Flourishing university-linked businesses in York reflect a successful nationwide trend in "spin-off" companies, according to new government figures.

Researchers found that the number of newly-formed companies related to higher education institutions in the UK has risen by 22 per cent.

York Science Park houses dozens of such businesses at its Heslington complex, which is purpose-built to nurture small start-up operations.

Susanne Walker, Biocentre managing director, said the IT Centre, which is due to be completed later this year, was evidence of the park's continuing success.

She said: "National and local economic strategies put universities at the heart of the knowledge-based economy.

"With three key buildings dedicated to supporting small start-up companies, York Science Park and its partners are demonstrating the practical reality of that."

York University spokeswoman Hilary Layton said: "Universities are being encouraged to spin-off more companies and interact more with the business community. That is what we have been doing and intend to continue doing. York Science Park provides a supportive environment for new businesses, especially those coming out of the university."

She said Xceleron, which pioneers the use of nanotechnology in drugs development at the Biocentre, is a good example of successful "spin-off" development at the park.

Updated: 08:40 Monday, March 10, 2003