JOB creation in Worcestershire has been given a major boost with a multi-million pound drive to develop a network of "business clusters" in the region.

Regional development agency, Advantage West Midlands (AWM), has unveiled a further £56 million investment over the next three years for clusters to help regional industries to exploit markets and create jobs.

The clusters will focus more on specific markets and on growing and maintaining a share in markets where the region can generate significant wealth over the long term.

The major announcement was made at AWM's Cluster Conference 2008, where 120 delegates were told how businesses have prospered from working on cluster programmes for benefits ranging from technology transfer and skills development to product innovation and overseas trade.

The newly launched AWM cluster programme for 2008-11, presented to a public and private sector gathering at the conference at University of Warwick, fits within the West Midlands Economic Strategy (WMES), launched last December, which highlights the challenge of "developing markets and sectors with the most wealth and employment potential".

Business clusters considered as priorities for the West Midlands, based on their strength and their potential to create lasting wealth and employment, are in aerospace, automotive, building technologies, business and professional services, environmental technologies, food and drink, interiors and lifestyle, Information Communication Technology (ICT), manufacturing, medical technologies, rail, screen image and sound and tourism and leisure.

The West Midlands' aerospace industry, working together with the Midlands Aerospace Alliance, is often highlighted as a good example of how businesses can exploit opportunities to generate jobs and prosper by clustering together.

Where businesses cross-cluster, there is often innovation, competitiveness, sustainable economic growth and employment beyond a level that could be achieved by individual organisations.

Mick Laverty, chief executive of AWM, said: "The objective of clusters is to grow regional industries to exploit attractive markets where the region has existing or potential strengths. Clusters encourage businesses to work together to achieve this.

"Achievements have been numerous and across a broad spectrum. They include an impressive regional order book for innovative wind turbine generators, a new serious games institute, demonstrators for assistive living housing, a regional lead role on the national low carbon vehicle platform, SMEs working on public buildings to develop products to reduce climate change, marketing consortia in furnishing and interiors and a new advanced materials company already fulfilling commercial orders.

"This has created a set of networks on which clustering can build, whether links between businesses, relationships with university departments or network organisations playing a catalytic role within their sectors.

"At any one time, around 3,000 businesses have been actively collaborating in these initiatives. The cluster opportunity groups (COGs), alone, have some 150 participating businesses, which have overseen the development of the new cluster plans for 2008-11."

The COGs will now take on the role of influencing public skills initiatives and business support services and bring together businesses and the public sector in special "market focus groups" to pursue opportunities which can have a regional impact beyond any one cluster.

Initial market focus groups will develop cross-cluster opportunities in "homes for health" (assistive living), low emissions vehicles and low carbon housing.