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Open innovation programme launched to help tackle COVID-19 issues and fast track solutions.

Businesses invited to detail what issues they are facing due to COVID-19 disruption.

A new programme has been launched by the North East Local Enterprise Partnership, (North East LEP), that will seek to understand the common issues facing our region’s businesses due to COVID-19 and help to provide solutions to minimise the ongoing disruption.

Alan Welby, Innovation Director at the North East LEP, said: “Challenge North East is an open innovation programme to help solve some of our region’s most pressing practical problems when faced with COVID-19. And that’s what we’re good at in this region – coming together to solve problems – to resolve our challenges – and make things happen.

“We want to identify areas of shared concern, to invite solutions from the region’s innovators and then help fund the development of these problem-solving ideas.

“Right now, we are asking organisations to tell us what their issues are so we can see where there is common ground across sectors. We are keen to explore solutions to the challenges caused by our current inability to work and socialise in close proximity, disruptions caused in supply chains, new needs that have emerged, such as how we address the risk of digital services leaving behind those of us without digital skills. We want to hear from local industry about what their areas of focus are and then work together to quickly develop solutions that work.”

Challenge North East will be delivered by the Innovation SuperNetwork and the Digital Catapult North East Tees Valley.

Estelle Blanks, Executive Director of the Innovation SuperNetwork, said: “COVID-19 has disrupted so many aspects of our work and home lives and we need to work together as a region to support each other as we rebuild.  Our goal through this programme is to work with local industry and communities to identify where innovative solutions will have the biggest impact and to provide the framework and funding to make these solutions happen.

“The Innovation SuperNetwork team who are delivering this programme are passionate about delivering real value for the region and we are excited to work with businesses and communities to ensure we are focusing our attention in the right areas.”

Challenge North East will be rolled out over three phases, starting by bringing together large organisations and representatives of communities that have been impacted by COVID-19.

Through discovering the common themes faced by organisations and their stakeholders, the programme team can then launch a series of challenges for which solutions can be found that will work across multiple sectors and environments.

In the coming weeks, Virtual Round Tables will be held with participants to identify key challenges that need support over the next six to twelve months.

David Dunn of the Digital Catapult North East Tees Valley, said: “To get this programme off the ground, we will be hosting a series of Round Tables with representatives of industry and communities to identify the most common shared challenges and to agree how to tackle finding solutions for them.”

The first Round Table event, was held on 22 October and looked at the impact of COVID-19 on in-person events – for example theatre shows, play groups, and concerts along with public transport.

Organisations from other sectors facing ongoing Covid-related challenges are invited to share details with the Challenge North East team by emailing [email protected] and giving an outline of the challenge they are facing. Organisations that do so will be invited to participate in future Round Tables in early November.

Once the cross-cutting challenges have been identified, the programme will launch a call to the region’s innovators to develop solutions in collaboration with local leaders from industry, government, the third sector and research.

Alan Welby said: “At this stage, we are appealing to those organisations who are really hurting – tell us what the challenges are that you are facing. We’re not calling for the solutions just yet. To get this right, we need to understand the common issues businesses are dealing with and then we will look to see which ones we believe can be resolved through a fast-paced process of open innovation.

“We hope that by December we will be starting to work with companies who can help create solutions to develop and validate their ideas with potential clients.”

Successful solution providers will be awarded development funding to implement the solution and have it rolled out with challenge partners.

To find out more about Challenge North East, visit www.challengenortheast.co.uk

Challenge North East has received funding from the government’s Local Growth Fund. The Local Growth Fund is supporting capital investments to promote innovation, economic and skills infrastructure and sustainable transport as part of the North East Growth Deal.

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Universities support North East’s economic recovery: Network-H2

Universities have a vital role to play in helping the North East economy recover from the coronavirus pandemic.

The work being delivered by North East universities is supporting new and existing businesses to innovate and grow, and shaping and supporting a more sustainable and inclusive economy.

Durham University, Newcastle University, Northumbria University, University of Sunderland and Teesside University are all members of the North East COVID-19 Economic Response Group, which was established by the North East Local Enterprise Partnership at the beginning of the coronavirus pandemic to provide business resilience and ensure a collective response to the economic impact of COVID-19 on the North East economy.

