Wallace seeks better Japan links

The executive sees opportunities in electronics

Enterprise Minister Jim Wallace has told an audience of Japanese businessmen in Tokyo that he wants increased economic links between Scotland and Asia.

He said that innovation and knowledge are what matter for Scotland's economic development and that sustainable economic growth cannot be founded on having the cheapest labour costs.

Mr Wallace was speaking at the British Embassy in Tokyo at a reception for key Japanese investors and business representatives on Wednesday.

He said: "We need to have a whole range of new business partnerships between Scotland and the rest of the world built on innovation, technology and skilled people.

"This more holistic approach will allow us to identify and address opportunities that were previously less apparent.

Future ventures

"All of our experience over the past two decades tells us that innovation is crucial to economic development.

"Sustainable economic growth cannot be founded on having the cheapest cost of labour - we cannot realistically compete on cost alone, and would not want to given the quality of life we want."

Jim Wallace: "More holistic approach"

Japan is Scotland's seventh largest export market and still the most important market in the Far East for Scottish companies.

As the world's second largest economy, the executive said Japan offers important business opportunities for a wide range of Scottish companies in industries, such as life sciences and microelectronics.

"I want to see more Scottish ventures investing in Japan now and in the future," Mr Wallace said.

"In Scotland, we have long had a significant Japanese inward investment community including Shin-etsu, Mitsui Babcock and OKI."

Two years ago the executive launched its global connections strategy in Japan, which outlined future international priorities for taking Scottish skills and expertise out to the rest of the world.