A THRIVING digital business cluster is bidding for millions of pounds from the Government's enterprise fund to create thousands of jobs across the Tees Valley.
Middlesbrough-based DigitalCity Business (DCB) is set to sever financial links with the public sector and become a self-sufficient company.
Middlesbrough Council is leading the move for independence which will let DCB apply for about £4m from the current round of the Government's £1bn Regional Growth Fund (RGF).
The deadline for bids to the Fund, which creates private sector jobs in deprived parts of the country, is Friday July 1.
If the application is approved by Deputy Prime Minister Nick Clegg, the Tees Valley could become an international hotspot of digital innovation and wealth creation. However, rejection from Mr Clegg would be a major blow to DCB's plan to create 3,000 jobs by 2022. The funding will be used to build new digital centres in the proposed Tees Valley Enterprise Zone. A business start-up incubator, Boho Four will be built close to the state-of-the-art Boho One building in Middlesbrough town centre, at a cost of £3m. The RGF money will also help to plug the funding gap that will emerge when One North East is abolished next March.
Public sector funding has been key to its success, but council leaders and Mark Elliott, director of DCB agree that the time is right for the fledgling business to fly the nest.
"We need a vehicle that can move fast and create commercial revenue streams," said Mr Elliott. "That is not being derogatory to the Council who couldn't have been more supportive, and I expect them to continue to be over the years.
"The RGF has come at the right time for us, IF we get the money. If we don't, it will take us a lot longer to reach the critical mass we need.
"These are difficult times and it's horrible that people are losing their jobs. But, as an area, you can either lie down and die or make something great, that is what we want to do for the Tees Valley."
The Council wants to establish a Community Interest Company to ensure DCB makes a successful transition to the private sector. Representatives from the local authority and Teesside University will run the company, alongside leaders from the digital sector.
Regeneration chiefs regard digital technology as one of the cornerstones of the region's economic recovery.
Since being formed in 2005 the Middlesbrough digital cluster has evolved from just ten companies of modest ambition to more than 100 businesses possessing high growth potential. Hundreds of jobs have been created by the scheme which has satellite hubs in Barnard Castle, Stockton and Redcar.
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