Children of the digital revolution

CHILDREN playing their favourite computer games never stop to think who painstakingly designed the graphics, and where the game was devised.

But more and more, top computer games developers are buying ideas from Teesside companies.

For several years, there has been talk of creating a digital cluster in the North-East to promote the undoubted talent of the region's young artists, many emerging from the University of Teesside.

Now that dream has taken a dramatic step forward with the recent announcement by the university and One NorthEast of an £18m project to create an Institute of Digital Innovation (IDI) in Middlesbrough.

According to the partners, nearly 300 jobs and 130 companies will be created by 2010 as the result of the centre to built by the university.

The announcement is seen a key to the DigitalCity project, which aims to put the Tees Valley at the forefront of digital technologies such as computer animation and creating virtual learning environments.

DigitalCity as a concept was prompted by the success of university courses in subjects such as computer animation - and a recognition that too many graduates were leaving the region because there were not the jobs for them.

The result was DigitalCity, a partnership which includes One NorthEast, the University of Teesside, Tees Valley Partnership and Middlesbrough Council, and which aims to create homes for companies large and small.

The idea is to encourage start-up businesses, including many spin-out companies set up by staff and graduates from the university, and attract talent from other parts of the region and further afield.

Alan Clarke, chief executive of One NorthEast, sees DigitalCity as an important part of the region's response to the loss of traditional industries such as shipbuilding and mining.

He said: "Jobs in digital technology are already replacing jobs lost in more traditional industries and are widely recognised as being a strong part of the future economy of the Tees Valley. DigitalCity will attract and retain the major talent in the region that is crucial for the economic growth of the North-East."

The institute will have four floors, including business accommodation and testing areas, and will stand next to the Innovation and Virtual Reality Centre at the university. It has an expected completion date of summer 2007.

Professor Mike Smith, the university deputy vice-chancellor for research and enterprise, believes the IDI is part of a project which is crucial to the economic well-being of the region.

He said: "The focus is on developing and supporting innovation in the digital sector and things are moving rapidly now.

"We need to be able to attract and keep people and we need to support research groups who are applying what they have learned in areas like animation, computer games and visualisation.

"We want to see those graduates starting businesses which can grow, but what we also want is for companies which already exist to rent space in our new IDI building because they want to be surrounded by innovative people."

He also believes that is important to attract larger companies from outside the area, pointing to the recent arrival of the Nisai Group, the Indian Internet education company that recently set up on Teesside.

Nisai Group, whose head office is in London, moved its Hyderabad operation to Riverside Park, in Middlesbrough, creating 120 jobs over two years.

The company provides live teaching on the Internet through a "virtual academy", which means that students who cannot be in school can still receive their lessons from teachers in an interactive way.

At a time when a lot of companies are switching their services from the UK to India, the decision is seen as a statement of faith in the Tees Valley's digital revolution.

In addition to providing space on campus and ensuring that larger sites are available, such as the one provided for Nisai, the initiative includes the development of a creative industries quarter by the Middlesbrough Town Centre Company, which would see the refurbishment of Victorian buildings around Middlesbrough railway station.

Companies moving on from the campus having become established, or those coming from elsewhere, could hire offices to continue to develop their work.

Professor Smith said: "We would like companies to relocate to the Tees Valley to take advantage of the expertise and the availability of highly-trained young graduates to support their business. We want the creation of the digital business cluster to offer somewhere for businesses which are growing and need to move on but which are still close enough to the campus to take advantage of the talent which exists there.

"The overall idea is to encourage new businesses which can create work for people who would otherwise have to look for jobs in other areas. This is a joined-up vision which is about creating an environment in which the regeneration of the area can happen through digital technology and media."

A number of companies have already emerged from the university, thanks to the increased business support being offered to them. Among the graduates to form their own digital media companies because of that support are computer games company Onisoft, and animators Seed Animation, Fake Believe and MoShine.

Janice Webster, DigitalCity project director, said: "By 2010, our goal is to create a self-sustaining project, boasting world-class people and projects with a brand that is a byword for innovation, daring and excellence."

Councillor Dave Budd, Middlesbrough Council's executive member for regeneration, said: "DigitalCity is one of the most exciting projects being developed for the Tees Valley. It will contribute to the transformation of the area and establish it at the core of the emerging digital media and technology sectors.

"The opportunities for business development and job creation, which will help retain the brightest and best talent in the area, are immense."