As the American economist Theodore Levitt stated:
“Creativity is thinking up new things. Innovation is doing new things.”
Here in Scotland, we can lay claim to having done both quite well over the years. We have a proud history of many historic achievements, from penicillin to the telephone, and from the bicycle to the ATM. However, we cannot, and should not, live in the past. To become a more successful country, we need to drive greater innovation and create opportunities for our businesses and Scotland to flourish. This Government is doing what it can to grow a sustainable economy that is resilient and inclusive. Encouraging innovation is key to that.
Innovation is critical to our ambition to shift the dial on Scotland’s economic performance. That is why it features heavily in the four pillars of the Government’s economic strategy. It is why we have published the Scotland can do statement of intent for Scotland to become a world-leading nation in innovation and entrepreneurship. It is why the innovation centre programme was established in 2013 to drive greater collaboration between industry and academia and to build on our research strengths.
The programme has been developed with and is being delivered through the Scottish Further and Higher Education Funding Council in partnership with Scottish Enterprise and Highlands and Islands Enterprise, supported by Government funding of up to £120 million between 2013 and 2019. The eight innovation centres sit within some of our key sectors: construction; oil and gas; stratified medicine; digital health; industrial bio-technology; sensors and imaging; big data; and aquaculture.
Ensuring that an industry demand-led focus sits at the heart of the innovation centres’ activity has been a real strength of the current approach, bringing people, businesses, academics and agencies together, physically and conceptually, so that ideas are sparked and co-developed. The collaborations seek to address challenges that industry has identified by exploiting the strength and quality of research in Scotland’s world-leading universities. Our higher education sector was exactly the right place in which to establish the innovation centre programme, with universities being able to provide the right governance and support structure, as well as a strong research base, the right mix of graduate and academic skills and a project-focused ability to generate new ideas, products and processes.
It is appropriate today to acknowledge the exciting progress that has been achieved to date, with impact already being made both in Scotland and internationally. NHS Scotland, Thermo Fisher Scientific, Hydrasun, Marine Harvest Scotland, Cascade Technologies, AstraZeneca and Ingenza are just a few examples of the global players that are working alongside our small and medium-sized enterprises in innovation centres across a range of sectors.
CENSIS, which is the centre of excellence for sensor and imaging systems, recently announced its £6 million mirage project, which is a collaboration with four companies and the University of Glasgow to produce materials for goods that use sensors, ranging from asthma inhalers to infrared cameras. Placing Scotland at the forefront of the £7 billion global sensors and imaging systems market, the project is expected to deliver £56 million to the Scottish economy during the next 10 years and will give the companies involved a critical competitive edge in the global sensors market.
The Scottish aquaculture innovation centre, working with Marine Harvest Scotland, Scottish Sea Farms, BioMar and the University of Stirling, is co-ordinating a £4 million project to help address on-site control of sea lice—a key challenge facing salmon aquaculture—through the cultivation and use of cleaner fish as biological alternatives to medicinal control. Aquaculture is one of our real economic success stories. If it is grown sustainably, it is on track to contribute more than £2 billion annually to the Scottish economy by 2020 and to support 10,000 jobs—and there is significant potential thereafter.
Some collaborations are also helping to deliver benefits for the health and wellbeing of people in Scotland. The digital health and care institute has been involved in the development of my little one, which is technology that makes it possible for parents to keep in touch with their babies while they are in neonatal care. In October, stratified medicine Scotland, representing NHS Scotland and Scottish universities and industry partners, and AstraZeneca announced a new partnership, which will offer researchers new opportunities to develop innovative new treatments and target the right patients to the right medicines using patients’ genetic information. It means that Scotland will be an active partner in AstraZeneca’s global genomics initiative, further demonstrating Scotland’s ability to attract major industry projects.
By working to meet the needs of industry and graduates, innovation centres are also adding to our skills mix and encouraging the development of existing and new skills. Recognising that Scotland is a global centre of excellence for data science, the data lab is partnering with MBN Recruitment Solutions, one of Europe’s leading data science and big data recruiters, to help place MSc graduates in organisations that are seeking to make the most of their talent.