Below is a case study about Durham University’s leading role in a national research project – Network-H2 – to decarbonise transport through hydrogen-fuelled vehicles and technology.

Road, rail, air and marine transport accounts for almost a quarter of Europe’s greenhouse gas emissions making it a significant contributor to climate change. Hydrogen offers a clean and renewable alternative to fossil fuels and can bring significant environmental benefits to transport, society and the wider energy system.

Durham University is leading a national research project to decarbonise transport through hydrogen-fuelled vehicles and technology. Network-H2 brings together international experts from the energy, road, rail, air and marine transport sectors to support the decarbonisation of the whole transport network.

The project is looking at the technological, social, political and economic factors necessary to increase the use of hydrogen as fuel, and knowledge exchange between researchers and industry.

The energy sector has been identified as an area of strategic importance in North East Strategic Economic Plan. It provides huge opportunities to drive and enable regional economic growth, and North East organisations are creating wealth, skills, and jobs in the region by responding to national energy challenges and opportunities.

To find out more about Network-H2, visit www.net-zero-research.co.uk.

Read more about how universities in the region are playing a central role in supporting the region to recover from the coronavirus pandemic.

Read more about the North East COVID-19 Economic Response Group.

Home / Innovation / Page 6

Sowing the seeds of growth in the North East tech sector

Last week saw the launch of the London Tech Week and UK Tech Cluster Group’s 12 Clusters of Tech series. Running monthly for the next year the reports each shine a light on a different region and showcase some of the UK’s most exciting and innovative tech businesses – and brilliantly, the series opened with a look at the North East and Tees Valley.

The need to enable, support and facilitate tech businesses is a central priority of the North East digital strategy. We have a vibrant digital ecosystem in the region with multiple networks engaged in promoting it. It’s absolutely critical that we nurture the types of businesses that the report celebrates. How do we ensure that next year’s report features as many, or more, success stories? Who are our emerging companies that might be next in line for high growth? Do we have the right conditions in place to increase the birth and survival rate of tech startups?

These are all important questions because tech startups – early stage, innovation-led businesses with high growth potential that are creating proprietary technologies – have distinct needs that are different to the more generic support required by established scaling businesses. They are creating new products, services and solutions; sometimes solving problems we don’t even know we have yet. And with that they have the potential to create new supply chains, new workforces, open up new markets, give the region distinct competitive advantage and play a major role in our economic and cultural identity.

And this is where as a region we have some challenges and some opportunities. In order to see those high growth businesses born and flourish we need a pipeline of pre-seed companies developing their MVPs, their IP and their investment rounds. As a region we don’t perform as well as others in feeding that pipeline – this is reflected in our national profile with private investors and the number of new tech startups thriving in the North East. Whilst we are home to some fantastic tech businesses, as shown in the report, there is more to be done to improve the trajectory.

This is why the North East Local Enterprise Partnership (LEP), via the digital strategy, is working with founders to explore what those distinct needs are; to better understand how we can boost the sustainability of emerging startups and to establish exactly what needs to be in place to improve the picture. By asking the tech startup community what it needs, we can better facilitate and champion the right support and see an uplift in early stage tech business creation and survival. We are working with founders to create a blueprint for regional tech startup support which we will be announcing more about in the coming weeks and months.

So what’s needed? One of the privileges of my role is that I get to speak with so many inspiring tech entrepreneurs on a day to day basis. Some key observations that should inform future plans:

  • Know when to ask and when to tell: getting a tech startup off the ground is really hard work. It takes guts, determination and a healthy dash of madness. It would be easy for those of us in the wider business community to assume what the needs of founders are, but that’s only going to go so far. Equally, founders can be so enveloped in building their businesses they might forget to look up occasionally. The North East tech ecosystem needs to be shaped by entrepreneurs, for entrepreneurs.
  • Take the longview: early stage startups often navigate a precarious and unpredictable path to get off the ground. By definition they find the sweet spot between product development and market fit through iterating, experimenting, and even failing first. As tempting as it can be to shout every early success from the rafters, those companies need space and time to come to fruition. If we want to see a tranche of tech businesses born in the region over the next decade we need to plant seeds now and be ready for the long haul – if that means watching and waiting, it will be worth it.
  • Be purpose led, outcome focused: related to the above, it’s easy to lose the USP of an early idea in the mix of all things “digital” (which these days, is really just “all things”). But losing that nuance means we compromise on uniqueness. Prioritising resource onto purpose and outcome, rather than immediately tangible quick wins might go a long way.
  • Context is everything: building tech clusters is complex. To be clear, this isn’t the same as building an individual tech startup. Cluster development requires multiple factors and actors to work together as part of an overall ecosystem and each regional cluster is specific to its economy, culture, assets, identify and profile. A healthy and sustainable tech cluster is geographical, not sectoral.

As we collectively navigate the challenges of the current climate, the North East will need to be as innovative, resourceful and resilient as ever. We will need to be creative and daring to build the economy of tomorrow and to do that we can learn a lot from the tech start up community. To further bolster our status as one of 12 clusters of tech let’s continue to demonstrate that we value our tech businesses and work collaboratively to ensure they feature in future reports and more.

Laura Partridge, Digital Programme Lead, North East LEP

Find more information about London Tech Week and UK Tech Cluster Group’s 12 Clusters of Tech series, and download the North East report here.

If you want to know more about the North East digital strategy and supporting the region’s tech startups contact Laura Partridge on [email protected].

 

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Future proofing the North East economy

The coronavirus pandemic has seen a period of accelerated change across the world that has left many businesses thinking long and hard about what the future holds.

The North East Local Enterprise Partnership (North East LEP) and its partners have been supporting the region’s business community to manage the impact of the pandemic and also plan for our economic recovery. Our work continues to be guided by the North East Strategic Economic Plan, which sets out our ambition to create more and better jobs by growing four specific areas of industry – digital, advanced manufacturing, health and life sciences, and energy.

To complement and run alongside the North East Strategic Economic Plan, we want to delve even deeper into the emerging markets and future trends that will dominate the UK and global economies. What are the sectors and areas of industry that will provide the greatest economic growth opportunities in the future? And how can the North East capitalise on them?

To help us answer those questions, we’re seeking to appoint a specialist contractor that can undertake an independent markets foresight analysis on behalf of the North East. We want to identify the short, medium and long-term opportunities our region should focus on to support our immediate economic recovery, and those that will help grow our economy in the future too; creating jobs for local people, attracting investment in the region, and improving our economic activity rates and productivity.

Some of the potential areas of opportunity are in response to our current situation. Active and sustainable travel, for example, has rocketed during the coronavirus pandemic and there is more demand for environmentally friendly transport solutions. How can the North East use its world-renowned expertise and skills in the automotive sector to drive forward this green revolution?

Renewable energy made up almost half of Britain’s electricity generation in the first three months 2020, further bolstering the green energy sector. What does that mean for the North East? How can we grow our share of the market?

How well positioned are we in the region to respond to future technology developments that will affect trends in key sectors; for example autonomous vehicles, the ageing population, and the rollout of 5G – or even 6G capability?

This project is about future proofing the North East economy and making sure we’re ready to respond to global economic opportunities in the wake of the coronavirus pandemic.

The North East LEP would like to undertake the economic markets foresight analysis this year, and we invite interested suppliers to join us at a online supplier briefing event on Monday 05 October from 10:00-13:00.

Find out more about this exciting opportunity to help the North East shape its future competitiveness, and sign up to attend, by visiting the eventbrite page.

By Alan Welby, Innovation Director at the North East Local Enterprise Partnership.

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Blyth solar business steps up production of new solar module

Solar Capture Technologies is a Blyth-based business with more than 38 years’ experience in solar research, development and manufacturing. The team aims to empower generations to use clean and renewable solar power solutions, and to make solar accessible to everyone. Lewis Caseley, Commercial Manager, explains how connections made through the North East Energy Catalyst are helping to take their new product to the next level.

