How Development and Innovation Have Been Supported in the Highlands & Islands Over the Past 60 Years

10th December 2025

For 60 years, the Highlands and Islands have been the focus of one of the UK's most distinctive long-term regional development efforts.

Since the creation of the Highlands and Islands Development Board (HIDB) in 1965—and its evolution into Highlands and Islands Enterprise (HIE) in 1991.

The region has moved from persistent depopulation and limited economic opportunities to becoming a recognised centre of renewable energy, digital innovation, community ownership, and rural enterprise.

]Reversing Depopulation and Strengthening Communities (1960s-1980s)

HIDB was created primarily to address long-term population decline. Much of its early work focused on stabilising fragile rural areas. This involved supporting small businesses, crofts, tourism ventures, and local manufacturing. These activities created employment and encouraged people to stay in the region.

HIDB also invested in improvements to physical infrastructure. This included upgrading roads, harbours, air links, and essential utilities. These interventions made it easier for communities to connect with the rest of Scotland and supported private investment.

The foundations of community-led development were also laid during this period. Some early community trusts and co-operatives emerged, which later influenced the larger community-ownership movement.

Modernising the Regional Economy (1980s–1990s)

By the 1980s development efforts shifted towards diversification and modernisation. The economy expanded into new sectors, including aquaculture, which became a major export industry, and the wider food and drink sector. Tourism also became more professionalised and year-round.

Growth hubs emerged in places such as Inverness and Moray, supported by investments in science, technology, and early life-science initiatives.

In 1991 HIDB was replaced by Highlands and Islands Enterprise. The new organisation had a dual mandate: to support both economic development and community development. This was unusual within the UK and allowed for a more integrated approach to long-term regional progress.

Digital and Infrastructure Transformation (2000s–2010s)

During the 2000s HIE played a major role in bringing digital connectivity to the region. Pathfinder North, introduced in the mid-2000s, extended broadband to remote communities. Later, HIE helped deliver the Digital Scotland Superfast Broadband programme, which brought high-speed connections to some of the most challenging rural and island areas in Europe.

Transport infrastructure also improved through investment in harbours, ferries, and airports, helping strengthen tourism, commerce, and community connections.

Supporting Research, Innovation, and New Industries (2010s–present)

Over the last decade the Highlands and Islands have become established as a centre for renewable energy and emerging technologies. The region now hosts significant activity in offshore wind, wave and tidal power, energy storage, and hydrogen innovation. The European Marine Energy Centre (EMEC) in Orkney is widely recognised as a world-leading test site for marine energy.

Digital industries have also taken root, including creative industries, technology start-ups, and skills programmes aimed at supporting the growing digital economy.

The life sciences sector, particularly around Inverness Campus, has expanded and now includes medical technology, data-driven healthcare, and university-industry partnerships.

Community ownership has become a defining feature of the region's development model. Many islands and estates have been bought by community trusts, supported in part by HIE. This has enabled local people to control land, housing, renewables, and local enterprises.

A More Resilient Region Today

The combined effect of sixty years of development effort is a more diverse, resilient, and forward-looking region. New industries such as renewables, digital technology, and life sciences now complement traditional strengths in tourism, food and drink, and rural enterprise.

Communities have become more empowered through widespread community ownership and local development trusts. Population decline has slowed and, in some areas, reversed compared to the 1960s.

The result is a region that has moved from chronic fragility to one with recognised strengths in rural innovation, community leadership, and sustainable development.