WIREDGOV

Inward investment hits 16 year high.

Foreign investment to Scotland in 2013 reached its highest level since 1997, creating over 4,000 jobs, a new report revealed today.

Scotland attracted 82 foreign direct investment (FDI) projects in 2013, eight per cent more than in 2012, creating a total of 4,165 jobs.

Scotland continues to be the top location for foreign investment projects outside of London for the second year in a row.

FDI projects in the software sector increased by 300 per cent in 2013 over the year, accounting for 22 per cent of total projects and eclipsing business services and machinery and equipment to reach first place.

The US remains Scotland’s top source of inward investment accounting for 39.5 per cent of projects.

The Ernst & Young Attractiveness Survey, which analyses UK inward investment in the past 12 months, also highlights the opportunity to boost investment in 2014 – with Scotland’s increased profile, the Commonwealth Games, and the Ryder Cup creating what they call a “halo effect”.

Welcoming the report, Finance Secretary John Swinney said:

“This independent survey shows a further impressive performance by Scotland, with an increase in the number of projects secured in 2013, to reach the highest number since 1997.

“And Scotland continues to be the most attractive location for investment in the UK outside of London. In fact, outside of London, Scotland has ranked 1st or 2nd in the UK since 2006.

“As the EY report states ‘this adds up to an encouraging year for Scottish FDI, one in which Scotland’s strengths in knowledge intensive sectors, notably software, came to the fore.’

“Scotland now has a greater share of projects in Research and Development (R&D) than the UK as a whole, a position EY say shows Scotland can ‘punch above its weight in science and technology.’

"Scotland's success at securing inward investment flies in the face of the Chancellor of the Exchequer’s doom and gloom comments when he said that the independence referendum would damage business. And as EY set out, 2014 presents a great opportunity for Scotland to shine with our increased profile, the Commonwealth Games and Ryder Cup putting the spotlight on Scotland.

"The reality, of course, is that as a result of the powers we have and our support for enterprise, Scotland is securing jobs, investment and economic growth, and the latest labour market figures show that we are out-performing the rest of the UK.

“With the full fiscal and economic powers of independence we could do even more to support companies, strengthen our economy and create jobs.”

Notes To Editors

The 2014 EY Attractiveness Survey is available at: http://www.ey.com/UK/en/Issues/Business-environment/2014-Scotland-attract iveness-survey