Scotland’s science and technology sector could receive a £249m boost from imminent pension investment rule changes, according to a new report.
Bruntwood SciTech, a joint venture between Bruntwood and Legal & General, found that the economy could grow by that figure every year by 2030 due to an increase in private equity and venture capital in the sector.
Plans to exclude performance fees from workplace pension caps and recent changes to pension investment rules could unlock millions of pounds in additional investment, along with new jobs and economic growth for the country.
The findings explored what the potential impact of the relaxing of fee limits, which is currently being considered by the government, would be on pension investment into private equity and venture capital and, in turn, the science and tech sector.
Bruntwood SciTech stated that investment across Scotland will account for more than £249m of a total £5.26bn expected for the UK per annum by 2030, generating 1,200 new jobs.
The report noted that industries where research and development and patent approval is more capital-intensive or lengthy in bringing products and services to market, such as life sciences and biotechnology, are likely to receive the greatest benefit from the removal of pension investment constraints.
Chris Oglesby, executive chair at Bruntwood SciTech, said: “Our study provides powerful evidence in support of further pension investment reform as a means of rapidly accelerating domestic private equity and venture capital activity in the science and technology industries.
“A private investment boom dovetails with the UK Government’s own efforts to address regional imbalances, such as spreading its own R&D spending more widely around the UK based on different local strengths, and the £100m Innovation Accelerator in Glasgow.
“With additional investment into the digital, transport and skills infrastructure of our places, especially regional cities, we can increase their capacity to absorb this new wave of private capital and cascade its benefits to their surrounding towns and neighbours.”
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