The industrial biotechnology innovation centre has been working with Forth Valley College and Glasgow Kelvin College to develop bespoke higher national certificate and higher national diploma courses in industrial biotechnology. Those qualifications aim to produce graduates who have key skills for employment in the sector, meeting crucial industry demand.
There is no doubt that a great deal has been achieved in the early years. However, at the halfway point in the programme, it was right to commission a review of progress to date. I thank Professor Graeme Reid for chairing that work and for the review’s thoughtful and in-depth reflections.
It is reassuring that Professor Reid concluded from the evidence that his review gathered that the programme is on the right track for delivering long-term economic benefits to Scotland. The recommendations chart a useful course for the way forward, building on strengths and identifying—rightly—the challenges for the next stage of the programme’s development. I assure Professor Reid and every member in the chamber that we are considering the recommendations fully and thinking about what needs to happen next to allow the centres to realise their full potential.
I will respond to several of the report’s key recommendations. The first recommendation calls for the periodic assessment of whether additional innovation centres should be created, subject to the availability of resources. The Government is happy to accept that recommendation and the timescales that it sets out. It is right and proper that we ensure that we focus on the right spheres and sectors and that we are keeping up, as there is nothing innovative about developing solutions for past rather than future priorities.
Recommendation 6 advises
“that every university and each Innovation Centre should make renewed efforts to involve as much of Scotland’s excellent research base as possible with the programme”.
I agree whole-heartedly with that, and I am sure that the innovation centres, the funding council and the university sector will work to the timescales that Professor Reid suggests.
Professor Reid also recommends that
“the Scottish Funding Council ... explores Further Education ... college participation in Innovation Centres”.
Although a number of colleges are already active in enhancing the work of the innovation centres in various areas, colleges can and should do more to capitalise on their local connections and their proven ability to engage with business. I was interested to hear about the work of the construction Scotland innovation centre in exploring how it can work more closely with the college network.
From my many visits to college campuses since I became minister, I know that there are already great examples of innovation happening in our colleges, but we need to expand that and encourage such work throughout the college sector so that colleges view the innovation agenda as being as much in their space as it is in that of our universities. There is definitely a bigger role for the college sector to play in the programme. We will explore with the funding council how best to take forward the actions that Professor Reid has suggested and will consider what more might need to be done to enable the further education sector to play its part.
Another key recommendation is for the enterprise agencies to
“identify and assess opportunities for new approaches to their funding support for Innovation Centres to increase business engagement and enhance the Innovation Centres programme”.
Professor Reid also recommends that the Scottish Government should
“simplify the outward appearance of arrangements for business support and better define and explain its specific benefits to individual businesses”.
He goes on to state that
“support for the business community”
should
“be articulated consistently in business-friendly language rather than the language of the public sector”.
Both those recommendations align strongly with the conclusions of phase 1 of our enterprise and skills review and will be considered in phase 2 of that review.
In recognising the value of those and other recommendations, the Government is demonstrating that it is open to addressing the opportunities and challenges ahead and that it intends to stay focused on the future needs of our economy. I hope that there will be agreement across the chamber on many of the key areas. In that spirit, we welcome all the Opposition amendments and their shared focus on the key points that arise from the review.
Paul Wheelhouse and I look forward to a robust debate, and we will listen carefully to what members have to say. After all, there is no monopoly on wisdom on this issue and many other issues. This is a shared endeavour, and it is important that we get that message across to all agencies, businesses, universities, colleges, students, graduates and academics. It is important that they hear that the Scottish Parliament shares a belief in the role that innovation is playing and should continue to play in helping to create sustainable economic growth and prosperity. The Parliament should acknowledge and, indeed, value the contribution that Scotland’s innovation centre programme can make to driving our innovation forward, both now and in the future.
I move,
That the Parliament acknowledges the contribution that Scotland’s Innovation Centre Programme can make as a driver of innovation on some key sectors of the economy; welcomes the publication of the independent review of Scotland’s Innovation Centre Programme by Professor Graeme Reid, and recognises that the review’s recommendations set out a helpful course for the Scottish Government to consider during the next stage of the programme.
15:15