FEATURE
Business boost – the Investment Zone will transform an already thriving digital and creative economy.
CREATIVE
How Tees Valley Investment Zone is unlocking growth in the digital and creative economy
The Tees Valley Investment Zone( TVIZ) is poised to transform the region’ s digital and creative industries, offering a targeted package of investment, infrastructure and incentives to attract high‐value businesses and skilled jobs.
Investment Zone status will drive the ambition to develop Tees Valley as the country’ s launchpad for the production and export of world-class digital tech and creative content.
By uniting industry, cutting-edge research and local talent, it will build highgrowth clusters that attract investment, scale businesses, boost exports and create rewarding, future-ready jobs.
Spanning Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland and Stockton‐on‐Tees, the Investment Zone seeks to capitalise on existing strengths in gaming, film, animation, artificial intelligence and digital services, while supporting broader economic regeneration.
A STRATEGIC INITIATIVE The concept of investment zones emerged in 2023. Twelve zones were identified across the UK, each receiving £ 160m in grant funding over 10 years, with Tees Valley invited as one of eight areas to co-develop proposals for its own Investment Zone.
Unlike earlier enterprise zones, which focused primarily on tax reliefs and planning flexibilities, the investment zone model combines capital investment with cluster‐focused strategies built around local strengths.
In Tees Valley, the digital and creative industries were chosen as the primary focus following analysis by the Tees Valley Combined Authority( TVCA), the region’ s
LAUNCHPAD
Business Board and Teesside University.
The aim is to create more than 2,000 highly-skilled jobs and unlock an estimated £ 175m of private investment within the next decade. For local leaders, the zone is not just an economic development tool, but a means to address social and spatial inequalities by regenerating town centres, improving skills and creating opportunities.
The Investment Zone’ s key missions are for Tees Valley to become the UK’ s leading region for scaling innovative creative and tech businesses and establishing the region as an engine room of creative production. It will also lead a drive to grow a worldclass base for applying digital and creative technologies to solve real world challenges.
HOW THE ZONE WILL OPERATE The first tranche of funding – £ 80m over 10 years – was approved by the TVCA in early 2025 and allocated across a series of strategic workstreams. Middlesbrough and Hartlepool were selected as the key geographical clusters for development.
It includes a £ 32m investment in the towns to develop appropriate infrastructure that meets specialist accommodation and innovation requirements.
In addition, the funding package includes £ 3.5m for improving digital infrastructure across sites, £ 29m for business support services, £ 11.6m to foster research and development and £ 2.6m earmarked for improving safety and business environments.
A further £ 3m will be invested in supporting creative and cultural initiatives.
Governance is designed to ensure alignment between public, private and academic partners. The TVCA acts as the lead authority, in partnership with Teesside University as the knowledge anchor, and working with private sector partners.
Designated sites in Middlesbrough and Hartlepool will benefit from retained business rates, with revenues reinvested locally.
WHAT IT MEANS FOR BUSINESS For businesses already in the region or considering expansion, the Investment Zone represents a rare opportunity to access a package of financial incentives, state‐of‐the‐art premises, enhanced digital connectivity and a ready‐made cluster of creative and technological talent. The presence of Teesside University also offers businesses opportunities for collaboration on research, innovation and workforce development.
The Investment Zone is designed not just to attract headline investment, but to foster a self‐sustaining ecosystem of firms, start‐ups and skilled professionals. For developers and investors, it provides a clear framework and a credible pipeline of projects. For occupiers, it promises lower barriers to entry and improved support services in a competitive market.
By focusing on a high‐growth, knowledge‐intensive sector and combining physical regeneration with human capital development, the Tees Valley Investment Zone stands out as a sophisticated and ambitious approach to regional economic development. For businesses ready to take advantage, it represents a well‐timed opportunity to be part of the next chapter in Tees Valley’ s economic story.
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