GOVERNMENT INCENTIVES AND THE FINANCIAL SERVICES SECTOR IN SCOTLAND

The article examines how far regional policy incentives support the de velopment needs of the financial services sector. In reviewing the cha nging eligibility of financial services in UK regional policy, the aut hors argue that the sector has been increasingly recognised as importa nt in regional development. However, when examining the usage of incen tives among Scottish financial services companies, incentives appear t o have only limited relevance. The different needs of services and man ufacturing firms suggest that incentives would be more effective if th ey targeted 'soft' investments and were supplemented through the use o f other non-incentive, regional policy measures.