The University of York's co-operation with other universities in Yorkshire is helping to boost the UK economy, according to a new report which has attracted praise for the region from government ministers.

The Higher Education - Business and Community Interaction Survey 2002-03 shows that there has been a general "step-change" in the way universities and higher education colleges transfer knowledge in engaging with business, the public sector and the wider community.

But in Yorkshire the ability to turn ideas into business opportunities is becoming increasingly refined, with an increase in the number of spin-out ventures.

Already York has been identified with Manchester and Newcastle as one of three Science Cities on whom Chancellor Gordon Brown is prepared to lavish £100 million worth of technology investment.

Science City York, the partnership between City of York Council, the university and private industry, already boasts huge successes for the city's economy.

Bioscience, IT and digital and creative technologies account for more than 7,000 jobs. Last year, nearly 500 jobs were created in science and technology alone in York.

The report also finds that in Yorkshire, university income generated by business consultancy was up 14 per cent to more than £6.5 million and the number of successful patent applications rose by 240 per cent to 17.

Welcoming the report, Science Minister Lord Sainsbury said: "Universities and business in Yorkshire and the Humber are working together better than ever before, boosting both the local and UK economy.

"The pioneering work of British scientists is directly contributing to business success, creating wealth and jobs. This fourth year-on-year increase in knowledge transfer shows that the Government is delivering on its vision to see more products invented, developed and made in Britain."

Kim Howells, higher education minister said: "Universities have a key role to play in stimulating local enterprise and regenerating regions through their innovative work.

"The results of the survey show that they are continuing to boost UK productivity."

Professor Tony Robards, the university's executive on the Science City board, described the report as "extremely encouraging".

He said: "It reinforces the identification of York as one of the three Science Cities and it is further evidence of support for the burgeoning development for technology and knowledge-based businesses and of the work of Science City, Business Link and other support organisations."

Updated: 12:09 Wednesday, February 09, 2005