A WORCESTERSHIRE science park is to receive a £1m grant from a £3m pot set aside to help innovative and high-growth firms develop.

Advantage West Midlands has earmarked the cash for the Malvern Hills Science Park and four other organisations in Birmingham, Warwick and Stoke-on-Trent to create a more diverse business economy for the region.

Earlier this year, Trade and Industry Secretary Stephen Byers announced a £50m Innovative Clusters Fund to enable regional development agencies to support innovative firms.

The cash for the latest round of projects, which include business incubators - start-up units for new businesses - and cluster initiatives to promote new technology, will come directly from the central fund.

With funding of £3.32m for each English region being confirmed for the next two financial years, Advantage West Midlands invited proposals from organisations that planned to create new technologies or who were involved in information communication technology.

Mike Watts, project manager, said the Malvern Hills Science Park would receive £1.05m to build a Regional Technology Exchange.

As well as providing incubator and laboratory facilities, the building will help hi-tech companies benefit from a supportive environment and showcase new ideas.

It is also tipped to increase access to DERA technology and provide a focus for interaction between businesses and a range of support services.

"The future wealth of the region will be based on its ability to exploit new opportunities," added Mr Watts.

"This funding will help existing businesses make use of the opportunities that ICT and other new technology presents.

"It will also support the development of the new type of business that will be needed if we are to be a competitive world class player in the industries of tomorrow."

Twenty-seven bidders applied for the funding.