 Y dyfod ymddian nhw'n byth cyntaf ysgoliau cyffredinol Dyma Oeith. Mae'r drwng Llockhead yn Nifomol Llywodraeth Cymru. Mae'n amgylchedd gyda'r ddiweddau ar y ddechrau o ffarrer ac mae'n dweud bod ni'n meddwl i gweithio'n ffarrer gan tîm agorfaith. The motion will be around 11 minutes. Thank you, Deputy Presiding Officer. I am pleased to sponsor another debate in Parliament today on Scotland's economic future and the great work that is taking place to shape the future of our economy, and the country, and the quality of life, but also, of course, the planet as well. The publication of the national innovation strategy and the timing of the debate comes at a pivotal moment in Scotland's long history as an innovation nation because we all live in a rapidly changing and truly interconnected world and the next decade will be one of profound change and right now we along with many other nations face pressing challenges on climate change who's just heard there at questions and health and the cost of living and at this moment we have an opportunity to face these challenges head on and be a global leader for change we have the opportunity to build on the achievements of the past and to make the most of our considerable natural advantages to translate our excellent research base into commercial opportunities and to deliver economic success for every section of the economy and every part of our country we must harness the incredible power and potential for innovation in Scotland it can drive our nation's journey towards a thriving net zero economy encourage further international participation to address those pressing global challenges and attract further international investment to Scotland so we have the opportunity to once again take our place as one of the most innovative small nations in the world to take a place with european countries of a similar size such as denmark norway in finland where innovation is a core driver of the national economy that ambition is bold but everyone in this chamber is aware of scotland's strengths in innovation and the history of spectacular successes that spawned in this country we have a proud and enviable history and tradition of invention and innovation and our people for centuries have been known as innovators with some of the best scientists and engineers as well as writers and philosophers coming from scotland and helping to change the world scottish innovators and entrepreneurs have been solving global problems whether that's in energy or health or manufacturing and engineering creative and digital technologies or a range of other sectors and industries so innovation is a key priority for the scottish government over the last decade we have established multiple innovation centres as well as entirely new bodies such as the national manufacturing institute for scotland which represents a 75 million pounds investment by the scottish government in the future of scottish manufacturing a prime example of how we are supporting industry to innovate and besides the advanced forming research catapult its cutting edge facilities there include a digital factory a manufacturing skills academy and a lightweight manufacturing centre and the vision is to be a place where manufacturing businesses of all shapes and sizes can explore possibilities collaborate and find solutions to the challenges they are facing yep listening thank the minister for giving way does he recognize that what he's just outlined and the absolute potential that scotland has will only be enhanced if there is the body of economic policies that go behind making scotland a very attractive place in which to come to work and to manufacture minister yes i i do agree with that and that's why i'm so delighted at yesterday's statistics around the attractiveness of scotland's for inward investment projects which are absolutely stunning for the second year in a row we've outperformed the UK and Europe and for the eighth year in a row we have been the best performing area outside of London and the number of projects is increased by i think 3.3 percent in scotland compared to a six points over six percentage points decline in the UK that's a great success though as i think we have a lot of attractive qualities that are allowing companies to invest in scotland and we have to keep that up but scotland is already benefiting from innovation okay yeah pulse we need thank the minister for giving way he recognized though that inward investment wealth welcome as a headline figure isn't all created equal and that there are examples for example the critique of silicon glen by economists was that it was a dependent relationship with multinationals which very quickly moved to our countries so can we ensure that we're analyzing that inward investment to make sure it's a developmental deep value added investment in scotland and not simply buying over scotland's companies to asset strutman take the right intellectual property overseas minister that is a factor we should take into account and that's why i'm delighted with the new phrase i've learned recently from the tech sectors in scotland of sticky jobs because this generation of inward investment projects are different to those that have gone before they're based around their talent and our university and research capability and the results these jobs effectively can't go anywhere else and they're coming here they're sticking here and as a result of that other indigenous scotland sectors and businesses are benefiting as well and that goes to the heart of this innovation strategy and i will come on to that but scotland is already benefiting from innovation the success those across the country and recognize excellence on a number of areas both in terms of industry and from our universities i could give lots of examples but i think i may not have enough time but i'll give kenotech as one which was a spin out from heri at what university and produces the world's first 90 recycled brick with over two billion bricks produced in the uk the opportunity is really significant to set up further production facilities across the country and internationally and there's a whole host of other examples i could give of innovations happening in scotland just now while scotland's productivity however and business investment in research and development have seen significant improvements in recent years with the gaps to the rest of the uk largely closed we have work to do to catch up with her international competitors that's why the time was right to publish the scotland's national innovation strategy and i know that scotland's innovators entrepreneurs and her innovative companies stand ready to accept this challenge and return scotland to a central role on the global innovation stage innovation thrives on collaboration and it's through collaboration we get the most value from our investments in scotland's businesses and world-class research community in that spirit the strategy was designed and developed alongside industry experts, entrepreneurs, business leaders and academics who all came together with a shared vision to once again make scotland one of the most innovative small nations in the world the development was guided by an expert steering group co-chaired by professor sergym mcdonald through my thank and his colleagues and it was supported by intensive engagement through working groups, roundtables and workshop events and extensive evidence gathering exercise I also want to thank my predecessor Ivan McKee who's in the chamber today for all his good work in his previous role putting the strategy together and working with these other individuals the national innovation strategy sets out the actions we will now take to achieve our bold vision through the four transformational programmes on cluster building and investment and commercialisation and productivity as well within the next decade we will have a unified network of high performing clusters in each of our innovation priority areas providing valuable signposting to attract further international investment collaboration and talents the strategy identifies four key areas in which scotland has the clear potential to be world-leading energy transition health and life sciences advanced manufacturing and data and digital technologies we will take a european style cluster building approach to support these areas to become world-leading and international facing driving mutual benefits from international partnerships as well scotland has a range of established growing and emerging clusters which can act as a foundation for a vibrant innovation led economy over time we'll develop an approach of tailored packages of public support that act as a catalyst for growth and stimulate further private sector investment to support priority clusters to achieve their potential we will within the next decade also have increased the number of innovation active businesses because that's one of our challenges and nurtured highly scalable organizations to drive forward the economy and give you a bit of time back okay yeah thanks yeah okay yep i'm very grateful but it's an important point because while the minister mentioned many things many of these things are where we already do well on innovation but it's clear from the data paper published alongside that BRD remains a real stumbling block in terms of and that's about private sector businesses reinvesting themselves does he recognise that's an area that requires further work within this strategy minister yes it does of course but actually we were performing quite well with research and development particularly in higher education sector which i'm sure is aware of and it's also an improving picture in terms of the business sector as well and internationally scotland compares reasonably well with many other countries but we have got to match the best and improve and that is a non-going challenge which is addressed in the innovation strategy but we also want to adopt an innovate investor mindset to support our most innovative businesses investing where we have a competitive advantage and providing a comprehensive and coordinated package of support and leveraging inventor capital so through this renewed package of support we will place our priorities at the heart of our approach as we increase alignment of funds reduce unnecessary duplication and over time close any gaps in the funding landscape and explore innovative models of investment to support Scottish businesses and their clusters to innovate so within the next decade we'll see an increase in scaling companies from cutting-edge research and applying innovation to seed the creation of new markets and harnessing new innovations to support increased productivity in existing ones. I can give you a bit of the time back but not all of it minister. A very briefly then, that's my final one. You know this side of the benches understands that the Scottish Government have a misguided attitude to hostility or gene editing however a leaked document suggests that the EU is about to change its approach to align more with the precision breeding acting in England so can I ask the Scottish Government to act quickly to make sure farmers and some of our world leading