THE Royal Society of Edinburgh (RSE) has called for research to identify solutions to improving Scotland’s low productivity growth, writes Scott Wright.

A working group at the society, chaired by leading economist Jeremy Peat, made the call in its response to the Scottish Government’s consultation on proposals to create a Scottish National Investment Bank.

The RSE highlights the “over-arching desirability” of an SNIB to drive business investment, infrastructure development and productivity. But it questioned how the government would finance and govern the institution. It urged ministers to consider commissioning research that would identify the barriers and solutions to low productivity.

Mr Peat: “A key priority for the Scottish economy has to be an increase in high quality investment by business and the public sector, in order to secure higher productivity and hence enhanced economic welfare. A Scottish National Investment Bank could help to achieve that end and we welcome the move by the Scottish Government to consider such a development. However, there should be no rush to judgement. A number of Scottish and UK bodies are already active in this field and there are critical uncertainties as to where and how a new institution could genuinely be cost-effective”.