The country has one of the largest and most active investment promotion networks, which has successfully targeted high-value-added sectors, such as microelectronics, life sciences and financial services. Recent investments include: Raytheon’s investment in Glenrothes to build missile guidance systems for the Harrier, Tornado and Eurofighter planes; JPMorgan’s investment in a systems centre in Glasgow responsible for developing its global technology; and Johnson & Johnson-owned life sciences company Inverness Medical’s expansion of its research and development activities in Inverness, creating more than 400 jobs.
Besides life sciences, microelectronics, communication technologies and financial services, other areas attracting significant foreign participation include the food and drink sector, the energy sector and creative industries. Other big investors include IBM, Morgan Stanley Dean Witter and Hutchinson 3G.
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Investment incentives and the tax regime particularly favour large companies wishing to invest in research and development and the government has targeted discretionary funding at R&D projects. The government also offers grants to support training and job creation, in addition to public investment funds in certain industries.
The excellent international reputation of Scotland’s workforce is supported by the statistics: 27% of the population of working age has been to university and 33% of young people aged 18 to 30 hold a university degree. Scotland has 13 universities, six specialist higher education facilities and 46 colleges of further education. The student population has swelled to more than 500,000 and with more than 60,000 pupils leaving school each year, labour is not in short supply. And international schools offer teaching in several languages, including Japanese and Finnish.
In the last research assessment, four Scottish universities achieved the highest level for the quality of research in a particular subject: Glasgow for computer science and electrical and electronic engineering; Strathclyde for electrical and electronic engineering; Edinburgh for computer sciences, electrical and electronic engineering, and physics; and St Andrews for computer sciences and physics.
Scotland’s labour market regulations, in line with the UK’s, are the most flexible in Europe and yet staffing costs remain competitive, particularly when compared to the rest of the UK and many areas of mainland Europe.
The country’s air transport sector has also grown and its four main airports serve destinations across Europe, north America and beyond. There are more than 115 flights a day to London from Scotland.
The private healthcare system is also thriving: there are four private hospitals and more than 40 public hospitals offering private practices.
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Scotland leads Europe in many of its urban regeneration projects. Glasgow, for example, has been transformed in the past decade. Edinburgh has long been known for its rich, contemporary, cultural life – recognised last year when MTV hosted its European music awards there.
Urban planning and infrastructure projects range from high-speed internet access, to the creation of new technology institutes at a cost of Ł450m (€653m) over three years. These new institutes will cover life sciences, energy and media technologies. Other major projects include Glasgow’s co-ordination of Ł750m of public-private investment in its financial services district, which could involve the creation of up to 20,000 jobs. The city’s new broadcasting and digital media district in Pacific Quay will house BBC Scotland’s headquarters from 2006, and Scottish Media Group has also indicated its intention to relocate. The Ł750m regeneration of Glasgow Harbour involves a 120-acre site, which until recently was occupied by empty shipyards. Other significant projects include science and technology parks, biotech facilities, dedicated media districts and countless regeneration schemes.