COMPANIES in the region are being urged to apply for funding for innovative projects.

More than 23 small and medium sized enterprises (SMEs) have already received grants from Pioneer, One NorthEast's regional innovation management team, but a further £100,000 will be available until March.

After that, the scheme, which began last autumn, is to expand to offer £1m a year.

Grants of up to £5,000 are available to cover up to 50 per cent of a project's cost, and can be given for creating innovative personnel cultures and environments, systems and techniques for innovation, and supporting new products. With the increased funding, the maximum grants will rise to at least £30,000.

Ed Brown, head of Pioneer, said: "Innovation is the key to a more competitive economy, and is required in many different forms and areas.

"We hope companies will approach their local Business Link to grab the opportunity."

Contact Business Link branches in Tyne and Wear, on 0191-516 6019, County Durham, on 0191-374 4000, Northumberland on (01670) 813322, or Tees Valley on (01642) 806666.