ABSTRACT

This chapter considers the strategic issues and responses to the fundamental restructuring under way in Scotland’s information technology (IT) industries. The present structure of Scotland’s IT industry is described and assessed in relation to key global/industry trends in technology, products and markets. The case for re-engineering the basis of Scotland’s long-term competitive advantage from one of cost to one of added value is then made. The related strategic response of local IT firms and development agencies is described and the implications which it holds for wider public policy are considered, especially the ‘match’ with EC regional and trade policy.