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The Effectiveness of Scottish Enterprise

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Introduction

The Effectiveness of Scottish Enterprise This essay aims to examine how effective Scottish Enterprise has been in accomplishing its role as an economic development agency for Scotland. Scottish Enterprise describes itself as "the main economic development agency for Scotland1". It was established in 1991 to replace the Scottish Development Agency. The new agency was more regionalised through a network of Local Enterprise Companies, which encouraged the involvement of local entrepreneurs2. It is funded by the Scottish Executive. Scottish Enterprise's mission is "to help the people and businesses of Scotland succeed [...and to] aim to build a world-class economy.3" The Scottish Executive's objectives for Scottish Enterprise are set out in A Smart, Successful Scotland, along with a measurement framework. It identifies three themes, namely Growing Businesses, Global Connections and Skills and Learning and sets the priorities and aims within each of these4. Scottish Enterprise endeavours an integrated approach to its diverse activities. It co-operates with a range of partners, including companies, universities and local authorities. With regards to the first theme of Growing Businesses, its main concerns are the encouragement of entrepreneurship and innovation, the commercialization of research and innovation, an increase in e-business and the global success in key sectors. In its operating plan it identifies the first two of these areas as those in which Scotland is underperforming and where it will therefore concentrate its efforts. ...read more.

Middle

As for innovation within existing businesses, Scotland rated low compared to other European countries, but at 103% and 113% of the UK average for product innovation and process innovation respectively. Despite improvements made, the Regional Survey of UK Economic Trends, conducted by CBI, still found that inadequate business support from the government is the key factor inhibiting business growth in Scotland13 , followed by problems with the access to finance. The other area within the theme of Growing Businesses that was highlighted by Scottish Enterprise was the commercialization of research and innovation. Research and Development spending in Scotland as a % of GDP is about half the UK average. It ranks below all North West European countries. On another related measure, Academic Spinout, Scotland exceeds the UK average by 25% per million of population. It ranks third amongst the UK regions, however, the trend is negative. The number of spinouts has decreased from 38 in 1999 to 24 in 2001 and 23 for 2002. For 2001/ 2002, Scottish institutions were also granted 167 new patents and 102 licenses for the use of their intellectual property. Together, these commercialization activities exceed 13% of the UK total. The second theme of Smart, Successful Scotland is Global Connections. ...read more.

Conclusion

Strathyclyde 7 Scottish Enterprise, Entrepreneurship Policy, accessible at http://www.scottish-enterprise.com/sedotcom_home/about_se/research-and-publications/entrepreneurship_policy.htm, accessed on 02/12/2005 8 The Committee of Scottish Clearing Bankers, Quarterly Statistics for New Businesses 2002, accessible at http://www.scotbanks.org.uk/Fullyear2002.pdf ; The Committee of Scottish Clearing Bankers, Quarterly Statistics for New Businesses 2003, accessible at http://www.scotbanks.org.uk/Fullyear2003.pdf ; The Committee of Scottish Clearing Bankers, Quarterly Statistics for New Businesses June 2005, accessible at http://www.scotbanks.org.uk/NewBusinesstoQ22005.pdf ; Scottish Enterprise Network, Total Number of New Businesses, accessible at http://www.scottish-enterprise.com/publications/nbs_commentary_2001.pdf, accessed on 02/12/2005 9 Joint Performance Team, Measuring Scotland's Progress Towards a Smart Successful Scotland 2004, Training and Employment Research Unit, University of Glasgow, accessible at http://www.scotland.gov.uk/library5/enterprise/MP%20Report%202004.pdf, accessed on 02/12/2005 10Scottish Enterprise Network, Total Number of New Businesses, accessible at http://www.scottish-enterprise.com/publications/nbs_commentary_2001.pdf, accessed on 02/12/2005 11 Joint Performance Team, Measuring Scotland's Progress Towards a Smart Successful Scotland 2004, Training and Employment Research Unit, University of Glasgow, accessible at http://www.scotland.gov.uk/library5/enterprise/MP%20Report%202004.pdf, accessed on 02/12/2005 12 Scottish Executive, Scottish Economic Statistics 2004, accessible at http://www.scotland.gov.uk/library5/finance/ses04-22.asp, accessed on 02/12/2005 13 CBI, Regional Survey of UK Economic Trends 2004, accessible at http://www.scottish-enterprise.com/publications/regional_survey_of_uk_economic_trends_dec04.pdf , accessed on 02/12/2005 14 Scottish Enterprise (2003 - 2004), Scottish Enterprise Operating Plan 2003/04, page 3, accessible at http://www.scottish-enterprise.com/publications/seoperatingplan0304.pdf, accessed on 01/12/2005 15Joint Performance Team, Measuring Scotland's Progress Towards a Smart Successful Scotland 2004, Training and Employment Research Unit, University of Glasgow, accessible at http://www.scotland.gov.uk/library5/enterprise/MP%20Report%202004.pdf, accessed on 02/12/2005 ?? ?? ?? ?? - 1 - ...read more.

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