The economy of the Highlands and Islands is set for massive change in the 21st century, with advances in information and communications technology holding out the prospect of a new wave of investment and job opportunities.

At the same time, many traditional industries will need help to adapt to changing circumstances in world markets in order to survive and prosper.

These are the comments of Douglas MacDiarmid, whose appointment as director of growing businesses with the Highlands and Islands Enterprise network (HIE) has just been announced.

Mr MacDiarmid (47) believes the opportunities offered by so-called knowledge industries - businesses which use modern technology both as a management tool and a means of trading with customers - are emerging at just the right time to yield major benefits for the Highlands and Islands.

"This area has already done very well in claiming a share of telebusinesses such as call centres, but that's only the beginning of a whole cycle of change," he said.

"The knowledge economy is not just about new kinds of businesses. It's about enabling firms of every kind and in every sector to compete more effectively, to be more flexible and responsive to new ideas and opportunities.

"For business people in the Highlands and Islands, one of the most exciting aspects is that remoteness is no longer a barrier.

"People can live and work in some of the most beautiful places in the country and still be connected to customers and suppliers throughout the world.

"We already have plenty of pioneers in the field, from inward investors such as BT Manpower, Inverness Medical and Cap Gemini Ernst & Young to the many indigenous businesses which form the bedrock of any successful economy.

"The challenges are immense, but so are the opportunities and I am greatly looking forward to playing a part in helping businesses across the Highlands and Islands to grow in this new environment."

Mr MacDiarmid grew up in Fort William and was educated at Lochaber High School and Aberdeen University.

He trained as an accountant and worked in the aluminium industry for 20 years, joining British Aluminium in 1974. When BA merged with Alcan UK in 1982, he was appointed financial manager.

From 1989 until 1993, Mr MacDiarmid was based in Newcastle as commercial director of Alcan's recycling division, where he was a key member of a management team responsible for three smelters, two recycling plants and three power stations which together employed 2,000 people and had an annual turnover of more than £200 million.

He returned to the Highlands in 1993, joining the HIE Network as chief executive of local enterprise company Lochaber Limited. He remained there for six years, before moving to the HIE core in Inverness, firstly as head of inward investment and, from April 2000, director of developing skills.

Commenting on the new appointment, HIE chief executive Sandy Cumming said Mr MacDiarmid had shown he had both the experience and the vision to lead the growing businesses group.

"The selection panel had a difficult choice to make from a strong field of candidates," said Mr Cumming, who was himself director of growing businesses until taking up his present post in November.

"Douglas impressed us greatly with his plans, his energy and commitment to helping businesses to grow in the Highlands and Islands.

"I know from my own experience the scale of the job he is taking on and I have every confidence that he will prove equal to the challenge."

Mr MacDiarmid will take up his post in the New Year.