The life sciences sector in Scotland has experienced substantial growth, with its turnover surpassing initial targets set for 2025, according to a sector briefing from the Office of Chief Economic Adviser.
Scotland’s life sciences sector is a vibrant and rapidly evolving industry, contributing significantly to the country’s economy and global health advancements. This sector encompasses a broad range of activities, including the discovery, research, development, and manufacture of therapeutics, diagnostics, medical devices, and platform technologies. The latest data highlights the sector’s remarkable growth, positioning Scotland as a leading hub for life sciences innovation.
According to an updated December 2024 data on employment across Scotland, in 2023, employment in the Life Sciences sector was highest in City of Edinburgh (3,000) and Glasgow City (2,500), which comprised 13.6% and 11.4% of employment in this sector, respectively.
The sector is known for offering higher-than-average wages, with median weekly full-time earnings at £775.50 in 2024, surpassing the Scottish average, the briefing note revealed. The broader Life Sciences Cluster employs 46,900 people, marking a 4.2% increase from 2021. The next update for this cluster will be in March 2026.
The March 2025 update reveals that international exports from the wider Life Sciences Cluster stood at £4.4 billion in 2021, up 15.2% on 2020.
Employment in the life sciences sector stood at 22,000 in 2023, accounting for 0.8% of employment in Scotland and 8.6% of employment in Life Sciences across Great Britain, though this represents a decrease of 4.3% from the previous year. However, employment in this sector decreased by 4.3% over the latest year in Scotland. This data was updated in December 2024, and the next update will be in November 2025.
In 2022, the sector’s turnover was £4.3 billion, with a Gross Value Added (GVA) of £2.2 billion. The wider Life Sciences Cluster reported a total turnover of £10.5 billion in 2022, though this marked a decrease from the previous year, the note added.
As of March 2024, there were 595 registered enterprises in the life sciences sector, with 86.6% being small businesses employing fewer than 50 people. Large enterprises, though fewer in number, account for a significant portion of employment at 62.6%. The majority of businesses are UK-owned, but those registered abroad contribute substantially to employment, accounting for 59.2% of sector employment.
Despite its success, the sector faces challenges such as a decrease in business births and an increase in business deaths between 2021 and 2022. The business birth rate was 5.8%, while the business death rate was 8.3%.
Despite these challenges, Scotland’s life sciences sector is poised for continued growth, driven by its strategic themes of innovation, sustainable production, internationalization, and business environment improvement. The sector’s ability to adapt and innovate, particularly during the COVID-19 pandemic, has positioned Scotland as a global leader in life sciences.
Several megatrends are shaping the future of Scotland’s life sciences sector. These include:
Innovation and Commercialization: Enhancing collaboration to commercialize innovative outputs and improve the ecosystem for economic growth.
Sustainable Production: Focusing on manufacturing strategies to retain intellectual assets within Scotland.
Internationalization: Leveraging networks to increase global presence and market access.
Business Environment: Developing infrastructure and maintaining a competitive regulatory environment.
With its remarkable growth and strategic positioning, Scotland continues to drive breakthroughs in health and sustainability. As the sector moves forward, embracing these megatrends will be crucial for its long-term success and contribution to Scotland’s economy.
Key Statistics Summary
Turnover: £4.3 billion in 2022 for the Life Sciences sector, with the wider cluster at £10.5 billion.
Exports: £2.6 billion in 2021, with significant international exports.
Employment: 22,000 in the Life Sciences sector and 46,900 in the broader cluster.
Earnings: Median weekly full-time earnings at £775.50 in 2024.
Business Demography: Decrease in business births and increase in business deaths between 2021 and 2022.
The life sciences sector is a significant contributor to Scotland’s economy, providing high-skilled jobs and substantial economic value. Its growth has positioned Scotland as a hub for innovation, attracting investment and talent from around the world. The sector’s success is closely tied to Scotland’s overall economic strategy, emphasizing the importance of continued support and investment in research, development, and manufacturing capabilities.
Scotland’s life sciences sector competes globally, with companies operating successfully in international markets. The sector’s international exports and collaborations underscore its global relevance and competitiveness. As the sector continues to grow, maintaining a competitive edge through innovation and strategic partnerships will be essential.
The sector’s future success will depend on its ability to maintain this growth trajectory, leveraging Scotland’s established networks and enhancing its international presence. The Scottish Government’s continued support, including investments in research and development, will be crucial in bolstering Scotland’s reputation for world-class innovation.
The sector’s high earnings and strong international presence offer opportunities for expansion and investment. The median weekly full-time earnings in the sector are higher than the Scottish average, attracting skilled talent and contributing to the sector’s competitiveness.
