International network: annual report 2023-2024

Economy, Trade and Investment

The International Strategy sets out how the Scottish Government, in collaboration with its partner organisations and businesses in Scotland, will deliver its international trade and investment objectives, the key sectors, priorities and geographies of focus, and the vital role played by Scotland’s international network in delivering for Scotland.

Scotland’s centuries-old economic links with the rest of the world are broad and deep. Our solid reputation for innovation, collaboration and being true to our values resonates with the international community and encourages potential partners to work with us. We provide world-class goods and services, from items rooted in our traditions such as whisky and salmon, to our pioneering satellite manufacturing industry and dynamic financial services. Engaging internationally in these areas is crucial to making the transition to a wellbeing economy^[4] that is fair, green and growing. An economy that serves the collective wellbeing of people now and in the future sets us on a path to a greener, more prosperous nation, and helps our international partners do the same.

In March 2022, the Scottish Government published its National Strategy for Economic Transformation (NSET).^[5] The strategy commits us to achieving the vision of a nature-positive economy founded on wellbeing and net zero, and based on the principles of prosperity, equality, sustainability, and resilience for current and future generations. Our publication A Trading Nation^[6] sets out our approach to increasing Scotland’s exports by focusing support on the markets with the most demand, and the companies best able to meet that demand. And as a key driver for economic growth, inward investment helps to create a more open and outward-facing economy, which is why we have clear ambitions for increasing the amount of high- quality inward investment, as articulated in our Inward Investment Plan.^[7]

Key achievements from our network

Germany: Science and technology company Merck KGaA announced a €35 million investment in biosafety testing at its Glasgow and Stirling sites. The project sees the creation of a new 1,200-square-metre facility in Glasgow, which will employ an additional 500 personnel in the years up to 2030. SDI and SE worked extensively with the company over 18 months to support its decision making for investment.

France: In June 2023, Scottish Government France organised a week-long trip around Scotland for six French chefs and the Director of Gastronomy from Metro, France’s top supplier for independent restaurants. This trip showcased Scotland’s diverse food and drink offer, featuring 20 brands or producers, and resulted in extensive media coverage, as well as six articles published in French media.

Ireland: Partnering with University College Dublin and the University of Strathclyde, Scottish Government Ireland held a conference on ‘Scotland and Ireland Working Together to Grow the Space Economy’. The booked-out event attracted 100 senior stakeholders from space enterprises, space sector organisations and leading researchers from Ireland, Scotland and beyond including the European Space Agency and the UK Space Agency.

The rest of this section includes more detailed case studies on:

• how we promote growth in Scotland’s food and drink exports in China.
• ways in which we collaborate to showcase Scotland’s space industry in the Nordics region.
• how we enhance Scotland’s financial services footprint supported by Scotland House London.

Case Study: China

China food and drink consumer roadshow

China is hugely important for Scottish consumer industries. It is the third largest market for Scottish salmon and the fifth largest for Scotch whisky, with whisky exports growing from £75 million in 2018 to over £230 million in 2023. However, doing business in China is complex and it can be crucial for companies to visit the market and understand what it takes to succeed there.

China Roadshow was a week-long trade mission where ten Scottish food and drink companies visited Hong Kong, Shenzhen and Shanghai. The trip included various business networking events, trade show visits, store visits, an innovative e-commerce experience, and a major showcase event in Shanghai to promote Scottish products to SDI trade contacts, including buyers, distributors, partners and other key stakeholders.

Highlights of the week included Scottish companies meeting China’s tech giant Tencent in Shenzhen to understand power of e-commerce and how to seize growth opportunities, store visits to top retailers to understand the latest retail trends, and a session to learn about Chinese consumer appetite and trends. There was also an intensive business matchmaking session to introduce Scottish companies to Chinese buyers, with a view to securing new distribution deals.

Companies who participated in the China Roadshow are forecasting an additional £7 million in international sales to China over the next three years as a result of the event. The trade mission also increased Scotland’s profile in China with 2.78 million online media impressions during the week. The China Roadshow not only helped Scottish companies secure new international business in the short term, but also provided valuable market insight into the longer-term trends and developments within the China market that will help them innovate, invest in their capacity and scale up their exports in the longer term.

Engaging with buyers and key partners in all three cities and the quality of in-person buyer introductions were recognised by companies as critical to the success of the mission. The market insights gained ahead of buyer meetings helped companies prepare and confidently engage in multiple business discussions.

