Scotland's New Cabinet Urged to Support Local Companies for Economic Growth
Scotland must back the companies that deliver

Image: The Scotsman
With a new Scottish Parliament and Cabinet, there is a pressing need for the government to prioritize public sector procurement to support local companies. By fostering a robust digital public service sector, Scotland can build a sustainable economy and create skilled jobs, addressing both local and global challenges.
- 01Public sector procurement is identified as a crucial area for scaling local companies in Scotland.
- 02The CalMac ferry order to a Polish shipbuilder highlights the need for better economic impact assessment in procurement decisions.
- 03There is a call for the Scottish government to view local founders as strategic partners rather than just suppliers.
- 04The integration of AI in public services raises questions about data governance and national capability.
- 05Thoughtful public sector spending can transition companies from startups to scale-ups, generating tax revenue and skilled jobs.
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As Scotland welcomes a new Parliament and Cabinet, the focus turns to the role of public sector procurement in fostering local companies. Shane Corstorphine emphasizes that addressing procurement gaps is one of the most effective strategies the government can adopt. Despite Scotland's wealth of innovation and talent, the current procurement practices often overlook the economic impact in favor of lower costs. An example is the recent CalMac ferry order awarded to a Polish shipbuilder, which underscores the need for a shift in procurement priorities. The article argues for a strategic approach where public sector spending supports local businesses, particularly in the burgeoning fields of AI and digital services. As these technologies become integral to public services, the governance of associated data will be critical. The Scottish government is urged to recognize local founders as essential partners in building a resilient economy, capable of creating skilled jobs and generating exportable intellectual property. To realize this vision, Scotland must enhance its procurement processes to reward innovation and collaboration.
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Improving public sector procurement can enhance local economic growth and job creation.
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