£1.9m funding will help digital industry to grow

Dec 11 2008 by Iain Laing, The Journal

AMBITIOUS investment in digital technology facilities and financial support for SMEs to develop commercial ideas is to create 90 more new businesses in the North East.

The Institute of Digital Innovation (IDI) is getting a new £1.9m injection of European funding to add to investment from regional development agency One North East and the University of Teesside.

The money will help launch the second key phase of the IDI project, which began in 2005 with the provision of business accommodation and concept-testing facilities.

This stage is focusing on regionwide strands of business support from by the university, including DigitalCity fellowships, technology transfer, and digital inclusion and skills. It aims to maintain business growth in the digital sector during the current challenging economic climate.

The scheme is hoped to generate enterprise activity and employment opportunities for graduates from the region’s five universities, with financial support and expertise to enable them to develop and take ideas to business start-up stage.

Professor Cliff Hardcastle, deputy vice chancellor for research and enterprise at the University of Teesside, said: “The Institute of Digital Innovation provides physical facilities for digital technology innovation and research to be brought to market through new and existing companies.

“It will bring learning opportunities for employees and potential recruits to the digital and creative sectors, encouraging people of all ages to forge technology-led career paths. Our aim is to promote the region, its digital cluster and the university nationally and internationally, providing networking opportunities for academia, the local community and the business world.”

The IDI, based in Middlesbrough, is a key component of the DigitalCity initiative to generate a fast-growing base for the region’s digital and creative sectors.

One North East chief executive Alan Clarke said: “The institute will provide financial support and expertise to develop digital and media business ideas to a point where they are commercially exploitable.

“We are tapping into the University of Teesside's strengths in enabling the region’s digital companies to innovate, grow and contribute to the regional economy. It will also boost the university’s role in DigitalCity, an identified innovation connector in the ERDF 2007-13 Operational Programme.”

The IDI has received recognition for its contribution to DigitalCity and has created a flagship facility which has raised the national and international profile of the university and the region’s digital cluster.

Its Fellowship programme has been the catalyst for the start-up of successful businesses, one of which has won Sony Playstation contracts within its second year of trading.

ONE runs the ERDF Competitiveness Programme in the region, which is bringing over £250m into the North East to support innovation, enterprise and business support. In addition to the ERDF funding, the agency is contributing £1.4m to the second phase of the IDI project, with the university completing the deal with £2m.