THREE companies created by University of Durham academics have moved into a business incubator unit that is poised to become the heart of a new technology community in the region.

The companies are the first research-led businesses to move into the NetPark business site, in Sedgefield, County Durham.

The companies will have support to help them establish and grow.

Durham Scientific Crystals, Farfield Photonics and i2B, all companies developing technology, have moved into the units.

Farfield was awarded a £200,000 Government research grant to develop a laser for communications and medical equipment.

Managing director Sarfraz Mian said: "The achievement of our research and development grant and our move to NetPark has given our business a flying start to 2005. We are expecting the combination of NetPark's enhanced facilities and support services and the proximity to on and off-site research activity to help our development project to succeed."

NetPark's research institute is home to two research projects in astronomical instrumentation and digital enterprise technologies. The projects became NetPark's first research tenants in October.

The number of companies created in universities is expected to increase sharply this year, following a move by the Chancellor at the end of last year to remove a tax liability on spin-outs.

Professor John Anstee, scientific director at NetPark, said: "Our new incubator facility has arrived at just the right time."