The New South Wales city of Newcastle is working to establish itself as a future technology hub for Australia, according to one professional working in the local start-up industry.

The NSW Government this week announced plans to convert dilapidated industrial pockets of Sydney's inner-west over the next 20 years into a technology hub.

Their aim is to model in on Silicon Valley in the United States.

Only two hours north of Sydney, what role can Newcastle play in the global digital industry boom?

Still early days for Hunter region

Brendan Yell is part of Newcastle's start-up community and operates a tech-accelerator program.

He said it was still early days for the Hunter region's start-up industry, but believed accelerator programs were helping local entrepreneurs gain valuable skills.

"Basically, what an accelerator program does is take people who have an idea or an initial product and puts them through an intensive program," Mr Yell said.

"This 12-week program gives them access to about 20 mentors, and these mentors help them accelerate their business.

"It's basically a program designed to really accelerate the growth of the company, and get them ready for their next stage of expansion."

Mr Yell noted that mining software, a digital boating guide and mapping software were among the notable products being developed locally.

Competing globally

Mr Yell conceived his first start-up in 1999 and moved to San Francisco in 2004 to progress the venture.

When his visa expired, he moved to Mexico to continue running the business.

"The centre of the universe years ago used to be Silicon Valley," he said.

"We were running the business successfully from a little villa in Mexico just as well as when we were in San Francisco.

"Silicon Valley used to be all about hardware, now it's all about software.

"You could be in Newcastle, Coffs Harbour, Byron Bay, Tel Aviv in Israel, São Paulo in Brazil —you can build a great tech company from anywhere in the world."

Mr Yell said the NSW Government's plan for a technology hub in Sydney was welcome news.

But he believed the Hunter's strong position for a piece of the market would continue to grow because of the affordable cost of living in the region and the progressive roll-out of the National Broadband Network (NBN).

He said the city's university and its location were also advantages.

"Sometimes being a little bit isolated is actually great for building a product," Mr Yell said.

"A little bit of isolation gives you that opportunity to have focus and actually build your product, plus it's a lot more affordable up here."

Mr Yell said further assistance was needed for the Hunter to thrive in the burgeoning industry.

"What we also need in Newcastle is a suite of support mechanisms and tools for start-ups," he said.

"If you're trying to solve a problem, there's a chance that somebody else has already tried to solve it before you.

"I think for a lot of it we have to push the cart uphill ourselves a little bit, but I think there's great opportunity for us."

Brendan Yell spoke to 1233 ABC Newcastle's Aaron Kearney.