Dundee has ranked near the top of a Scottish business innovation league table.
New figures show the city is third among local authority areas for the proportion of firms claiming research and development tax relief.
In Dundee 1.3% of businesses claim R&D tax relief compared to 0.64% of firms in Fife, 0.3% in Perth and Kinross and 0.24% in Angus.
Topping the league table is Aberdeen with 1.85% of firms claiming relief, with Edinburgh second at 1.47%.
The figures have been compiled by tax specialist Jumpstart, based on claim statistics produced by HMRC.
Jumpstart managing director Scott Henderson said the figures reflected Dundee’s strong life sciences and computer games sectors.
He said: “The relief is the Government’s answer to helping companies deal with productivity issues or helping the UK become more innovative.
“It applies to businesses that are innovating and moving the boundaries within their own sector.
“It really comes down to a management team decision to do innovative things. It is not surprising to see Dundee high on the list due to its large amount of games development studios and its life sciences sector.
“Aberdeen’s table-topping performance is a positive sign, indicating how a number of oil and gas sector businesses are promoting innovation despite facing real challenges due to a low crude price.
“We know from the work we do with many energy firms in the North East that there is a real focus on improving operational processes to enhance competitiveness.
“The further incentive offered by R&D tax relief has been helpful in supporting that drive.”
Mr Henderson said more rural areas tended to be lower on the list – suggesting there could be untapped potential for businesses in agriculture and food and drink production to secure greater R&D tax relief benefits to investing.
“Innovation does not have to involve people in white coats, working in laboratories.
“All types of sectors, including those which are commonly found in Scotland’s rural areas, may also be eligible to claim for tax relief for the work they are doing to enhance their business processes.
“Last year spending on business R&D in Scotland topped £1bn for the first time ever, underlining the growing importance of R&D tax relief to more and more companies.
“While this innovation league table highlights the fact that areas with strong energy, life sciences and tech sectors are doing well in securing R&D tax relief, companies in rural parts of Scotland might be missing out.”