institutions in Scotland don't miss out on this? It's always been in the Scottish Government's position that we have an open mind to new science and we pay close attention to developments in the European Union in relation to the issue mentioned by the member and indeed other issues as well. Another issue we have to address is our commercialisation landscape and we have to strengthen the role of our research base and what that plays in driving economic prosperity in our country and working with the higher education system in the Scottish Funding Council we will evaluate the sufficiency of Scotland's current investment in applied research knowledge exchange and also broader research projects as well. Given the time, I will draw my remarks to a close just by saying that this programme will deliver over the 10-year lifetime of the strategy an ambitious increase in the level of innovation taking place by businesses across the whole of Scotland, resulting in increased productivity, improved economic outcomes and a more inclusive economy. To ensure that we are making the necessary progress towards achieving our vision through these four transformative programmes, we will track our innovation performance on a number of key metrics over the next 10 years and we will do that through Scotland's innovation scorecard which will track Scotland's innovation performance over time on a set of key indicators against other nations. In conclusion, I just want to restate the Scottish Government's ambition, my ambition that Scotland will once again be known as one of the most innovative countries in the world, leading the world in a number of key areas and providing solutions to global problems. I believe that ambition is entirely achievable and I believe that this strategy will help us as a nation to achieve that ambition. The power of new ideas and technologies is driving global change at an unprecedented rate and scale. Countries can harness that power, we can thrive in the 21st century, Scotland can become a magnet for talent and investment, exporters of the next generation of products and services and significantly raise our citizens' quality of life. Scotland can take its place amongst these leading countries. I look forward to the debate and I move the motion in my name. Scotland has a rich history in research, innovation and invention, with contributions ranging from the development of the telephone and the television to groundbreaking advances in medicine such as penicillin and the hypodermic need. Of course, we are the home of Dolly the sheep. Innovation should be a key driver of both economic growth and societal progress and no one should fail to recognise the importance of boosting innovation in Scotland both within the public and private sectors and in supporting innovative new ways of doing things. We welcome the Scottish Government's recently published national innovation strategy, because while there have been some notable achievements, there are also real challenges that hinder Scotland's innovation potential. The strategy recognises that Scotland remains below the UK average on all measures of innovation activity, and it recognises Scotland's poor record on productivity. It accepts that Scotland's efficiency in producing spin-outs from research is 50 per cent less than the rest of the UK, and the need to improve the number of alumni from Scotland's universities who have founded venture capital-backed companies. It hopes, over the next 10 years, to make Scotland one of the most innovative small nations in the world and to make Scotland fairer, more equal, wealthier and greener. I'm sure many of us would welcome those ambitions, and it needs to be ambitious, given some of the issues that I've mentioned previously, and with Scotland's economy facing a challenging future and our public finances unsustainable thanks to 16 years of this SNP Government. It is vital that Scotland embraces opportunities to innovate. The strategy identifies four broad innovation themes to focus on health and life sciences, data and digital technologies, advanced manufacturing and energy transition. The importance of innovation within our health sector cannot be underestimated, particularly with the Scottish Fiscal Commission forecasting that health spending will, in 50 years' time, rise to 50 per cent of our total public spending. Innovation is not a luxury, it's a necessity, and we debated only a few weeks ago the growth of AI and the vital role that will play. We share the ambitions of Scotland as a global leader in development and recognise the role it can have, but we need the infrastructure in place to make that happen, and too many parts of Scotland are still missing out. While I welcome the attention that the energy sector has given in this focus, it's worth remembering that some of the most innovative work within the energy sector has either come from, or it's been funded by, an oil and gas industry that the SNP Green Government wants to call time on prematurely. Of course, the Scottish Government has blocked the UK Government's attempts to support Scotland's nuclear energy sector, a sector that could have been a significant driver in Scottish innovation, as well as providing reliable zero-carbon energy. Only in March this year, the then energy sector, Michael Matheson, made it clear that the Scottish Government is opposed to the building of new nuclear efficient power stations in Scotland under current technologies. Scotland, which played a leading role in the early development of nuclear, with sites like Dune Ray in my own region, will play no part in its future. We need more than warm words from SNP ministers about the fostering innovation given the contradiction in approach. With deep-seated issues that have grown under their watch, such as a rise in economic inactivity and a drop of business confidence, Scotland remains the highest-tax part of the UK, making it harder to attract and retain skilled workers. Our enterprise agencies, which could and should play an important role in supporting businesses to innovate, have seen another year of budget cuts, reducing their ability to provide that support. In education, we have seen the lowest number of science entries at a higher level in five years, the SNP-enforced student cap makes it harder for Scottish students to enter university, and £46 million from our colleges and universities has been cut. Funding, which was promised in December, is now reportedly not available. That all impacts on our ability to train in the numbers required, the skilled workers we need to drive and support innovation. I have met with various sectors that are already struggling to find the talent they need to fill all the roles they have. While most Governments seek a more collaborative approach in this area, the Scottish Government continues to push their obsession with breaking up the United Kingdom, intent on cutting off a vital funding source, one valued by universities and other bodies, as well as putting up a border across the UK single market, which will only create significant challenges for Scotland's businesses to trade and operate. I am very grateful to the member for giving way. I completely agree that we need to look at the broader economic context and things like the study of science, but does he not also recognise that we need an innovation policy? I wonder why the Conservative amendment completely obliterates all mention of an innovation policy in its entirety? We recognise the importance of what we are trying to focus here on some of the changes that need to be made. The Scottish Government would do that, despite recognising in the strategy the role of the UK Government initiatives and funding schemes such as UK research and innovation, innovate UK, the UK industrial strategy and the UK levelling up white paper. Only yesterday, it was good to see the UK minister for science, technology and innovation, George Freeman MP, whom I met earlier this year, announced £72 million in funding for new infrastructure, including £23 million for the UK's national wind tunnel facility network and £34 million for digital infrastructure. In Scotland, the Scottish Conservatives 2020 policy paper powered up Scotland advance the argument for greater innovation spending and increased direct support for innovation, but it is also important that spending is directed in a positive and structured way. Given the considerable sums of public money involved, it is vital that value for money can be assured. Support should also be accessible while ensuring that it remains results-driven. I hope that we all want to see a successful, entrepreneurial and ambitious Scotland, one where innovation helps to provide solutions to some of the real problems that we face in terms of cost of living, an ageing population and the climate crisis. However, my party believes that successfully achieving that lies in co-operation between Governments across the United Kingdom, not cutting ourselves off, that it will be driven by economic policies that provide Scotland with a competitive advantage, not ones that make Scotland the highest-tax part of the UK and which leave our businesses struggling to attract talent. Where proper investment in infrastructure brings real benefits to businesses and communities, not projects left unfinished and promises left undelivered. And when we hear of a Scottish Government which builds confidence in businesses, drives innovation, not one saddled with a militant green element, which is anti-business and anti-growth agenda. Thank you, Mr Halcro Johnston. I know called Daniel Johnson to speak to a move amendment 9594.1 up to six minutes, Mr Johnson. Thank you, Deputy Presiding Officer, and let me move the amendment in my name before I forget. I think that it is really important that we have a clear and ambitious innovation policy and strategy. I think that what is also vitally important is that we have a sense of collective mission about that, which is why we will be making criticisms and suggestions in this policy, but ultimately we do support the bringing forward of this paper. I think that my main criticism actually is that why has it taken so long? The discussion of our absence of clarity and clear innovation policy was identified some time ago. Indeed, I remember the debate leading up to my first election to this Parliament being very much focused on that. Let me bring in a paper that I have often looked to that was published in 2014 by Nesta, which is about innovation in small countries. It identified five key factors that successful innovation strategy brings. First of all, it is focused on downstream, making sure that you deliver commercial success. Second, that you have openness being open to the world, that you have a whole-government approach, that you have effective and flexible institutions and that you have a sense of mission. That last one is why I think that we have to have a consensual debate, but I think that what is clear to me is that on the first and fifth, I think that the Government has addressed this, but on the third and fourth point around whole-government approaches and effective and flexible institutions, I think that this paper is found wanting. Ultimately, this