Pharmaceuticals sector 'worth £2.7bn to Scottish economy'

Scotland's pharmaceutical industry and related sectors are worth £2.7bn a year to the economy, according to a report.

The Fraser of Allander Institute found the industry employed 5,000 in Scotland and indirectly supported 16,500 jobs.

Average employee productivity in 2015, as Gross Value Added, was more than double the Scots average, at £112,000.

The report also found that Scotland has been accounting for an increasing proportion of the UK pharmaceutical industry's turnover and employment.

It said the latest available turnover figures, from 2015, showed it now represented 4.3% of all UK pharmaceutical industry sales - an increase of nearly one-third since 2008.

The report stated: "The pharmaceuticals sector makes an important contribution to the Scottish economy.

"It has higher levels of productivity than the Scottish average and employs a significant number of people across Scotland - including in parts of the country (such as North Ayrshire) where job prospects have tended to be weaker than for the country as a whole."

However, the report - commissioned by the Association of the British Pharmaceutical Industry (ABPI) Scotland - also highlighted potential "challenges" for the industry, including evidence to suggest research and development (R&D) activity has fallen in recent years.

Fraser of Allander Institute director Prof Graeme Roy said: "The contribution of the sector extends beyond the activities of pharmaceutical companies themselves, with their output supporting employment and income right across the Scottish economy.

"There are significant opportunities for Scotland in the years ahead to build on recent successes."

ABPI Scotland director Alison Culpan said: "We are a sector that Scotland should be proud of - contributing far higher levels of productivity than the national average, employing people in highly skilled jobs across the length and breadth of the country, often in disadvantaged or rural areas.

"Scotland - and the UK's - productivity challenge is well known, but this report shows our industry can be a driving force behind long-term sustainable economic growth."