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Most generous, Presiding Officer.
In our modern context, innovation plays a critical part in our economic wellbeing. The process is a kind of creative destruction, to echo what Mr Whittle has just said, and it is about replacing the obsolete with the cutting edge and developing the previously unimagined. It is a catalyst to growth, which is why it is critical to every economy on the planet. However, innovation does not happen in isolation. It requires a rich soil for growth and a foundation upon which to build.
The debate has illustrated the danger of focusing on Government and private sector spend on research and development, because it is the outputs from that research and development and from spontaneous thinking that are more important. In other words, how many patents do we produce? How many registered designs and product names do we come up with? How many start-up companies go beyond “me too” enterprise?
It is interesting that Brian Whittle referred to Apple because, of course, the iPod, its first music kit, depended entirely on a chip that came from the Wolfson institute here in Edinburgh. We are still doing innovation—we have been doing it for a long time indeed.
Scotland wants to be a leader in innovation and we put our money where our mouth is. Product and process innovation has a clear link to employment growth but it does not happen in isolation; it generally relies on the quality of the business environment. The weaker the business environment, the less likely innovation will have a positive impact on jobs.
It is worth noting that when full employment is reached, productivity falls, because then the people who are being employed often work part time and do jobs that are not inherently productive. However, even the least productive jobs can respond to innovation.
It is certainly important that we have inclusive growth that matches our innovation ambition. That means investing in public infrastructure. The Forth crossing—now the Queensferry crossing—had an original budget of £3.4 billion, but we built it for less than £1.4 billion. If that ain’t innovation in Government and stepping up to ambition, I do not know what is. We innovate in housing, healthcare, energy, education and digital connectivity.
One thing is clearly missing from the debate—this relates to a feminist issue. The Intellectual Property Office says that only one in eight patents world wide is in a woman’s name. Therefore, our Government’s focus on STEM for women is vital, because there is a huge untapped source of potential innovation in this country, as there will be in countries across the world. All the women whom I meet say that they are can-do people, and I believe that all the women in my life are can-do people. That is not the only issue; attitudes, culture and self-belief are also important factors.
The Scottish Government is working with partners to support Scotland Can Do, which is good. We must also ensure that people have somewhere where they can innovate. We need people to take risks, and we need to be prepared to see failure.
Historically, Scotland has been an innovating nation. Alexander Burnett seemed to think that innovation started in 1707. Napier’s bones and the slide rule were developed in the 100 years before that point, and the decimal point came from John Napier, too. The first coal mining on artificial islands was done in Scotland in 1575. However, there were inventions after 1707. We bequeathed to the world the overdraft, which was invented in 1728 by the Royal Bank of Scotland. Relevant to 1707, Alexander Cumming invented the first flush toilet in 1775. Scotland invents; the world benefits.