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Cardiff Council has backed an innovation centre for the city and extended its funding for the Cardiff & Co city promotion company.

The Cardiff Innovation Centre will be based on the site of the Cardiff Business Technology Centre.

The council has committed £5m towards the project, with Cardiff University providing the land on which the centre will be developed.

Further funding may be available through the European Structural Funds. The council said it will speakto the Welsh Government and consider private sector involvement to make up the remaining funding shortfall.

The aim of the centre is to develop a joint approach to innovation across the city, increasing the number of graduate start-up companies and young businesses with high-growth potential.

Professor Hywel Thomas, Cardiff University's pro vice-chancellor, said: "The university is highly excited about the prospects for the innovation centre. We are fostering a culture of entrepreneurship and enterprise among our students and staff, and the centre will provide the ideal environment where their ideas can take flight."

In a separate move, Cardiff Council has extended its support for marketing company Cardiff & Co for a further year. Last year the council asked the company for a five-year business plan and committed funding against the first three years of that plan.

A year into the arrangement, the council has added a further year’s funding. It will provide at least £500,000 for the next three years. The previous arrangement was for around £300,000 a year. Cardiff & Co will now update its five-year plan.

The increased commitment from Cardiff Council will cover a £250,000 contribution from the Cardiff Harbour Authority, which comes to an end next year.