Rural Scotland Business Panel Survey

6. New technology

Key findings

Almost three quarters (72%) of businesses were using or planning to use new technologies, the common being low carbon technology (34%) and the Internet of things and sensor technologies (34%). The other technologies asked about were being used, or planned to be used, by around a quarter of businesses.

The most frequently mentioned barriers to adopting new approaches and technologies were: the cost of new technology (52%), the lack of time (44%) and more pressing priorities (39%).

New technologies used

Almost three quarters (72%) of businesses were using or planning to use new technologies. Use (or planned use) of new technologies was higher than average among:

• financial and business services (80%),
• those with 25+ staff (82%), and
• those selling to markets outside the UK (78%).

New technology use (or planned use) was also higher than average among those that were currently focusing on addressing labour challenges (81%), compliance with regulation or legislation (79%), enhancing productivity (78%), and supporting growth (78%).

The top technologies mentioned were low carbon technology (34%) and the Internet of Things and sensor technologies (34%). Around a quarter were using, or planning to use, cyber resilience and security technologies (26%), mobile app development (24%), automation of processes (24%), or data analytics (22%) (Figure 6.1).

Variation in technologies used or planned to use

Businesses in the Highlands and Islands were more likely than average to be using, or planning to use, low carbon technology (41%), Internet of Things (36%), automation (27%), mobile app development (26%), and data analytics (25%).

Other businesses more likely than average to use, or plan to use, certain technologies were:

• Food and drink – low carbon (49%), automation (29%) and mobile app development (27%).
• Tourism – Internet of Things (39%) and data analytics (30%).
• Creative industries – cyber resilience and security (41%) and data analytics (30%).
• Financial and business services – cyber resilience and security (41%), automation (32%), and data analytics (27%).
• Those in remote rural areas - low carbon technology (41%).

Businesses striving for growth and those importing and exporting goods from outside the UK were more likely than average to be using or planning to use most of the technologies^[10].

Those not using, or planning to use, any technologies were more likely to be: non-growth sector businesses (33% were not using any), those aiming to downsize (39%), and those not optimistic about their futures (34%).

Barriers faced in adopting new technologies

The most frequently mentioned barriers to adopting new approaches and technologies such as those discussed above were: cost of new technology (52%), lack of time (44%) and more pressing priorities (39%) (Figure 6.2).

Variation in barriers to adopting new technologies

The following businesses were more likely than average to be facing specific barriers to adopting new technologies:

• Tourism – ability to keep pace with new development (41%).
• Food and drink – cost of new technology (61%) and concerns over data security (25%).
• Large businesses (25+ staff) – cost of new technology (64%) and more pressing priorities (50%).
• Remote rural businesses – more pressing priorities (47%).
• Island businesses – more pressing priorities (47%), lack of time (56%) and ability to keep pace with new developments (40%).
• Those striving for growth – lack of knowledge or skills (41%), lack of time (50%) and cost of new technology (57%).
• Those importing from outside the UK – lack of time (48%), access to equipment (23%), lack of knowledge of what is required or where to seek advice (21%).
• Those exporting goods to outside the UK – more pressing priorities (43%).