is a paper that dodges two big central questions. First of all, it is around institutional landscape. We still have a cluttered landscape, and there are only oblique references as to what has to happen to improve that in the strategy that is brought forward by the Government. Secondly, and ultimately, the biggest single issue that we have around innovation is private sector investment. Just to take a small issue with the minister, he is quite correct that looking at GERD, Scotland does have good figures, but if you split that apart between HERD and BERD, we are behind the UK in terms of level investments and we will be at the very bottom of the OECD. Yes, we have strong higher education-led research. We have strong levels of innovation, but that fails to translate. In this paper, the section on productivity does a huge amount of work because it is the only place where that spillover is really talked about or focused in any meaningful way. There has to be a great deal more work to improve the strategy in terms of the detailed plans in order to deliver on that. Coming back to the cluttered landscape, you really only have to look at page 14 and the diagram there. It resembles something that you might see in the opticians in terms of a sea of coloured blobs. Is there any real clarity about who is in charge? Indeed, the paper identifies five different lead institutions leading on innovation. The paper certainly does not set up our version of TEKES or CITRA in Finland. We really need to urgently learn those lessons from 30 years ago in Finland rather than attempting to paper over the institutional cracks in our framework. The other key point that I would make is that it assumes that innovation is something for external organisations to do. It is a private sector or a higher education sector, but ultimately the Government needs to internalise that. I was at the recent Scottish Edge Awards and one of the winners of that, who has come up with an amazing product to help to utilise the use of operating theatres and the NHS far more effectively, said that his compatriots, his peers, were saying, do not bother trying to sell into the NHS. It is too difficult. That is what entrepreneurs are saying. We have got a big problem. That coupled with the insight that we have seen a massive fall-off in the number of clinical trials in Scotland, what we need is a public sector that innovations end to end, does not leave it to the private sector, understanding that the public sector ought to be a testbed and indeed a platform for innovation, so that we can help our life science businesses to grow. I will also make the observation that, in other areas, the strategy fails to understand where we are. It does not deal with the nuts and bolts. We already have our clusters. They are successful. That is not about setting up new clusters. It is about getting them behind the ones that already exist. That is not about doing fancy things. It is about the nuts and bolts. If you talk to life science sector companies, their issues are about planning, roads and infrastructure. That is what is holding them back from setting up. That is what is holding them back from innovating, but I do not think that that strategy deals with that adequately. We just touch on skills. I quite agree with Jamie Halcro Johnston that, unless we deliver those mainstream skills around science and those key subjects, we will struggle. Unfortunately, I cannot support the Conservative amendment today, because I think that obliterating innovation in its entirety is wrong. When we need an innovation strategy, there are things in here that are good, but it does not go far enough. Ultimately, we need an innovation strategy that joins up with an integrated industrial strategy, because unless you get innovation right and contextualise within a good and strong investment strategy, procurement strategy along with regulation, planning and skills, it will not deliver, it cannot deliver. That is why we mentioned our plans that we launched yesterday, because that is an example. It has innovation within it, research, delivery and investment in supply chains and delivery. That is the sort of industrial strategy that we need, and I will close there. Mr Johnson, we now move to the open debate. I call first. Kenneth Gibson to be followed by Douglas Lameston around four minutes. Thank you, Presiding Officer. Scots are rightly proud that our country is long being considered one of the world's most inventive and innovative. John Logie Baird created the first television. James Watt invented the steam engine. Alexander Fleming discovered penicillin, and more recently, Dolly Sheet became the first mammal to be cloned from an adult cell at the University of Edinburgh's Rosalind Institute. The Scottish Enlightenment had significance that reverberates down the centuries, and in this tercentenary of Adam Smith we should remember his astonishing global contribution. Perhaps less or known as Dr William Cullen, a professor of chemistry and medicine from Hamilton, who in 1755 gave the first documented public demonstration of artificial refrigeration, which ultimately changed the way people store and transport food, prolonging the life of perishable items. This example powerfully demonstrates that innovation is a bedrock in which we build the prosperity enjoyed today compared to previous generations and is a main driver of long-term economic growth. I therefore welcome the publication of the Scottish Government's 10-year innovation strategy, which aims to re-establish Scotland as one of the world's most innovative nations, ranking alongside Denmark, Norway and Finland. However, we should stop referring to Scotland, let alone Finland and Norway as small. Over half of the countries in Europe are smaller than Scotland, and we have more inhabitants in New Zealand or the Republic of Ireland and are similar to Singapore. That said, I agree with many of the points raised in the innovation strategy. Most importantly, it is focused on encouraging European-style business clusters. Sectoral clusters strengthen collaboration between business, academia and public bodies in areas where we have a competitive advantage. Of course, such clusters already exist in Scotland. Dundee's contribution to fields ranging from the development of ATM machines, comics and video games has long been recognised beyond our borders. The helens and ions are at the forefront of technological advances in areas such as renewable energy and the space industry. We are also in the run for share of a vibrant life science sector exemplified by the Medicines Manufacturing Innovation Centre at Abbotsinch, the open of which I had the pleasure of attending last on Andrew's day along with Ivan McKee. In Glasgow and Stirling, the knowledge economy has just attracted 500 new pharmaceutical jobs and a £30 million investment from Merck. So, with more than 700 life sciences companies, Scotland is one of the largest clusters in Europe, which includes GSK and DSM, two major North Ayrshire employers. Indeed, 800 people in North Ayrshire work in pharmaceutical manufacturing in the highest density in Scotland. However, the innovation strategy also noted that Scotland has a rich history of invention and a vibrant life science sector, but we have a poor record of quickly scaling and spreading innovation. We can and must improve. Government grants can target projects likely to have the most long-term benefits, and research shows that grants will lead to more patents filed by private firms. The Scottish Government's renewed and consolidated innovation investment programme to be published in 2024 will therefore be eagerly anticipated. The public sector invests in business innovation through enterprise and skills agencies, and given that innovation is known to significantly boost productivity growth, it is vital that funding in the priority clusters identified in this strategy remains at a high level, especially in times of budget constraints. Of course, to boost productivity, we need young people. Last week's economist discussed research that showed that innovation comes disproportionately from young people, particularly completely novel, positively disruptive and disciplined changing ideas. Entrepreneurship is markedly lower in older countries and Japan's rapidly aging societies have seen it fall far behind in youth thinking over recent decades. With demographic decline everywhere, improved education and skills are required to slow the decline in the number of innovative young thinkers. Innovation is about new ideas, technologies and research. Innovation is about new ideas, technologies and research, adapted to benefit the economy and society. I welcome that, in its innovation strategy, the Scottish Government reiterates its commitment to the scale development of clusters such as the Earth's life sciences, which can have a transformative impact on our economic performance and international competitiveness if underpinned by robust and targeted public sector innovation funding and an eye to how we tackle demographic decline. I must admit that I opened the innovation strategy with some excitement and hope, but felt depressed after reading the ministers forward when he said, too few Scottish businesses are innovating and some of our most innovative companies struggle to scale. When it comes to research and development, we have work to do to catch up with our international competitors. That strategy reads like a list of SNP failures over the last 16 years when it comes to economic growth and innovation, below UK average on all measures of innovation activity, percentage of businesses investing in innovation activity lower in Scotland, Scotland's poor record on productivity under this SNP Government, Scotland's efficiency in producing spin-offs from research lower than the rest of the UK. If we only had a Government that was focused on the real priorities of Scotland, of growing our economy, promoting innovators and entrepreneurs, investing in business, funding our leading universities and research institutes, 16 years of the SNP has left us with a country that is the highest tax part of the UK and does not have the conditions for growth but the conditions for division. Is there time for that? The time would have to be subsumed within the members. I'm sorry, I can't take that then. In the north-east we were used to seeing huge amounts of innovation, growth and investment and with energy transition we can see this again but for this to happen we need to stop the demonisation of the oil and gas industry. Historically energy companies have spent vast sums on research and innovation and when it comes to energy transition they can do this again but they need the revenue from oil and gas to provide them with the cash to spend on research and development. While we still have a demand for hydrocarbons we should produce in this country not just to protect the thousands of jobs that rely on the sector but also to safeguard the huge amounts of cash that will be invested in renewables. Sorry, I will come back if I have time. The strategy goes on to tell us how much stronger we are being parts of the United Kingdom with the financial weight that this