A MAJOR development of Malvern Hills Science Park could see a further £18.5m pumped into supporting hi-tech companies in the district.

Proposals for phases 3,4 and 5 at the park are being examined even as work on phase 2 is under way.

Meanwhile a £1.8m Regional Technology Exchange is due for completion in October and expected to add a further 50 jobs.

Wendy Jackson, economic development officer at Malvern Hills District Council, said progress on further phases depended on what grant money could be raised.

Phase 3 envisages accommodation being provided for companies which establish themselves in the phase 1 innovation centre and then need more space to grow.

Phase 4 is for the establishment of an MHSP-based Enterprise Fund to support entrepreneurial companies and help them prepare a case for venture capital funding.

Phase 5 is the biggest, a £15m project to provide still more accommodation for companies, possibly taking in the area currently occupied by the neighbour DERA "U" building.

A bid may be made after Easter for European money to support Phase 3 and possibly Phase 4 plans, and further bids could be made for Government funds next year.

Meanwhile, the neighbouring Defence Evaluation and Research Agency could have a key role to play in the future prosperity of the West Midlands, says a new report.

DERA forms one end of the "A38 corridor", which is identified in the report as a possible route to regenerating the regional economy.

The report, by Cambridge-based consultants SQW, was commissioned by the Rover Task Force, set up last year in the wake of BMW's decision to break up the Rover group.

DERA, along with Birmingham and Aston universities, is one of the major intellectual players in the region.

The report suggests drawing on DERA's expertise and building links with the universities, to build up hi-tech industries in the corridor between Malvern and Birmingham.