HIGHLANDS AND ISLANDS

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1 HIGHLANDS AND ISLANDS Health and Life Sciences 1

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3 THE HIGHLANDS AND ISLANDS OF SCOTLAND WELCOME Welcome to the Highlands and Islands, a beautiful and vibrant region which enjoys a rich history, a healthy economy and a strong foundation to grow your business. Highlands and Islands Enterprise (HIE) is delighted to provide you with one-stop access to the complete range of services, information and advice you may require when choosing to locate your business here. We are the Scottish Government s economic and community development agency for the north and west of Scotland. Our efforts and resources are focused on making the Highlands and Islands a more successful and competitive region where increasing numbers of people want to live, work, study and invest. With a track record in supporting global companies to deliver large projects, our experienced HIE team would work with you at each stage of your investment in to the region. The HIE team have experience of delivering large scale projects for multinational companies such as LifeScan, Cap Gemini, GFG Alliance / Liberty House Group and Norbord. In addition, the Highlands and Islands region continues to see HIE lead delivery on several significant infrastructure investments, many of which are ground breaking for Scotland. Examples include 315m Inverness Campus, the 146m High Speed Broadband roll out and the University of the Highlands and Islands School of Health. We can call on a wide range of partners to support you with every aspect of the decision making process, whether it s finance or IT, staff recruitment, property, product development, or marketing. WE PURSUE FOUR PRIORITIES: Supporting growth businesses Developing growth sectors Strengthening communities and fragile areas Creating the conditions to improve regional competitiveness Early engagement throughout your location decision making process will ensure the HIE team can provide you with a comprehensive package of support. We look forward to welcoming you to the Highlands and Islands, a successful and competitive region. Charlotte Wright Interim Chief Executive Highlands and Islands Enterprise 3

4 DRIVING GROWTH THROUGH INFRASTRUCTURE, COLLABORATION AND COMPANY INVESTMENTS HEALTH AND LIFE SCIENCES IN THE HIGHLANDS AND ISLANDS The Highlands and Islands is home to over 80 organisations active within the health and life sciences sector. These include global organisations such as Johnson & Johnson and BASF Pharma who are engaged with academic and pioneering healthcare providers. From a base of 40 organisations in 2009, to 80 in 2017 the sector has seen significant growth, and now employs over 1,800 people. Positive outcomes for industry engaged in digital healthcare, diagnostics and medical devices is fuelled by a collaborative and joined up approach which combines clinical and academic expertise in healthcare delivery. INVESTMENT The Highlands and Islands provides an opportunity for Health and Life Sciences companies to establish a presence in a location with strong and well established supply and logistics chains. These are supported by significant investments to develop an integrated healthcare economy in which research, industry and the NHS collaborate. HIE s support is exemplified through our 4m investment in the University of Highlands and Islands School of health which is focussed on delivering enhanced health related research and education for the region. With a particular focus on digital health, diabetes and rural health, the UHI School of Health represents a fully integrated and collaborative approach to accelerating innovations in health and wellbeing. POLICY AND INFLUENCE HIE plays a significant role in the discussion between key players in the sector and government policy-making at the very highest level through the Life Sciences Scotland Industry Leadership Group. INNOVATION Lipodomics and proteomics research facilities are located in the Centre for Health Science, Inverness Campus combining in-depth expertise with cutting-edge instrumentation for global and targeted analysis of lipids and proteins. HIE continues to influence and work with Scotland s Innovation Centres to support the linkages between the Scottish academic research base and business base. HIE staff are active on the Boards of the Digital Health and Care Institute (DHCI), CENSIS, DataLab, Stratified Medicine Scotland and Industrial Biotechnology Innovation Centre (IBioIC). This activity fosters national and international collaborations and leverage of grant funding through UK Research Councils, Innovate UK and the European Commission. These relationships have raised the profile of the life sciences cluster in the Highlands and Islands to a UK wide audience and has led to new collaborations and regional investments. HIE has established collaborative opportunities for Highland and Islands based companies with organisations such as Innovate UK, the Satellite Applications Catapult and the European Space Agency to drive innovative healthcare. 4

