Can Scotland’s ecosystem hit its tipping point?

Nevertheless, for all the compelling progress that has been made, Logan believes that Glasgow—and Scotland as a whole—is not yet on the cusp of a tipping point. He stands by the recommendation he made for the country in his 2020 report: A three-pronged national strategy focused on education, investment, and infrastructure.

What next?

But what about the specific tactics that should serve that broader national strategy? Van Orsouw argues that more incubator spaces would be helpful. “Easy access to the required facilities is vital,” he says. “We share space with about 20 companies and it’s very modular. If we need to increase the size of the lab, we just add two metres of bench space.” He also notes that in New York, where he once consulted for the city government, old, vacant buildings have been repurposed for startup office space. “I think there’s a tremendous amount of potential to do the same in Scotland and create unique, beautiful spaces that really attract people.”

Scotland’s Thriving Entrepreneurial Scene To Cannon, getting the right mix of talent is also vital to the ecosystem. “There’s a lot of angel syndicates in Scotland, but there’s not a lot of VCs,” he says. “So I think we should look to attract more international talent from other ecosystems. And not only successful VCs, but successful entrepreneurs who have seen it all before. Scotland can be a little bit of an echo chamber sometimes, so it’s good to bring in different types of experiences.”

The challenge with all interventions, however, is avoiding unintended consequences. Greenland cautions that it’s important to ensure that VC money, for example, doesn’t reduce the diversity of businesses. “For the space sector, in comparison to capital, it is skills that are in shortage, right?” he says. “If you have heavily VC-backed companies supported by our government incentives to base here, the playing field can distort and wages can massively spike.” He says that smaller companies that are trying to grow more organically can end up in an arms race against foreign direct investment. A healthy ecosystem, he continues, should support large, heavily funded businesses as well as small spin-outs, true startups and employee-owned enterprises, taking best practice from more than just Silicon Valley and ensuring as far as possible a level playing field for UK capability.

If Scotland manages to pull off this balancing act, the benefits would be diffusive: Economic growth, better public services, and improved quality of life. “During the industrial revolution Scotland was a global innovation powerhouse and has the potential to be one again,” says Logan. “The entrepreneurial scene is thriving, and I can’t wait to see where it goes from here.”