An examination of reduced potential for innovation and enterprise in an ICT cluster

The paper identifies the potential for enterprise and new venture creation problems in the ICT industry in Scotland due to the withdrawal of several large multi-national firms. Marks and Huzzard (2010) identify two core competencies associated with innovation and competitiveness in the ICT sector: vocational skills and employability skills. Employability skills are advocated as key to generating innovation and enterprise in organisations, and consequently they are often called enterprise skills, implying the anticipation of new firms as an integral part of developing a competitive knowledge economy. Skills development post education has traditionally been within large firms in the ICT industry, but the majority of large firms withdrew from Scotland just under a decade ago. Remaining SMEs have maintained their position in the market by creating one or two core products, or providing developmental services to larger organisations. New graduates are lacking in employability/enterprise skills which are not being developed by smaller employers. This has led to a skills stagnation and ultimately sector stagnation. For entrepreneurship to be facilitated or indeed to flourish, theory relates that a dynamic, healthy sector with a diversity of players and participants is necessary. The withdrawal of the large firms from Scotland may have removed a vital part of the enterprise process.