 

How did you first make contact with the North East Energy Catalyst?

We saw the call-out for businesses to enter the North East Energy Catalyst’s Energy Innovation Challenge earlier this year and the theme of the challenge – which was all about reducing carbon emissions – fitted well with our business and the new technology we’re developing.

We’re working on a new product based on a lightweight solar material made from polymers and we’re now at the stage of wanting to access funding and demonstration sites, and get the product in front of the right people, and we thought that the Energy Innovation Challenge could help us do this.

Can you tell us more about Solar Capture Technologies and the products you’re developing?

The business has its roots in research and over the years we’ve worked with multiple research bodies and universities. More recently, we’ve moved more towards developing our own products and already have our solar panels in place on emergency roadside phones, ticket machines and bollards across the country’s road network.

Our latest product in development is the SolarFace which combines our advanced solar harvesting technology with high performance composite materials.

What makes your product different from what’s already out there?

SolarFace modules are really lightweight which means they can be used almost anywhere – not only on buildings but on cars, on commercial vehicles like ambulances, offshore, and we’re even working on a floating unit.

They are a quarter of the weight of traditional solar modules and can be manufactured to fit any shape. For example, when used on housing or commercial buildings, the panel forms the fabric of the roof as well as generating power.

We’ve also designed the product to operate at the lowest light levels, so they continue to generate energy through the winter.

It’s a ground-breaking product and to take the product to volume manufacture we needed investment and access to networks.

What happened as a result of entering the Energy Innovation Challenge?

The challenge went live just as the UK entered lockdown so the events we attended with the rest of the cohort were online. We’ve met other SMEs operating in the energy sector and made some interesting connections.

We’re also now applying for funding through the North East LEP’s Energy for Growth programme and working with David Lynch, the North East LEP’s Energy Innovation Partnership Manager, to make connections with organisations in the social housing and transport world, which will help us to secure sites to demonstrate SolarFace’s capabilities.

What’s next for you?

The profile of solar power is increasing as more and more people are looking for new ways to generate power and reduce carbon emissions. At the same time, businesses are beginning to understand how solar can help to save them money and improve their products.

There’s huge potential for us within the automotive industry, transport, public spaces and education, and we’re working with partners to demonstrate the possibilities for SolarFace – for example, we’ve created benches made from recycled plastic which incorporate the solar panels and can be used for phone charging, to boost wifi networks or to power lighting.

We’re also investing in upgrading our factory facilities and moving to mass manufacturing and automation which will make the product far more competitive.

The North East Energy Catalyst is ground-breaking partnership to unite the North East’s leading energy innovation, demonstration and delivery capabilities. Read more about the partnership here.

Round two of the Energy Innovation Challenge is currently underway, with 10 submissions from North East SMEs. Round three, on the theme of energy materials, will open in January 2021. To find out more, contact David Lynch on [email protected].

The North East Energy Catalyst is supported by ERDF and the Energy Innovation Challenge received grant funding from the government’s Local Growth Fund via the North East LEP.

It is facilitated by the North East Local Enterprise Partnership (LEP), and North East Energy Catalyst partners are: Newcastle University; Durham University; Northumbria University; Zero Carbon Futures (a subsidiary of Gateshead College); Northern Powergrid; Northern Gas Networks; The Offshore Renewable Energy Catapult; The British Engines Group; Innovation SuperNetwork; Northumbrian Water; The North of Tyne Combined Authority; The North East Combined Authority.

The North East Energy Catalyst is supported by ERDF and the Energy Innovation Challenge received grant funding from the government’s Local Growth Fund via the North East LEP.

 

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Innovation and the North East’s economic recovery

Alan Welby, Innovation Director at the North East Local Enterprise Partnership (LEP), and Gillian Hall, newly-appointed Chair of the North East LEP’s Innovation Board, discuss how innovation can bring more jobs to the region and help businesses to recover from the impact of COVID-19.

 

Can you explain what role the Innovation Board plays in helping to drive growth within the North East economy and more and better jobs for its residents?

