Scotland and International Economic Development

1. Scotland and International Economic Development By Michael McDermott

2. International Economic Development: The Trends • Globalisation • The Knowledge Economy • International Trade • Internationalisation • Foreign Direct Investment

3. International Economic Development: The Winners • Competitive Advantage of Nations • Clusters • ICT • Rankings of Most Competitive Nations • The Most Global Economies • The Most Globalising Economies

4. International Economic Development: The Strategy • The priority clusters • The priority enterprises • The priority markets • The priority sources

5. Smart, Successful Scotland

6. Global Connections: Objectives • Helping Scottish knowledge generate value abroad for Scotland • Helping Scotland realise value by attracting knowledge from overseas

7. Physically Connected Scotland the most networked small nation in Europe Global Connections Strategy Digitally Connected Intellectually Connected

8. Four Specific Challenges in Making Scotland a Globally Connected nation 1. Increasing involvement of Scottish Enterprises in Global Markets 4. Encouraging more People to visit, live and Work in Scotland • Make Scotland a Globally attractive location 3. Digital Connectivity

9. Scotland & the World Economy: The 19th Century Scotland Outwards Inwards The World

10. Scotland & the World Economy: The 20th Century Scotland Outwards Inwards The World

11. Scotland The Strategic Intent The World

12. Scotland The World The Flying…….with two ‘wings’

13. Global Connections: A Turning Point

14. Global Connections Strategy

15. SE Operating Plan

16. SE Operating Plan

17. SE Operating Plan

18. SDI is structured as follows

19. Knowledge Out - Key Targets

20. Global Connections - Involvement in Global Markets

21. Scotland and Participation in Global Markets International Market Entry Modes Global Markets Traditional Scotland Exporting Exporting Licensing Scotland Franchising IJVs, M&As, Other fdi Strategic Alliances Contemporary

22. Knowledge In - Key Targets

23. Strategic Infrastructure - Key Targets

24. Today’s Workshop • Knowledge Out • Knowledge In

25. Knowledge Out • Identify and evaluate your assigned country’s international economic development strategy. • Compare your assigned country’s international economic development strategy with Scotland’s Global Connections Strategy. • What are the implications and/or lessons for Scotland? • What are the implications for your role in delivering achievement of International Operations’ strategic goals?

26. Knowledge In • Identify and evaluate your assigned country’s international economic development strategy. • Compare your assigned country’s international economic development strategy with Scotland’s Global Connections Strategy. • What are the implications and/or lessons for Scotland? • What are the implications for your role in delivering achievement of International Operations’ strategic goals?

27. The Global Environment

28. The Domestic Environment

29. The Domestic Environment

30. The Domestic Environment

31. Cosmopolitans and the '3Cs'

32. "New Economy” • “…..refers to a set of qualitative and quantitative changes that, in the last 15 years, have transformed the structure, functioning, and rules of the economy. The New Economy is a knowledge and idea-based economy where the keys to job creation and higher standards of living are innovative ideas and technology embedded in services and manufactured products. It is an economy where risk, uncertainty, and constant change are the rule, rather than the exception". (Progressive Policy Institute)

33. New Economy Index Indicators

34. Four critical requisites for a country to be able to fully participate in the knowledge economy: • Education & TrainingAn educated and skilled population is needed to create, share and use knowledge. • Information InfrastructureA dynamic information infrastructure-ranging from radio to the internet-is required to facilitate the effective communication, dissemination and processing of information.

35. Four critical requisites for a country to be able to fully participate in the knowledge economy: • Economic Incentive & Institutional RegimeA regulatory and economic environment that enables the free flow of knowledge, supports investment in Information and Communications Technology (ICT), and encourages entrepreneurship is central to the knowledge economy. • Innovation SystemsA network of research centres, universities, think tanks, private enterprises and community groups is necessary to tap into the growing stock of global knowledge, assimilate and adapt it to local needs, and create new knowledge.

36. Clusters • "An industrial cluster (see Porter 1990) is a set of industries related through buyer-supplier and supplier-buyer relationships, or by common technologies, common buyers or distribution channels, or common labour pools. • A regional cluster (see Enright 1992, 1993) is an industrial cluster in which member firms are in close geographic proximity to each other. A more inclusive definition would be: regional clusters are geographic agglomerations of firms in the same or closely related industries.

37. Profiles of the 'Transplant' and 'Organic' Clusters

38. Scotland's Priority Clusters: 'Born Globals' vs 'Born Again Globals'

39. World Competitiveness Index (IMD)

41. World Forum on Competitiveness