The University of Sunderland has been given £2.9 million to create a minimum of 40 high-tech business jobs to help graduates.

The cash, from regional development agency One North East, is earmarked for the Sunderland Software City (SSC) - a software support programme.

Its goal is to encourage enterprise amongst graduates, as well as the sharing of knowledge and ideas.

It is hoped that the programme will create at least 47 jobs and help 120 businesses in the area, as well as creating at least 40 enterprises.

John MacIntyre, dean of applied sciences at the university, said: "A cornerstone of our project is to stimulate graduate enterprise by creating a 'software hatchery' to provide a dedicated support environment for small businesses to develop ideas.

"Our main objective is to stimulate companies in the region to convert ideas into marketable software products."

One North East's head of European and skills strategy, Lesley Calder, said: "Demand for graduates in computing remains strong and businesses are increasingly reliant on top ICT talent.

"Our support will help Sunderland Software City establish an education sector providing exceptional technical and business expertise and an infrastructure to meet the growing demands of the industry."