Johnson Sustainable Seafoods invested heavily in developing cod farming, with no guarantee of success, but now distributes its "No Catch - Just Cod" organic farmed cod to outlets across the country, including Tesco and Sainsbury's. Sales increased by 75 per cent in the three months to September, giving the business increased revenue of just under £1 million this year alone.

Announcing that the Shetland company had secured his organisation's annual Innovation Award, Fusion acting chief executive Bruce Morrison said Johnson's initiative was particularly relevant in the light of the latest dire predictions about dwindling numbers of wild fish.

"What impressed the judges was the fact that this was a world first, allowing the consumer demand for cod to be met without further depleting rapidly diminishing wild stocks,” Dr Morrison explained.

"Although Johnson Seafarms had been farming salmon for over 20 years, cod-farming requires completely different techniques.

Introducing a new food category to the market is an extremely risky business, and Johnsons invested enormous sums in R&D and due diligence to ensure its success.

"It is extremely encouraging to see a business in a traditional Highland sector leading the world in innovation and reaping the benefits in this way."

The award, which is sponsored by Microsoft, was presented at the Aviemore Highland Resort in front of the 129 delegates at Fusion's annual conference.

Dr Morrison was delighted by the number and variety of entries. "This is the third year we've run this award and we've never before seen such strong levels of interest,” he said. "Not only did the number of entries far exceed those in previous years, but the quality of all of them was absolutely superb.

Melanie Flaws of Johnson Sustainable Seafoods receives the Innovation Award from Fusion chairman Douglas Mundie.

"It was interesting to see environmental concerns reflected in a number of the innovations, including a storm protection system by Rockfield Developments (Scotland), a more environmentally-friendly valley trough product range by Hambleside Danelaw of Inverness' Dalcross Industrial Estate, and a highly efficient yet sustainable power supply system by Rock Energy."

Entries from the IT sector included a whole new business model for Plexus Media of Cromarty, which has introduced the SpangleFish free website system; an interactive feedback system using mobile phone technology from Interactive Display Systems and the creation of specialised solutions for education and niche markets by Skye's Canan Ltd.

There were also two contenders from the brewing sector - the Institute of Agronomy at Orkney College UHI had teamed up with Valhalla Brewery Ltd to create a beer from bere barley, an old variety particularly suited to the low input agricultural systems favoured by many growers in the Highlands and Islands; and the Isle of Skye Brewing Company had significantly increased the market for its products by creating a half-size cask for its ales, thereby overcoming the wastage caused by ale with a short shelf life only being available in full-sized casks.

"What impressed us about so many of these entries was that the innovation involved related to such a variety of different business factors and was not just about technology,” Dr Morrison said. "Many of the entrants had seen their sales figures soar as a result of their innovations."

Keynote speakers at the conference, which took place at the Aviemore Highland Resort last Thursday and Friday, were Michelle Mone, founder of the Ultimo Bra Company, and technology entrepreneur Michael Grandinetti from the Massachusetts Institute of Technology in Boston.

Event sponsors included Highlands & Islands Enterprise, UHI Millennium Institute, Horizon Scotland and Harper Macleod.

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