1. Donald JR MacRae Lloyds TSB Scotland 12th April 2005 Scotland’s Business Growth Enterprise and Culture Committee The Scottish Parliament

2. Scotland - The Gap? Source: Measuring Scotland’s Progress Towards Smart, Successful Scotland 2004. 4 3 2 1 Scotland’s Quartile Position in OECD Countries 2002 No. of Comparators 30 18 11 21 26 9 29 30 29 28 15 * Not in education, employment or training.

3. GDP per Capita - 2002 PPPs Source: OECD (2004), DTI: Regional Competitiveness & State of the Regions (May 2004). Note: Scotland estimated at 94.6% of UK. high income high middle income group low middle income group group101-120 51-100 over 120

4. International Comparisons of GDP Growth 1973 - 2001 Source: Goudie (2003).

5. Key Drivers of Productivity Improvement Human capital Physical capital Innovation Enterprise Competitiveness

6. Population Trends: Scotland and UK, 1951-2011 Source: Scottish Executive (2000). UK Scotland Index:1995 = 100

7. Scotland’s Birthrate in a European Context Total Fertility Rate* 2001 Source: Turner, A., Reflections on the Allander Series. (2004). * Children per woman

8. Assumed Annual Long Term Migration by Age Scotland 2006-2007 onwards 4,000 3,000 2,000 1,000 0 -1,000 -2,000 -3,000 Persons 0-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & over Years of Age Source: Experian Business Strategies, March 2005.

9. GDP per Hour Worked 2001 Source: Scottish Economic Report November 2004.

10. % working age population in employment OECD % 16-19 year olds NEET* OECD % 20-24 year olds with at least NVQ 3 UK % young people with adequate skills (PISA) OECD % working age population in education, trainingUK or employment Scotland - Skills and Learning Indicator Quartile Position Comparators 4 3 2 1 Source: Measuring Smart Successful Scotland (2004). Training and Employment Unit, University of Glasgow. * Not in education, employment or training.

11. Business R & D Expenditure Source: Crafts and O’Mahony (2001) and DTI (2001). *1995 - 99

12. Source: Global Entrepreneurship Monitor, Scotland 2003. New Business Activity Scotland United Kingdom Ireland

13. Aggregate Government Expenditure 0 10 20 30 40 50 60 ScotlandUK Source: Goudie (2002). Scottish Executive, GERS 2002-2003. 78-7979-8080-8181-8282-8383-8484-8585-8686-8787-8888-8989-9090-9191-9292-9393-9494-9595-9696-9797-9898-9999-0000-0101-0202-03 % share in GDP, 1978-79 to 2002-03

14. Aggregate Government Expenditure % Share GDP 2003 Source: Verhulst et al. (2005). *GERS 2002-2003; **Author’s calculation

15. Scotland - The Gap? Source: Measuring Scotland’s Progress Towards Smart, Successful Scotland 2004. 4 3 2 1 Scotland’s Quartile Position in OECD Countries 2002 No. of Comparators 30 18 11 21 26 9 29 30 29 28 15 * Not in education, employment or training.