Innovation Policy and Practice in the Highlands and Islands

Ruth SimeBusiness Support and Programmes

16th September 2011

Outline

• The Highlands and Islands• Innovation and Business Growth• Talentscotland Graduate Placement

Programme• Business Innovation Grants• MIT Entrepreneurial Development

Programme• Going forward

The Highlands & Islands• 51% of the landmass of Scotland• 9% (462,000) of the Scottish

population• Only one settlement of over 25,000

– Inverness• Fragile areas and islands• Employment rate (80%) ahead of

the Scottish figure• Unemployment rate below Scottish

and UK averages• Productivity below Scottish level • Low average incomes• 28% businesses less than 10

employees• 60% less than 50 employees• Poised to capitalise on some

unique sectoral opportunities

Innovation and Business Growth

• Innovation critical to the UK’s future prosperity, our quality of life and future job prospects

• Central to economic recovery• Broader approach to business innovation ie

beyond the domain of science and technology alone

• Clear focus on strengthening the line between the research base and business innovation and addressing low levels of business R&D

Business needBusiness needPromotersstimulating 

innovative activity

Promotersstimulating 

innovative activity

Supportfor innovation

Supportfor innovation

How to capture and create value

How to capture and create value

Improve business skills

Improve business skills

HIEHIE

Scottish GovernmentScottish 

Government

Research and development, Intellectual Property and commercialisation of ideas

Research and development, Intellectual Property and commercialisation of ideas

Access to funding for innovationAccess to funding for innovation

Solving technical problems and improving operational efficiencySolving technical problems and improving operational efficiency

Chamber of commerceChamber of commerce

Developing skills in management, leadership and entrepreneurshipDeveloping skills in management, leadership and entrepreneurship

Support for internationalisationSupport for internationalisation

Academic Knowledge Base (Scotland & UK)Academic Knowledge Base (Scotland & UK)

UHIUHI

Enterprise Europe Network

Enterprise Europe Network

Developing new ideas, products and processes

Developing new ideas, products and processes

Knowledge transfer and knowledge exchange to bring 

new skills

Knowledge transfer and knowledge exchange to bring 

new skills

Innovation Support Infrastructure (UK & EU)Innovation Support Infrastructure (UK & EU)

FacilitatorsFacilitators

HIE Account ManagersHIE Account Managers

Interface H&IInterface H&I

FUSIONFUSION

Nationa

l/EU

 Program

mers

(SMAS, TSB

, FP7

 etc)

Access to information, networks and industry groups

Access to information, networks and industry groups

Business NetworksBusiness Networks

Industry GroupsIndustry Groups

Improve access to knowledge

Improve access to knowledge

Problem solvingProblem solving

Improve growth potential

Improve growth potential

Entrepreneurship and Leadership …

• Intrinsically linked to innovation• Vital in developing the innovation

ecosystem• Essential for successful and ongoing

implementation of innovation

Innovation Review June 2009 Eight Priorities

• Human networking• Commercialising the Knowledge Base• Availability and optimisation of ICT• Education, training and start-up support• Key sector targets• Access to finance• Increase business skills• Availability of business space

Talentscotland Graduate Placement Programme

• Multi-agency programme led by HIE and SE, also involving SFC, AGCAS, SDS, SGovt

• 3 years programme• Launched in October 2010• Originally aiming for 600 placements in SE and 130 in HIE• European funding and variable wage subsidy provided in HIE

area from the start• Wage subsidy introduced in SE for some placements as a

response to slow uptake • Placements of 3-12 months• Project –based, change in products or processes• Includes training for graduates in innovation/entrepreneurship

delivered by RGU/Strathclyde• In HIE, also includes a summer placement programme

Progress to date

• 45 organisations in HIE (46 placements)• 42 organisations in SE (49 placements)• 62% business development/marketing in HIE

(55% SE)• 26% product development in HIE (SE 35%)• 10 social enterprises in HIE, 2 in SE• First three placements in HIE just finishing• Clear benefits for businesses and graduates

Examples of Graduate Placements

KP Technology, Wick• Design of interface package

for Kelvin Probe scanners • Accelerating introduction of

new scanning softwear

SkyeSkyns, Waternish, Skye• Assist with structural change

in the organisational • Review and amend job

descriptions• Input into new marketing

programme

Business Innovation Grants

• Response to low uptake/awareness of R&D in HIE businesses

• Introduction/taster of benefits of R&D• First steps towards larger R&D projects • Most projects ran October 2010- April 2011,

therefore difficult to measure the impact• 22 in HIE pilot project, average £4.5K• 2 social enterprises• 4 start-up companies• 50% food and drink

E & H Builders (Shetland)• E&H Builders (Shetland)• Renewable energy device at desk

based stage • Heriot Watt Engineering Design

Projects Team help develop the concept

• Output - concept has significant potential

• Potential outcome – spin off company to further progress the design and manufacture of a proof of concept prototype

• “The BIG award allowed us to mover the project forward in these early stages and could prove decisive in our long term success. ….difference between a good idea being developed or shelved.

• Add picture

Henshelwoods Fine Foods (Bute)

• Fine foods to independent retailers• Investigate a range of long shelf-life sauces stored at

ambient temperatures• BIG award help develop new recipes and an appropriate

outsourcing partner• Output-recommendations for production strategy• Potential outcome – launch of two new products in 2012

• Add picture

Entrepreneurship Development Programme

• Sloan School of Management, MIT• World class training and development• 10 days visit to Boston• includes 5 intense days of lectures, workshops,

teamwork• another 5 days “wrap around” meetings• HIE and SE busineses• “Mindset” change for participants• networking nationally and internationally• Significant innovative changes in leadership,

management, processes, business objectives

Benefits of EDP – Redcat IT

"I have to say, EGP just about revolutionised my business. Even in the short time I have had my eyes opened and have a real focus in the business, and inner excitement I can't quite describe. We are already starting to see results and should see a complete transformation in growth over the next 12 months"

Global Energy Ltd

EDP was a magnificent experience and I am sure that the connection with MIT can make a major difference to the Global Energy Group in the future. We are passionate about growing our business in the Highlands and I feel convinced that something is going to come out of my week spent there that will trigger significant value for both our company and the highlands.

Benefits of EDP – Sitekit & NB Communications

Sitekit has derived massive benefit as a result of the MIT relationship. It has been fundamental in changing our whole vision and ambition for the company.

“The EDP was a fantastic experience. Meeting renowned business-building experts was hugely worthwhile and inspirational, as was seeing the wider MIT entrepreneurial ‘eco-system’. This is invaluable, as it provides a clear foundation for our future growth, and provides a framework for all our efforts. Overall, I believe that attending EDP has made it significantly more likely that NB Communications will become a Scottish success story”

Going Forward

• Alignment and collaborative programmes with SE, SFC, Interface and other partners

• Identifying gaps• Some HIE specific programmes• Also sharing programmes across Scotland • Widening opportunities for businesses• Maximising financial and staff resources• Developing the “growth community” in

Scotland

Any questions