The second joint report between Future Economy Scotland and the UCL Institute for Innovation and Public Purpose (UCL IIPP) outlines a strategy for transforming the Scottish Government’s tools and institutions around an ambitious mission-oriented approach.

Scotland’s economy stands at a critical juncture, facing both enormous opportunities and unprecedented challenges. In September 2024 the Scottish Government published its first Green Industrial Strategy (GIS) in a crucial first step towards embracing a more proactive role for the state in the economy. However, to achieve the Scottish Government’s vision of creating a green, fair and growing economy, the report argues it must go further to rethink the role of the state to drive economic transformation. As other countries use ambitious industrial policies to reshape their economies in a rapidly changing world, Scotland risks falling behind. To close the gap between ambition and delivery, the report calls for wholesale changes to the way that policies are delivered, resources are allocated, and public institutions operate.

After reflecting on the existing policy landscape, the report sets out detailed proposals for transforming key tools, institutions and capabilities around an ambitious mission-oriented approach. Rather than focusing on supporting a small number of selected sectors, the report calls on the Scottish Government to embrace a “whole-of-government approach” to driving system-wide transformation. Implemented effectively, a new more joined up approach to policymaking can mobilise investment to tackle Scotland’s social and environmental challenges – while also achieving higher productivity, investment and prosperity.