Google and Sun Microsystems are to share technologies and distribute each other's systems around the world.

Under the terms of the agreement announced last night, Sun will include the Google Toolbar as an option in its downloads of the Java Runtime Environment, and discuss ways of promoting and enhancing the OpenOffice.org system.

Network innovation is vital to the evolution of the global economy, says Sun chief executive, Scott McNealy.

'This is a big deal, and it is very exciting. Working with Google will make our technologies available more broadly, increase options for users, lower barriers and expand participation worldwide,' he said.

Google chief executive Eric Schmidt, a Sun employee for 14 years, says he is looking forward to finding more ways of collaborating with Sun.

'We want to continue our broad endorsement of open source, and help Sun in numerous ways to make that happen,' he said.