brings. The UK Government has significantly invested funds to drive up innovation and productivity. It has invested in free ports, regional growth deals, which much of the life science innovation in the report comes from. The UK Government wants to go further in developing our nuclear energy capacity, which will bring a huge investment in research and development but of course being blocked by the SNP green coalition. In fact, let's be really clear on the facts here. The SNP has reduced enterprise agency budgets this year, stifling the ability of those organisations to make significant impact in their regions. The SNP green government talks a lot about higher education in this strategy but let's remember that they have cut 46 million from our colleges and universities budgets this year. The strategy has lots of warm words about economic growth for our central-belt cities but sets out no road how we will get there and fairly little mention of how our rural communities will play its part. I welcome the strategy and its recognition of the strength of being part of the United Kingdom. I have no ambition to be a part of a leading small country when we can be part of a leading world power with the economic strength that that brings. I welcome the strategy's recognition of the investment that being part of the UK has brought to Scotland at a time when the SNP government is cutting budgets. After 16 years in power, ministers should be embarrassed to bring in this strategy before us today. It lets down our rural communities, is admission of failure from the broken SNP green coalition. It is a clear indication of how we benefit from being part of the United Kingdom. We all know Scotland's wonderful heritage regarding innovation and it goes far beyond those commonly listed on a souvenir shop tea towel. Just about every town in Scotland can point to at least one major invention or innovation that either happened there or is attributable to somebody from there. It is important because the past inspires the future. My constituency is no exception whether it is Sir James Dure, educated at Dollar Academy, an inventor of the vacuum flask or George Meecill of Allewar, who invented a water-raising wheel that was used in draining the moss of Incairden in 1787. In creating our reputation for innovation, Scotland benefited from being in the vanguard of the industrial revolution. Although we should recognise with the hindsight of history that that was a period of growth built on the backs of the working masses and often involved resource thirsty enterprises fed at the expense of the peoples of an empire that then covered the globe. Our search for innovation continues as it must and I am pleased to be able to point to a package of investment in innovation and infrastructure that will help to drive inclusive economic growth in the area that I represent. Funded by the Scottish and indeed the UK Governments, Stirling Council, Club Manager Council and the University of Stirling, the city region deal will invest more than £214 million over 10 years and deliver innovation hubs specialising in aquaculture, the environment and inter-generation living, each of which will play a crucial role in addressing the challenges of the future. In those centres of excellence, world-leading technology solutions will be developed, transforming the local economy, tackling low-job density through the creation of high-quality, skilled local jobs and strong regional supply change, at the same time supporting community wealth building and a wellbeing economy. Stirling University Innovation Park, in my constituency, was established in 1986. It aims to assist the regeneration of the local and national economies by providing an environment that facilitates, encourages and promotes businesses with a focus on innovation. Those are the kind of projects that the national innovation strategy outlined in the motion can and must support and promote. The new fields of knowledge in which the future of our planet will depend need the same explosion of innovation that the industrial revolution brought about, and it is essential that Scotland is to the forefront of this new revolution, to play our part admittedly in repairing the climatic and economic harms caused by global industrialisation. Arthur Herman of the Smithsonian Institution in Washington, D.C., wrote a book published in 2001 entitled How the Scots Invented the Modern World. As the Scotsman reviewer said at the time, the overblown rhetoric invites a skeptical reaction, but I suggest that we just accept this extraordinary compliment graciously. The important thing now for ourselves and as our continued contribution to the world is that we continue our love of knowledge, our support for innovation and play a leading role in the development of the post-modern world. We could talk about the almost unique achievement of Scotland's universities the last time I heard, I think, five in the top 200 in the world, and that explosion of ideas during the Scottish Enlightenment is also an inspiration. Perhaps you won't see the Boris Johnson school of philosophy on the nature of truth or the quasi-acquartine, political economy thesis put forward, but there are very important antecedents that should inform how we look forward and also give us inspiration to say that Scotland can lead again. It's a wider message here too. If we are determined to become a world leader in entrepreneurship and innovation, then we have to reverse the isolationist approach. I know that it's very uncomfortable for some Conservative members to hear this, but we have to reverse the isolationist approach that's been thrust upon us as part of Brexit Britain. Scotland must use all the powers that we have to create in the economy that supports businesses to thrive, and we'll do this by harnessing the skills and the ingenuity of our people and seizing the economic and social opportunities provided not as part of some delusion about a world power, but we do it best with the normal powers of an independent nation. I support the motion. Thank you, Mr Brown. I now call Mark Whithfield to be followed by co-capture. I'm very grateful, Deputy Presiding Officer, and it's a pleasure to follow Keith Brown and his analysis, particularly of industrialisation, and, of course, the so many of our communities have at their heart individuals that have done so much, but I'd also like to extend that to the significant number of communities that have at their heart evidence of the effects of the industrialisation, and I think particularly of Preston Grange close to where I live, which, as an industrial centre, shows not just decades but hundreds of years of industrialisation from glass making all the way through to brick making and, of course, coal mining, but also to pick up on one of Keith Brown's comments. It is also about the damage that actually was rendered to those communities that gave so much in the creation of that industrialisation, and I do welcome much of the Scottish Government's strategy on this and, in particular, the four key areas of the economy that have been identified, and I would like to take the opportunity just to pick out a couple of them to raise some questions and comment. The first with regard to advanced manufacturing, now I'm going to draw on energy production, as I would feel I'm as disappointed if the Minister didn't realise I was going to do this, because our history, our identity, indeed our politics is often wrapped up in the story of energy, of where it's come from, how it's moved, how much does it cost, and again, who has benefited, and we do need to build the skills, the talent and the expertise that's already abundant in our energy sector if we are to forge forward to a just, equitable green transition. And I do make mention of Tornes Nuclear Power Station near Dunbar in Eastlothian south of Scotland. Over 500 people employed directly, bringing in £50 million in wages a year for the community. Over 200 jobs in the contracting workforce that surrounds it, driving another tens of millions more into the local authority. And with that workforce on some days, through just one tenth of a square mile, half the energy needs of this country are produced. And I do think that it is still short-sighted for the Scottish Government to close its eyes to the potential of nuclear power, small modular nuclear reactors or others, to give us a green future that will allow that base load that's such a requirement of the energy systems that surround us. In the short time I have, I'd also like to pick up on the health and life science, which has been commented on already. Scotland should be a world leader in healthcare. We need to lead in healthcare innovation, and we have with the UK Government one of the finest databases you can find in the world to allow the role of AI, which I know we've debated within this Chamber in the recent past. But we have a database that is invaluable if we can work out access to it and the return that our NHS, and indeed through our NHS, each individual patient should see for access to that. And that is a powerful prize to look towards with a requirement to work together. But, as Daniel Johnson has already stated, this future is not just one of words that could be the result of this strategy, but it requires planning, it requires the infrastructure, it requires the joined-up thinking, it requires the Scottish Government to do something which, with respect, I feel it has struggled to do, and that is work, not just talk with our communities, to work with our businesses, not just talk to them, to work with our universities and college sectors, to work with the UK Government, to work with other Governments around the world, to drive forward what I know Scotland can produce, which is a confident, innovative future that supports our people. I'm grateful, Deputy Presiding Officer. Thank you, Mr Whitfield. I now call Cookab Stewart to be followed by Maggie Chapman. Thank you, Presiding Officer. As a small outward looking nation, Scotland is uniquely place to punch well above its weight when it comes to innovation, and we are blessed with a reputation for producing some of the greatest trailblazes and revolutionary thinkers the world has ever seen, from David Hume to Peter Higgs, from Robbie Burns to Robbie Coltrane. It follows that the Scottish Government's newly published innovation strategy is an ambitious document with a clear vision that we prosper and thrive alongside other small successful nations. Whilst there is much to unpack in this 10-year plan, I am drawn to the emphasis on collaboration from the primary classroom where children design and build alternative robust housing structures to help out the three little pigs, to the science labs and the universities collaborating across sectors. It is so important that research and innovation is fruitful, translating into a tangible end product that ultimately benefits our society and delivers sustainable growth for our economy. As an example of that collaborative working, I recall during the pandemic when students from the University of Glasgow were involved in designing face masks and teamed up with a small business in sterling. The result was the creation of a