations Global diaspora Businesses 7

10 Objectives and Measures of Success The objectives of the Trade and Investment Strategy are to: Increase International Trade Attract inward investment Promote Scotland as an attractive place to do business and invest, learn, live and work. In meeting these objectives the Strategy has set a number of goals to achieve over the next five years: Objective 5 year goals ( ) Overall economic impact 1.5 billion to 2 billion of net additional GVA to the Scottish economy through trade and investment activity* Increasing international trade 30% to 50% increase in the number of exporters over the next ten years with 8,000 to 10,000 more businesses with the skills to go international over the next 5 years. 1.2 billion to 1.7 billion increase in international sales from supported businesses 15% to 20% additional increase in productivity by businesses supported to trade internationally* Attracting inward investment 25,000 to 35,000 planned jobs through the attraction of foreign investment of which between 8,000 and 12,000 planned high value jobs embed foreign investors in Scotland and develop supplier links to increase Scottish inputs to 40% - 50% of total inputs* Promoting Scotland In key markets, Scotland ranked in the top 10 as an attractive business location** Scotland as a global destination of choice for targeted low carbon opportunities** * baseline established through independent evaluation, measures to be assessed through further evaluation in 4-5 years. ** measures under development 8

11 5. Increasing International Trade The opportunity Internationalisation and the exploitation of new markets is a key route to company growth. Scottish businesses trading internationally have higher productivity than their peers, while independent evidence shows those assisted by SDI have even higher productivity. International trade stimulates innovation as companies are exposed to new ideas and competition and allows both business and economic growth as market opportunities emerge. Companies can only successfully enter international markets if they are competitive among their peers. There is a need to ensure through SE, HIE and Business Gateway that the international competitiveness of businesses remains a top priority. Scottish companies need support to compete globally especially in helping them understand the market opportunities in their sector and then accessing these international markets including in-country support. Over the longer term this may involve support to improve their competitiveness, further expand into new markets and grow overseas sales, typically with support from SE and HIE through dedicated support to growth businesses. The global transition to a low carbon economy gives additional export opportunities in all sectors that will contribute to longterm sustainable growth. Scotland s whisky, green tourism and environmental consultancy sectors, for example, offer great potential for future export growth. Priority: more Scottish businesses trading internationally We will raise the aspiration and ambition of more Scottish businesses to think, compete and trade globally. We need to ensure that all businesses actively consider the potential to expand their markets and are given the right support at the right time to convert this potential into sales outside of Scotland. In particular we need to support businesses to develop their capacity and routes to markets to grow sales. 5 year goal: 30 to 50 percent increase in the number of active exporters over the next ten years with 8,000 to 10,000 more businesses with the skills to go international over the next five years Priority: greater support for growth companies Companies with significant growth potential require services which complement and build on the wider growth support offered by SE and HIE. International strategy development has proven to be highly effective and may highlight the need, for example, for innovation support to re-design products for an overseas market, or access to finance to fund expansion, or international sales and marketing competencies as a skillset to be developed within the company. SDI s overseas trade and investment offices can then help Scottish companies establish productive relationships in new markets and successfully navigate business and cultural challenges. 5 year goals: 1.2 billion to 1.7 billion increase in exports sales from supported businesses 15 to 20 percent increase in productivity of supported businesses through international trade Priority: international exploitation of Scotland s education sector Scotland has significant competitive advantages in the education sector based on the international standing of our research, our reputation for teaching & learning and corporate engagement, as well as our ability to promote these globally. Over one-third of the university sector s income is earned from the private sector and international clients. 2. Independent Evaluation of SDI,

