Scotland has the opportunity to unlock unprecedented economic growth if they engage with the energy transition and digital innovation, according to Deloitte and the Fraser of Allander Institute.

The pair’s latest report has considered the divers of productivity in Scotland where the nation needs to better grasp emerging opportunities.

While Scotland has made significant progress in decarbonising the energy system, which has been accompanied by a growth in jobs in renewables, there are still huge opportunities in Scotland as the nation seeks to decarbonise homes, buildings and transport systems.

The research also considers how Scotland’s public assets could be better leveraged to promote growth and improve productivity. With the public sector owning approximately 10% of the country’s land and 23,000 of its buildings, the paper suggests a bold approach is key to untapping significant potential and stimulating supply chains and job creation.

On the energy transition, Lesley McEwan, director, Infrastructure & Capital Programmes at Deloitte in Scotland, said: “Investment is of course crucial, but while capital budgets are constrained, we need to consider what other levers the public sector can pull to maximise Scotland’s potential in the energy transition.

“Public sector land and buildings could play a pivotal role in the development of broader policy initiatives, like the development of heat networks or data centres.”

Speaking on AI and digital innovation, Angela Mitchell, senior partner for Scotland at Deloitte, said: “Scotland punches above its weight when it comes to qualifications and training, and yet businesses in many sectors struggle to find the talent they need. So, although we’re a highly qualified nation, there are thousands of ‘economically inactive’ people, and we can’t match the skills we have to the jobs that need to be filled.

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“This is where AI could have a phenomenal impact, if we use it in the right way – rather than replacing workforces, it could free up skilled workers to do their jobs better and, ultimately, achieve more. The UK Government has signalled its intention to do this with its own civil service, and it’s something Scotland should be following suit on.

“Renewable energy and digital technology are two arenas where Scotland should be ahead of the curve. But the public, private and academic sectors must come together, and be prepared take bold steps – using all the tools at our disposal to properly leverage our wealth of knowledge and experience in these areas. If we get it right, we could create a future where Scotland’s energy and digital prowess fuels global demand, while driving economic prosperity at home.”