better-looking and better-fitting product. It is perhaps worth mentioning that the University of Glasgow is also highlighted in the strategy on a kind of its exciting partnership with the Scottish Enterprise and Glasgow City Council to create the Glasgow Riverside Innovation District, or GRID. GRID will act as Scotland's first whole system innovation demonstrator, a district that is home to world-leading clinical innovation zone, as well as the emerging cultural quarter, based around the Kelvin Grove Museum and Art Gallery, the Scottish Events Campus and the Media Hub at Pacific Key. Increasing channels of communication and collaboration between a range of sectors with diverse skill sets is a bold and welcome move that has the potential to push Glasgow further to the forefront of international industry and innovation. The University of Strath Clyde is also sitting at the pinnacle of world-class research and innovation. As mentioned previously by members, we are grateful to the minister Richard Lockhead and Ivan Meekie before him for co-chairing the creation of the strategy with the university's principal professor, Sir Jim MacDonald. The university's success in collaboration with student start-ups has been showcased by recent breakout stars such as Bellrock Technology, an award-winning software company that allows electrical power sector to use its data more effectively. Of course, the M-squared lasers, which grew from a Strath Clyde spin-out company and is now anchoring the quantum industry, an industry that is growing quickly in Scotland. Each of those stories tell us what we already know. The talent is there, but we need to harness it and we need to create a clear path for it to flourish. Now, I have had the pleasure to meet Mohammed Rashid Iftikar, a pre- and post-disaster scientist, an inventor of the world's first AI vehicle, property, fire or flood damage medication system. That was showcased during COP26. Think of the transformational effect of this technology in flood risk areas across Scotland and the world. I realise how lucky I am to represent a city and a constituency that boasts a long history of innovative success, from the television to the refrigerator, antiseptics and beta blockers. Let's not forget a creation so influential, so controversial, that it still shocks me to my very core, the chicken tikka masala. In closing, there is much to be envied in our little powerhouse of a nation. I look forward to seeing how this strategy provides not only the chance to create future jobs in traditional and new emerging sectors but will open up spaces for conversations that can pave the way to a more inclusive marketplace. Scotland has a long and proud history of supporting and nurturing innovators, and I know that we all agree that we want to continue being an innovative nation. At a time of the twin crises of climate and nature, of increasing global uncertainty and rising inequalities it is perhaps more important than ever to ensure that we do work towards innovation for a purpose. That purpose being the development of a greener, fairer, well-being economy that sustains healthy and happy communities across our country. We must have a strong topical emphasis on the structural challenges in our society, which innovations in all four key areas identified in the strategy should seek to address. Others have already spoken about the four priority areas highlighted, so I will not rehearse those in the time that I have. I want to say a little bit about what we mean by innovation. Innovation has that nebulous quality of genuinely being seen as a good thing. Innovation is driven by change or new knowledge. As we look at the crises that we face, we need to consider what is changing. Of course, one of the obvious ones is technology. We need to consider how knowledge develops. We then need to understand the intersection between the things that have changed or the things that we have newly discovered and existing processes. The valuable thing about innovation is quite simple. Setting out the problems or issues, what technologies or knowledge we have now that we did not have previously, and working out how these can aid us in dealing with the problem or challenge previously identified. Let us be clear. Innovation is not just something that happens in the private sector, done by the wealthy and focused on digital and new technology, although that is often where the focus is. The challenges that we face cannot be limited to those who have traditionally been associated with this approach. Rather, innovation requires the application of our collective creativity, intelligence and insight to address the problems of climate breakdown, Covid recovery and social isolation, to name just three. Mariana Mazzicato has clearly set out how innovation does not stem from the wealthy folk in Silicon Valley but rather is driven by public sector research and investment. Her eye-catching observation that almost all of the technology in the iPhone, for instance, results from publicly funded innovation is something that we must remember. Her proposed solution to the problem that we have in how to focus our innovation investment is to develop missions and challenges that we can turn the attention, ability and insight of our citizens to addressing. We have to be clear what these missions are and what the challenges that sit within them are, how we define them, so we can innovate as effectively as possible with maximum impact for our citizens and our communities innovation with purpose. In 2021, and in different ways, more recently, I was pleased to see the cabinet secretary's given responsibilities for two of the more important missions that I think we must address, net zero and Covid recovery. This speaks to the recognition that challenges we face are not neatly contained in discrete departments. I welcome this approach, and even the European Commission, not an institution known for its embrace of new or dynamic ways of working, has adopted the same approach, too. Our approach to innovation must go beyond a focus on private sector innovation. We must mobilise our public institutions and our communities. We need a broad-based approach that gives everybody a clear target and aligns institutions with citizens and communities towards addressing those targets, because the real value in innovation is when it is focused on social purpose. We must ensure that our innovation is embedded in a broader industrial strategy. We know that manufacturing is often the locus for significant innovation. We have centuries of evidence to back that up, so we have to rekindle Scotland's manufacturing potential, and there are loads of that potential, particularly if we think of the opportunities in lots of supply chains. I need to ask you to get here over your time. Apologies, Presiding Officer. Supply chains for the renewable industry are in closing. If we get to all of this right, the real beneficiaries will be Scottish businesses, entrepreneurs, workers, communities and universities. You need to go quickly, please, thank you. Can I remind members that the speech is up to four minutes? I call Avery McKee to be followed by Murdoff Fraser. Thank you, Presiding Officer, and it's a pleasure to be speaking in this debate this afternoon. I'm delighted to see the strategy coming forward, critical and central, as it is to the development of Scotland's economy. It's been widely anticipated, and a great number of people were involved in putting it together, which received very positive responses from across industry and universities as a consequence. I think that the key objective for the strategy is to further commercialise the world-rhythm research coming out of Scotland's universities, because if we recognise that tackling that challenge is absolutely critical, we've got some great numbers on improving on startups and spin-outs, but it's that commercialisation to scalpes that is a bit that needs the most focus, but also alongside that ensuring wider diffusion of innovation across the wider base of businesses, SMEs in particular, and also driving up innovation in the public sector. The strategy identifies what needs to be done, but I think that the hard work really just starts now, because taking forward the programmes that have been defined, tracking progress against those actions and making sure that they are delivered in the months and years ahead is what will drive forward what needs to happen across Scotland's innovation ecosystem, and if that sits on a shelf, then we're absolutely going to fail to do that. It's really important that this is grasped and driven forward by Government going forward. I just want to highlight a couple of points that I think are really important to highlight and recognise. The first is really about clusters and areas of focus and accreditation. We recognise that Scotland can't be good at everything, but what we are good at, we need to be the best in the world at, and that central concept lies at the heart of this strategy. The four areas have been spoken about, but frankly they are so broad as to be almost meaningless. What's really important is that the 11 subsectors are identified in the strategy at a specific level, because that's the areas where Scotland genuinely can be world-leading and be all comers. The cluster accreditation process is to ensure that that happens, and that those clusters are developed to become best in the world. Other clusters that emerge over time and are rapidly changing technology environment have the opportunity to do likewise. The investment piece is critical in the funding review. I think that lining up behind those clusters is really important to make sure that we put our money where our mouth is and drive that potential forward. Wide adoption across the SME base of innovation activity is absolutely central to drive productivity, and that's been highlighted by a number of speakers. Again, that programme to take that forward is absolutely critical. Finally, I want to talk about the public sector and its role, because that has a number of aspects that are central to the strategy. First of all, as an enabler, in making sure that the infrastructure is in place to support the development of innovation at the cutting edge, and more broadly, and I would recommend, if you only look at one thing in the strategy, flick through and have a look at the maps, because they are an excellent, handy guide to all the immense amount of work that is happening in Scotland across all those key areas. Secondly, making the public sector itself more innovative, and I would encourage the minister to make sure that that part of the strategy is not taken forward because the public sector is a significant part of the economy, and as we all know, there is a huge amount more that can be done to make it innovative right across all its aspects. The next point for the public sector, and that was mentioned correctly by Daniel Johnson, is the public sector as a customer. That is covered in the strategy. It highlights the work already of CivTech, of the Scotland Innovates Porto, of SHIP in the health sector and so on, but more has to be done to take that forward in leverage of procurement spend. Finally, measuring, which