Gillian: Innovation is one of the areas of focus – alongside skills, business growth, transport and investment – that can help us to increase productivity and the number of jobs in the North East.

Business owners might not think that innovation is something they do but in fact it’s often just about working out a new, better way of doing something. If you’re tweaking your product or processes to find a competitive advantage then that is innovation. If you’ve come up with a new product then that is innovation.

A lot of what we’re doing is around supporting partners to come together to make something bigger than the sum of its parts. The Northern Accelerator partnership between Durham, Newcastle, Northumbria and Sunderland Universities is a brilliant example of this, providing a structure to support the commercialisation of ideas from academics and showing how we can build a knowledge economy with regional assets and regional people.

The Innovation Board is there to increase activity like this and to be a critical friend to the North East LEP’s innovation team.

 

As the newly-appointed Chair of the Innovation Board, what are your priorities for the coming weeks and months?

Gillian: Turning plans into action and keeping things moving forward are my priorities.

We have a big job to do and it’s easy to spread ourselves too thinly. It’s very important for me to make sure that the Board is focused on delivering projects that are going to make a difference and that we achieve the aims set out in the North East Strategic Economic Plan.

We also have very active part to play in the North East’s COVID recovery plan, making sure existing projects have what they need to keep going but also seeing what needs to be done in the short and medium term to support businesses and communities to recover.

 

The COVID-19 pandemic has undoubtedly impacted on businesses, with many having to introduce new ways of working or even pivot and change what they do. How important is innovation going to be to help companies through to recovery?

Gillian: Quite naturally, we have a tendency to want to go back to the way things were but we must come to terms with the fact that this can’t happen and that we need to change our mind-set and adopt new ways of working.

Businesses are already thinking in an innovative way about how they can survive in a different world; these new ways of thinking are true innovation and businesses should be celebrated for moving quickly and making positive changes.

Alan: COVID is a massive disruptor and businesses in all sectors have had to find new ways of doing things. As a result, we’re seeing new collaborations and new solutions bring brought forward to the problems COVID has raised.

Innovation is about coping with change, and we need to test, challenge and drive each other to change and adapt.

 

How do you plan to support companies in the region to use innovation to help them recover from the impact COVID-19 may have had on their business?

Gillian: During recovery we often see businesses cutting expenditure in areas like R&D. It’s a real risk that R&D specialists in our region will lose their jobs and that their expertise will be lost to the North East so we’re talking to partners about launching a ‘lifeboat scheme’ to support businesses to maintain their R&D and to keep hold of this group of people who are vital to innovation and to the success of our region in the future.

We are also thinking about those people who have had to retrain or look for new jobs. This is a very stressful time for many people and we’re working with the NHS to look at wellbeing and supporting people’s mental health.

Alan: As part of our COVID response programme, we’re also launching a series of open innovation challenges which will help people to quickly bring forward new products and services to market.

The challenge programme will mobilise the innovation community to help find solutions for businesses, for education and for individuals, making things better for the region as we recover and begin to get people back to work.

And more broadly, we have a COVID-19 support toolkit which is available on the North East Growth Hub, and we have our North East Growth Hub Connectors who can help business owners to access the best sources of support and funding for them.

What lessons can business take from this crisis?

Alan: Be flexible. Find communities and use networks to work together. The support and the opportunities are out there to help your business to pivot and recover, so reach out and please don’t struggle alone.

Gillian: COVID-19 is a dreadful thing but I am hopeful that some positives will come out of it. Businesses in our region – whether that’s factories in Team Valley, Cramlington and Washington, or office-based businesses in our city centres – are turning into innovators and we should celebrate this.

New ways of working will lead to new jobs which may be different from those that we’ve seen in the past. For example, we have a hugely impressive VR and gaming sector, (including Europe’s first dedicated centre for emerging technology in the form of PROTO) which will play a part in developing new ways of delivering remote products and services to people.

The core of our region and our businesses are our people. It’s important that as a region we don’t leave anyone behind as we move towards recovery, and we will hold the government to account on this nationally as well.

Find out more about the role innovation plays in building the North East economy here.