One of the Scottish companies joining China Roadshow stated:

‘There is absolutely no substitute for being present in market! The opportunity to learn about market trends, the industry eco- system, import practices and value chains was way more than we could get sitting at home. I was astounded by the calibre of industry leaders the SDI team managed to get us in front of. The opportunity to sit down in front of buyers is absolutely essential to the growth and success of our business. We went from zero knowledge to a credible launch plan, and a buyer … in less than a week. We could not have done this without SDI support.’

Case Study: Nordics

Space Scotland Summit - Nordics

In March 2024, SDI Nordics organised the first ‘Space Scotland Summit Nordics’ at the British Embassy in Copenhagen,^[8] with support from the Scottish Government Nordic office. This event is an opportunity to promote collaboration between spacefaring states in Europe. Scotland and Norway are seen as leaders in the race to offer orbital launch of small satellites from commercial space ports in Europe.

The event brought together key stakeholders from the Scottish and Nordic space industries, government, and academia, and laid the foundation for future collaboration in the space sector. The British Embassy in Copenhagen hosted 50 participants for the event, mainly from Denmark, while a delegation of around 20 representatives from Scotland showcased the country’s capabilities across a growing space economy. The event featured talks, workshops, and networking sessions to build relationships between the Scottish and Nordic space sectors.

The event was co-funded by SDI and the Foreign, Commonwealth and Development Office (FCDO). The Cabinet Secretary for Constitution, External Affairs, and Culture opened the event alongside the British Ambassador to Denmark. The Scottish Government also provided guest speakers and helped attract senior-level stakeholders to the event.

The true value of the event will emerge from the follow- up done by SDI Nordics, with expected tangible export outcomes. Feedback from a survey conducted by SDI Nordics after the event indicated Scottish companies expect increased international sales as a result of their participation, forecasting over £2 million in sales over the next three years and 20 new jobs.

Attendees also gave universally positive feedback on the event’s format and organisation. The event was designed to be replicable, with plans to host a similar event in Oslo in 2025 to strengthen connections in the Norwegian space industry. Feedback received from the event included:

‘A very slick and well organised event. Fantastic to attend and a great introduction to some potential project partners down the line.’

‘An excellent event, well structured and well managed.’

‘We had a great time at the event, were extremely warmly welcomed by the Danes. I can’t speak highly enough of this event, it was so well put together and so pleasant to be a part of, it really stood head and shoulders above others of its type.’

‘Excellent event, expertly managed and delivered, great blend of the formal and informal, brilliant support from staff in the embassy, and SDI/SE staff were superb. The whole thing was very slick. Friendly and engaging group of rocket scientists and satellite manufacturers, and new contacts in the Nordics, a really great experience.’

Case Study: Scotland House London

First Minister visit on strategic financial services, growth and investment priorities

Seeking to enhance Scotland’s financial services footprint, Scotland House London organised a two- day First Minister programme that led to renewing a strategic partnership between the Scottish Government and the City of London Corporation. The event included a panel discussion, a highly attended Burns supper with key stakeholders in London, and various bilateral meetings.

Collaborating with Scottish Financial Enterprise (SFE) and SDI we hosted a ‘Partners for Growth’ panel discussion focused on fostering growth opportunities in the financial services sector, showcasing SDI’s new International Prospectus publication and SFE’s Sectoral Growth Strategy. The panel discussion, featuring the First Minister, the Chief Executive of SFE and the Policy Chairman of the City of London Corporation offered the opportunity to present Scotland’s input to the City of London’s UK-wide Vision for Growth Strategy. With over 50 attendees, including Scottish Government Trade Envoys, the event enabled knowledge exchange, networking, and strategic alignment. All feedback from participants agreed that the panellists clearly articulated the opportunities and challenges in Scotland’s Financial Services sector.

We also hosted a private meeting on investment in natural capital. Underpinned by the Scottish Government relationship with the Corporation, this offered an opportunity to identify how we can weave together complementary work in approaching responsible investment. This work also considered how we can engage and influence the City of London’s Policy Chair as the key to ensuring the needs of, and opportunities within, Scotland are taken into account, in line with the Scottish Government 2045 net zero goal.

A roundtable discussion on ‘Investing in Scotland’s Future’ showcased the recently published outcomes and recommendations of the First Minister’s Investor Panel to senior investment stakeholders within the London market. This engagement highlighted the importance of the sector and our collective ambitions for its growth.

Our Burns Supper event is where we coordinated the signing of a renewed high-level Partnership Agreement between the City of London Corporation and Scottish Government. This formalised a strategic alliance enhancing our commitment to mutual growth and collaboration across the financial services sector. The Burns Supper, hosted by the City of London Corporation, reaffirmed the importance of engagement with the City of London and its wide networks.