The development of the digital sector in the North-East has been as much about winning hearts and minds as anything, according to one of the leading players in the process.

Herbert Kim is chief executive officer of Codeworks, which was given the task of pushing forward the idea of a North-East Centre of Digital Excellence, working closely with organisations including regional development agency One NorthEast.

Codeworks has a ten-year plan to attract investment and create hundreds of jobs, but Mr Kim believes that it was important initially to convince people the idea was realistic.

He said: "One of the things that anyone working in the public sector experiences is a fair amount of cynicism, often from the people you are most trying to help.

"In the North-East, there has been a disproportionate amount of public sector spending, including projects that never got off the ground, were ill-conceived or were mismanaged, and we have been trying to establish our credibility with people like the University of Teesside, Onxy Internet, in Middlesbrough, and Onisoft, to show them we are different.

"One of the differences with us is that all the people involved in the initiative have come from the private sector, so we bring those kind of values. We speak the same language as the people we are trying to help.

"I think we have got over that hump. We have established our credibility and established the fact that we do things differently and that we can help the region reach critical mass when it comes to all things digital."

Codeworks has already:

* Launched Codeworks Connect, the trade association of the North-East's digital industries, which is helping hundreds of businesses each month;

l Supported delegations to industry events in Germany, France and the US;

l Agreed a software development partnership with Durham University to create a tool for 3D display technology;

* Helped 15 companies, including Onisoft, with funding applications;

* Commissioned research into the North-East's digital industry to identify its strengths.

For Herbert Kim, it is important to close the North-South divide. He points to cities such as London, where digital experts not only work together, but meet in bars and restaurants and have publications to spread news. It is something he wants to see happen in the region as well.

Mr Kim said: "We are in place to try to fill that gap and equalise things between companies in London and the North-East. We are starting to have people referred to us. They want to take part in networking."