What we are doing to tackle Scotland’s productivity problem

There is one challenge above all others that must be faced if Scotland is to prosper in these testing times. We all want to see living standards rise but until we address Scotland’s productivity problem, the economic growth we need will remain out of reach.

Fundamentally, productivity is about how effectively people and organisations turn time, skills and resources into value through innovation, investment and smarter ways of working.

Prosper’s Blueprint for the Scottish economy says productivity can rise through faster infrastructure and sector investment, stronger university–business innovation, simpler delivery and greater regional devolution.

Yet productivity growth in Scotland has, for many years, lagged behind that of competitors. This matters because productivity is the route to higher wages, better jobs and stronger public services – and without improvement, progress on all three will remain constrained.

That is why National Productivity Week, running from April 27 to May 1, is so important. It creates space to focus on how Scotland can unlock more of its potential and move from diagnosis to delivery.

Brought together by the UK‑wide research body The Productivity Institute and the Scotland Productivity Forum, which connects business, policymakers and researchers, the week highlights workplace innovation, leadership and skills, technology adoption, investment and place‑based approaches. The focus on real‑world action is vital.

This is not a new conversation. In 2015, Prosper’s paper From Fragile to Agile highlighted the urgent need to improve Scotland’s productivity and called for the creation of a business‑led network that would lead by example and encourage change.

That recommendation laid the foundations for Peer Works, a programme supported by the Scottish Government and delivered by Prosper to help organisations work better and smarter.

Ten years on, Peer Works hosts regular and free peer‑to‑peer learning events across the country and has grown into a community of more than 3,600 members, spanning the private, public and civil society sectors.

We support micro, small and medium‑sized businesses, social enterprises and public bodies – organisations that account for most employment in Scotland but which often lack the time, capacity or resources to access traditional business support.

What makes Peer Works different is our focus on peer‑to‑peer learning. Evidence shows that improving managerial capability, encouraging adoption of new practices and creating space for collaboration can have a significant impact on productivity.

We create trusted environments where leaders can learn from real‑world case studies, share challenges openly and explore what works — and what does not — beyond their own sectors.

Over the past year alone, we have hosted around 40 cross‑sector events covering business growth, sustainability, AI, purpose, leadership and culture.

Three themes emerge repeatedly:

Technology, particularly AI, has huge potential to boost productivity, but adoption is strongest when leaders can see practical examples from peers they trust.

People matter. Organisations that invest in health, engagement and skills perform better over the long term.

Inspiration matters too. Seeing peers succeed makes change feel achievable and gives leaders the confidence to take action.

Independent research shows the impact Peer Works is having. More than half of participants have taken direct, practical action after attending our events. By encouraging shared learning across organisations and networks, we are helping to bridge silos, spread innovation and strengthen business resilience across Scotland.

During National Productivity Week, the lesson is clear: productivity is not an abstract economic concept. It is built in workplaces, through people, leadership and collaboration — and it thrives when we learn from each other.

Eleonora Vanello is head of Peer Works, a programme delivered by Prosper