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Gillian Hall appointed to lead North East Innovation Board

The North East Local Enterprise Partnership (LEP) has appointed a new Chair to its Innovation Board.

Gillian Hall, who has more than 25 years’ experience as a business owner, non-executive director, and corporate lawyer, will lead the Innovation Board as it supports the drive to create more and better jobs in the North East.

Alan Welby, Innovation Director at the North East LEP, said: “Increasing innovation is vitally important to the growth of our economy, especially now, as businesses and communities are recovering from the impact of COVID-19 and finding new ways of working.

“Gillian has a real drive to make sure that the work we do has an impact and that we make a difference for people in the North East. Her hands-on approach will ensure that we work towards increasing innovation in the region with pace and purpose.”

Gillian Hall said: “By encouraging innovation – whether that’s within small businesses or in large corporations – we can boost the region’s productivity, create more jobs, and make a positive difference to the lives of people in the North East.

“In the wake of COVID-19, we will also be playing a role in the North East COVID-19 Economic Recovery Plan. As the Chair of the Innovation Board, my priority is to turn plans into action and, along with the rest of the board members, I will be working with the team at the North East LEP and our partners across the region to support businesses and communities as they recover.”

Innovation is one of the areas of focus within the North East Strategic Economic Plan, which lays out the roadmap for creating a more productive economy in the region, and creating 100,000 more and better jobs in the North East by 2024.

The Innovation team at the North East LEP, with the support of the Innovation Board, works with partners to grow the amount of R&D taking place in the North East and to attract investment into the region.

The North East LEP Innovation Board is made up of representatives from the region’s local authorities, academia and industry. The members are Gillian Hall (Chair); Tony Appleton; Richard Baker, Strategy and Policy Director, North East LEP; Estelle Blanks, Executive Director, Innovation SuperNetwork; Professor Michael Capaldi, Dean of Innovation and Business, Newcastle University; Councillor Nick Forbes, Leader of Newcastle City Council; Helen Golightly, Chief Executive, North East LEP; Dr Colin Herron; Patrick Melia, Chief Executive of Sunderland City Council; Lee Viney, Regional Manager, Innovate UK; Alan Welby, Innovation Director, North East LEP; Dr Nicola Wesley, Chief Operations Officer, AHSN; and Professor Michael Whitaker.

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Investment on offer to help SMEs develop tech solutions to energy challenges

Up to £40,000 of investment is on offer to SMEs in the North East who can put forward digital or data-led solutions to help monitor and manage energy consumption.

The Energy Innovation Challenge is led by the North East Energy Catalyst, a partnership of leading energy sector organisations which aims to develop solutions to global energy challenges here in the North East.

David Lynch, Innovation Partnership Manager at the North East Local Enterprise Partnership (LEP) who supports the work of the Energy Catalyst, explained: “Working with the North East Energy Catalyst is a unique opportunity for innovative SMEs given the strength and breadth of this region’s energy sector, which includes leaders in energy businesses, science and research and key infrastructure organisations.”

“We’re excited to be launching a series of energy innovation challenges throughout 2020 and 2021, inviting SMEs within the North East LEP area to submit responses to each challenge.”

A cohort of up to 10 successful businesses per challenge will be identified by an expert panel, drawing on the North East Energy Catalyst partners’ expertise. The successful cohort will receive a programme of support which will help them develop their idea and bring it to market.

This will include £20,000 of investment from Northstar Ventures, subject to eligibility criteria, which will be offered to 10 businesses across the programme, and the opportunity to submit matched grant applications for Local Growth Funding of up to a further £20k.

The next challenge is open for applications until noon on 18 September 2020 and SMEs are invited to put forward data or digital-led solutions that can help businesses to track energy consumption, or that can be used at sites like airports, ports and business parks to help manage energy savings.

David Lynch added: “This is an exciting opportunity for our colleagues in the digital, tech and energy sectors to take the lead on a new wave of energy solutions.

“The North East has a strong pedigree of innovation in power and energy generation, from steam, to electricity and now sustainable technologies, each of which has made a significant impact in the international economy. We are a force to be reckoned with in the energy sector and this is a great opportunity for digital and tech businesses to engage with partners working on the global energy stage.”

