The Royal Society of Edinburgh (RSE) has been examining issues related to productivity in Scotland, focusing on the poor level of performance in recent decades. To strengthen this research, The RSE has been working with Prosper and Peer Works to combine knowledge and networks to explore how we can improve productivity in Scotland.

The final report identifies productivity challenges for SMEs and highlights how Peer Works is supporting businesses in addressing those. Challenges include poor leadership and management practice, embrace of innovation and knowledge diffusion.

The research draws on insights from academic leaders, business voices, and front-line business support programmes like Peer Works. It calls for investment to scale targeted support to help Scottish SMEs strengthen leadership, innovation, and access to funding. It also urges policymakers to develop distinct strategies for domestic and foreign-owned firms, and to reform education and skills planning to better align with future workforce needs and foster entrepreneurial thinking.

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