THE University of Teesside has been awarded £3.1m to help convert academic excellence into commercial success.

The grant, from the Higher Education Funding Council for England, was one of 124 awards made nationwide that will see more than £185m distributed during the next two years.

The awards from the Higher Education Innovation Fund are the largest given by the Government to support knowledge transfer from universities and colleges, as part of its drive to boost innovation and productivity in the UK.

The scheme is also a major part of the Government's strategy to increase prosperity and provide high-quality jobs.

The grant will help fund the delivery of a knowledge transfer strategy at Teesside, covering a range of services to new and established businesses in Tees Valley.

It will support graduate start-ups and give specialist help for business in areas such as nanotechnology and environmental technologies. It will also fund collaborative activity with other North-East universities.

Areas of particular activity include the growth of the Digital Knowledge centre of excellence, led by Teesside, joint consultancies through the regional Knowledge House programme, and work with Sunderland University on automotive engineering technologies.

Professor Mike Smith, deputy vice-chancellor for research and enterprise at the university, said: "I am delighted that the university's track record and strategy for engaging with business and the wider community have been so strongly endorsed by the funding council.

"We will be using this award - one of the largest available - to bring about a step-change in our business strategy, with a particular focus on commercial development from research and innovation.

"Our role in leading the Digital Knowledge Exchange, with Sunderland as our partner, will be critical in developing new digital media business opportunities in Tees Valley and the wider region."

The University of Sunderland also received funding. It will receive £2m - a significant part of which will be used to develop the university's internationally-renowned Institute for Automotive and Manufacturing Advanced Practice (Amap).