Why Dyson's former boss is backing the creation of a Scottish sovereign wealth fund

The Scots-born former boss of Dyson has thrown his weight behind the creation of a Scottish sovereign wealth fund to nurture the next generation of tech talent.

Jim Rowan was born in Glasgow and is the former chief executive of several multinational companies, including Volvo Cars.

Speaking on wealth management firm Murphy Wealth’s Human First podcast at the Smart Things Accelerator Centre (STAC), Rowan described himself as a “big advocate” for a sovereign wealth fund in Scotland, citing the success of similar schemes in Norway, Singapore and Saudi Arabia.

Adrian Murphy and Jim Rowan on location at co-working space thebeyond.

Talking with Murphy Wealth chief executive Adrian Murphy about how the government could nurture potential entrepreneurs and high-growth companies north of the Border, Rowan said: “Part of the problem, not necessarily just in Scotland, is that a lot of these technologies and investments are long term. By its very nature, sometimes the tenure within government is short term. And, of course, there’s a huge amount of pressure to make sure that they’re spending money wisely and there are results.

“I would be a big advocate for a Scottish sovereign wealth fund, where you can say, we’re going to carve off a certain amount of that budget every year, and we’re going to put that into a Scottish sovereign wealth fund. The rest of that budget obviously goes to service the immediate needs of the population.”

Rowan began his career in Scotland as a mechanical engineering apprentice at Tate & Lyle, before going on to take more senior roles at technology companies and founding his own technology businesses. He went on to take senior roles with the likes of Celestica and Blackberry in Austria, Canada and Singapore, before becoming chief operating officer and subsequently chief executive of Dyson.

Most recently, he was CEO of Volvo Cars - a position he held for more than three years, overseeing the company’s push towards software-led vehicles, before leaving in April of this year.

“If you look at Norway, it has a population very similar to Scotland,” added Rowan, “and they have a $1.7 trillion (£1.25 trillion) fund. They’ve done that over many years, taking a lot of the revenues from oil, redistributing them, and it’s paid dividends - not just for the immediate population of Norway, but there’s a generational benefit to it as well.”

Asked by Murphy whether he thought Scotland could keep more technology companies and talent within the country as they begin their scale-up journey, Rowan said: “I think it’s more than possible, honestly, I do. I just think it relates directly to the infrastructure that’s put in place and the opportunities to continue to grow.

“I don’t think people say, ‘I would really like to go live and work in Silicon Valley’. I think they’re drawn there for different reasons.

“You look at Edinburgh and some of the great financial institutions already built up in this country and there’s no reason why that infrastructure, access to talent, access to proper premises, and access to growth capital can’t be done here in Scotland. But… it’s fragmented, it’s tough, and some other places in the world make it a lot easier.”

The hour-long podcast is available on major platforms, including Spotify and YouTube. The Human First podcast is a series from Murphy Wealth, in which Adrian Murphy discusses life, money, motivation and family with some of the most prominent players in Scottish business. Previous guests include Scotland and Glasgow Warriors international turned entrepreneur Adam Ashe, Sub Club founder and legend of the Scottish nightclub scene Mike Grieve, and Scots entrepreneur and TAG Digital founder Laura Davidson.

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