A new enterprise agency will be set up in the south of Scotland aimed at meeting the region's "distinctive economic needs", the Economy Secretary has said.

The agency is one of a number of measures contained in the final report from an enterprise and skills review.

Other plans include piloting a £500,000 college innovation fund to support Scotland's colleges to work with businesses on innovation, and better co-ordination of international activity to boost trade and investment.

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A strategic board will also be set up in autumn 2017, guiding the overall direction of the enterprise and skills agencies.

Keith Brown launched the report during a visit to south of Scotland business Kite Power Systems, a company that has secured £7 million for its innovative approach to harnessing wind energy.

He said: "This report shows how we can transform the performance of our economy and enable more businesses to deliver strong, vibrant and inclusive growth at scale.

"From better co-ordination of our international activity to ensuring young people are equipped with the skills they need to succeed, this review has delivered a package of reforms that will drive change across the country.

"We have recognised the importance of providing dedicated support to the south of Scotland in the same way we currently do for the Highlands and Islands.

"A new agency will be established to meet the distinctive economic needs of communities in the south of Scotland.

"The fundamentals of Scotland's economy are strong and - as this report confirms - we are doing all that we can to build upon these further."

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Susan Love of the Federation of Small Businesses said: "It might seem like a statement of the obvious, but our enterprise and skills agencies must design their operations around the needs of the country's business community.

"Today's recommendations bring us a step closer to making that actually happen."

Scottish Conservative Dumfriesshire MSP Oliver Mundell welcomed the new agency - which was also a Tory manifesto commitment.

"This will be the most significant economic change for the region since devolution," he said.

"I am particularly pleased that the new enterprise agency will seek to replicate the work of the Highlands and Islands Enterprise agency with local representation on the board and I look forward to seeing how this will be rolled out."

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Scottish Labour's economy spokeswoman Jackie Baillie said: "We welcome the final report of the Enterprise and Skills Review.

"Too often the SNP has made much trumpeted announcements but failed to deliver.

"Scottish Labour will continue to carefully monitor these reforms, which have been dogged by inconsistency and indecision."

MSPs previously demanded the Scottish Government allowed Highlands and Islands Enterprise (HIE) to retain its own board as part of the review, with ministers eventually abandoning plans for one national board for Scotland's enterprise agencies.

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Shetland Lib Dem MSP Tavish Scott said concerns remain over the role of a national strategic board to guide overall direction.

"While campaigners have won a hard-fought campaign to pull in the worst of the Scottish Government's ill-judged proposals, they, like me, will not hesitate in bringing this issue back to Holyrood if HIE does indeed find its hands tied behind its back as a result of the Government's reforms," he said.