Google said today it has awarded a $2.7 million grant to the International Press Institute (IPI), based in Vienna, to sponsor the “IPI News Innovation Contest,” a project aimed at creating breakthrough ideas in digital news.

Grants will be awarded to non-profit and profit organizations working on digital, including mobile, open-source technology created by journalists and/or for journalists and distributed in the public interest.

“Journalism is an immensely important part of our societies. In the era of the Internet it’s important that innovation in journalism continues to flourish and we’re keen to help encourage that,” said Peter Barron, Google Director of External Relations, Europe, Middle East and Africa.

“We’re very pleased to be working on this project with the IPI, an organization which has a great history of addressing the issues that affect journalism.”

From now until June 1st, the IPI will accept proposals for projects focused on online innovation in journalism, new economic models for news and training in digital reporting.

Google said it is encouraging anyone with innovative ideas, large or small, to apply  for a grant from the IPI.