Current status: Answered by Richard Lochhead on 27 June 2023
To ask the Scottish Government how inward investment projects supported by Scottish Development International, Scottish Enterprise, Highlands and Islands Enterprise, South of Scotland Enterprise and Skills Development Scotland are assessed in terms of (a) the depth of local economic linkages and (b) whether the investments are characterised as having either a developmental or dependent relationship with the Scottish economy, according to the definition established by the economist, Ivan Turok, in his 1993 publication, Inward Investment and Local Linkages: How Deeply Embedded is “Silicon Glen”?.
Scotland’s inward investment plan recognises the importance of spillover benefits that inward investment can bring to the Scottish economy. The focus is on attracting embedded investments which deliver knowledge exchange and supply chain benefits for Scottish businesses and educational institutions, as well as on creating high value jobs.
Potential inward investment projects are assessed by Scottish Development International based on agreed parameters, including planned jobs and supply chain impacts, with regional account teams specifically assessing local developmental linkages.
The Scottish Government, in collaboration with delivery partners, has commissioned an independent evaluation of inward investment support which includes a focus on these factors. The evaluation is due to be published in summer 2023 but findings show that inward investment projects attracted in recent years are typically of the developmental nature described by Ivan Turok, namely that they:
1. have a high degree of local autonomy;
2. play an important role in global value chains;
3. deliver significant supply chain benefits;
4. are engaged in knowledge exchange with businesses and with the Higher & Further Education sectors;
5. are diverse in terms of the mix of industrial sectors;
6. exhibit high levels of innovation; and
7. often expand operations in subsequent years.