The transformation of North East England from industrial powerhouse to digital innovation hub is a strategic example of destination development.
The transformation of North East England from industrial powerhouse to digital innovation hub represents a strategic example of regional reinvention in destination development. What distinguishes the North East's approach from conventional regional development strategies is its systematic integration of necessity-driven innovation culture with experimental governance frameworks that prioritise long-term ecosystem capability building over short-term promotional interventions. Ian Thomas (NewcastleGateshead Initiative), Alice Andreasen (Newcastle International Airport), Jenna Ingoe (Sunderland Software City) and Mau Nteteka (LUMO) reveal how to overcome prevailing assumptions about approaching digital transformation and comprehensive infrastructural ecosystem development.
The transformation of North East England from industrial powerhouse to digital innovation hub represents a strategic example of regional reinvention in destination development. What distinguishes the North East's approach from conventional regional development strategies is its systematic integration of necessity-driven innovation culture with experimental governance frameworks that prioritise long-term ecosystem capability building over short-term promotional interventions. Ian Thomas (NewcastleGateshead Initiative), Alice Andreasen (Newcastle International Airport), Jenna Ingoe (Sunderland Software City) and Mau Nteteka (LUMO) reveal how to overcome prevailing assumptions about approaching digital transformation and comprehensive infrastructural ecosystem development.
The transformation of North East England from industrial powerhouse to digital innovation hub represents a strategic example of regional reinvention in destination development. What distinguishes the North East's approach from conventional regional development strategies is its systematic integration of necessity-driven innovation culture with experimental governance frameworks that prioritise long-term ecosystem capability building over short-term promotional interventions. Ian Thomas (NewcastleGateshead Initiative), Alice Andreasen (Newcastle International Airport), Jenna Ingoe (Sunderland Software City) and Mau Nteteka (LUMO) reveal how to overcome prevailing assumptions about approaching digital transformation and comprehensive infrastructural ecosystem development.
The North East's emerging 10-year strategic vision articulates a comprehensive approach to destination development that Ian synthesises as "known globally, felt locally". This formulation captures strategic thinking about how regional destinations can achieve international recognition while maintaining authentic local character that cannot be commoditised or replicated. The strategy explicitly recognises that global visibility requires deep local authenticity rather than a homogenised international appeal that dilutes distinctive regional characteristics.
The strategic commitment to "double the size of the visitor economy" to £10-11 billion requires what Ian identifies as systematic innovation "across all areas": connectivity infrastructure both "to and around the region," product development including "major visitor attractions" and narrative development about "visitor economy careers and skills." This comprehensive approach recognises that sustainable economic growth requires systematic capability development.
The strategic integration of metro extension announcements with broader connectivity planning illustrates how the region approaches infrastructure development as an integrated ecosystem rather than isolated transportation projects. Alice's articulation of the airport as providing "infrastructure that's as flexible as industry needs" demonstrates strategic thinking about future resilience and adaptability. Rather than optimising purely for current operational requirements, the infrastructure development approach systematically prioritises adaptability to accommodate emerging opportunities and changing market conditions that cannot be fully anticipated in current strategic planning processes.
The North East's innovation ecosystem operates from an institutional foundation of self-reliance. Regions with apparent infrastructure gaps or service limitations can systematically transform these disadvantages into innovation catalysts by developing solutions that address real operational constraints rather than theoretical market opportunities, often generating more resilient and adaptable business models as a result. This necessity-driven approach has profound implications for how the region conceptualises their relationship with central government funding mechanisms and external validation structures. This self-reliance manifests most strategically in the region's approach to experimental governance through the Destination Development Partnership (DDP) pilot programme. The £2.25 million allocation over three years constitutes what Ian describes as institutional "space to test things and allow others to develop them if they work". The strategic significance of this framework extends beyond the financial allocation to address one of the most persistent systemic barriers to innovation in publicly accountable organisations: the political and reputational risks associated with experimental initiatives that may not deliver immediate, measurable outcomes.
