NORTH WEST manufacturing is to get an extra £7.4million Government cash from the new Regional Innovation Fund.

The fund aims to help firms follow the example of the region's most successful manufacturers who are committed to innovation, training and identifying new markets.

Trade and Industry Secretary Stephen Byers announced the £54million nationwide boost and said the cash highlighted manufacturing's position as the economy's most dynamic sector.

He said: "Manufacturing is vital to our ability to compete in the future and a vital part of our wealth creation process."

Instead of being sliced into equal parts for the nine regions like most Department of Trade and Industry money, the cash has been allocated on the basis of each region's economy and unemployment rates.

The three Northern regions have been given the most, while the well-off South East has been given the least at only £3.2million.

Mr Byers said: "The Government is determined to tackle the economic inequalities which exist both within and between different regions. The fund will target support where it matters most."