New Delhi, Dec 20 (IANS): The United States Agency for International Development (USAID) and the Federation of Indian Chambers of Commerce and Industry (FICCI) Tuesday signed an agreement to set up an institution that would support innovation in India and elsewhere in the world.

The two organisations have pledged $7.5 million each for setting up the "Millennium Alliance: an India-US Innovation Partnership for Global Development", which will promote innovation in sectors such as health, food security, climate change, energy and education.

"USAID and FICCI both will contribute $7.5 million each to the platform and work to raise up to $50 million within the next 12 months," Rajiv Shah, administrator, USAID, said after signing of the agreement here.

Shah said the new alliance would welcome "academics, entrepreneurs, non-government organisations and private sector players to discover scalable answers to some of the subcontinent's greatest challenges".

FICCI Secretary General Rajiv Kumar said the alliance would raise money through donations and contributions from corporations, foundations and other governments.

"This is a path breaking approach to fostering a new paradigm of partnership between US and India that promotes innovations for the benefit of the people in both India and other developing economies," said Kumar.