Technology giant Pace Microtechnology has started a cutting-edge research project to speed up internet connections after it won funding from Yorkshire Forward.

Cash from the regeneration body's industrial research and development awards scheme for large companies, aims to accelerate new development and stimulate growth in the district's economy.

Pace chief technologist Steve Jenkins said the funding would allow the Saltaire-based company to push forward advanced-stage research into how internet connections could be made faster.

He said: "The idea is that we use the funding, which has been match-funded by Pace, to do something that is very forward looking.

"The award will fund research which would normally be a little bit risky and hopefully produce more business for the region and more profits for Pace."

Pace will use the cash to develop its Multi-Dweller system.

The state-of-the-art technology will allow householders around the world to receive personal video services and high-definition internet and computer access without the need for expensive re-wiring.

In layman's terms, it will help transform the digital TV industry by allowing the latest technology to be fed through copper wires already laid for cable TV use.

Mr Jenkins added: "As operators begin offering more advanced digital TV services to their customers, so the difficulties in reaching people become more and more obvious.

"Personal video recorder services are a part of nearly every business operator's plan, but can be difficult and complex, thanks to the additional cabling that is required.

"Likewise, the take-up of high definition channels is expected to be a big draw for consumers over the next few years, especially across Europe.

"The bandwidths required to deliver a high definition service, however, mean that operators are having to reassess how they reach customers as existing infrastructures are unlikely to be able to cope with the extra demands that will be placed on them.

"Pace Multi-Dweller will enable operators to reach customers without expensive rewiring and installation costs, as well as enable them to offer the latest developments in TV enjoyment to all their customers."

Pace is known worldwide for its TV entertainment set-top boxes.

This latest development will take the firm in a new direction.

"We are always looking at how to produce more revenue and enter new markets," said Mr Jenkins.

"There is such a need for this and a clear market for the future. The tricky bit is finding out how to satisfy the market need."

Yorkshire Forward would not disclose how much funding Pace has received to develop the project, but a spokesman described it as a "significant" sum.

Pace is one of six large companies from the region who will share a £4 million funding pie from the regeneration body.

A company spokesman said job opportunities would arise at the firm's Saltaire base as the project developed.

Pace employs 500 people at its Saltaire headquarters and has further offices in the USA, Hong Kong, Germany and France.