Between the Lines: Grants reap dividends in terms of investment and jobs

WE CAN only create a successful Scottish economy if we have a thriving globally competitive private sector. That requires more companies investing in innovation, securing new investment and, crucially, creating new jobs.

That is why this week's announcement of 7,000 new jobs being created or safeguarded as a result of our regional selective assistance (RSA) is significantly good news for Scotland's economy. Our 52 million of support through our RSA grants will lead to a total of 234m of capital investment by both inward investors and indigenous Scottish companies.

That's leverage of more than four to one for the taxpayer and the jobs and investment has come at a crucial time for economic recovery. We've also been able to create 1,800 more jobs than we did last year, in spite of lower investment.

That has meant working smarter and looking at more effective ways of delivery that will allow us to have greater impact on the companies that we work with. One of the biggest criticisms that I hear about RSA is that it only goes to big, inward investors and we should be using these resources for Scottish companies.

However, the figures this week show that over half of all RSA offers made in the past 12 months went to ambitious Scottish companies. Over the past year, we have integrated the RSA grant with our wider package of support for Scottish firms. This has made it easier to target those companies which offer the best potential to create jobs as well as align our support to growing key sectors.

For example, one of Scotland's most exciting renewables companies, Burntisland Fabrications (BiFAB), benefited from an RSA grant last year to expand its Fife manufacturing facility and increase its capacity to manufacture components for the offshore wind and wave sectors.

Previously, the company had benefited from other Scottish Enterprise support such as manufacturing advice through SMAS, as well as innovation assistance. The company has since secured contracts with Scottish & Southern Energy and ScottishPower as well as wave energy company Aquamarine Power. The company's ambitious growth plans include an extra 400 jobs for Scotland.

The key to our work with BiFAB and companies like it is our account management approach and the intensive, tailored support we can offer as a result. Through this we are building strategic, in-depth relationships with Scotland's most ambitious companies, bringing them the right support at the right time.

But yes, we also use RSA to secure inward investment for Scotland and we shouldn't apologise for this. Inward investment is vitally important. Investors not only create jobs when they set up or expand in Scotland, but they also need supply chains, creating even more opportunities for Scottish businesses and more value for the Scottish economy.

Scotland is operating in a fiercely competitive global market when it comes to inward investment. Often these projects are highly mobile and a company's decision on where to locate a new project can be complex. RSA is helping us to ensure Scotland wins more than its fair share.

Last week's report by Ernst & Young highlighted that Scotland secured more jobs from foreign direct investment projects than any other part of the UK. In terms of numbers of projects, we were second only to London. A great result that we should be celebrating.

This includes investment from companies such as Hewlett Packard, which announced 700 jobs at its base in Erskine, Barclays Wealth creating 600 jobs in Glasgow and Amazon, creating 950 jobs at its fulfilment centres in Dunfermline and Gourock. While these firms have been attracted to Scotland because of the skills of our people, our supportive business environment, RSA has also undoubtedly played a part in their decisions.

Increasingly investors are telling me that it is both this financial support and the business relationship they have with both Scottish Enterprise here in Scotland and with their corporate HQ through our international arm, Scottish Development International, that is the deciding factor in their selection of and continued commitment to Scotland.

That is why this week's announcement is great news for Scotland. The results show we are creating more jobs, with less funding, and ensuring Scotland has a business environment that encourages real growth and investment.

• Crawford Gillies is the chairman of Scottish Enterprise