12 An increasing priority is placed on overseas commercial opportunities in partnership with the international private and public sectors including consultancy work, Continuous Professional Development, research and transnational education. Universities and colleges are significant international players, strengthening Scotland s overseas reputation and generating new sources of revenue and economic activity. SDI must strengthen its work with universities and colleges to maximise their international impact by focusing on institutions commercial activities. Key drivers to deliver the priorities Drivers to deliver impact in the medium to long term: Driving business productivity and innovation: productive and innovative businesses succeed more in international markets Developing leadership, ambition and an international mindset among businesses and the wider Scottish community Developing the international capacity and skills of smaller businesses to expand into international markets Better connections, improving physical and digital connections. Drivers to deliver economic impact in the short to medium term: International support integrated with wider business growth support provided by SE, HIE and Business Gateway including, for example, innovation support and access to finance including the creation of the Scottish Loan Fund Provision of impartial, high quality, advice and guidance at a specific sectoral and geographic focus. Working in partnership with business and industry organisations to raise the ambition of their members to go international Delivering more and better quality online products and services Food and Drink Delivering the right international advice, at the right time and right place for business Leveraging more from networks including GlobalScot, UKTI and overseas partners Being close to Scottish businesses with locally based staff and close to international markets though an overseas presence Influence policy at a UK, European and international level in support of greater trade and open markets. 10

13 6. Attracting Inward Investment The opportunity There are 1,980 foreign owned companies in Scotland employing over 270,000 people (15 percent of the total enterprise employment in Scotland) with a combined turnover of 80 billion (31 percent of Scottish total). If companies whose parent HQ is elsewhere in the UK are included, there are 4,700 enterprises employing 630,000 people (40 percent of total enterprise employment in Scotland) with a turnover of 145 billion (56 percent of Scottish total). Scotland must continue to aggressively target inward investment opportunities where it has a strong global proposition. Increasingly this has to be an opportunity led, customer-focused approach responding to the unique needs of customers. Scotland remains a very attractive destination with 19 percent of all new R&D projects in the UK being won by Scotland in the past 10 years, reflecting our key sector and research strengths. These investors provide new sources of domestic innovation which can be further exploited through strengthening local and national supply chains. Priority: greater focus on strategic inward investment We will concentrate on attracting specific types of foreign investor, whose presence will strengthen and sustain our key growth sectors. Activities will be focused on specific subsectors where Scotland is globally competitive and has good opportunities to attract investment to strengthen the sector in Scotland. Attraction of foreign finance to fund new investment and infrastructure in Scotland will be given even greater priority. Alongside this there will be a focus on attracting talented globally-mobile individuals to pursue a career in Scotland. The focus will be where there are high-level skills gaps in key sectors which are constraining growth. Presently this includes Energy, Life Sciences, Enabling Technologies and Financial Services. Priority: embedding companies, encouraging expansion and developing supplier links Many of our inward investment successes come from companies which already have operations in Scotland and see the benefits of further investment. We need to reward their decision to invest here and anchor them within our economy by encouraging both expansion opportunities and extending local and national supply chains. SE, HIE and SDI will work with investors both corporately and locally to support this growth. Priority: low carbon opportunities We have a once in a lifetime chance to grasp the opportunity to be a global player in the low carbon economy. The opportunity is similar to the development of the oil and gas industry in the 70s. Scotland has significant competitive advantages in the field of renewable energy where the potential includes 25 percent of Europe s offshore wind and tidal energy potential; an estimated 10 percent of Europe s capacity for wave power, and the EU s largest offshore storage capacity for carbon emissions. Scotland also has opportunities in a range of other low carbon sub-sectors including environmental and clean technologies. Attracting foreign investors and funding is critical to developing these opportunities. 5 year goals for attracting inward investment: 25,000 to 35,000 planned jobs through the attraction of foreign investment of which between 8,000 and 12,000 planned high value jobs embed foreign investors in Scotland and develop supplier links to increase Scottish inputs to 40 to 50 percent of total inputs Scotland ranked in the top 10 as an attractive business location in key markets Scotland as a global destination of choice for targeted low carbon opportunities. 3. Foreign owned companies are companies whose parent HQ is outside of the UK but who have an operational base in Scotland. 4. Government, ONS (IDBR),