is absolutely critical, the report, the Daniel report or the score card to make sure that everything is on track across that wide range of metrics that are all important to developing and delivering on the innovation strategy needs to be driven forward as well. I am sure that the Government will take all of those points on board and propel Scotland to be a leading nation when it comes to innovation. I welcome the debate this afternoon on the innovation strategy and the wider issue of driving innovation in the economy. As we have already heard, Scotland has a great history in terms of innovation. In the 19th and early 20th century, we were arguably among the most inventive nations in the world, with Scots innovators and inventors producing world-leading breakthroughs in the fields of science, engineering, mathematics and medicine. Both Kenneth Gibson and Keith Brown gave us examples of famous names in those fields, so there is a great legacy for us to build on. The focus on innovation at this particular time is much needed. Economic growth in Scotland is sluggish. We know that our growth here has been roughly one-half of the UK average in the years since 2014. How we have grown the economy at even the average rate of the UK in that period, we would today have more jobs, better pay and, crucially, more tax revenues. It is in all our interests to deliver a growing economy. In that connection, I was pleased to see that it explicitly stated in the innovation strategy that the definition of innovation includes activity with the purpose of helping to solve societal challenges or delivering economic growth. We do not often hear this Government talking about economic growth, perhaps because the junior part of the coalition Government is actively and explicitly hostile to the concept of growth. If we are now seeing a new approach from the Scottish Government that is about embracing growth, then that is very welcome. However, it will need policies put in place to deliver that growth. Too much of what we have seen from this Government in the past has been anti-growth. It has been about hiking taxes in Scotland and stifling economic activity with excessive regulation. It is not just growth that we have a problem with, Presiding Officer. It is also productivity or rather the lack of it. That is not a problem that is unique to Scotland. It affects the UK economy and, indeed, most European economies to a greater or lesser extent. As we have debated in this chamber many times before, we are currently in a situation with a very tight labour market in Scotland, the UK and across the western world. We know that Scotland is not attracting our fair share of immigrants from the rest of the world, and we lag behind every region of England apart from the north-east in terms of our attractiveness to new immigrants, particularly important when net immigration into the UK sits roughly double where it was prior to Brexit. Those shortages in labour are driving businesses to innovate from necessity. Let me illustrate this with just one small example. A pharmacy business in my region that I was talking with recently. The work of pharmacists includes producing on a weekly basis blister packs of pills for patients, which, particularly for those with complex medications, is absolutely essential to ensuring that they are taking the right pills in the right order at the right times of day. The preparation of these blister packs is time-consuming and laborious, and precision is absolutely vital. Traditionally, it is done by hand, and this pharmacy practice was struggling to recruit the staff with the skills and the focus required to do this repetitive work. Instead, they have invested in a new piece of equipment, an expensive piece of equipment, but once set up and programmed, they will now prepare these pill packs on a mechanised basis with 100 per cent precision. This is a real productivity gain through innovation. It comes with substantial upfront capital costs and investment, but it allows the members of staff presently employed on this important but repetitive work to be redeployed elsewhere and provides a better and safer service to patients who are the business's customers. It is a good illustration of how innovation can deliver productivity improvements for a small business and help to tackle labour market challenges. There is much more about the role of universities in particular. The new £100 million innovation fund is welcome, but the University of Scotland is questioning whether it is new money or simply repurposing existing investment streams. We are good to get clarification on that from the minister. We need to recognise the importance of the Scottish Government working with the UK Government in those areas. If we are wanting to see our ambitions about improving innovation delivered, that will only happen if both our Governments work together. Scotland is a rich history when it comes to innovation. It is important that, whilst we celebrate the achievements of the past, our focus is firmly on the future. Neighboring countries such as Ireland, Denmark and Norway have shown just how successfully, in the hope that small nations can be, it is crucial that we follow their lead and prioritise putting innovation at the heart of a thriving Scottish economy if we do not risk being left behind. The strategy that we are debating today is undoubtedly exciting and bold. We know that in Scotland we have some of the finest research institutes, colleges, universities and businesses in the world. However, what has been missing is a coherent strategy linking all of those elements together. A proper road map is spelling out how to turn research into successful products and businesses and then how the Scottish Government can support scaling up. In Clifbank, we have seen firsthand how innovative technologies bring benefits to a community. For example, the Queen's Key development features Scotland's major first water source heat pump system, heating water from the river Clyde and distributing it to customers through a district heating network. The project was supported by the Scottish Government's low-carbon infrastructure transition fund. It is a fine working example of research being turned into a successful product supported by the Scottish Government and delivering real benefits to my constituents. I hope that, with the implementation of the strategy, more successes such as those are seen right across Scotland. I often hear from businesses with great ideas that their biggest challenge is securing funding to deliver. Therefore, I am particularly encouraged by the focus on routes to invest in the strategy. Generating funding from private enterprises alongside ring fencing for their public sector spending will be vital if the strategy is to be successful. In my constituency, I have been working with the Malin group on an ambitious project to deliver a Scottish marine technology park. That would provide a unique environment for world-leading innovators in the marine industry, allowing them to create a self-sustaining ecosystem that will reinvigorate shipbuilding in renewable industries on the banks of the Clyde and beyond. However, the key barrier to development is funding. I am pleased, therefore, that this strategy outlines how the Scottish Government will work with projects such as this to bring investment in the need and drive collaboration with key partners. I would also welcome the renewed focus on the positive contributions that our colleges make to the innovation ecosystem. I think too often that they have been prioritised, but I am pleased that colleges such as West College Scotland in my constituency are at the heart of the strategy. Every business, I speak to talks of skill shortages, so it is important that we support our colleges as they work to provide Scotland with the skilled workforce that it needs to drive innovation. In Scotland, we have the natural capital, talented workforce and sectoral strengths to build a thriving economy. However, too many of the powers needed to deliver our vision lie at Westminster. We need to be free from Brexit and right-wing immigration policies that harm our economic and social prospects. Change is not coming from Westminster. The member is concluding. The member is concluding. Tories' crashing of the economy. There is no change of promise from Labour, either. The Labour amendment refers to a pledge from Keir Starmer on the so-called GB energy, but we know that pledges this man may quickly disappear into the wind. To further maximise our economic prosperity, we need the full employment, energy and revenue raising powers devolved in this Parliament, meaning that Scotland will no longer be held back by the UK Government. We will now move to closing speeches. I call on Paul Sweeney on behalf of Scottish Labour up to six minutes, please. Thank you, Deputy Presiding Officer, and I'm pleased to close this afternoon's debate for Labour, and I'm keen to emphasise the importance of innovation across our economy. Many members today spoke about the historical pedigree of Scotland and innovation, but I'm afraid that picture is one that has faded considerably, because if we even look at patents, for example, we are just a quarter of the European average in patent density in Scotland. I think that the root cause of a lot of that comes back to firm generation. We simply aren't generating the velocity of firms in this country, which are owned in this country in headquartered here, to allow us to have the sovereignty of our industrial growth that we really need to get back on track with all our metrics that we're talked about today in terms of productivity, product development exports and patents. I think that those are all critical and they surround the firm. Of course, the joint stock company was the great innovation of the Industrial Revolution and of the Scottish Enlightenment that gave Scotland that huge global head start. Great examples where we talked about Glasgow—many members have discussed the engineering genius of this country—was engineers, scientists getting together with entrepreneurs and canny investors all coming together in close proximity that cracked the industrial needs that we need. There are many opportunities in the country today. Certainly, the strategy and innovation strategy focuses on, for example, life sciences and health. The BioQuart in Edinburgh is certainly a great asset, but we can't forget life sciences, expertise and innovation potential across the country. Glasgow, in particular, a great ecosystem innovation taking route. I had the pleasure of visiting the University of Glasgow's new Clarys Pierce School of Health and Well-being recently, which has brought together academics working to address health inequalities. It will also be a key aspect of the Glasgow Riverside Innovation District, which was mentioned by the member for Glasgow Kelvin. There are huge opportunities, I have to give away, I guess. I thank the member for giving away. I also take the opportunity to put on record, Mr Sweeney, the 450 new jobs at the Welsh Western Scotland Science Park, a £30m investment in molecular science from Merck, who is investing in my constituency to make Mary Hill a