Smith & Nephew, BP Chemicals and Jarvis Rail are among the winners in the first round of the Leeds-based regional development agency's new Industrial Research and Development Award for Large Companies (YFIRD).
Six projects are being supported which, with added investments from the companies themselves, are worth a total of £10m.
They include work to find new ways to treat chronic tissue wounds and the development of light sensitive dyes for use in next generation computers.
The YFIRD is a three-year programme worth £18.5m and the first of its kind in the country.
It was set up to boost research and development spending. Yorkshire and Humber is ranked as one of the lowest of all English regions in terms of the amount it spends in this field.
Crucial
Yorkshire Forward's executive director of business development, Susan Johnson, said: "Investing in R&D across the region is crucial if our companies are to innovate and boost their position in the global marketplace.
"Helping them to be the first to bring new ideas to the market will give these firms and our region that essential innovation edge."
Applicants were asked to show that their research would stimulate growth, strengthen competitiveness and boost jobs in the region.
Mark Wickham, operations director at the Smith & Nephew Research Centre in York, said the grant would help to support and accelerate its work in cell and tissue engineering.
"This is an emerging healthcare technology with huge potential to help people regain their lives."
A total of 25 applications were received for the first round of the award which, following assessment by an external panel of experts, led to 18 full proposals. A second round of judging resulted in the winning projects.