5 In 2008 Highlands and Islands Enterprise established the Highland Diabetes Institute (HDI) a unique model bringing together the following organisations: NHS Highland Diabetes Centre and Highland Clinical Research Facility University of Highlands and Islands Department of Diabetes and Cardiovascular Science LifeScan Scotland Ltd DIABETES Globally it is recognised that delivering health and well-being improvements for people with long term conditions is challenging. There is a rising demand for the prevention and management of multi-morbidity rather than of single diseases. Opportunities exist for personalised, responsive, holistic care in the context of how people want to live their lives. In Highlands and Islands there is a high prevalence of diabetes in the population and this incidence continues to rise. As a result there is the need for continued research, education and development of innovative products and services. The HDI partners have significant expertise in diabetes to promote high standards of patient care, teaching, the pursuit of scientific and clinical research and in the development of medical diagnostic devices. The HDI provides companies with an enhanced level of patient and healthcare staff interaction thereby enabling a deeper understanding of user needs in the management of diabetes and closer research links with academic and clinical expertise. The Highland Clinical Research facility enables scientific, clinical and commercial research investigations to be undertaken, taking laboratory ideas and discoveries to be tested in a clinical environment to improve treatments for patients. Whilst the majority of studies undertaken are in the field of diabetes the facility expands into other therapeutic areas including cancer, schizophrenia and rheumatology. ACADEMIC EXPERTISE The University of the Highlands and Islands (UHI), with the support of HIE, has established a state-of-the-art research department in diabetes. It conducts extensive research, primarily into the causes and consequences of diabetes, but also into a wide range of clinical conditions; most notably cardiovascular diseases, inflammatory diseases and cancer. The mission of the department is to undertake world class research into the causes and treatment of diabetes and the cardiovascular diseases that the condition precipitates. The department also undertakes a range of contract research to support commercial entities. Diabetes and cardiovascular science including inflammation, free radical and antioxidant biology Genetics and Immunology Lipidomics and proteomics Rural health and wellbeing A number of academics have joint clinical roles within the NHS and are engaged in research and innovation, leading on projects which pave the way for greater service delivery and engagement with users to encourage self-management. 5

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7 750 SCIENTISTS / CLINICIANS 250 DOCTORS 7 UNIVERSITIES 450 BED TEACHING HOSPITAL 3 RESEARCH INSTITUTIONS NHS CLINICAL RESEARCH FACILITY OVER 4,600 STAFF 2 BUSINESS INCUBATORS AND A BUSINESS ACCELERATOR ONE OF SCOTLAND S LARGEST LIFE SCIENCES COMPANIES INVERNESS CAMPUS Inverness Campus, one of Scotland s most ambitious projects is led by the Inverness Campus Partnership Forum, chaired by John Swinney Deputy First Minister for Scotland. It is a nationally and internationally significant location for business, research and education. The Campus offers a high quality environment for learning, innovation, collaboration and business development. Developed by Highlands and Islands Enterprise (HIE), the Campus occupies 215 acres adjacent to Raigmore Hospital, LifeScan Scotland and the Centre for Health Science. It is expected that approx. 315 million will have been invested in the development by both the public and private sector. Key organisations are engaged in the Inverness Campus project, including the University of The Highlands and Islands (UHI), the Centre for Health Science and Scotland s Rural College (SRUC), which are collaborating to develop new projects and grow opportunities for the region. Inverness Campus is an important driver of the economy of the Highlands and Islands with its outstanding purpose built environment, world class facilities, well designed sustainable buildings and generous landscaped green space, it is a place for business and the community to thrive. With collaboration at the core, Inverness Campus incorporates a cluster of health and life science related activity: The Centre for Health Science: One of the first in the UK bringing together the public, private and academic sectors to be a focus for excellence in health science and biotechnology. It combines teaching, training, patient care and business incubation with a number of specialist facilities including a Clinical Skills Centre with simulation technologies, Dental School, Clinical Research Facility and 3D visualisation laboratory. Raigmore Hospital: The region s largest district general hospital which also functions as a teaching hospital. It has over 2,800 staff including around 250 doctors and 450 beds. Aurora House: Developed by Highlands and Islands Enterprise it is a purpose built facility for businesses in the life sciences sector. Due to current demand Aurora house Phase II is already in planning and anticipated to be built and open in spring An Lòchran: A collaborative facility housing Highlands and Islands Enterprise, the University of the Highlands and Islands and Scotland s Rural College. It also contains a STEM hub and #HelloDigital bringing the benefits of digital advances to students and businesses alike. 7

