Trading online will help drive North East economy

Dec 7 2009 by Andrew Mernin, The Journal

Despite heavy investment, the North East still lags behind other parts of the country in the digital world. Andrew Mernin investigates new plans to change our internet fortunes.

WITH an ever-growing cluster of creative businesses sprouting up in business incubators across the region, the North East is fast-becoming an epicentre of digital excellence.

However, compared to other parts of the country, the region still suffers from a shortfall in terms of the proportion of businesses which have found success online.

About 25% of North East businesses do not currently use the internet, compared with 19% nationally (BERR, 2008).

Meanwhile, the sector skills body e-Skills (Adroit, 2008) says more effective use of technology could add 3.8% to the region’s GVA over the next five years.

In an effort to pump £2bn into the North East economy by bolstering the region’s digital industry, regional development agency One North East has unveiled its ambitious seven-year plan.

The ambitious strategy, which will see collaboration from the public, private and education sectors, will seek to speed the North East beyond the national average in terms of digital credentials and on to the international stage.

The region falls behind other parts of the country when it comes to the numbers of businesses prospering online, while there is also considerable room for improvement in terms of effective use of technology, according to research.

The strategy has been set out to add 1.5% or £600m to the region’s economy by bringing the North East up to speed with the national average in the digital stakes.

Meanwhile, the report says the North East economy could be grown by 3.8%, or £1.5bn, through more effective use of technology across all businesses.

Within the strategy, which will be fleshed out in detail between now and March, are plans to develop a pipeline of new and interlinked digital businesses and a commitment to increase the digital skills pool.

One North East also aims to ensure the region meets the national broadband targets set out by the Government’s Digital Britain report and promote the benefits of digital technology to businesses.

It is hoped the One North East plan – which involves collaboration with digital industry bodies such as Codeworks and the region’s universities – will help businesses to trade online.

Paul Callaghan, chairman of Sunderland technology firm Leighton and One North East board member, said: “We want North East England to be recognised internationally for its strengths in digital media and technology.

“We want the region’s use of digital technology to overtake the UK average. Together these twin aims will drive growth, create new jobs for our graduates and attract more skilled workers to the region.”

Andrew Robson, chief executive of Newcastle-based IT company Perfect Image and a board member of Codeworks, said: “Promoting the digital agenda is vital for our future prosperity and it is good to see this is recognised by the One North East strategy.”

About 25% of North East businesses do not currently use the internet, compared with 19% nationally (BERR, 2008)

Page 2: Challenges for digital business leaders