Section 1: Ministerial Foreword
Attracting companies to invest in Scotland is an important factor in our long-term economic well-being and prosperity. investments inwards makes a disproportionately positive contribution to the Scottish economy. Although only 3 per cent of businesses in Scotland are foreign investors, these companies provide over a third of jobs, around half of them ESPEnearly two-thirds of corporate spending on research and development (BERD) and three quarters of international exports. These companies play a key role in Scotland’s economy, giving us access to global technology, talent, markets and investment. They support the creation of globally recognized and leading clusters in Scotland and the development of local businesses and supply chains.
In October 2020 we published Shaping Scotland’s Economy: Inward Investment Plan. The plan outlines our ambitions for Scotland to become a leading destination for foreign investment, consistent with our values as a nation and committed to fair work, net zero and inclusive prosperity. The plan highlights the important role foreign investment plays in creating quality jobs for the economy, takes an evidence-based approach to identifying Scotland’s strengths, aligns them with current and projected global investment flows and sets out a range of actions to attract further Foreign investment to Scotland.
A strategy without delivery brings no value. That is why we have released this update to report progress on the actions we have taken to implement our plan and the results we are seeing as a result.
Despite global headwinds and the effects of Brexit and Covid, we have consistently implemented these measures over the past 18 months. At the 2022 World Forum for ADI, In Edinburgh in May I announced the annual results of overseas investment by Scottish business agencies: Scottish Enterprise (SE), Highlands and Islands Enterprise (HERE) and South of Scotland Enterprise (SoSE). Business agencies helped attract 113 foreign investment projects for 2021-22, with 39 new investors choosing Scotland. 7,780 direct jobs have been created or sustained through foreign investment, demonstrating that foreign investment drives economic growth and creates and protects jobs across Scotland.
a few weeks later, EYScotland’s 2022 Annual Attractiveness Survey showed it to be a leader United Kingdom in attracting investment from abroad. Scotland has maintained its position as the front runner ADI region or nation of United Kingdomoutside London, and surpasses the rest of the United Kingdom and Europe with the growth in the number of ADI projects attracted. Scotland ADI Projects increased 14 percent from 2020, compared to a 5.4 percent increase in Europe and a 1.8 percent increase in United Kingdom.
These are fantastic results for Scotland and show our plan is working. They also underscore the importance of foreign investment in support of the policies identified in our National Strategy for Economic Transformation (NSET), by attracting high-quality investments and technologies from abroad needed in emerging areas such as energy transition, decarbonization of transport and space.
Having worked extensively with foreign investors, both in Scotland and abroad, it is clear that our values-driven approach and clear focus on key strengths in the industry are increasingly appealing to existing and potential investors. However, we cannot rest on our laurels and must continue to work alongside investors to advance Scotland’s case for attracting foreign investment in an increasingly competitive international environment.
This Inward Investment Plan: Progress Report 2022 sets out what Team Scotland has accomplished since the plan was published. It also sets out our priorities for the next phase of plan implementation to advance our ambitions to attract more value-based investment to Scotland. I take this opportunity to thank everyone at Team Scotland who worked hard to achieve this success.
Ivan McKee MSP Minister for Economy, Trade, Tourism and Enterprise