National Software Strategy for Scotland : Scotland's Potential In Software

Summary

Scotland is likely to continue its present growth in software over the next 2/3 years based on our assessment of demand, growth and Scotland’s capabilities, including its handful of star firms and an emerging new breed of mid-size, indigenous suppliers. The UK and European markets - in line with global trends - are set to continue to grow offering a range of opportunities

However, Scotland has a weakness in its software industry caused by the absence of large scale major players and over-dependence on local service provision and access to advanced and specialist resources - notably skills finance and networks. To overcome this, the strategy must enable growth through more significant engagement in the international scene - especially with US firms. However, they face significant constraints:

• ineffectiveness in exploiting venture capital;
• high barriers to product development;
• potential pressure on skills.

In the next section we review Scotland’s strategic options. In doing so, we are mindful of ways to overcome the constraints outlined above.