States say the Digital Greenhouse is best run by the private or voluntary sector.
The Digital Greenhouse was set up in 2016 to give startup entrepreneurs and creatives a base and support as they developed a business.
It allows people to rent hot desks and it hosts networking events.
But ten years on, the States believe the service is better being outsourced, and say 'this will mean either the closure of the Digital
Greenhouse or the transition of some or all its services to the private or voluntary sector.'
Deputy Marc Laine, vice-president of the Economic Development committee, says the island's digital and tech innovation sectors have grown independently:
"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 says some services currently offered, or that may be beneficial to the island's tech sector, may need a government grant.
He says the committee is now looking for expressions of interest, or EOI:
"We are going into the EOI process with an open mind because we want to allow innovative proposals to come forward.
The Committee and the Innovate Guernsey Board have been engaging with industry and innovation leaders throughout this term and that gives us confidence that there will be interest from the community in taking this forward."
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