Scottish Government backs collaboration as means of innovating in manufacturing

The Scottish Government said the move is aimed at promoting innovation.

"Many Scottish manufacturing firms compete internationally with collaborations involving multiple supply-chain companies building company level and national capabilities," the 'A Manufacturing Future for Scotland' action plan said. "We will encourage and support organisations adopt a more open and collaborative relationship with customers and suppliers to innovate."

Beginning this spring, the Scottish Government will conduct "a review of sector and cross-sector supply chain capabilities and develop strategies to close critical gaps", including in relation to foreign direct investment, it said.

"The development of new digital technologies, and the associated emergence of digital disruptors into markets, is forcing incumbents across a range of sectors to innovate just to stay relevant," expert in contracting in the advanced manufacturing industry George Campbell of Pinsent Masons, the law firm behind Out-Law.com, said. "In manufacturing there are already moves towards a more collaborative model as manufacturers increasingly recognise that input from suppliers and customers can help them to develop new products, processes and even business models."

"Collaboration and an open approach to innovation more generally raises legal and contractual challenges, such as how to address issues concerning the ownership and use of intellectual property rights," he said.

The Scottish Government said it plans to open a new joint Manufacturing Centre of Excellence and Skills Academy in Scotland and will consult with businesses on a "detailed business plan" between April and June this year. The new centre will "act as a hub for continuous innovation in manufacturing that can sustain globally competitive businesses in Scotland", it said. To meet the "anticipated demand" for skills in the manufacturing sector, the Scottish Government also said it would promote science, technology, engineering and maths (STEM) subjects to school pupils.

The action plan also contained plans to boost SME engagement with innovation centres, support manufacturers to "develop innovative products, processes, services and the adoption of new technologies", and help businesses keen to participate in the so-called circular economy.

"There should be no doubt about the importance of our manufacturing industry – which employs around 190,000 people in Scotland – to our future success," said Scotland's first minister Nicola Sturgeon said. "These actions will enable the sector to improve productivity and business performance, providing a better long-term future and enabling it to compete internationally."

Campbell said: "Manufacturers in Scotland will be keenly aware of macro-economic issues currently at play in the market, from slowing growth in China to the low price of oil. This creates uncertainty and challenges, and industry will welcome the Scottish Government's initiative to help improve the environment for manufacturers to thrive in future."