14 Key drivers to deliver the priorities: Drivers to deliver economic impact in the short to medium term: A world-class sales and marketing approach; Scottish Development International is already a high performer among peers and needs to continually drive improvement to become the best Industry led sector strategies with clear actions plans for the public sector that have specific and targeted propositions in sectors (and sub-sectors) where we have a real competitive advantage Opportunity-driven and flexible response with high level Ministerial support available when required Drivers to deliver impact in the medium to long term Developing a globally competitive business environment to deliver a globally competitive proposition for investors Developing the skills which meet the needs of potential inward investors Continued academic excellence and research record in key sectors from our universities, colleges and research establishments Delivering aftercare to foreign investors which further embeds their presence into the Scottish economy encourages growth and expands the use of Scottish businesses as suppliers. Sales professionals located overseas close to corporate headquarters who can develop long-term relationships Customer value-driven approach to proposition development Packaging support from a variety of partners to deliver solutions including: RSA, R&D+, skills support, local authority commitment, infrastructure availability to potential investors Direct activity including targeted digital marketing with specific targeting and relationship building with key businesses Attraction of foreign finance to support new investment Life Sciences The development and promotion of key pieces of infrastructure which will attract foreign investment and allow our key sectors to grow faster e.g. the National Renewables Infrastructure Action Plan, Edinburgh BioQuarter. 12

15 7. Priorities: By Sector and Geography Priority: key sectors The Scottish Government has identified seven key sectors and technologies where Scotland is or can be globally competitive. These are Energy, Financial and Business Services, Creative Industries, ICT and Electronic Technologies, Life Sciences, Education, Food and Drink and Tourism. The key sector strategies articulate the role of public sector partners in contributing to the growth of the sector and encourage greater alignment and collaboration across shared strategic goals. International opportunities form a key element of these strategies, allowing a more detailed international approach for each sector to be agreed along with the contribution of partners. Sectoral opportunities feed into the relevant geographic plans to align operational partner activities on the ground. There will also be international opportunities in other important sectors for the Scottish economy and there will be a continued focus on delivering against these, including: Aerospace, Defence & Marine, Chemical Sciences, Construction, Enabling Technologies, Forest Industries, Healthcare and Textiles. Priority: ensuring a global footprint focused on opportunity The priority international markets which offer the most opportunity vary from sector to sector and will also vary between export and inward investment opportunities. SDI trade and investment offices cover all of the main markets and there is a direct country presence within the priority overseas markets for the Scottish Government s key sectors for both inward investment and trade opportunities. Where there are geographies which currently do not merit a direct in-country support we need to ensure the customer is still prioritised. The approach to achieve this will be: ensuring a highly mobile field staff deployed to meet customer needs actively using UKTI presence which covers almost all countries (98 percent of world GDP) leveraging the knowledge and skills of GlobalScots using private sector provision to fill specific gaps, mainly on a short-term basis. Priority: emerging Markets While Scotland s traditional export markets in Europe and North America will still provide the majority of our exports in the foreseeable future, emerging markets are growing at a much faster rate and at the same time are becoming more open to trade. As the world economic map evolves, Scotland needs to stay ahead of the game to take advantage of the shift in international economic activity towards the emerging markets, at present in particular China, India and the Middle East. This requires balancing short-term opportunities while recognising the future potential of key sector opportunities within fast developing markets. These will be major sources of both trade and foreign investment in the future, and efforts now will translate into significant dividends later. 13

16 Table: Key Sectors and Top 5 Priority Geographic Markets Note: this table is indicative of the present opportunities, this will change over time as new opportunities emerge Key Sectors Creative Industries Energy (Oil & Gas) Energy (Renewables) Financial Services Food & Drink Life Sciences Universities Tourism SDI direct country presence Attraction of Investment Countries Canada China France Germany India Japan Korea Netherlands Norway Russia (and FSU) UAE (and Middle East) Rest of UK USA Wider Regional Geographies Asia Nordics Western Europe Support to Scottish Businesses to Trade Internationally Countries Australia Belgium Canada China France Germany India Italy Japan Malaysia Singapore Spain UAE Rest of UK USA Wider Regional Geographies Asia Western Europe South America West Africa

