UCL IIPP and Future Economy Scotland collaborate to develop green industrial strategy for Scotland

The project, which was initiated in June 2023, begins at a crucial time following the Scottish Government’s pledge to develop a green industrial strategy as part of its Programme for Government on 5 September. The Scottish Government aims to publish its strategy next year, with the goal of supporting its commitment to deliver a just transition to net zero by 2045.

The research will aim to inform the Scottish Government's plans by exploring opportunities to align industrial strategy in Scotland with bold climate and inclusion goals, in support of a just green transition. The work will draw on leading research and international examples to tailor a bold mission-oriented industrial strategy to Scotland’s unique circumstances and challenges.

The project will be jointly led by Professor Mariana Mazzucato, author of Mission Economy: a moonshot guide to changing capitalism, and Future Economy Scotland, a non-partisan think tank based in Scotland. Professor Mazzucato served on the Scottish Government’s Council for Economic Advisors between 2015 and 2021 and has advised governments around the world on industrial strategy – including Barbados, Brazil, British Columbia in Canada, the European Commission, the UK government, the UN Economic Commission for Latin America and the Caribbean, the US Department of Commerce, and South Africa, among others.

Professor Mazzucato and Future Economy Scotland Co-Director Laurie Macfarlane previously advised the Scottish Government on the creation of a mission-oriented Scottish National Investment Bank. The research will form a key part Future Economy Scotland’s two-year project focused on accelerating a just transition in Scotland.

Commenting on the partnership, Professor Mariana Mazzucato said:

“Industrial strategy is experiencing a renaissance, with governments around the world making big investments. But most are adhering to traditional approaches that miss the opportunity to bring social and environmental priorities into alignment with economic goals. In addition to catalysing growth, ambitious industrial strategies can direct growth in line with a just green transition. Scotland’s new industrial strategy needs to do more than just hand out support to certain sectors. A different type of industrial strategy is needed: one that catalyses investment oriented around bold goals, and maximises the public value of these investments. IIPP is delighted to partner with Future Economy Scotland to shed light on what a truly transformational green industrial strategy could look like in Scotland.”

Laurie Macfarlane, Future Economy Scotland Co-Director and UCL IIPP Fellow, said:

“Across the world – from Europe to the US – governments are playing a more proactive role in the economy to overcome 21st century challenges. The Scottish Government’s pledge to develop a green industrial strategy presents an opportunity to demonstrate global leadership in delivering a just transition to net zero. However, how the strategy is designed and governed will be vitally important. Old approaches to industrial strategy are not well equipped to address complex 21st century challenges. As such, Future Economy Scotland is delighted to be partnering with UCL IIPP to set out a mission-oriented framework for industrial strategy in Scotland that is tailored to Scotland’s unique challenges. The strategy will aim to fully harness the Scottish Government’s tools, institutions and resources to mobilise green investment, nurture new industries and transform the labour market in line with a just transition.”

ENDS

NOTES TO EDITORS

[1] The Scottish Government's Programme for Government, published on Tuesday 5th September, committed to developing a green industrial strategy for Scotland. The collaboration between UCL IIPP and Future Economy Scotland is not formally connected to the Scottish Government’s own work on industrial strategy. 

[2] The Institute for Innovation and Public Purpose (IIPP) at University College London (UCL) aims to develop a new framework for creating, nurturing and evaluating public value in order to achieve economic growth that is more innovation-led, inclusive and sustainable. This requires rethinking the underlying economics that has informed the education of global civil servants and the design of government policies. Our work feeds into innovation and industrial policy, financial reform, institutional change and sustainable development. A key pillar of IIPP’s research is its understanding of markets as outcomes of the interactions between different actors. In this context, public policy should not be seen as simply fixing market failures, but also as actively shaping and co-creating markets. Re-focusing and designing public organisations around mission-led, public purpose aims will help tackle the grand challenges facing the 21st century. IIPP is housed in The Bartlett, a leading global Faculty of the Built Environment at University College London (UCL), with its radical thinking about space, design and sustainability.

[3] Future Economy Scotland is a non-partisan think tank that aims to create a new economy that is democratic, sustainable and just. The organisation does not have a formal stance on Scotland’s constitutional future, and is not aligned to any political party or any politician. The organisation is a not-for-profit company limited by guarantee operating with charitable principles. For more information, visit: www.futureeconomy.scot