Mazzucato, Mariana;
Macfarlane, Laurie;
(2024)
A Mission-Oriented Industrial Strategy for Scotland:
Framing Paper.
(Policy report
2024/10
).
UCL Institute for Innovation and Public Purpose: London, UK.
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Abstract
Scotland faces an enormous set of interlinked challenges: the need to revitalise the economy while also transitioning to net zero and tackling inequalities. These goals are not mutually exclusive: Scotland can build a stronger and more productive economy while also transitioning to net zero and creating a fairer society. However, achieving this will require embracing a new approach to policy making – one that emphasises a more proactive role for the state in shaping Scotland’s economy. The Scottish Government has recognised this, and in September 2023 committed to developing a new green industrial strategy. Scotland is not alone: across the globe, an increasing number of countries are embracing industrial strategies in response to 21st century challenges. As other countries turn to proactive industrial strategy to overcome modern challenges, it is critical that Scotland does not get left behind. Developing a successful industrial strategy for a small economy like Scotland is not easy. It requires learning international lessons from the past and present, while adapting to 21st century challenges. Whereas historically many countries tailored industrial strategies around sectors, today governments are recognising the need for a different approach. This approach recognises that challenges such as climate change do not just require a small number sectors to transform – they require system-wide transformation. It also acknowledges that governments create and shape markets – not just fix them. And it recognises that economic policy must deliver sustainable and inclusive outcomes by design. The approach is called missionoriented industrial strategy, and in this paper we introduce our project aiming to develop such a strategy for Scotland. The paper begins by assessing the economic, social and environmental challenges that Scotland’s new industrial strategy should seek to address. We find that while Scotland’s economy has many strengths, a chronic problem of low investment has undermined living standards, hampered productivity growth, and stifled innovation. Meanwhile, the huge economic opportunities associated with Scotland’s net zero transition have been hampered by a weak industrial base and a lack of investment. We also find that inequalities of income and wealth, as well as between different regions of Scotland, threaten to undermine Scotland’s just transition
Type: | Report |
---|---|
Title: | A Mission-Oriented Industrial Strategy for Scotland: Framing Paper |
Open access status: | An open access version is available from UCL Discovery |
Publisher version: | https://www.ucl.ac.uk/bartlett/public-purpose/publ... |
Language: | English |
Additional information: | This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Inst for Innovation and Public Purpose |
URI: | https://discovery.ucl.ac.uk/id/eprint/10196028 |
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