Innovation centres based in world-class universities and college-based technology institutes were unveiled this week as part of the government's white paper on enterprise, skills and innovation.
Both initiatives are part of the government's new regional policy and were unveiled by trade and industry secretary Stephen Byers and education secretary David Blunkett.
Some £75 million will be spent on 20 innovation centres - £30 million from the Department of Trade and Industry and £45 million from private sector partners.
Mr Byers said: "University innovation centres are a new development that will act as hubs for enterprise."
Five centres were announced this week, based at the universities of Durham and Newcastle, Manchester, Bristol, Warwick and Sheffield. Commercial partners include Proctor & Gamble, Astra Zeneca, Hewlett Packard and the Boeing Group. A further 15 centres will be established in the future.
The 18 college-based technology institutes will provide specialist learning programmes and will be based on partnerships between universities and colleges and local businesses.
Mr Blunkett said: "We are asking colleges, universities and regional development agencies to come forward with suggestions as to where they may be located. We are putting £25 million pump-priming funding into this."
Baroness Warwick, chief executive of Universities UK, said that the white paper recognised the "contribution made by university research... to stimulating wealth creation and skills development".
The white paper also allocated extra money in three areas identified as priorities in November's science budget: post genomics, basic technology and e-science.
- The government has announced a five-year review of the research councils. It will consider whether funding strategies meet the needs of the science community.