The important role of the natural heritage in rural economic development is being increasingly recognised. However, a quantitative understanding of this role is not so well defined, augmented by a lack of any clear definition of what constitutes natural heritage related activities. Further, whilst previous studies have identified the importance of quality of life factors to business location decisions, the role of the natural environment both to the siting of new firms and the viability of existing businesses has received less attention. This paper describes a project that has considered the nature and strength of local economic linkages associated with the natural heritage, drawing on primary data collected by postal surveys in four case study areas in Scotland. The study areas were differentiated in terms of their dependence on the natural heritage and relative peripherality. An approach for identifying natural heritage activities was developed and used to distinguish business types associated with the natural heritage in each study area. In addition to ♯coreα natural heritage activities, (for example, activities such as environmental management and interpretation) the research identified a second set of ♯reliantα activities that perceived the natural heritage as ♯highly importantα to their commercial viability. These were largely tourism based, including accommodation provision and recreation and entertainment. However, natural heritage ♯reliantα activities also included those which use the natural environment to promote products from their locality to external markets. Subsequent analysis of first round economic linkages and resulting multiplier effects indicated that of all local economic activities, natural heritage ♯reliantα activities had the greatest potential for generating local economic benefits through their propensity to source locally. They were also found to have significantly stronger extra regional linkages through sales of goods and services to visitors. Other characteristics were found to be associated with strong local economic integration, including firm size, age and ownership.

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