Scotland’s economy stands at a critical juncture, facing both enormous opportunities and unprecedented challenges. The Scottish Government has set out an ambitious vision for an economy that is ‘fair, green and growing’ and has committed to delivering a just transition to net zero by 2045. 

In September 2024 the Scottish Government published its first Green Industrial Strategy (GIS) marking a crucial first step towards embracing a more proactive, market shaping role for the state in the economy. However, to achieve the Scottish Government’s vision this paper argues it must go further to embrace a whole-of-government approach to rethinking the role of the state.

In this paper, the authors assess the Scottish Government’s existing approach to economic strategy and policy and outline a strategy for transforming its tools, institutions and capabilities around an ambitious mission-oriented approach. It provides recommendations on policy levers, public institutions, government capability, and monitoring and evaluation.