GovWire

• 13.5 million awarded to boost Merseysides thriving live music sector and help creative firms in the West Midlands revolutionise live performance with VR and immersive technology
• Clusters funding builds on UKs regional strengths as part of governments growth-driving mission for the creative industries
• Next phase of advanced movie magic research labs launched, with 6.6 million of funding available for SMEs

Liverpool City Regions MusicFutures cluster will benefit from 6.75 million to bring together partners including the citys two universities, the Royal Liverpool Philharmonic and the Liverpool M&S Bank Arena. The cluster will provide funding and training for musicians, educators and small businesses to harness new technologies such as AI and Extended Reality (XR) and explore making the live music sector more environmentally sustainable.

CreaTech Frontiers in the West Midlands will also benefit from 6.75 million, with the investment focusing on developing small, micro- and medium-sized businesses specialising in creative tech like video games and immersive reality. Several regional universities alongside the Royal Shakespeare Company (RSC) will work with industry to boost skills and develop new products, technology and multi-platform content. This will include using VR, 3D-modelling and animation techniques in live events, and adapting video game engines for use in music, theatre and film.

Experimental performance projects curated by the RSC will be showcased at South by Southwest (SXSW) festival in Texas in 2026, while the Birmingham Opera Group and The Rep theatre will stage new works, including co-creations with young people in deprived areas of the West Midlands.

It comes as the CoSTAR network of R&D labs being built across the UK to drive the next generation of movie magic visual effects tech in film, TV and performing arts enters its next phase, with 6.6 million now available to help innovating firms build prototypes and take their products to market.

Merseyside and the West Midlands have been selected in the governments Creative Industries Clusters, delivered by the Arts and Humanities Research Council on behalf of UK Research and Innovation, which aims to grow specialist creative subsectors across the UK. The UKs world-class creative industries have been named as one of the governments eight growth-driving sectors in its forthcoming Industrial Strategy.

Culture Secretary Lisa Nandy said:

Talent is everywhere but opportunity is not. Thats why we are supporting firms, artists and freelancers that are innovating, using new technology and driving growth in creative clusters across the country.

Liverpool and Merseyside hold a special place in our nations music landscape, and this funding will support imagination and experimentation across the city and region, as creators explore how we can make gigs more environmentally friendly.

Birmingham and the West Midlands have a rich industrial history, and we are putting them at the forefront of a potential new industry developing the amazing technology that will revolutionise visual effects in film, theatre and gaming.

AHRC Executive Chair Professor Christopher Smith said:

AHRC is delighted to announce the launch of a new wave of Creative Industries Clusters.

The two new clusters announced today, MusicFutures and CreaTech Frontiers, will create vital support for technology and innovation in the UKs world-leading creative industries and expand our regional investment.

These clusters will support artists and creators so they can benefit from new technologies across a wide range of platforms, and develop their innovation and business skills.

The remarkable projects made possible through our Creative Industries Clusters span sustainable fashion, game design and extended reality, and have attracted major co-investment. They have helped solve real-world problems and they deliver commercial benefits to the UK economy in line with the Governments Industrial Strategy.

ENDS

Notes to Editors

More information on winning projects

Liverpool Creative Cluster - MusicFutures

MusicFutures will promote growth and innovation in the Liverpool City Regions thriving music sector, which is already home to over 1,400 music businesses. The cluster is led by the University of Liverpool with Liverpool John Moores University alongside 21 strategic partners including the ACC Liverpool Group, operators of Liverpools M&S Bank Arena, Adlib and the Royal Liverpool Philharmonic, LIVE, UK Music and the Intellectual Property Office.

By focusing on R&D, talent development, and emerging technologies such as AI, MusicFutures will aim to establish Liverpool as the UKs leading hub for music innovation. For example, it will build on Liverpools status as the worlds first UN Accelerator city to address environmental challenges and advance economic sustainability through innovative solutions for the live sector.

MusicFutures will also provide new opportunities for both small and medium-sized businesses, such as a start-up incubator, scale-up, and responsive R&D funding, as well as training through bespoke programmes for music makers and educators. These programmes include training and legal advice on intellectual property issues, and guidance on the effective and responsible use of generative AI.

MusicFutures will aim to reshape Liverpools creative economy, solidifying its position on the global stage and establishing new opportunities for the UKs music industry. All of which will fuel artistic, technological, and IP breakthroughs, create high-paying jobs, and open pathways for music professionals into sectors like gaming, film, and extended reality (XR).

Professor Richard Koeck, University of Liverpool, project lead MusicFutures, said:

The UK Music sector is worth 7.6 billion a year with the trend going upwards. Our industry is the third largest in the world and we rank as the second-largest exporter of recorded music globally. While such figures sound strong, they overlook significant sector challenges ahead of us. Liverpool is the right place to innovate, develop and test ideas that could drive music businesses nationally and secure our position internationally.

We have a clear goal and that is to transform the Liverpool City Region (LCR) into a global leader in music innovation. By connecting our combined world-leading research capacity with an already thriving sector ecosystem of more than 1400 businesses, we will not only further strengthen Liverpools global reputation for music innovation, but also create a boost for other highly successful creative industry sectors in the city region.

West Midlands Creative Cluster - CreaTech Frontiers

CreaTech Frontiers is led by Birmingham City University with Coventry University, the University of Birmingham, The University of Warwick and the RSC. It will spur growth in the West Midlands creative industries by developing a strategic pathway to connect creative technology companies with high growth industries, such as creative content production and gaming.

It will do this by fostering innovation via a cross-pollination of skills and services which will deliver new tools, processes and platforms. This will include responsible AI and immersive technology which will revolutionise creative productions while widening access and participation. Applications will include incorporating VR and AR technologies for live events; adapting game engines for non-gaming applications in music, theatre, and film; using game design principles to engage audiences; and employing 3D modelling and animation techniques to create high-quality immersive content.

The RSC will lead a programme of R&D pilot production projects in collaboration with SXSW to profile creative tech businesses identified through the clusters work, reaching diverse audiences and exploring new ways of creating. A collaboration between the Birmingham Opera Group with businesses and researchers will stage new works co-created with young people in deprived areas of the West Midlands, and a collaboration with The Rep, Birmingham Contemporary Music Group and industry partners to explore new technologies for performance.

CreaTech Frontiers will also run a series of events and workshops that will support businesses to explore immersive technologies to develop new products, services and create new content and concepts. These will cover a range of focus areas including responsible R&D and innovation, the integration of generative AI in content and processes, green production, IP protection and commercialisation.

Lamberto Coccioli, Professor of Music and Technology and BCU project lead, said:

CreaTech Frontiers will bring together the most valuable assets of this region a young and diverse talent pool, world-class research, outstanding arts organisations, and a budding tech sector to spark innovation and stimulate growth. Were delighted to support creative technology companies in the West Midlands with a comprehensive programme of grants and skills development led by industry needs. Its fantastic news for the people and businesses of Birmingham and beyond.

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