17 8. Putting Team Scotland into practice Through working smarter and ensuring alignment the Scottish Government can deliver greater value to customers and greater value for the Scottish economy. Priority: wider promotion of Scotland Scotland has a very good global reputation and brand. Awareness of the business proposition is increasing within the targeted key sectors and their sub-sectors. We need to continue to build on this to strengthen the pipeline of potential projects. This work will further strengthen perceptions of Scotland as a place to do business, invest, learn, live and work and compliment the tourism product promoted by VisitScotland. Priority: customer-focused delivery Customers must be at the heart of the work of SDI and partners. Greater trade and investment can only be delivered by adding value for customers. The approach to both Scottish businesses and foreign investors must be based on delivering solutions which meet their growth need, while clearly demonstrating the added value of that support to Scotland s economic growth. Priority: aligning the work of the public and private sectors Bringing together the skills and competencies of both the public and private sector to harness the collective effort is a key driver for success. Smart Exporter, a partnership initiative between Scottish Development International, Scottish Chambers International and the European Social Fund, has led the way and this approach needs to be further developed and the lessons used to support greater collaboration to deliver mutual goals. Local Authorities have a key role to play in a range of areas from ensuring a supportive business, planning and regulatory environment to encouraging a more ambitious and international mindset within our young people. It is critical that all parties work together to maximise the collective impact. SDI will therefore strengthen relationships with private sector bodies e.g. trade associations, international legal firms, accountants, specialist employment agencies and others. In the areas of science, technology and innovation, several bodies contribute valuable expertise, notably the Scottish Funding Council, Universities, industry bodies and others to ensure pull-through from these resources to business success. We must strengthen our collaborative work with the UK Government for mutual benefit of increased trade and investment. The recently launched The path to strong, sustainable and balanced growth 5 highlights the need to increase trade and access to international markets, this is further expanded on in the UK White Paper on Trade. UKTI is a key delivery partner. SDI works closely with UKTI to ensure that companies based in Scotland benefit from an integrated package of SDI and UKTI trade and investment services. The combined resources help drive success in international markets for Scottish businesses. UKTI also provide the market intelligence and, in some geographies, access to markets where SDI does not have a physical presence. UKTI staff based in UK embassies and high commissions overseas offer SDI economic and business insights, often with commercial implications as well as colocation in a variety of locations. Priority: influencing and providing business intelligence SDI and particularly overseas staff have a key role in providing real time business intelligence on key opportunities to develop a globally competitive business environment. This intelligence needs to be used to positively influence partners (both Scotland and UK-wide) as they develop their own plans and priorities. Areas of particular interest to both trade and investment customers include: infrastructure development, air connections, skills demands and tax regime. 5. HM Treasury and BIS (Nov 10). 15

18 Through the ongoing development of an enhanced Team Scotland extranet, SDI will ensure it shares key sector propositions with partners. Priority: harnessing the potential of international networks and influencers Though the GlobalScot network we will harness the powerful and supportive Scottish business diaspora. This international business network is made up of over 600 senior business people based across the world, and across Scotland s key sectors. The membership has committed to assist Scotland and our business ambitions. This assistance ranges from market advice and contacts to much deeper levels of engagement including advisory roles on industry bodies and non-executive roles within Scotland s most ambitious companies. Global Scottish companies and experienced exporters also have a key role in providing advice, guidance and networks. Ministers have a pivotal role to play in attracting investment through their overseas visits and hosting of overseas visitors. This valuable asset needs to be effectively used along with high-profile Scottish figures. Universities Financial Services 16

