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# Economic Development pulls the plug on innovation and entrepreneur hub with no clear plan for the future
- URL: https://www.thequarry.media/economic-development-pulls-the-plug-on-innovation-and-entrepreneur-hub-with-no-clear-plan-for-the-future/
- Published: 2026-08-27T17:21:58.000Z
- Updated: 2026-08-27T17:21:58.000Z
- Author: The Quarry
- Tags: News

- Economic Development seeks expressions of interest from private and voluntary sectors to deliver innovation incubator initiatives
- Move could result in closure of Digital Greenhouse or transition of its services after ten years of operation
- Committee believes private sector better placed than government to lead innovation development with required agility and commercial insight
- Government grants may be available
- Digital Greenhouse will continue operating during expression of interest process

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Economic Development wants the private and voluntary sectors to deliver innovation initiatives and serviced desk facilities, threatening the closure of the Digital Greenhouse.

It leaves entrepreneurs and small businesses operating out of the facility, and those supported by its programmes, facing uncertainty with no timeline in place or clear plan for what will happen.

The committee spends about £450,000 a year on the Digital Greenhouse and its programmes.

The Quarry was established on the back of taking part in some of those, and currently is based on the site.

The move reflects the committee's view that innovation and digital development is now best led by the private or voluntary sectors rather than government, ten years after the Digital Greenhouse was established to do just that.

Expressions of interest are being sought for proposals to deliver commercial innovation incubator initiatives. These may include taking on some or all of the Digital Greenhouse's current services.

The committee has indicated it will consider providing government grants.

Deputy Marc Laine, vice-president for Economic Development, said: "We strongly believe the private and voluntary sectors are now better placed than the States to lead and facilitate innovation development initiatives, and we want to find the right guardians to push this forward. We believe innovation development is now best served by an operator/s that can act with the agility and commercial insight that a private or community-led body brings."

He emphasised that supporting innovation, technology adoption and upskilling remains a key priority for the committee and is essential to Guernsey's economic and sustainable growth, particularly in the fast-moving digital age.

Deputy Laine outlined the range of services currently provided by the Digital Greenhouse, including support for start-ups and entrepreneurs, linking mentors and investors with new businesses, and providing working space for those developing new initiatives.

"Our view is that the States has a role in supporting some of these through the island's policies and through targeted grant-funding, but in other areas we should get out of the way and let the private sector do what it does best," he said.

Among those currently working from the space is Spike Productions.

"I have seen some great success stories at the Digital Greenhouse and the opportunities, training and support given has helped people take great ideas and make them happen," said its founder Warren Mauger, who is also a co-founder of The Quarry.

"It was a shame when the funding was lost to support this and felt that signalled the end for it as that was the magic potion that made it work so well.

"I always felt it only took one business to be created and thrive to create a good return on the investment. The biggest positive was not tangible but it was the way lots of different business come together everyday under this umbrella, shared ideas, stresses and best practice and supported each other in what is often a lonely existence as a small business.

"The big question for me and others is what is government doing to support small businesses and those starting out. I hope there is a plan to do this moving forward."

The Digital Greenhouse will continue operating during the expression of interest process.

Members, who pay for permanent desks or hot desks, were told the news just 10 minutes before the public announcement in a letter signed off by States Director of Operations Damon Hackley.

"Since the Digital Greenhouse was established in 2016, it has supported entrepreneurs, start-ups and growing businesses at a time when there were few alternative options available in Guernsey," he said.

"We are extremely grateful for your support over the years and proud of the role the Digital Greenhouse community has played in fostering innovation and business growth across the island.

"I would like to reassure you that no decisions have yet been made regarding the future of the serviced desk service, and there is currently no requirement for members to vacate their desks or make alternative arrangements.

"The Committee is approaching this process with an open mind and is keen to encourage innovative proposals from the private and voluntary sectors.

"We are hopeful that the process will identify opportunities to continue supporting entrepreneurs and businesses through a sustainable community-led or commercial model. This could include a third party provider taking on the serviced desk offering, potentially from the current premises.

"At this stage, we do not know whether any changes to the serviced desk facilities will ultimately be required, nor the timing of any such changes. However, should any transition become necessary, we are committed to providing as much notice as possible and working closely with members throughout the process."

Earlier this year, Economic Development spent £350,000 as its contribution to producing a strategy for the finance sector.

## Q&A

**Q: Why is the Committee for Economic Development considering closing the Digital Greenhouse?**  
A: The committee believes that after ten years of growth in Guernsey's digital and innovation sector, the private and voluntary sectors are now better placed than government to lead innovation development with the agility and commercial insight required.

**Q: What services does the Digital Greenhouse currently provide?**  
A: The Digital Greenhouse supports start-ups and entrepreneurs, links mentors and investors with new businesses, provides working space for new initiatives, and delivers programmes for skills development and industry networking.

**Q: Will government funding still be available for innovation services?**  
A: Yes, the committee will consider providing government grants to support core functions or economically beneficial activities as part of the review of expressions of interest submitted by the private or voluntary sectors.