A world-class commercial research and design facility in Shipley will be vital to the regeneration of Airedale as a whole, it was claimed today.
Robert Brough, of the private-sector led Airedale Partnership, said the centre would be key for the area's economy.
The Airedale Partnership commissioned the Masterplan for Airedale which sets out a blueprint for the area's regeneration over the next 15 years.
The Advanced Digital Institute - which has already secured funding from regional development agency Yorkshire Forward - is one of five "priority projects" in the plan, which are seen as essential to the regeneration of Airedale.
The institute, a commercially-led design and development project, would be supported by the major digital industries within the Shipley area.
It would be a place for ideas to be generated and developed to create new products and services within the digital industry.
It is seen as one of the key aspects in the plan which aims to transform Airedale into Europe's centre of digital communications by 2020.
The centre would become a national research resource facility and could be up and running by 2008.
Mr Brough said: "I'm sure that it would help bring products that maybe wouldn't have come to the market into fruition.
"It will help encourage returning graduates to stay in the area and support the digital industry within the area.
"It's a key development for the area, particularly with the production of high quality products.
"It will be a driver for the economy and will help open up Airedale both nationally and internationally."
The institute would form part of a "digital village" in Dockfield Road. The area would see the canal from Shipley to Bradford reopened and the creation of waterside paths and cycleways.
Dockfield Mills and Junction Mill would be regenerated providing office space for fledgling businesses and apartments.
Councillor Tony Miller (Lab, Windhill and Wrose) said he welcomed any schemes which would boost job prospects in the area.
"I'm 100 per cent behind this project for a number of reasons," said Coun Miller.
"It would regenerate that area of the Aire Valley and it would give much needed jobs for people in the area."
But he warned that not all future employment in the area should be reliant on the digital industry.
He said the Airedale Partnership and consultant Arup, who designed the Masterplan, should "not put all its eggs in one basket" and depend on firms like Pace and Filtronic to drive the economy forward in the Shipley area in case work shifted overseas.
"If these firms go abroad the smaller firms in the area which have become reliant on them as suppliers or whatever could collapse," he added.
Other priority schemes under the Masterplan include renovating Keighley railway station; building a hotel and conference centre at the present Keighley College site; building a bypass linking Frizinghall and Baildon; and constructing a Technology Business Park in Bingley.
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