Foreign Investment Update

Scotland scores bigger and smarter in European Inward Investment Results

European Investment Monitor Report Published at La Baule

Today's (28th June 2007) release of the European Investment Monitor (EIM) report for 2006, which records foreign investment flows in Europe, has shown a 22% rise in the total number of projects that came to the UK, of which Scotland gained an increased share, particularly in larger scale projects in the services sector and in R&D projects.

The UK was the most successful country in attracting inward investment in Europe in 2006 winning 684 projects. Scotland won 62 of these, placing it in second place in the UK behind London and the South East of England. Of particular note, based on the available EIM data, is the number of projects of scale that Scotland has secured, winning over 25% of all projects coming into the UK which individually created 250 jobs or more.

Scotland also won more R&D projects than at any time over the previous six years. In 2006 Scotland secured 12 R&D projects out of a UK total of 47, equalling the number won by first placed London and the South East for the first time.

The EIM report findings were announced today at the La Baule World Investment Conference in France at which Scotland has been selected as a guest of honour. The focus of this year's conference is 'Green Technologies and Services' - highlighting the link between environmental awareness and responsibility, and Europe's capacity and potential to attract and develop green technologies, investments, talent and capital.

Martin Togneri, CEO of Scottish Development International, is part of an international panel which will discuss the implications of the findings of the EIM report in recognition of Scotland's success in attracting foreign investment and the thriving Scottish renewable energy sector.

"We are pleased to see that inward investment in Europe is on the upturn since the market's global low point in 2003. I am also delighted that Scotland is winning a very healthy share of this revival.

"Importantly, we are also encouraged not just by the number of projects, but also the quality and sustainability of the investment we are attracting. The strategy SDI is pursuing puts particular emphasis on attracting high value jobs such as those in research, design and development functions. Provisional figures for the success of this strategy for the year ahead are also looking very positive."