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9 RESEARCH AND DEVELOPMENT ASSISTANCE AND OTHER HIE SUPPORT TRAINING UP TO 50% HIE can make a discretionary financial contribution towards R&D activities. This can cover a wide range of business costs, with funding for large companies up to 40% of eligible costs and for small companies as high as 80%. COMPANY SIZE IS DEFINED AS: LARGE - more than 250 FTE employees (including parent where ownership > 25%) SMALL - less than 50 FTE employees (including parent group where ownership > 25%) and EITHER turnover < 10m OR current + fixed assets < 10m. TAXATION R&D tax credits are measures which give companies in the UK additional tax relief for expenditure on R&D, beyond what they would be entitled to under the general principles of the tax system. R&D UP TO 80% Corporation tax, levied on company profits continues to be reduced significantly, 20% in 2015, 19% in 2017, 18% in In consequence, HM Treasury have stated that the UK will have the lowest main corporation tax rate in the G7. PATENT BOX A 10% corporate tax on any profits from commercialising your UK or European patent in Scotland may be applied for businesses that own patents and certain other Intellectual Property that is innovative. REGIONAL SELECTIVE ASSISTANCE A national grant scheme, aimed at encouraging investment and job creation in the areas of Scotland designated for regional aid under European Union law. Grants are awarded on a contribution of capital expenditure for the project and/or, the number of new jobs created by the project. HIE can advise you on eligibility for Regional Selective Assistance (RSA) and provide an indicative offer on the amount of grant assistance potentially available. ACCOUNT MANAGEMENT SUPPORT: HIE appoints dedicated Account Managers to key businesses to provide intensive support under the Account Management programme. The Account Manager s role is to support the company on an on-going-basis providing advice and assistance and acting as a facilitator to other business development services available from within HIE and other organisations. TRAINING SUPPORT: HIE can also make a discretionary financial contribution to the training costs of new and existing staff. This can cover a wide range of business costs, and funding can range up to 50% of eligible costs, depending on the nature of the training. RSA ASSISTANCE 30% Inverness 9

10 GLOBALLY CONNECTED TRAVEL Inverness, is the UK s most northerly city yet global access can be achieved with ease. The Highlands and Islands is well connected by road, rail and sea. Inverness Airport has daily return flights to international hubs including London Heathrow and Gatwick, Schiphol Amsterdam and Dublin. Travel between Scotland s cities is simple, with a comprehensive rail network linking Inverness directly to Aberdeen, Glasgow and Edinburgh and onwards to the rest of the UK. BROADBAND HIE has partnered with the Scottish Government, Broadband Delivery UK and British Telecom to bring about one of the most ambitious digital projects in the UK delivering fibre broadband services to the whole region by Currently underway, we have made significant progress towards meeting this target, representing an investment of 146m in infrastructure across the Highlands and Islands. 10

11 EXAMPLES OF LARGE INVESTMENT PROJECTS LIFESCAN, SCOTLAND LTD. Inverness Medical Limited was set up in Inverness in 1995 with a significant investment in shares and grants by Highlands and Islands Enterprise. HIE initially delivered a bespoke build of 50,000 square feet for Inverness Medical, executed under 12 months. Subsequent HIE grant and equity investment helped double the capacity of the Inverness site, taking it to 100,000 square feet and a total investment of 5m by HIE before Inverness Medical Limited was acquired by Johnson & Johnson as part of its LifeScan franchise in Since the high profile acquisition, HIE have engaged with LifeScan Scotland Limited and Johnson and Johnson through key account management and via our SDI field agents to maintain an in-depth knowledge of the business and ensure early intervention in key developments. HIE has awarded LifeScan a further 7m in grant assistance towards capital equipment and research and development, enabling the company to be more competitive in the global markets it serves. J&Js decision to base its global diabetes research in Inverness, making it a centre of excellence, was influenced by HIE research and development funding and the supporting infrastructure in close proximity to LifeScan. HIE have supported LifeScan in their talent attraction and recruitment efforts and continue to work with the company to realise its future growth plans. GFG ALLIANCE Part of the GFG Alliance, SIMEC and Liberty House have just announced the acquisition of the iconic Rio Tinto, hydro-power and aluminium smelter operation near Fort William in the Scottish Highlands. HIE, along with Scottish Government, have been integral in securing the jobs of more than 150 workers on site and many more in the wider local and regional supply. Going forward HIE will be working with the GFG Alliance to grow the facility further through the establishment of an aluminium wheel manufacturing facility at the site. It is likely this investment could generate up to 300 jobs directly with several hundred more in the supply chain. CAP GEMINI Employing almost 140,000 people in 40 countries, Cap Gemini provides consulting, technology and outsourcing services worldwide. Cap Gemini has had a presence in the Highlands for over 15 years, and in 2013 the company announced plans to establish a UK Centre of Excellence in Advanced IT in the region, to deliver world class end to end IT services. They now employ over 800 FTE s across two sites including a state-of-the-art site in Inverness which continues to grow and provide high end IT service jobs in the area. This project was established with support from HIE, including financial assistance, assistance with recruitment and training and development. 11

12 FOR FURTHER INFORMATION CONTACT: JAMES GIBBS Area Manager - Inner Moray Firth, HIE E james.gibbs@hient.co.uk T +44 (0) JAMES CAMERON Head of Life Sciences, HIE E james.cameron@hient.co.uk T +44 (0) FOR FURTHER INFORMATION ABOUT HIGHLANDS AND ISLANDS ENTERPRISE VISIT: 12

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