19 9. Delivery Outlined below are some of the key principles to be applied in delivering the Trade and Investment Strategy. Integrated business planning The international trade and investment priorities agreed by the Scottish Government and at the SE and HIE boards are the priorities then pursued by SDI. SDI s business planning is fully integrated with the joint venture partners. SE and HIE with SDI work closely with a wide range of partners to ensure that international opportunities are fully reflected in wider plans and strategies e.g. sector strategies or the collaborative approach adopted by the Moray Task Force. A key feature of this is each delivery body being able to play to its own strengths within joined-up plans. Typically these plans will be at detailed level to enable excellence in delivery and ensure maximum overall economic impact. A key element is that all players, within the strategic framework, remain flexible to respond very quickly to emerging opportunities and threats as they emerge. A key competitive strength of SDI, which is rare among its competitors, has proven to be the delivery of both trade and investment support in the same organisation. This allows the flexible use of resources to respond quickly to changing opportunities, the ability to build in-depth sector and cultural knowledge as well as allowing the establishment of trusted relationships and networks at home and internationally. Impact on the Scottish Economy SDI is internationally recognised as one of the world s leading trade and investment promotion agencies. It is committed to maintaining its position in delivering world-class trade and investment activities and increasing the GVA impact of its work relative to resources used. Given the recent independent evaluation of SDI (including support from partners e.g. Regional Selective Assistance), the delivery of the goals set out in this strategy and reflecting the uncertainly in the world economy it is estimated over the five years the implementation of this strategy will achieve between 1.5 billion and 2 billion additional growth for the Scottish economy. External environment Strategy implementation Impact over 5 years Lower growth scenario Global growth slow On track, similar impacts to billion GVA Higher growth scenario Global growth significantly greater than anticipated On track, 25% increase in impacts 2 billion GVA 17

20 Resource prioritisation The fiscal outlook is challenging. There needs to be a continued drive to reduce costs of international trade and investment work by building closer alignment through the Team Scotland approach and ensuring all activities add value to customers and the economy. Wherever possible resources need to be deployed with flexibility to ensure a response which is adaptive and open to opportunities as they arise. To deliver the strategic priorities in the plan the principles which will be applied are: Focus further on activities that deliver the greatest impact Enhance strategic alignment of public and private sector partners, particularly in the delivery of sector plans Maintain overseas capacity and customer focus Smart targeted marketing Balancing short-term versus long-term opportunities Optimise overall Team Scotland contribution Deliver productivity improvements. Tourism Creative Industries 18

21 Scotland. The home of golf and innovative financial services. We re experts at driving performance. We ve got quite a reputation for invention, innovation and leisure pursuits. The decimal point. Modern economics. The savings bank. Golf. It s a long list. And it s still growing. Our passion for success and hunger to win, combined with some of the world s largest financial institutions, high quality graduates and a strong community of professional advisers can be financially irresistible. We can develop your products and expand your business. And that s precisely why companies invest in Scotland. To see what we can do for your business, visit SCOTLAND. SUCCESS LIKES IT HERE. Example of Scotland s global marketing campaign 19

22 10. Conclusion Increased international trade and investment has a key role to play in contributing to Scotland s sustainable economic growth and raising Scotland s productivity and innovation performance. Scotland can and does compete with the best. We have globally competitive businesses and globally competitive sectors. We need to fully exploit these advantages internationally and ensure we compete and win on a world stage. This Trade and Investment Strategy clearly sets out the purpose, objectives, priorities and key drivers which need to be delivered to ensure Scotland maximises the economic benefits of being part of an open, global economy. The active contribution of a wide range of partners in both the public and private sector is critical to the successful delivery of this Strategy. SDI as the trade and investment arm of the Scottish Government, SE and HIE has a key role to play in providing leadership and supporting the coordination of activities which will deliver this strategy using a Team Scotland approach. 20

23 Scotland. The home of Whisky and the Bionic Hand. We re the toast of the scientific community. We ve got quite a reputation for invention, innovation and improving people s lives. Penicillin. Keyhole surgery. The beta-blocker. The game of golf. It s a long list. And it s still growing. In every sector from finance and electronics to our pioneering work in life sciences, we strive to set standards. We have worldclass academic institutions and purpose built science parks with some of the finest research facilities in the world. And passionate people with a hunger to win. We can develop your products and expand your business. And that s precisely why companies invest in Scotland. To see what we can do for your business, visit SCOTLAND. SUCCESS LIKES IT HERE. Example of Scotland s global marketing campaign

24 The Scottish Government St. Andrew s House Regent Road Edinburgh EH1 3DG Scotland, UK Highlands and Islands Enterprise Cowan House Inverness Retail and Business Park Inverness IV2 7GF Scotland, UK Scottish Enterprise Atrium Court 50 Waterloo Street Glasgow G2 6HQ Scotland, UK Scottish Development International 150 Broomielaw Atlantic Quay Glasgow G2 8LU Scotland, UK SE/3344/Mar11 22