Highlands & IslandsHighlands & Islands

Regional Summary14 December 2010

Population & Employment Population & Employment 447,043 inhabitants

• 83,000 on Islands• 11 per sq.km (all H&I)• 8 per sq.km (outside Inverness)

Population is aging• 65+ projected to rise• 16-24 falling

Employment is lower value add sectors

• Primary industries• Tourism• Public sector

Population & EmploymentPopulation & Employment

Policy & Influence of GovernmentPolicy & Influence of Government

Government Economic Strategy 2007 Strong focus on economic growth

• Gov.t support directly linked to GVA ‘return’

Targeting resources in six areas• Food and Drink Creative Industries• Life Sciences Financial & Business Serv.• Tourism (Renewable) Energy

Role of Government is significant• Special projects (Dounreay etc)• Rural Agencies Public Admin• Armed forces

EntrepreneurshipEntrepreneurship

Global Entrepreneurship Monitor (GEM)

H&I performing well …• Rural area

... Separate research notes• ‘under-employment’ • Lower paid jobs• a deterioration in TEA

over time•

Exports & InternationalisationExports & Internationalisation

Exports Confidentiality prevents

clear data being published ~£1.3bn p.a.

• From 700 firms• 50% to EU• Primary Production &

Construction high• 81% vs 72% in all Scotland

• Business services low• 19% vs 28% in all Scotland

• Food & Drink most significant

• Whisky!

Internationalisation Challenges Dominance of low exporting

sectors Constrained Logistics

• Road, Rail Air, Sea• Higher cost, longer time• Power distribution

infrastructure

Lack of HQ’s• Risk of Corporate Restructuring

Reduction in Government Spending

• Multiplier impact on other tradeable sectors