The North East Energy Catalyst is part funded by the European Regional Development Fund (ERDF) as part of the Catalysing Innovation in North East Clusters project, delivered by the Innovation SuperNetwork

More details about the challenge are available here or from David Lynch on [email protected].

The North East Energy Catalyst is a ground-breaking partnership to unite the North East’s leading energy innovation, demonstration and delivery capabilities. Facilitated by the North East Local Enterprise Partnership (LEP), North East Energy Catalyst partners are: Newcastle University; Durham University; Northumbria University; Zero Carbon Futures (a subsidiary of Gateshead College); Northern Powergrid; Northern Gas Networks; The Offshore Renewable Energy Catapult; The British Engines Group; Innovation SuperNetwork; Northumbrian Water; The North of Tyne Combined Authority; The North East Combined Authority.

   

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North East LEP and regional partners submit response to government’s consultation on UK Freeports

Paul Carbert, Economic Policy Co-ordinator at the North East Local Enterprise Partnership, outlines the North East’s innovative response, which would drive economic growth in the region, create jobs and regenerate coastal communities.

As the UK prepares to complete its exit from the EU and establishes new trading relationships around the world, the UK government launched a consultation earlier this year on Freeports policy.

Freeports and free zones are in place in many parts of the world. They are areas within a country’s land border where different customs rules apply, and are being considered by government as part of its future strategy to strengthen trade relationships and secure inward investment. Freeports provide benefits for exporters and importers because goods can be imported into, manufactured, and exported from inside the zone without incurring tariffs and customs duties unless they enter the domestic market. They offer the potential to promote regeneration and job creation in those areas within the zone and drive growth in the wider economy.

The government’s consultation has sought views on how they should structure their approach to Freeports. It envisages that because of their likely location close to ports or in coastal areas, the strategy offers the opportunity to stimulate the economies of often deprived areas. They are also seeking proposals which position Freeports as hubs for innovation to test new ideas and technologies. The North East Local Enterprise Partnership, and an active list of partners comprising of the North East and North of Tyne Combined Authorities, Business Durham, the CBI, the North East England Chamber of Commerce, Port of Blyth, Port of Sunderland, Port of Tyne, Newcastle International Airport, University of Sunderland, Durham University, Newcastle University, and Northumbria University, submitted a response to the Government’s consultation earlier this month that outlines the region’s preferred approach to Freeports; one that focuses on new growth and jobs, the regeneration of key coastal areas and the development of other parts of the regional economy. It also reinforces the need for the UK’s existing labour market, security and environmental standards to be maintained.

After conducting research and gathering the views of local partners, the North East response has proposed that a multi-site, digitally enabled Free Trade Zone – linking key manufacturing sites in the North East with ports – would provide the greatest benefit for the North East. It would add value to our current economy, provide an opportunity to deploy and test a range of new digital approaches, and guard against the risk of local displacement of economic activity. It would complement a free trade deal with the European Union.

The innovative approach put forward for the North East takes into account the region’s industrial and logistics structure and would build on its wide-ranging assets. It would allow the region’s digital sector to develop innovation that would improve the operation and efficiency of Freeports, and provide an opportunity to stimulate job growth in key sectors such as advanced manufacturing, energy, digital, and transport, particularly at a time when the region’s economy will be continuing to recover from the impact of the Covid-19 pandemic.

Whilst the region agrees Freeports are not a substitute for a comprehensive free trade deal with the EU – the preference in the North East is for both a deal and a Free Trade Zone – should the UK leave the transition period without a new trade deal, Freeports would mitigate some of the impact and provide opportunities to build on existing supply chains and clusters, and attract inward investment.

Following the submission of the region’s response to the Government’s consultation, the North East LEP and its partners will now work on preparing a collaborative bid to a government sponsored competition which is expected in the Autumn, to establish a North East Free Trade Zone.

To receive further updates about the North East LEP’s bid for a North East Free Trade Zone, please sign up to receive Insights North East, the newsletter from the North East Local Enterprise Partnership.