Culture secretary Margaret Hodge officially opened a new Midland enterprise centre for the creative arts yesterday.
The new Institute for Creative Arts at Coventry University was set up to nurture creative graduates in the Midlands by giving a network of support.
It hopes this will stop the "brain drain" of creative talent leaving the region and heading down to London.
Ms Hodge said: "It’s great that the West Midlands has recognised the tremendous impact that keeping their talented graduates will have on both the economic and creative situation in the area.
"They have taken a hugely positive step by creating this centre. It will provide a support system to help encourage, assist and promote these young people as they start what we hope will be long and rewarding careers in the creative industries."
The Institute has been set up at a time when government estimates that the creative industries account for a total of £56.5 billion of revenue in the UK, and has published a new strategy to make sure the UK’s global advantage is continued.
ICE director Christine Hamilton said: "We produce excellent creative graduates in Coventry but we need to encourage them to stay and develop their talents.
The West Midlands is failing to keep its creative graduates, which has a serious impact on the economic strength of the region and its competitive advantage.
To encourage growth the first step is to retain and attract creative graduates and then provide support to nurture their talent which is the purpose of the Institute for Creative Enterprise.
"We are delighted that the Department for Culture, Media and Sport recognises the how vital the role of Universities is in the growth of the creative industries is, and look forward to welcoming Margaret Hodge to ICE to demonstrate the quality of education and range of skills the institute will offer in the region."