'Think local' to beat recession

Nesta believes biotechnology is a growth area

Scotland should stop focusing on financial services and start investing in life sciences and energy to make it through the recession, a report states.

The National Endowment for Science, Technology and the Arts (Nesta) also called for more focus on the environment and creative industries.

It highlights Dundee as an area which has developed clusters of biotechnology and computer games firms.

Nesta believes local strengths must be developed to boost the economy.

Nesta, an independent body aiming to make the UK more innovative, said that Scotland should not follow the "London model" of too heavy reliance on financial services and property development.

It wants the Scottish Government, local councils, colleges, universities and enterprise agencies to work together to develop and exploit local strengths and clusters.

Nesta states that there also needs to be a more urgent investment in local transport and broadband infrastructure to allow these clusters to grow.

These local strengths, when put together, will form a new economic tapestry and make Scotland less vulnerable

Graeme Downie
Nesta

Nesta spokesman Graeme Downie said: "Whilst Scotland has had a great deal of success in the financial services in the past, it seems unlikely that these jobs will play as much of a role in the future.

"Scotland must grasp the opportunity that a recession provides within the powers they already have to make bold decisions about where its assets lie - particularly in life sciences, energy and the environment and the creative industries which will be the basis of the future Scottish economy.

"The best way to ensure this is to plan strategically how to place regional strengths, skills and collaboration at the heart of economic thinking throughout Scotland.

"These local strengths, when put together, will form a new economic tapestry and make Scotland less vulnerable to future economic downturns which affect a particular sector."

Nesta praised the work done in Dundee to develop a biotech sector.

Dr Paul Ajuh, managing director at Dundee Cell Products, said: "We welcome the recommendations that come from Nesta's report, which outline the need to further develop existing life science clusters, such as Dundee.

"Expanding resources into areas of greatest potential will help build industrial critical mass and as a result facilitate business to business interactions and competition on a global stage, as well as attracting much needed talent to cluster areas."