By Keith Aitken in Edinburgh | 9 June 2014
Scotland’s uncertain constitutional future has proved no deterrent to overseas investors, according to the annual Attractiveness Survey by accountants EY.
Their figures show that Scotland comfortably maintained its lead over every other part of the UK except London in attracting foreign direct investment (FDI). The number of projects won was up 8% on the previous year to 83, the highest level for 16 years.
Though the overall number of jobs associated with FDI continues to fall as manufacturing declines, Scotland’s share of high value-added research and development projects soared by 70%. A third of all R&D investments to the UK now come to Scotland.
Scottish Finance Secretary John Swinney said: ‘Scotland's success at securing inward investment flies in the face of the chancellor of the exchequer’s doom and gloom comments when he said that the independence referendum would damage business.
‘The reality, of course, is that as a result of the powers we have and our support for enterprise, Scotland is securing jobs, investment and economic growth, and the latest labour market figures show that we are out-performing the rest of the UK.
‘With the full fiscal and economic powers of independence we could do even more to support companies, strengthen our economy and create jobs.’
The figures follow a near 50% rise in project numbers the previous year, and appear once more to contradict predictions that the constitutional uncertainty over Scotland’s independence referendum on September 18 would prove a disincentive to overseas investors.
Jim Bishop, EY senior partner in Scotland, said: ‘The country is expected to gain a boost to its international profile this year as a result of the exposure afforded by the Glasgow 2014 Commonwealth Games and Ryder Cup and this should be harnessed as a competitive edge over most other areas of the UK.’
The figures show Scotland performing particularly strongly in the US marketplace (accounting for two in five of the projects), in Canada and in European countries like France, Norway, Sweden and Ireland. It did less well than the UK as a whole in developing nations.
Scottish Development International is the Scottish Government agency responsible for pursuing FDI. International operations director Neil Francis said the report ‘underlines the message that we continue to drive home with investors across the world: Scotland is open and ready for business’.
He added: ‘The upsurge in the proportion of R&D projects coming to Scotland is extremely encouraging as it reinforces Scotland’s leading edge in science and technology and validates our efforts where we are working collaboratively with our public, private and academic partners really to capitalise on Scotland’s competitive advantage.’
