To encourage technology talent in South Wales, the Driver and Vehicle Licensing Agency is in talks with start-ups and universities in the region.
The agency, based in Swansea, is collaborating with local universities, TechHub and the Software Alliance Wales.
The DVLA agency is building several digital online services, including full licence renewal, provisional licence registration and tax disc renewal.
Its digital services are built in-house by its 340 strong IT department in Swansea, and the department is now being seen as an exemplar department for its efforts in providing digital services.
Iain Patterson, director of technology at DVLA said the agency aims to put DVLA technologies into universities, so students can use them for their courses.
The DVLA is also hoping to mentor start-up technology companies in Swansea's new TechHub community.
Iain Patterson said: "Swansea is a great place, it's a great lifestyle and the universities run good courses.
"There are lots of talented people coming out of those universities, wanting to stay in that area and grow their own businesses - but there's no environment for them to do that."
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