The Scottish Government has published its latest Programme for Government, which, along with committing to 100,000 extra GP appointments and a ‘best in UK’ cost-of-living guarantee, lays out its plans to supercharge innovation across Scotland.

Setting the tone for the year ahead, the Programme outlines the government’s intention to grow critical sectors that position Scotland as a modern, high-growth economy, particularly in tech and innovation.

“We must not forget, even amidst the gathering clouds, that Scotland is an innovative nation, and that opportunities exist which can deliver real and significant benefits now and in the future,” said first minister John Swinney, in his speech to parliament.

An innovation nation

To meet the goal of supporting innovators and ramping up startup creation, the government said it will create an array of new programmes and initiatives.

Among those will be the launch of AI Scotland, a new national transformation programme based on a partnership between business, academia, agencies and government, which will include a national AI adoption programme for SMEs.

The government will also create a University Proof of Concept Fund, with a focus on supporting cutting-edge research projects that have significant economic potential, with the end goal being the formation of new companies through building prototypes, achieving market validation and attracting outside investment.

Growing nascent Scottish startups is also a key concern, with the government planning to deliver an improved Ecosystem Fund by partnering with the private sector. The Fund will focus on issuing grants to increase the scale, quality and profile of the Scottish start-up ecosystem.

Meanwhile, Scottish Edge is set to receive a £1.2 million boost to help it identify and invest in Scotland’s ‘best new’ companies, while the Scottish Funding Council will see its core research and innovation grants swell to more than £325 million for the 2025-26 academic year to support university research and develop the talent pipeline.

The Scottish Government will also invest £6 million to help women start and scale businesses, with the cash earmarked for implementing Ana Stewart and Mark Logan’s Pathways report, with support included for another round of competitive funding opportunities and the delivery of ‘Pre-Start’ support.

Keen to take advantage of emerging tech trends, the government will look to form a Technology Council of global experts as well as launch an Innovation Summit to showcase Scotland’s strengths, encourage knowledge exchange, and hopefully attract investment.

Looking globally, the government said it wants to use Scottish Development International investment to attract scaling companies from Silicon Valley and other tech hubs, as well as engage with global financial hubs to strengthen Scotland’s fintech and financial services sector.     

“Today’s ambitious Programme for Government demonstrates a clear commitment to positioning Scotland as a global leader in innovation, entrepreneurship and technology,” said Stewart Miller, CEO of the National Robotarium.

“The launch of AI Scotland as a national transformation programme is particularly significant, as it recognises the critical role that AI and robotics will play in Scotland’s economic future.

“The Government’s plan to establish a University Proof of Concept Fund is a welcome step that will help bridge the gap between research and commercialisation – something we’ve identified as crucial to building a robotics manufacturing ecosystem in Scotland. 

“By supporting research projects with significant economic potential to progress towards forming new companies, this initiative will help ensure more Scottish innovations reach the market and create economic value within our borders.”

Boosting Regional Innovation

While those plans aim to boost Scotland’s profile on a national and international scale, the Programme sets out some specific measures being taken to bolster tech and innovation across regions, too. 

Over £200 million in grant funding will go to Growth Deals around the country, with money for a variety of projects such as an Edinburgh Innovation Hub to grow enterprise in and around East Lothian, which will aim to deliver around 100 new start-ups over its lifetime. 

Added to that, the government will invest in upgrading the University of the Highlands & Islands Outer Hebrides Campus project to focus on supporting renewable energy sectors, and look to deliver Investment Zones in the Glasgow City Region and the North East, bringing jobs and clusters of innovation.

Regional development of energy infrastructure is a key concern, too, with the first minister announcing £8 million will go through the Community and Renewable Energy Scheme for communities to develop renewable energy projects, which will add to the country’s ongoing commitment to achieving net zero by 2045.

Underpinning it all will be the awarding of new regional broadband contracts, alongside delivery of the £600 million R100 programme, so that more households, communities and businesses can access gigabit connectivity.

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Growing the Economy

Aside from driving innovation, the Scottish Government are also looking to shore up the economy, especially given recent figures that show the country faced a tough start to 2025.

Trying to mitigate some of the impact felt by small business owners after the Chancellor’s NIC rate rise, the Scottish Government committed to funding the Small Business Bonus so that thousands of small businesses pay no business rates, while also freezing income tax at the current level.

The first minister also laid out plans for boosting Scotland’s global competitiveness with a new export plan that aims to help Scottish businesses meet the rising threat of trade barriers and tariffs.   

“For the sake of Scottish jobs, for the sake of protecting people’s quality of life, we are taking new steps, accelerating action, to ensure Scotland’s economy is better placed to ride the economic storms,” said Swinney.