The Department of Trade and Industry is handing out cash totalling £5.4m to British companies involved in the Eureka project, which encourages collaboration between businesses, universities and research institutions across Europe.

Among the beneficiaries are Medea+ Pocket Multimedia, which is developing applications for 3G mobile phones and pocket PCs. It is currently working on new display technologies for such devices.

Other members of the Eureka project are Sum, a company developing an electronic commerce 'super market system', and GlobalFilm which is initiating a nine-month study into the future use of film in the new age of digital cameras. Eureka member Sarsys BWP?s project aims to develop procedures to test compliance of body-mounted, wearable and portable telecommunications equipment. Finally there?s Damage which is working to help animators share material globally.

Announcing the grants, Lord Sainsbury said: "Innovation and investment in R&D are vital for the creation of jobs and long-term prosperity. It is crucial for UK businesses that new ideas make it beyond the drawing board stage.?

For more information on the Eureka project visit the DTI's website