A UNIQUE co-operative scheme aimed at forging links between small businesses around the Malvern Hills is being launched later this year.

The "technology ring" project intends to create a network to encourage businesses to cut costs by sharing resources and skills.

The scheme, being set up with £200,000 of Government funding over three years, will be administered from Malvern Hills Science Park.

"People in the ring register their interests or capabilities," said park manager Nigel Shaw. "Then we work the network so that their skills and equipment are made available to the greatest number of people."

Mr Shaw said a similar scheme in Staffordshire for ceramics companies had ben successful, although the Malvern Hills pilot project is the first real example of its kind in the UK. If successful, it will be extended across the West Midlands.

The three sectors that could benefit are food and drink, creative industries and engineering design, and market research is being commissioned to discover which should be selected.

Mr Shaw said: "We would like to make an appreciable difference to one of the sectors fairly quickly."

He said that the network would be completely internet-based, in the hope it could be sustained after the funding runs out. Government funding is only available to help set up and run the network, not to purchase equipment, but those with innovative business ideas may be able to apply for grants from a separate fund.

Mr Shaw said market research should be available by August and that the "ring" could in place before the end of the year.