£255m to nurture hi-tech ventures

Feb 15 2008 by Adrian Pearson, The Journal

THE North East has been handed a chance to be at the heart of a plan to make the EU the most competitive knowledge economy in the world.

European spending chiefs last night signed off a £255m grant which will create thousands of jobs by 2013.

Development agency One NorthEast has been given the cash to spend on its two priorities of supporting innovation and business growth. And after it finalises the selection criteria, ONE will be looking for businesses to invest in.

The cash will allow ONE to help create or secure about 28,500 jobs, with more than 3,000 new businesses expected to benefit.

And as well as the jobs created, the investment will add £1.1bn to the region’s economy by 2013. The European Regional Development Fund decision comes as the EU prepares to act on the Lisbon Agenda, a bold declaration that by 2010 Europe will lead the way in the knowledge economy.

At the funding launch at St James’s Park in Newcastle yesterday, ONE assistant chief executive Pat Ritchie said the cash would help meet its aim to transform the way the region works.

“Part of what we do will be investing in places like Science City and helping them get into schools and get children interested in science.

“If you think of the Sage and the physical building they have there and how it really changed the way the North East thinks of itself in terms of culture, well, we want the money to help places such as Science City do the same for science as the Sage did for culture.

“The European resources are part of an overall level of investment from us and local authorities and universities and if we can get that focused on the areas where the regional economy really needs this investment, then you have a much greater chance of reaching that target.”