The University of Sunderland has been awarded the funding from regional development agency One North East and will channel it into its Sunderland Software City programme.

Under the scheme, around 120 existing small firms in the IT sector will be supported in their expansion, while around 40 start-ups will be helped grow in their early stages.

John MacIntyre, dean of applied sciences at the University of Sunderland, explains that a key element of the project is to create a facility dedicated to helping small software firms develop ideas for new products and services.

The scheme will also involve a series of enterprise seminars and workshops to support graduates and academics running fledgling businesses, while an employer engagement programme will help established companies turn research projects into new software products.

Earlier this month, Newcastle Science City launched its innovation machine scheme, which will work to turn new ideas in the north-west’s science sector into viable commercial opportunities.