LOCAL firms are being forced to introduce share incentive schemes to stop the 'brain drain' to internet firms.

Experts say that many traditional industries are struggling to hold on to key staff because of competition from 'dot.com' ventures.

Law firm Garretts say there has been a surge of interest from firms in the region following Gordon Brown's budget measures to encourage businesses to introduce share options.

"The recent boom in the e-commerce sector has provided an even greater incentive for companies in traditional sectors to consider employee share schemes," said Karen Horne, of the Manchester firm.

"The dot.com sector invariably includes the chance for key people to have a share in the future of the business and for many people this is a huge incentive."