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Publication - Progress report

National innovation strategy: scorecard - 2025 update

Published
25 September 2025
Directorate
Economic Development Directorate, +1 more … Chief Economist Directorate
Topic
Business, industry and innovation, Economy
ISBN
9781806431694

The national innovation strategy first published an innovation scorecard in 2023, tracking Scotland's performance against key metrics compiled from publicly available data. In the second annual update to the scorecard, Scotland’s innovation performance is compared to UK and global peers.

View supporting documents Supporting documents

7. High Growth Businesses (Businesses with Average Annualised Employee Count Growth Greater than 20% per Annum over a Three-year Period)

7.1 Ecosystem

  • Commercialise

7.2 Performance Assessment

  • Performance Improving

7.3 Description

  • Evidence shows high growth companies generate a disproportionate number of jobs and innovations. A measure of the percentage of Scottish businesses that are considered “High Growth” can therefore be an indicative of the health of the innovation ecosystem.
  • As per the definition used in the Office for National Statistics (ONS) Business Demography statistical release, high growth businesses have average annualised employee count growth greater than 20% per annum over a three-year period. This business count is then taken as a percentage of all active Scottish businesses with more than 10 employees.
  • Performance assessment threshold is ±0.1 pp as per National Performance Framework (NPF).

7.4 Time Series

  • The share of “High Growth” businesses in Scotland reached its highest point since 2018. The number of “High Growth” firms rose, again, in 2023 – with similar trends across most UK regions.
Chart 16: "High Growth" Enterprises, Scotland
A bar chart showing the percentage of “High Growth” enterprises rose in 2023 to 4%.
Chart 17: "High Growth” Enterprises, UK Regions
A line chart showing that Scotland tends to be below England and Wales each year since 2018 in terms of the percentage of “High Growth” enterprises.

7.5 Current Performance

  • 4% of Scottish businesses recorded as “High Growth” businesses in 2023.
  • The proportion of businesses with average annualised employee count growth greater than 20% per annum over a three-year period increased by 0.7 pp in 2023.

7.6 Previous Year Performance

  • In 2022, 3.2% of Scottish businesses were identified as “High Growth” businesses.
  • The number of “High Growth” enterprises in Scotland (and most UK regions) increased in 2022, except Wales and East Midlands.

7.7 UK Regional Benchmark

  • Scotland ranks 10th for “High Growth” businesses in the UK, up from 11th in 2022.
Chart 18: "High Growth" Enterprises, 2023
A bar chart showing Scotland ranks 10th out of the 12 regions in terms of percentage of “High Growth” enterprises.

7.8 International Benchmark

  • Using the EU definition of “High Growth” (>10%), Scotland is 23rd amongst the EU27, up from 22nd in 2021.
Chart 19: "High Growth" (>10%) Enterprises, 2022
A bar chart showing Scotland ranks 23rd amongst the EU27 in terms of percentage of “High Growth” enterprises.

7.9 About the Data

Contact

Email: innovation@gov.scot

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