THE creation of an investment company for the Birmingham/Worcester-shire technology corridor moved a step nearer this week.

The corridor is aimed at developing high-tech industries in the line linking Malvern, home of QinetiQ and the Science Park, with the universities of the Birmingham area.

Worcestershire County Council has been working closely with Malvern Hills District Council, other local authorities and chambers of commerce over its establishment.

The investment company would help provide sites and funding for advanced technology companies and attract further private capital into the project, the county council's economic development and regeneration committee heard on Monday.

The council's cabinet will be asked to approve final detailed proposals at its meeting on February 7.

Geoff Palmer, Worcester-shire's principal economic development officer, said that if all went well it was hoped to have the company established by April 1.

The technology corridor is one of a series of initiatives aimed at diversifying the economy of the West Midlands. It arose from the Rover Task Force, which was established following the decision by German car giant BMW in 2000 to break up the Rover group it had earlier purchased.