The DDP's emphasis on enabling others to scale successful experiments represents a clear understanding of how innovation ecosystems function as knowledge transfer networks that deliberately designs for capability diffusion across the broader regional economy rather than being proprietary development silos. This approach recognises that sustainable competitive advantage in the digital economy emerges from the institutional capacity to continuously generate, test and systematically implement new approaches at scale.
The experimental governance model creates "institutional permission structures" that enable organisations to pursue initiatives with uncertain outcomes without compromising their core operational responsibilities. This framework has enabled Destination North East England (DNEE) to "say yes to things" that would typically be filtered out through conventional risk management processes, creating a portfolio approach to innovation that accepts individual project failures in service of broader ecosystem learning. The projected doubling of gross value added to £2 billion, generating 35,000 additional employment opportunities, illustrates how strategic infrastructure investment creates multiplier effects across the entire regional economic ecosystem.
The North East's approach to infrastructure development fundamentally challenges conventional assumptions about public-private partnerships by creating governance structures where multiple stakeholders achieve genuine strategic alignment instead of transactional cost-sharing relationships. Newcastle International Airport's hybrid ownership structure exemplifies this approach: 51% ownership by seven local authorities creates direct accountability to regional development objectives, while 49% private equity ownership ensures commercial discipline and operational efficiency that purely public sector governance often struggles to maintain. This hybrid governance model enables investment decisions that would be strategically impossible to justify under purely commercial or purely public sector frameworks.
The airport's solar farm development illustrates this dynamic, with the facility now powering the entire terminal while exporting surplus electricity back to the national grid. This transformation creates compound value streams that generate new revenue opportunities while advancing sustainability objectives and demonstrating infrastructural resilience. Alice's articulation of the airport's strategic evolution reveals the systems thinking underlying this approach. The planned expansion from 5.3 million to 9 million passengers by 2040, integrated with three enterprise zones including space technology development and runway-accessible cargo facilities, positions the airport as a comprehensive economic development platform.
The collaborative approach to regional transformation also extends to operational partnerships that create seamless, integrated visitor experiences. The airport's exploration of unified ticketing systems with rail operators, enabling visitors to "explore the full region" through a single transaction, demonstrates how individual organisations can strategically narrow competitive interests for broader ecosystem value creation. This approach recognises that destinations compete not as collections of individual businesses but as integrated experience ecosystems where collective performance determines success.
Mau's observation that "heritage meets the future" in Newcastle provides the conceptual foundation for a business model that integrates technological innovation with deep place-based identity, creating value propositions that encompass authentic regional discovery experiences. The company's strategic decision to source all onboard products locally creates integrated value propositions that transform transportation transactions into cultural immersion opportunities. This approach demonstrates understanding of how service design can reinforce regional identity while creating distinctive competitive positioning that larger operators cannot easily replicate.
LUMO's performance metrics reveal the strategic power of this integrated approach, achieving 56% rail market share for London-Edinburgh and London-Newcastle routes, demonstrating how sustainability messaging combined with dynamic pricing strategies can reshape consumer behaviour at a significant scale. More significantly, Lumo's integration of carbon impact data directly onto passenger tickets transforms individual transactions into educational opportunities about environmental stewardship, creating value alignment between operational efficiency objectives and passenger environmental awareness.
Jenna's work with Sunderland Software City demonstrates how regional innovation ecosystems can systematically bridge traditional industrial heritage with emerging creative economy opportunities through strategic infrastructure investment. The organisation's dual focus on helping companies "upgrade tech skills" while simultaneously "growing the creative side" represents strategic thinking about economic diversification that builds incrementally on existing capabilities rather than attempting wholesale sectoral replacement.
As a public-private partnership" between North East Combined Authority, Vodafone and local property developers, the 5G Immersive Lab in Eldon Square represents a particularly well-structured approach to place-based innovation infrastructure development. The strategic repurposing of "an underutilised old restaurant" into a collaborative space equipped with a "5G private standalone network" and comprehensive "immersive kit" creates what Jenna describes as accessible "free space" for community-driven innovation. Going beyond traditional angel investor networks, the programme's success stems from its systematic integration of technical capability development with persona-based design thinking methodologies and structured presentation opportunities. This comprehensive approach recognises that sustainable innovation requires business development capability, market validation opportunities and funding pathways alongside technical access.
