Bringing high tech business to the North East

Putting in place the infrastructure for new kinds of business requires vision and leadership.

Everyone knows the phrase "coals to Newcastle". This is a tale of "software to Cambridge". From Newcastle. When I started my business thirty years ago it seemed far-fetched. There were less than 10 technology businesses in the whole of the North East. Now there are over 300, from software to computer games to cloud computing. Only London has a higher rate of high tech start ups. So we are doing our bit for "rebalancing" the economy.

The obvious questions are why and how? The simple answer is that while some industries depend on capital to get going, for technology companies it is people.  Software and computer games are by their very nature "weightless" products that can be sold in every corner of the world over the internet without any significant transport costs – the exporter’s dream. If you can sit a talented programmer or a creative designer in front of a computer, they can be producing saleable products that are instantly exportable.

The greatest asset for any region is its universities. The greatest problem in the North East is raising the aspirations of our own population to go to them. In a global competition for talent, you need places "where talent wants to live". This means that you need to have a buzzing music and cultural scene – Newcastle has been voted one of the world top party cities - good affordable housing and easy ways to get to work. Tyneside and the rest of the region has a justifiable reputation as a great place to be and this has been fostered over the last decade by a combination of strategic, long-sighted public investment in creative and cultural infrastructure like the Sage Gateshead, and the establishment of organisations like Generator who support the music industry and make events happen.

University involvement and partnership with business has grown by encouraging graduate internships and establishing "hatcheries" nurturing embryonic businesses. Publicly-funded initiatives like Sunderland Software City and Digital City on Teesside have been able to provide guidance, mentoring, premises, and networking for new business. Organisations like North East Access to Finance help fund the growing numbers of start-ups and high growth companies.

I chaired the Regional Development Agency until it was closed this year. Its founding idea – that public and private sectors need to support each other - is right. Here are three things that would make the biggest difference in the next ten years. Firstly, there needs to be more productive and innovative partnerships between the private sector, the universities and the public sector. Each offers different elements to the mix. Entrepreneurial ideas and drive, a trained and educated workforce coupled with innovative research and development in the right "connected" locations are the fundamental building blocks for this industry. Secondly businesses like this need finance. Often UK banks are reluctant to lend to this sector so we need to create small grants that allow clever people to test ideas and then more substantial equity investments as businesses mature and develop. Finally we need vision, leadership and role models. People who see what the North East's economy could look like and have the ambition, drive and determination to make it happen. The region has changed much since the dark days of the Likely Lads, what we need for the future is tomorrow’s Bob and Terry having Masters degrees in software engineering and creating world-leading software.

Paul Callaghan is Chairman of Leighton, the North East-based technology, software, media and communications group that he founded.

The sun sets behind the Tyne Bridge. Photograph: Getty Images
Getty
Show Hide image

How the Lib Dems learned to love all-women shortlists

Yes, the sitting Lib Dem MPs are mostly white, middle-aged middle class men. But the party's not taking any chances. 

I can’t tell you who’ll be the Lib Dem candidate in Southport on 8 June, but I do know one thing about them. As they’re replacing a sitting Lib Dem (John Pugh is retiring) - they’ll be female.

The same is true in many of our top 20 target seats, including places like Lewes (Kelly-Marie Blundell), Yeovil (Daisy Benson), Thornbury and Yate (Clare Young), and Sutton and Cheam (Amna Ahmad). There was air punching in Lib Dem offices all over the country on Tuesday when it was announced Jo Swinson was standing again in East Dunbartonshire.

And while every current Lib Dem constituency MP will get showered with love and attention in the campaign, one will get rather more attention than most - it’s no coincidence that Tim Farron’s first stop of the campaign was in Richmond Park, standing side by side with Sarah Olney.

How so?

Because the party membership took a long look at itself after the 2015 election - and a rather longer look at the eight white, middle-aged middle class men (sorry chaps) who now formed the Parliamentary party and said - "we’ve really got to sort this out".

And so after decades of prevarication, we put a policy in place to deliberately increase the diversity of candidates.

Quietly, over the last two years, the Liberal Democrats have been putting candidates into place in key target constituencies . There were more than 300 in total before this week’s general election call, and many of them have been there for a year or more. And they’ve been selected under new procedures adopted at Lib Dem Spring Conference in 2016, designed to deliberately promote the diversity of candidates in winnable seats

This includes mandating all-women shortlists when selecting candidates who are replacing sitting MPs, similar rules in our strongest electoral regions. In our top 10 per cent of constituencies, there is a requirement that at least two candidates are shortlisted from underrepresented groups on every list. We became the first party to reserve spaces on the shortlists of winnable seats for underrepresented candidates including women, BAME, LGBT+ and disabled candidates

It’s not going to be perfect - the hugely welcome return of Lib Dem grandees like Vince Cable, Ed Davey and Julian Huppert to their old stomping grounds will strengthen the party but not our gender imbalance. But excluding those former MPs coming back to the fray, every top 20 target constituency bar one has to date selected a female candidate.

Equality (together with liberty and community) is one of the three key values framed in the preamble to the Lib Dem constitution. It’s a relief that after this election, the Liberal Democratic party in the Commons will reflect that aspiration rather better than it has done in the past.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

0800 7318496