centre of excellence in that field for innovation. Yes, the Merck investment announcement was great and a good example of high-quality, high-value jobs. I again lament the fact that it is not a Scottish headquarter company driving that investment in Scotland—it is the fundamental thing that we always come back to. It is that issue about ownership, although it is great and we cannot deny that. There is an opportunity for us. There is two practical challenges. Let us take the strategy and the abstract, but then drill it down into practical applications. One of the most rewarding things that I have been doing is working with a number of members in the chamber today, which is forming the cross-party group on shipbuilding. Obviously, I have a personal background in the shipbuilding industry. Although we have focused very heavily on naval shipbuilding and ferrybuilding, there is a lot more to that. The key to that is Scotland, the opportunity of Scotland in driving that huge procurement into value propositions that can build companies in Scotland. I am really concerned that we are potentially going to miss two critical opportunities. I want to cite them today for the benefit of the minister and hope that they can work together to capture this opportunity for Scotland. Ultimate boats are already building on the Clyde and need to expand. They need to move to a larger site. Moving to a larger site on the Clyde would mean that ultimate boats could build 500 vessels a year and create 300 high-quality jobs. Their current lease runs out in May 2024, because the land law wants to redevelop the land for housing. They have a couple of suitable sites that are identified—Scots, Dynan and Shinnon—but are struggling to engage with the land laws to agree a lease. They have put in £7 million of capital through the current owners, but they need £10 million of extra investment. They are in interest from several buyers. As their current lease is up next May, they are unable to find the funding that will not be in Scotland as of 1 January 2024. A move to United States is likely to invest £10 million for a 5 per cent equity stake, and it is likely to have a £100 million return within five years. In Poland, with a European investor ready to put in 30 to 40 million for 30 per cent equity, it invests Northern Ireland, similarly keen to bring them to Belfast with the promise of grants. What is happening in Scotland? Scottish Enterprise seems disinterested and SNP will not support them, essentially, because they are too small. It is not acceptable, minister, and we need to get a grip of this urgently. That is a critical, tangible output that we need to secure for Scotland now, within the next six or seven months. The cross-party governorship has been working to identify those opportunities. We have huge opportunities with the products of developing sea trials recently on a new counter-terrorism craft for Hampshire police, who lead on counter-terrorism for the UK police forces. It worked very well. Police Scotland's diving teams and anti-terrorism units are also taking part. They can build those vessels in as little as two weeks. They could be a market leader in this field, but they are likely to leave the UK for the US or Europe unless they can secure this funding in debt or equity this year. It is time, as of the essence, minister, to secure those opportunities. Similarly, we have the Zephyrus project, a tripartite consortium AMC, who is an aluminium boat builder, shift to make batteries and eco-mark propulsion systems. I have agreed to join together to retrofit crew transfer vessels to service offshore wind farms. They are trying to set up a facility in Montrose or on the Clyde, and they are looking at the Malin developed Scottish Marine Technology part facility at the local Patrick. Unfortunately, timescales are unclear for its completion. We need to help them to find a facility. Eco-marnied 15,000 square feet AMC needs key side access and shift needs 7,000 square feet for a battery factory. Eco-marnied needs £2.5 million in equity and £2.5 million in debt to get into propulsion software, hydrogen integration and a factory. AMC needs £10 million over two years to start to build a yard on the Clyde and to create potentially up to 2,500 jobs. Shift batteries need £5 million to set up a battery facility, but for a larger 300 megawatt plant, that would be £20 million in investment needed in debt. Basically, for £30 million to £45 million of investment, the Clyde Scotland can have a yard, battery factory, low emissions propulsion manufacturer, making the area a global leader in zero mission crew transfer builds to service Scotland and global export markets. I urge the minister to meet with me and the Scottish National Investment Bank to move that on. We cannot afford to wait any longer on these key investment decisions. Zephyrus waited a year for a reply from SNIB. My understanding is that SNIB's focus may simply be on larger companies, but we wouldn't miss this. Mr Sweeney, you should be bringing him out circles, please. I thank you, Deputy Presiding Officer. We really need to get on with this, and I hope that we can seize this opportunity for the good of Scotland. Time is of the essence. Thank you, Mr Sweeney. I now call on Liz Smith to close on behalf of the Scottish Conservatives. Thank you. I welcome the document that has been published by the Scottish Government. It is a much-needed outline of the route map to make Scotland a world-leading small nation for innovation, of which we are definitely capable. Daniel Johnson made a good point that we have been a long time waiting for this. Nonetheless, we broadly welcome the steps outlined in the strategy that is necessary to grow the sector. Likewise, we support the decision to develop an innovation scorecard that will measure the success of this strategy by comparing Scotland's innovation ecosystem with other comparison nations, because I think that that is very important when it comes to inward investment. Various members have said that Scotland has for centuries punched well above its weight in technological innovation, but the surrounding investment infrastructure is now a problem. Ivan McKee was quite right when he said that that is absolutely essential in the public sector just as much as it is in the private sector. We have raised some really key points this afternoon, but by far and away, the most important of any of them is the need to complement the ambitious innovation strategy with economic policies that make Scotland the most attractive place in which to live, work and invest. To date, despite the Scottish Government's very blunt acknowledgement in the foreword that Scotland's productivity has been lagging behind, we simply do not have these economic policies in place to properly address that. When the minister refers to stickability, I hope that he will recognise that that has to be something that changes to relate to the policies that Murdo Fraser described in his speech, because the current tax structures do not bring in the necessary revenue to drive growth. With considerable increases expected in Scottish Government expenditure over the coming years, especially in health, social care and social security, the current tax structures definitely need reform. The Scottish Government claims that this is all about progressive taxation with threats to increase income tax even further. Business, however, will tell you a very different story, because it believes that that is about making Scotland less competitive and that is a big worry when it comes to new innovation. Government ministers tell us that when we look to Scandinavia for some of the best practices that is about innovation. I think that that is true up to a point about innovation, but it is certainly not true when it comes to tax policies. We need no further than Norway to see what has happened with the investment potential. Paul Sweeney made a good point, too, about new patents. As the Scottish Government has also acknowledged, not nearly enough of our enterprises are innovating, and those who are finding it difficult to expand. The Scottish Government has a really big question to answer about why that is, because it is all very well having a national productivity programme, but that must come alongside the right economic policies to create growth and create stability. That includes ensuring that the... Yes, of course. She recognised that perhaps one of the big constraints is access to capital. It is simply very difficult for Scottish businesses to organically access capital finance in this country and often the only alternative is to put themselves up for sale overseas. Yes, I recognise that. The capital aspect of that is absolutely vital. I hope that the Scottish Government has taken a few lessons this afternoon about what we have to do with capital infrastructure. I also think that it is very important that they listen carefully to what our universities are saying, because to be quite blunt to Keith Brown and Ivan McKee, it is all very well talking about the outstanding work that is going on in our universities. That is very clear to all of us who know them. However, we only have to listen to what Professor Dame Sally Mapstone is saying when the Scottish Government is clawing back £46 million of promised expenditure in tertiary education. That innovation can only be there if there is a well supported excellent research. She posits the idea that Scottish universities are not there to manage decline. That is a quote from her. Those are quite strong words, I think, from University Scotland. In the same speech, Liz Smith talks about we need to reduce taxes and, at the same time, she calls for more spending. Can she square that circle? Liz Smith? Yes, I can, because we made suggestions at the time of the budget about where we would make some savings. We will continue to do that, Mr McKee. Success is all about Scotland's two Governments working together. I am not quite sure why there were murmurings on the SNP benches at the time when one of my colleagues mentioned that, because I think that that is what the public wants to see. That is something that, particularly in difficult economic times, the last thing that we want is a divergence of opinion between our two national Governments. It is welcome to see what the UK Government is doing, but it is also welcome to see what the Scottish Government is doing. I am getting a bit tired in this chamber of this constant constitutional bickering that is going on, because the public wants to see success. They want to see us working together and they want to see delivery in that respect. We should not underestimate the scale of the financial support that is required when it comes to innovation. That is why it is vital that there is a joint approach. Economic growth is absolutely critical. I do not understand why the Greens are so intent on opposing economic growth to do all the things that they talk about when it comes to social wellbeing, etc. You will not have that social wellbeing unless you have the fundamental economic growth that then underpins that social wellbeing. I do not understand the green position on that. I do not think that some of the SNP