Government incentives and the financial services sector in Scotland

How far regional policy incentives support the development needs of the financial services sector is examined. In reviewing the changing eligibility of financial services in UK regional policy, it is argued that the sector has been increasingly recognized as important in regional development. However, when examining the usage of incentives among Scottish financial services companies, incentives appear to have only limited relevance. The different needs of services and manufacturing firms suggest that incentives would be more effective if they targeted "soft" investments and were supplemented through the use of other, non-incentive, regional policy measures.