ABSTRACT
Scottish Enterprise (SE) and Highlands and Islands Enterprise (HIE) represents the most recent manifestation of the regional planning tradition in Scotland. SE and the HIE assumed the responsibility for the integrated delivery of economic and business development initiatives, the provision of training and the implementation of measures to secure the improvement of the environment in Scotland. In the context of SE and HIE there are a number of theoretical issues to be addressed not least because the operational paradigm of the two agencies is founded on the neoclassical concept of market failure. Furthermore, SE and HIE involve wider constitutional and accountability issues together with considerations associated with policy, programme and performance. Compounding this position are the differences between the SE and HIE networks, the latter having a statutory responsibility for community and social development. The impact of the institutional innovation raises a series of fundamental questions about the evolving nature of governance and accountability in Scotland.
