The West Midlands Business Council has warmly praised Gordon Brown's decision to establish the West Midlands regional design innovation centre.
In his Pre-Budget Report yesterday the Chancellor announced a network of creativity and innovation centres to help foster new design talent in the UK - with a centre in London to showcase British design.
"With our clothing, ceramics, jewellery, carpets and other design sectors this development could be good for jobs in our region," said James Watkins, executive director of the West Midlands Business Council. The design industry is now hoping the Chancellor's announcement will lead to new funds to drive towards a new competitiveness.
"This could apply across a vast array of West Midland businesses. We have enormous potential as a region to develop valuable services and products and we need to work closely with the public sector to achieve that."
Mr Brown also said he would make it easier to access the tax credits available for research and development.
The announcement was following last week's publication of the Cox Review that looked into how design can help UK businesses to thrive in the world economy.
Clive Winters, programmes director for creativity and enterprise at Coventry University Enterprises, said: "Any help for innovation is positive, especially if financial," he said.
"Investment in creativity and design has a positive impact on business performance. What's more, creativity is vital for every part of the economy and initiating more business opportunities through new, innovative ideas is key to sustained economic growth."
In a recent survey of 2,020 workers by Vodafone, more than half (54 per cent) of those interviewed said they were not encouraged to be creative or to present ideas to managers.
More than 70 per cent said their companies did not have a good reputation for rewarding innovation.