FUNDING of £2.5m is to be injected into innovation projects in the region during the next year, it was announced yesterday.

The pledge of cash, by regional development agency One NorthEast, came after businesses were told to "innovate or die".

Bob Coxton, chief executive of science and technology company Synetix, believes the area can only grow and compete with other regions and countries if local businesses embrace innovation.

As he made his "call to action" One NorthEast announced it was setting aside £2.5m to inject into innovation projects.

Mr Coxton said: "The only way Tees Valley will prosper is if it innovates, in new products, processes and people."

Speaking at a business launch of Pioneer, the Innovation Management Team of One NorthEast at the Cellnet Riverside Stadium, he said: "Unless we change the way we do things then things are not going to get better and the region's economy will slip further behind."

By working with local business support systems, Pioneer hopes to improve the support for entrepreneurs and forward thinking organisations and also fast track access to the funds available for eligible businesses and projects. Pioneer will be a co-ordinating team responsible for promoting and driving innovation.