Scottish Enterprise Annual Review 2011

At Scottish Enterprise we want to
help Scotland’s economy become more globally competitive. We do this by working in partnership
to help Scottish companies and sectors respond to new opportunities
that will boost Scotland’s overall economic performance. Trading conditions over the past year
have continued to be tough for many companies. We’ve been working alongside our
partners to do everything possible to help those businesses that are
likely to have the greatest impact on Scotland’s economy. This includes helping them find new markets,
reduce operating costs, develop new products and, ultimately,
create more and better jobs. In 2010-11, our research and development funds helped
to generate £74 million of investment for 179 new projects by Scottish companies
last year. This investment is helping these companies
become more innovative, increase their competitiveness,
and access new markets. We’ve also helped to stimulate innovation
within some of Scotland’s key sectors. This included the launch of the £4 million
Food and Health Innovation Service, which will support 400 food and drink
companies over the next five years, and the continued roll out of our
Tourism Intelligence Scotland service, which was accessed by more than
2,000 tourism businesses last year. The Scottish Manufacturing Advisory Service
has also played a key role over the past year, delivering support to more than
200 companies who wanted to generate new efficiencies for their business. This was a record year for the Service, generating £21 million of productivity
benefits for Scottish manufacturers. Last year, we also established
the Scottish Investment Bank and launched the Scottish Loan Fund. This will help ensure that both
early stage and established businesses which can demonstrate significant
growth potential have access to finance. Our equity investment funds have
also continued to perform well – we invested £23 million in 125 deals
with Scottish companies which, in turn, helped to attract £54 million
from private sector investors. This represented £77 million
of new equity investment going into Scottish companies, ensuring they had the capital required
to fund their growth plans. Scottish Development International
helped almost 1,000 Scottish companies to target international markets
during the last year. These companies expect to generate
£313 million of additional export sales as a result. SDI also helped to generate over £600 million
of planned inward investment for Scotland, creating and safeguarding over
9,300 planned jobs. Leading online retailer Amazon
was one of those companies. It is establishing a new
fulfilment centre in Dunfermline as well as a new customer service centre
in Edinburgh. Combined, these two projects represent
a total of almost 2,000 new jobs for the Scottish economy. At the heart of our strategy is
an integrated approach to supporting companies. We do this by developing one-to-one
relationships with our customers and offering carefully targeted support
tailored to their needs. Last year, turnover growth in
the businesses we supported was £790 million – double the figure achieved
the previous year. We’re also continuing to identify new
ways to support the growth of industry sectors which can make the
biggest contribution to Scotland’s economic performance
such as energy, life sciences, the creative
industries, tourism, financial services,
and food and drink. This includes support tailored for
companies operating in specific sectors as well as investing in new
infrastructure projects that will help to attract inward investment and boost
Scotland’s overall competitiveness. A good example of this approach
in action is our work in the renewable energy sector. Last year, we launched the new
£70 million National Renewables Infrastructure Fund, which will place Scotland at
the forefront of the global offshore wind market. This initiative will encourage
significant private sector investment in Scotland’s key ports and help to deliver around 28,000 jobs and add more than £7 billion to
our economy over the next ten years. We also launched the International
Technology and Renewable Energy Zone in Glasgow. This will create a centre of excellence
for academic research, commercialization and collaboration, attracting up to 700 new jobs and
£100 million to the Scottish economy
over then next decade. SDI also helped to attract investment
from several global players in renewables, including Mitsubishi, Gamesa,
Doosan Power Systems and Iberdrola. This investment is giving Scotland
some impressive green credentials to show off on the world stage. All of our company and sector support
has been delivered in partnership with the private sector, academia, and the wider public sector. This partnership approach has also
seen us meet significant milestones in a number of key infrastructure projects. This includes progress at the Hydrogen
Office in Fife, the Advanced Forming Research Centre, Edinburgh BioQuarter
and the Scottish Hydro Arena at the SECC. For every £1 we invested in these projects, we secured £3.20 from our partners. Like all of our activities, working in partnership has meant we can
deliver greater value for money and a stronger return on our investment. This focus on achieving more with less has also applied to how we
run our business. Over the past year, we’ve continued to
look for new ways to generate efficiencies and have reduced our management expenditure
by more than 8% compared to the previous year. Current events in the global economy
mean there may continue to be some tough times ahead. But we will continue to focus on
supporting ambitious Scottish companies and the sectors they operate in. In doing so, we believe we can play our part in
addressing these challenges head on and ensuring Scotland lives up to
its potential as a world leader in the 21st century.

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