Hawick Cashmere took part in the pilot for the textiles scheme

The region has been hit by a string of cutbacks in recent times - often blamed on overseas competition.

The Textiles Lab initiative hopes to get Scottish companies to work together in order to develop new products and increase their business.

It follows a �15,000 pilot project which ended up producing more than �100,000 investment in the sector.

Scottish Textiles Team Manager at Scottish Enterprise, Kirsty Scott, said the scheme could be vital in keeping Scotland ahead of its competitors.

Borders firms Hawick Cashmere and Simply Cashmere were two firms involved in the pilot scheme.

Design opportunities

It enabled Hawick Cashmere to work with leading Japanese designer Masayo Urano.

Managing director of Hawick Cashmere, Jim Thomson, said the scheme had been very useful.

"Textiles Lab helped us to look at the opportunities for design and innovation using whole garment technology," he said.

Mr Thomson said that working with a Japanese designer had helped to eliminate many "design glitches" they had previously experienced.

Scottish Enterprise Borders Chief Executive David Gass said the project could take some pressure off local firms.