YORK could lose its technology businesses to America and the Far East if the government does not act, it was claimed today.

A survey by Grant Thornton has revealed only 15 per cent of British technology firms see the UK as a centre for future growth. It says firms believe the US and Far East offer better opportunities for them than the UK.

Will Lifford, partner of Grant Thornton's Leeds office, warned that unless the government offers better incentives to hi-tech companies they could relocate to the US, which is seen to have a better sales culture, entrepreneurial spirit and public acceptance of

innovations.

Mr Lifford said: "The US is particularly popular with biotech companies. This is partly due to its entrepreneurial approach to business and partly due to cultural differences which mean that it takes a more relaxed approach to controversial scientific advances such as GM."

But Anna Rooke, manager of Science City York, said York had a lot to offer hi-tech companies and she had seen no signs of companies based in York wanting to relocate.

She said: "York has an awful lot to offer. We have a hi-tech community which employs 9,000 people in 230 high-tech businesses in biotech, IT and heritage, and the arts industries. That is set to grow by another 15,000 employees by the year 2020."

She said: "The support that we are putting in place through Science City York is to ensure hi-tech companies grow, thrive and prosper in the city now and in the future."

However, she welcomed the idea of the government introducing more incentives for businesses. "There have always been concerns about the incentives that the States can offer companies. Any additional support that the government can offer will be welcomed by hi-tech companies."

Prof Tony Robards, chairman of York Science Park, said he had seen little evidence of businesses wanting to leave York.

He said: "They may be looking at expanding into international markets, but I suspect most are happily settled in York. In fact we are getting companies from America and across the world coming to York."

In the Grant Thornton survey, a third of the technology companies questioned said the US offered the best opportunities while 27 per cent opted for the Far East.

Updated: 09:23 Tuesday, June 03, 2003