Plan for North digital industry to lead UK
Oct 29 2009 by Andrew Mernin, The Journal
PLANS which aim to inject £2bn into the North East economy by bolstering the region's digital industry have been unveiled.
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 currently falls behind other parts of the country when it comes to the proportion of its businesses prospering online, while there is also considerable room for improvement in terms of effective use of technology, according to recent research.
However, regional development agency One North East is hoping to redress the region’s digital shortcomings with its seven-year masterplan.
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 that 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 more 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. According to Government research, around 25% of North East businesses do not currently use the internet, compared to the national average of 19%.
It is hoped the One North East plan – which involves collaboration with digital industry bodies such as Codeworks and the region’s universities – will encourage more 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. At the same time, 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 that this is recognised by the One North East strategy."
The ideas have been given the thumbs-up by Mark Elliott, director of DigitalCity Business - a key organisation driving the development of Middlesbrough’s digital Boho cluster.
“One North East has done fantastically well,” he said. “Money alone won’t bring people to the area, but the region now has a package of possibilities for people - including good innovation, skills and investment opportunities.”
Page 2: What will help digital firms to succeed?
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