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The fund is designed to encourage the exploration of new ways in which digital technologies can connect with wider audiences.

Arts and cultural organisations are asked to work with digital experts to help them understand the potential offered by new technologies and together develop innovative project proposals for submission to this new research fund. The six key areas proposals are invited to explore are:

• User-generated content and social media - harnessing the power of the Internet and social media to reach audiences and to give them a platform for discussion, participation and creativity.
• Distribution - using digital technologies to deliver artistic and cultural experiences and content in new ways.
• Mobile, location and games - developing a new generation of mobile and location-based experiences and services, including games.
• Data and archives - making archives, collections and other data more widely available to other arts and cultural organisations and the general public.
• Resources - using digital technologies to improve the way in which arts and cultural organisations are run, including business efficiency and income generation, and the way in which they collaborate with each other.
• Education and learning - developing interactive education and learning resources for children, teachers, young people, adult learners and arts and cultural sector professionals.

Alan Davey, ACE's chief executive said "How the cultural sectors engage with emerging and existing digital technologies in the next few years will have far reaching effects on our creative, social and economic lives, as artists and audience members. This fund is a golden opportunity for cultural organisations to partner with technical experts, get to grips with the detail, and reap rich rewards".

Culture minister Ed Vaizey welcomed the new collaboration in which funding and expertise are being shared; "Our lives are increasingly defined by how we engage and interact with the world digitally and cultural organisations can’t afford to be left behind" he said.

Organisations that are eligible to apply to the programme include visual and performing arts organisations, cultural organisations in England including arts and cultural archives, literary organisations, museums and galleries, libraries, commercial arts and cultural organisations and creative industry businesses (where the funded activity is self-contained and has a clear benefit to the public).

The deadline for applications to the Digital R&D Fund for Arts and Culture is 2 September 2011.  To find out more and submit an online application visit the NESTA website.