The laboratory's outcomes provide compelling evidence for the strategic value of this infrastructure investment approach. A concentrated 10-week programme, organised with the support of DNEE, successfully generated "eight new products to market" from 15 participating individuals, including collaborations between graffiti artists integrating augmented reality into traditional artistic practice and startups developing British Sign Language integration programmes for customer-facing operations. These diverse outputs illustrate how place-based innovation infrastructure can systematically generate unexpected combinations and applications that would be unlikely to emerge through conventional business development programmes.
Jenna's contextualisation of accessibility within broader digital inclusion challenges reveals the strategic complexity of innovation in regions with significant digital poverty. The North East's combination of "highest levels of digital poverty" with "highest levels of literacy" creates distinctive market conditions that demand fundamentally different approaches to digital service design compared to metropolitan areas with higher baseline digital capability. The Dynamo North East Digital Inclusion Fund represents a systematic institutional response to these challenges, creating financial infrastructure that supports accessibility-focused innovation while building regional capability in inclusive design methodologies. This approach recognises that digital inclusion requires sustained investment and organisational learning rather than individual project interventions, creating foundations for long-term competitive advantage through superior inclusive design capabilities. However, accessibility-focused design processes typically require more rigorous user research, systematic testing methodologies and comprehensive consideration of diverse usage contexts.
Mau's advocacy for embedding "accessibility from the beginning" reflects strategic thinking about design processes, cost structures and innovation methodologies. Noting the lack of accessible ticket machines, Mau illustrates how systematic accessibility analysis can identify market failures that create business opportunities. This constraint-driven approach frequently produces innovations that prove superior in broader market contexts, as solutions designed for accessibility often demonstrate enhanced usability and more intuitive interaction models for all users. The observation that accessibility integration "is cheaper in the long run" positions inclusivity as design efficiency that systematically reduces future remediation costs while expanding addressable market reach. Rather than assuming universal digital competency, regional organisations must systematically design for diverse access patterns and capability levels, often generating more robust and inclusive solutions as a result.
Lumo's collaboration with Newcastle University's technology laboratory on accessibility improvements exemplifies how regional businesses can leverage local institutional relationships to drive innovation that simultaneously advances commercial objectives and social inclusion priorities. This partnership approach recognises that accessibility innovations typically emerge from sustained collaboration, creating feedback loops to generate innovations that are both technically sophisticated and practically viable.
At a broader scale, DNEE's "Everybody Welcome" project and the strategic development of "360 videos from a wheelchair perspective" for over 50 venues creates pre-visit confidence-building tools that address fundamental information asymmetries affecting disabled visitors while simultaneously providing enhanced spatial understanding for all visitors. This approach recognises that accessibility challenges often stem from information gaps, enabling technological solutions that benefit broader user populations.
In collaboration with WelcoMe, DNEE's integration of micro-training videos for front-desk staff demonstrates how to systemically overcome inclusion barriers. By providing structured guidance for staff members about "how to welcome those guests", the programme addresses the critical intersection between individual anxiety and institutional capacity that frequently undermines well-intentioned accessibility efforts. This systems-level approach recognises that accessibility requires organisational capability development rather than purely infrastructure modification, creating scalable solutions that improve service quality across all customer interactions. The strategic emphasis on reducing nervousness "for those behind the front desk" reveals a deep understanding of how accessibility barriers function as bidirectional challenges affecting both visitors and service providers.
Chief Operating Officer
NewcastleGateshead Initiative
Chief Corporate Affairs Officer
Newcastle International Airport
Innovation Manager
Sunderland Software City
Senior CX and Strategy Manager
LUMO
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Designed to teach you how to master must-have tools and acquire essential skills to succeed in managing your destination or organisation, be ready to challenge all of your assumptions.