Kate Forbes: How Scotland can rival tech centres like London and Silicon Valley

Too few of Scotland’s best start-ups succeed over the long term, costing us growth, jobs and tax revenues, writes Scottish Finance Secretary Kate Forbes

Finance Secretary Kate Forbes speaks in the Scottish Parliament, watched by First Minister Nicola Sturgeon (Picture: Andrew Milligan/PA)

Innovation is a word we’ve heard a lot during the coronavirus crisis.

Businesses have embraced new technologies at a pace and scale that would normally have taken years, and we have all heard the inspiring stories of companies adapting their operations to make protective equipment for frontline workers.

As we continue our economic recovery, it is clear that we cannot simply return to the status quo. Rather, the innovative spirit that has helped so much during this crisis must continue.

That means building a high-tech, low-carbon economy, one that harnesses the power of technology as a force for social and economic good.

To realise that vision I invited Mark Logan to conduct a review of Scotland’s tech ecosystem. Mr Logan has spent 30 years building Scottish technology companies, helping the flight comparison site Skyscanner gain a market value of over $1.5 billion in his five years as chief operating officer.

He is also passionate about creating a new generation of tech talent with the opportunity to replicate his success.

The Logan Review was published last week to universal acclaim, with key figures from business, technology and academia saying it has the potential to transform Scotland’s economy.

Its 34 recommendations have one simple aim: to produce a consistent stream of new Scottish technology companies that go on to become profitable.

Scotland’s current performance is lacking. While much attention is drawn to high-profile successes such as Skyscanner, too few of our best start-ups succeed over the long term. That is costing us growth, jobs and tax revenues.

Compare this with tech centres such as London and Silicon Valley, which have achieved a critical mass of start-ups and capital, and you’ll see that Scotland has work to do – but we are determined to get there.

That’s why yesterday I announced £4 million in funding to help give Scotland a similar critical mass of tech talent.

The money will be used to establish a national network of tech scalers – places where entrepreneurs can meet, work and share ideas. Crucially, the entrepreneurs will also be able to access mentoring and world-class education, potentially using training models from Silicon Valley.

This is just the initial investment in the tech scaler network, and is part of our aim to support at least 300 start-ups over the next five years.

We will be setting up an Ecosystem Fund to take forward some of Mr Logan’s other recommendations, such as using more technology conferences to attract talent and investment, funding programmes to increase the number of start-ups emerging from universities, and running after-school clubs to teach children how to code. But education doesn’t finish at school, and we will also be exploring how we can give adults programming skills to help them switch careers into the industry.

Mr Logan’s proposals to elevate computing science to the same level as maths at school have been covered in The Times, but the report is clear that something as radical as this cannot be achieved overnight. It will take a concerted effort by Government, schools and the education sector.

That doesn’t mean we shrink from the challenge, and Education Secretary and Deputy First Minister John Swinney has already held discussions with Mr Logan about the next steps.

Coronavirus has thrown up enormous challenges for Scotland, and in response we are determined to create a more dynamic, innovative economy. I look forward to working closely with the technology industry to build a digital future for Scotland.

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