The Scottish Government should simplify support for innovation and create an innovation centre for renewable energy to help boost productivity, a Conservative MSP has said.
Dean Lockhart said Scotland’s missed targets to improve productivity had cost the economy £45 billion.
He said the Scottish Government’s five-year, £120 million innovation centre programme administered by the Scottish Funding Council, which involves eight centres linking universities and businesses, is a “move in the right direction” but called for more targets to be set and to follow the recommendations of a review by Professor Graeme Reid.
Mr Lockhart told MSPs in a Holyrood debate: “In Scotland we are quite rightly proud of our strong history of innovation and world-class universities, from James Watt and the steam engine over two centuries ago to Dolly the sheep, we have been at the forefront of innovation for centuries.
“The unfortunate reality now, however, is that we have been overtaken by other countries on innovation and productivity performance.
“In 2007 Scotland’s productivity ranked in the second quartile of OECD countries, but the latest data places Scotland in the third quartile, with productivity levels some 25% below neighbouring countries such as Ireland and Denmark. The target for Scotland to be in the first quartile by 2017 has unfortunately not been met.
“Let me be clear, this is not about league tables, it is about our economic wellbeing and ultimately the amount of money available for public spending . According to Scottish Enterprise, failure to meet innovation and productivity targets has cost the Scottish economy around £45 billion.”
He added: “If the Government wants to reach the first quartile then we suggest it should follow the recommendations of Professor Reid and follow our policy advice in the following areas – we need to address the skills gap through reinstating college places; we need to simplify the cluttered landscape for enterprise and business support; address the shortage of Stem teachers in
schools and Stem subjects in further education; take steps to increase productivity in the public sector including the NHS; and use the enterprise review to enable Scottish business to scale up and access the growing export markets.”
He called for a new innovation centre for renewable energy to be created, which was backed by Liberal Democrat MSP Tavish Scott.
Scottish Labour’s Iain Gray said the review contained no evidence of the 5,000 new jobs the Scottish Government said the innovation programme would bring, and warned against falling into the
“pitfalls” of similar schemes, adding that academics should be encouraged “to research closer to real world problems”.
Shirley-Anne Somerville, Minister for Further Education, Higher Education and Science, said it was reassuring Professor Reid had concluded in his review that the innovation programme is “on the right track for delivering long-term benefits to Scotland”.
“I want to assure Professor Reid and indeed everyone in the chamber that we are considering the recommendations fully and what needs to happen next to allow the centres to realise their full potential,” she said.
On the creation of further innovation centres, she said: “The Government is happy to accept this recommendation and the timescales it sets out.
“It’s right and proper that we ensure our focus is in the right spheres and sectors, and is frankly keeping up.”
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