A £270 million five-year programme of European investment to boost innovation and the start-up of new businesses in Worcestershire and across the region has been launched.

The European Commission has approved the allocation for the West Midlands up to 2013. It will be invested through the European Regional Development Fund (ERDF).

It is expected the investment will help the region to create more than 10,000 new jobs, support 22,000 businesses and create or attract to the West Midlands a further 2,500 new businesses.

Previous projects in Worcestershire that have benefited from ERDF funding include the Regional Technology Exchange at Malvern Hills Science Park and the repairs to the Severn Valley Railway, which received £750,000 following the floods last summer.

The new programme will focus on reducing unemployment, increasing the productivity of the West Midlands' business base while ensuring economic growth is achieved in a sustainable manner.

Higher education institutions, local authorities, business support providers and representatives of the third sector will all be able to apply for funding to meet agreed priorities. Advantage West Midlands will manage the ERDF programme.

John Edwards, Advantage West Midlands chief executive, said the money will be used to transform the region by tackling industrial dereliction. He said: "Approval of this programme is excellent news for our region.

"We will be working with our partners to ensure we get the best possible return for every pound we spend and help more businesses and create more jobs to achieve greater prosperity for our region."