Sustainable Aquaculture Innovation Cluster (SAIC): business and regulatory impact assessment 2026

Section 3: Costs, impacts and benefits

Quantified costs to businesses

At this stage, no direct regulatory or compliance costs on businesses have been identified. SAIC will not impose mandatory requirements, reporting obligations or fees on businesses. Participation in SAIC-supported activities will be voluntary.

Some businesses may incur opportunity costs associated with engaging in funding applications or collaborative projects, including staff time and administrative effort. These costs are expected to be proportionate and comparable to existing innovation funding mechanisms.

Other impacts

Establishing SAIC may have several additional indirect impacts:

Positive impacts:

• Strengthening collaboration across the aquaculture sector
• Encouraging skills development and knowledge transfer beyond the immediate funded projects
• Potential spillover benefits for related sectors such as marine technology, environmental management and supply chain services
• Enhanced reputation of Scotland attracting private investment.

Negative impacts/Risks:

• Potential concentration of benefits among larger, better resourced organisations
• Risk of geographic or sectoral inequities in access to funding
• Duplication or overlap with existing funding bodies if coordination is insufficient.

Mitigations

• Funding process will be transparent, open and competitive.
• Every effort will be made to communicate opportunities for funding widely, with support offered to those making applications perhaps for the first time
• Review unintended consequences and inform future adjustments

Annex A sets out the impacts for the options considered.

Scottish firms’ international competitiveness

The establishment of SAIC is expected to have a positive impact on international competitiveness of Scottish aquaculture firms while promoting innovation-led growth and sustainability in the sector.

Key effects include:

• Enhanced innovation capability
• Attractions to private investment
• Reputation and branding
• Market intelligence and collaboration

Benefits to business

The establishment of SAIC is expected to deliver a range of positive impacts including:

• Improved coordination of innovation activity across industry and academia
• Increased levels of investment in research, development and commercialisation
• Enhanced productivity and competitiveness of the aquaculture sector
• Stronger collaboration and knowledge sharing
• Improved environmental sustainability through innovation

Intended negative impacts

No adverse impacts on consumer welfare or market access are anticipated

Small business impact

The new SAIC is expected to benefit small business by improving access to funding and research partnerships that would otherwise be difficult to secure.

Investment

Establishing SAIC as an independent entity is expected to enhance Scotland’s attractiveness to domestic and international investors by providing a clear innovation interface, reducing fragmentation, and enabling co-investment models.

Workforce and Fair Work

SAIC is expected to support high-quality employment through skills development, knowledge transfer and collaboration with academic institutions.

Climate/Circular Economy

SAIC is expected to support Scotland’s climate objectives by funding innovation in sustainable aquaculture practices, low impact technologies and resource efficiency.

Competition assessment

The new SAIC will not restrict market entry, pricing or business operations. However, as funding decisions may influence competitive conditions, SAIC will apply transparent, open and non-discriminatory funding criteria. The proposal is assessed as having a neutral to positive effect on competition.

• Will the measure directly or indirectly limit the number or range of suppliers?

No, the proposal does not restrict market entry, licensing or participation. SAIC will not regulate suppliers or limit who can operate in the market. Participation is SAIC-supported activity will be voluntary and open to eligible organisations.

• Will the measure limit the ability of suppliers to compete?

No, the proposal does not impose rules, standards or requirements that would constrain how firms compete. On the contrary, by supporting innovation and access to finance the proposal is expected to enhance firms’ ability to compete.

• Will the measure limit suppliers’ incentives to compete?

No, there is no price-setting, market allocation or behavioural control. Funding will be awarded competitively, and firms will continue to face normal market incentives.

• Will the measure affect consumers’ ability to engage with the market and make choices that align with their preferences?

No direct effects are anticipated. Consumers will continue to access products through existing market mechanisms. Any impacts are expected to be indirect and positive arising from improved product quality sustainability and availability.

• Will the measure affect suppliers’ ability and/or incentive to introduce new technologies, products or business models?

Yes, positively. The proposal is expected to strengthen incentives to innovate by reducing risk, improving access to capital and facilitating collaboration.