Scotland’s first strategy for the digital media industry has been published today (14 December) and calls for a range of ambitious and radical measures to help the industry gain a competitive edge to compete at a global level. New Media Corp certainly welcomes this but here's a broad overview and some early reaction:

Digital Inspiration argues that despite its track record in scientific, medical and industrial innovation, the achievements of the past will not protect Scotland from change in the digital economy. It addresses an important strand of the modern Scottish economy – digital media – and the way that this is being shaped by technology and increased consumer choice.

Digital Inspiration, a Strategy for Scotland’s Digital Media Industry, sets out nine key recommendations:

- increase both the number and scale of digital media companies
- a national drive to increase the volume and value of innovative digital media platforms owned or managed from Scotland
- a greater and more profitable role for Scottish companies in the chain of distribution and interactivity
- a more sophisticated understanding of the value to be derived from digital media as a growing and evolving business sector
- a greater commitment to improving the performance of companies in the creative “value chain”
- much more profitable leverage of intellectual property rights
- launch a pilot programme of tax and fiscal benefits to support the Dundee games sector in 2010 to increase its global competitiveness
- generate greater investor awareness of digital media as a growth sector and greater investor readiness on the part of emergent companies
- cultivate a more ambitious national culture of acquisition, allowing Scottish companies to buy and not always be bought

The new strategy is the has been developed by the Digital Media Industry Advisory Group, calls for a step-change in Scotland’s engagement with digital media and for greater ambition across the chain of creativity, distribution and exploitation.

According to Stuart Cosgrove, who has chaired the group over the past 18 months:

“To react to the speed of change, the Scottish Government has encouraged the industry to propose achievable actions. This new strategy does that but the report also goes beyond its initial brief and advocates a step change in performance. It is not afraid to point to weaknesses where they exist. This is a brazen document that does not shy away from some of the more contentious issues that must be addressed if the industry is to succeed. A group of passionate people worked hard on the report, to take us to the next level of achievement in digital media. We have always endeavoured to make it as clear, concise and challenging as it can be – and we think we’ve achieved that.

“There is another important point and that is about confidence. Scotland has a remarkable new generation of innovative companies unfettered by the restraints of previous media eras or the problems of spectrum scarcity. An aspiration we have always harboured as a culture has finally come of age – creativity and technology are now more closely aligned. This is an opportunity that Scotland cannot fail to exploit.”

The report has been broadly welcomed by bodies such as Skillset Scotland. According to Alasdair Smith, Scotland Director:

“It’s great to see such a high profile given to the role of skills in Digital Inspiration. Skillset’s work over the last few years to establish a network of Skillset Screen and Media Academies is already delivering on some of the actions highlighted in the document, such as industry-backed education and training, and an active research and knowledge transfer agenda. All of this will play its part in growing the sector in Scotland.”

On the back of global successes such as Grand Theft Auto, the new report recognises Scotland’s gaming industry as a key opportunity for growth.

Gregor White, Director of Academic Enterprise, Institute of Arts, Media & Computer Games, University of Abertay Dundee commented:

“We welcome the publication of the strategy and the ambitions for the industry in Scotland. In difficult economic times it is gratifying to see that the report acknowledges the achievements of the sector in Scotland and is promoting medium to long-term objectives for investment in technological and economic infrastructure that will secure continuity and longevity for the digital media sector. New initiatives like the Centre for Excellence in Computer Games Education at University of Abertay, the Media Academy Network across Scotland and the Institute for Capitalising on Creativity at St Andrews are preparing our people for these exciting, high value jobs. If the key objectives of this report can be achieved Scotland will be in a strong position to retain these highly talented indigenous graduates in a prosperous global industry.

“New generations of students are graduating with the skills and attitudes that can lead Scotland to becoming an international force in digital media industries; it is essential that industry and government match their ambition and determination to succeed.

“The objective to establish a tax and fiscal benefit pilot scheme in the region must be welcomed at a time when a number of countries are offering incentives to companies in a bid to establish their territory as international hubs for computer games development and distribution.”

The report has also drawn the interest of SMEs in the digital creative industries.

Greig Tosh, MD at CIVIC commented:

“I welcome this strategy as it embraces, for the first time, the tremendous collective digital offering Scotland enjoys. In these challenging, yet opportunistic times, Scotland is ideally placed to benefit from its enviable track record in staying ahead of the game.”

According to Gerry McCusker, Director, Dog Digital added:

"I truly believe that there is a hotbed of talent in our country. This report should not only be read by the sector, it should start a conversation. Ideally this will be the catalyst to help us make our mark on a global scale.”

Kevin O’Hara, Commercial Director, Innovation Digital said:

“The future success of digital media is as dependent upon how it is applied as upon the applications themselves. Progress comes with the successful implementation and the benefits to the users and it is the application of user centric approaches that will make the difference. We are seeing a definite shift to a more user centric approach, reflecting the more mature and discerning markets in which we now operate. Those who value these approaches are seeing much greater returns for their investments.”


The digital media sector already makes an important contribution to the Scottish economy. It employs 42,000 people, with estimated revenues of £3.16 billion. Scottish games companies, many of them based in Dundee, provide more than 700 high quality jobs and turnover of more than £20m a year. Growth in the sector has been robust, with employment and turnover increasing by 6% and 35% respectively between 2000 and 20064. Even against the backdrop of economic recession, where advertising and marketing spend has decreased, there has still been significant growth in digital media.