The East Midlands Development Agency (EMDA) has today announced a £20m fund to support the building of science, innovation, and technology facilities.

The East Midlands Urban Development Fund (EMUDF) will focus on schemes that have stalled in the recession and aims to enhance the region’s innovation, science and technology output.

EMDA has already secured £10m from the European Regional Development Fund, and is putting in £5m of its own money.

The European Regional Development Fund, which under previous rules could only be awarded as a grant, can be now be given in the form of equity, loans or guarantees.

EMDA is the first agency to take advantage of these new rules. EMDA chairman Dr Bryan Jackson said this would allow the agency to generate a greater return on investment for the taxpayer.

“This fund is the first UDF in England that is open for business and is taking advantage of new ERDF flexibilities,” he said. “The model we’ve adopted will also ensure that we create a longer term legacy for the region in the form of an ongoing stream of investment.”

Rosie Winterton, minister for regional economic development, congratulated the region on taking advantage of the new rules.

“This will help create the right environment for innovation, and facilitate much-needed investment in capital development as we move into recovery and look towards future growth,” she said.

“The fund’s focus on innovation, technology and high quality employment space also closely supports the approach set out in the Growth Strategy we launched last month.”

King Sturge has been appointed to manage the fund and  identify development opportunities.