understands the green position on that either. To conclude, we very much welcome the publication of this much-needed strategy, but I do think that if the Government has any chance of making a success out of it and harnessing all the vital potential that Scotland undoubtedly has, we have to ensure that it is complemented by the economic policies that make Scotland an increasingly attractive place to live and work and, most importantly, to invest. I call on Richard Lochhead to wind up. It has been a good debate and I will do my best to cover some of the themes raised by members from across the chamber. I think that we can all agree, and we have agreed in this debate that Scotland is a country famous for ingenuity, invention and innovation. We have played a role over the centuries in shaping the future and here we are today with a vibrant innovative sector and research and universities and institutes in our country as well as entrepreneurs who once again are putting in great work to shape the future. Indeed, in many ways, the future is here already. I think that we have to be very important when politics enters those debates because there are absolutely amazing things happening in Scotland at the moment and we should be broadcasting that to the rest of the world and talking about them over and over, even when you think about the fact that the world's most powerful telescope, the James Webb Space Telescope, which is now sending back those breathtaking images, going back to the beginning of time, if we can get our heads round that, back to the beginning of time. One of the key instruments on that, the infrared instrument, was developed here in Edinburgh in a project led by Professor Gillian Wright. That is what Scotland is contributing to humankind at the moment and there are many other examples that others have cited in terms of what is happening in the economy, in the business community, in the health system and so on. I have to say, I think that some of us remember Scotch and Rye and I think that the Reverend I Am Jolly has been reincarnated in Douglas Lumsden. The fact that he could deliver such a negative doom and gloom speech in this debate I think was actually at a sink with many of the other contributions across the chamber when we were talking up Scotland's achievements and what's happening in Scotland at the moment. There's been a lot of talk about productivity, for instance, and it's really important to note that Scotland's long-term productivity growth has outperformed the UK as a whole. Between 2008 and 2021, productivity in Scotland, for instance, has grown at an average annual rate of 1 per cent a year compared to the UK average of 0.6 per cent. The level of productivity in Scotland is now estimated at 97.6 per cent of the UK average, which means that we've now got the gap down to less than 3 per cent. So there's more to be done, but we are outpacing the rest of the UK. I'll take the intervention. Daniel Johnson I'm very grateful to the minister for giving me a minute. I agree that we shouldn't be wholly pessimistic, but should we be blindly optimistic? The herd numbers do put us above the UK average, but would he address the point about BERD and would he acknowledge the fact that in 2020 Scotland had just 251 patents granted? Does he recognise that that is the challenge that we have in front of us and could he set out what he thinks we'll do to drive up those number of patents? What we set out to do to address some of the challenges that are outlined in the national strategy for innovation that we're debating today. In 2020 Scotland's gross expenditure on research and development as a share of GDP was above that of the EU, which was only 2.19 per cent compared to Scotland's 3.13 per cent, and we're also above the OECD, which was only 2.67 per cent in 2020. Also Scotland ranked first amongst the OECD countries for its higher education RDSpend as a percentage of GDP back in 2020 as well, above the rates for the OECD and for the EU and indeed for the UK. In terms of the latest UK innovation survey results from 2021, they show that in Scotland 33.5 per cent of collaborating innovative businesses did so with the university or other higher education institute, which is the highest rate in the whole of the UK. The European Commission's regional innovation score board assesses the performance of 240 regions across the continent, and Scotland was classified as a strong innovator with its performance improving. Indeed, we were ranked in the first quintile of that as well. There's lots of reasons for optimism, but as the strategy lays out, there's a lot of room for improvement as well. We want to match the best. We don't want to settle for who we are. We want to match the best. I've McKee and others addressed the issue of— I'm grateful to the Minister for Giving Way. I wonder if he would address the point that I raised referencing University Scotland, where we're asking whether the £100 million new innovation fund is new money or just recycling of previous announcements. We introduced an increase in the research funding for universities, but the £100 million fund is a university initiative, and it's really important to bear that in mind. Ivan McKee and others raised the role of the public sector, because it's not just about private business, and a number of members across the chamber raised that. It's important to say that the Scottish Government's CivTech initiative is the world's first successful public sector focused innovation accelerator, and it's already regarded as an exemplar initiative and has been described as a gold standard public sector innovation driver. We've also got the supply chain development programme, which uses public sector procurement to improve the capability of Scottish manufacturing chains. Also, one of the Tories had the audacity to say that the rural communities are not mentioned in this strategy, which is complete total utter nonsense. The national innovation strategy recognises the existing expertise right across Scotland, including our regional strengths across the Highlands and Islands and throughout the south of Scotland, from harnessing our natural capital assets in terms of renewable energy to also revolutionising dairy farming and agricultural practices, which is mentioned by some members as well. The future of all Scotland and our rural communities is at the heart of this as well. We're not starting with a blank sheet of paper. This Government created seven innovation centres. We've got the data lab, we've got the industrial biotechnology innovation centre, we've got the centre for sensor and imaging systems, we've got a centre for agriculture, we've got one on the built environment, we've got the digital health and care innovation centre, we've got position medicine Scotland as well, and of course the national manufacturing institute. As a whole, the whole of the public sector invests £430 million a year in innovation. We're also outperforming the UK in the creation of green jobs, we're also outperforming the UK on exports and a range of other areas, so it's clear that all that investment in innovation is paying dividends for the Scottish economy. Murdo Fraser, Jamie Halcro, Johnston, Martin Whitfield and others mentioned the potential for innovation in what is delivering in health and social care, and there are some fantastic examples. Murdo Fraser mentioned one in relation to pharmacy, and there are so many others as well. NHS Grace of Glasgow and Clyde are investigating the potential of using products using AI to detect a variety of cancers from thin slices of human tissue from a biopsy that are treated with chemicals and traditionally examined under a microscope to detect cancer, so there's innovation throughout the whole of the NHS at the moment. There's also the private sector, we've got many global challenges being addressed through innovation. IGS, one of our companies, is a award-winning international agritech innovator delivering indoor vertical farming solutions to people and customers in businesses across the world and also contributing towards our net-zero targets. We've got Spirit Aero Systems, one of the world's largest manufacturers of aerostructures for commercial aircraft and defence platforms and regional jets, and their facility in Presswick has been established as a centre of excellence for research and development of advanced materials and digital manufacturing technologies and processes and so on. There are just some of the examples of the great innovation that Scotland is capable of by seizing the opportunities that we have. I also think that the space industry that we debated recently in this chamber is another exemplar of innovation. We have an ambition to grow the space sector in Scotland to 20,000 jobs by 2030 and grow that to a £4 billion share of the space industry globally. That is a really exciting innovative sector at the moment. It's paying dividends. I was at the Farmbra space event just a couple of weeks ago. I spoke to companies from all around the world to grab that event, who knew what was happening in Scotland, and in terms of the cluster approach being adopted by this innovation strategy, they saw themselves as wanting to relocate to Scotland or invest in Scotland to become part of that cluster approach. That's why the cluster approach is so, so important that it will be a magnet to attract many companies around the world. Mr Forgivingway makes a really important point with that clustering effect, and one of the big opportunities identified in the debate was a bit maritime in Scotland, and the two companies that I mentioned, would the minister refer to those companies in his closing remarks and offer to try to make them succeed in Scotland? I don't have time to address all those sectors, but of course the maritime sector has great potential for innovation as well. The space industry, as I just mentioned, is one of many sectors that is also an exemplar of the benefits of inward investment. For some of the Tories to say that it is really important that Scotland becomes an attractive location for investment, I say to the Conservative party that we are already a very attractive location for investments. We are outperforming the UK and the EU as well. Scotland's foreign direct investment projects, as announced yesterday, outpaced growth in both Europe and the rest of the UK for the second year in a row. Scottish projects were up by 3.3 per cent in 2022, compared to, wait for it, a 6.4 per cent fall in the UK, and only a 1.4 per cent increase in the rest of Europe. I think that we should congratulate all those innovative businesses in Scotland that are leading to those record-breaking results for inward investment projects in Scotland. In closing, I just want to say that we can be proud of this new strategy. It's a 10-year strategy. When we look back in 10 years' time to now, we will be proud of all the achievements of Scotland's growing economy, growing high-value businesses and the contribution that innovation is making to humankind and the planet and Scotland's quality of life and wider ambitions. That concludes the debate on Scottish innovation strategy. It is now time to move on to the next item of business.