This paper reviews the latest data and evidence on Scotland’s recent productivity performance, including comparisons with the UK and internationally. It analyses trends in a number of the drivers of productivity, and considers how these have influenced productivity performance. This analysis develops our evidence base further, helping to inform discussions on where policy should focus across the drivers of innovation, internationalisation, investment and inclusive growth. The evidence suggests that Scotland’s weak productivity growth and level is due to a mix of several factors, including: ‘labour hoarding’; low interest rates and ‘forbearance’ by banks; reduced business investment; slowing innovation; and a declining number of exporters. The analysis highlights the need to continue a policy focus on innovation, internationalisation and investment as ways to improve Scotland’s productivity performance and contribute to inclusive growth.
|Number of pages||14|
|Journal||Fraser of Allander Economic Commentary|
|Publication status||Published - Nov 2015|
- Scottish economic conditions
- Scottish economy
- Fraser of Allander