Islands Minister Derek Mackey heard the proposals during an 11th meeting of the Island Areas Ministerial Working Group (IAMWG) on 26 November.
Island Council leaders presented proposals to establish a LIIZ with new and enhanced powers to encourage opportunities for development and investment in the islands through providing incentives that help to offset the additional costs of operating from the islands.
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In addition, the meeting provided an update on an Economic Opportunities study of Renewables Electricity for Island Communities.
Minister Mackay said: "The Scottish Government's Economic Strategy has placed innovation at the heart of its plan for long-term, sustainable economic growth. As part of the Empowering Scotland's Island Communities' prospectus, we gave a clear commitment to consider any proposals brought forward by the Island Councils to establish Island Innovation Zones which provide a clear focus on specific opportunities available to our island communities, and this remains the case today.
"Overall, I welcome the work done to date by the councils to identify specific sources of potential competitive advantage and jobs growth as well as the aim of a potential Innovation Zone."
(LM)
