AT THIS time of year, we often take the opportunity to look back at what has happened during the last 12 months and then contemplate the possibilities for the coming year. So how does it all look for York knowledge-based businesses?

Last year was interesting and exciting in many respects.

The University of York goes from strength to strength. Its planning application for Heslington East was approved in outline by the city council but now awaits the public inquiry.

This most important development will help to maintain and strengthen its position as a leading UK university and one that is climbing steadily into the top league of world universities.

Its continuing contribution to the strength of the city's economy, both directly and indirectly, cannot be overestimated.

It was also good to see the hard work of Professor Dianne Willcocks and her staff at York St John College rewarded with the conferment of degree awarding powers, so augmenting the overall standing and provision of higher education in York, including through the York higher consortium of the University, York St John College, York College, and Askham Bryan College.

These four institutions all have a significant contribution to make towards the business life of the city, whether through the provision of research and exploitation opportunities and/or through education and training so that we have a work force appropriate to our future needs.

Science City York has taken a lead among the six UK science cities announced by Gordon Brown, the Chancellor of the Exchequer, an initiative that promises potentially significant developments in the coming year.

York's Science City achievements, now with more than 250 companies, are widely admired nationally and plans to enhance and accelerate this key activity still further are under active discussion.

At the moment, York itself has relatively low unemployment and a pretty buoyant economy, and this despite some disappointing set-backs, including the closure of Terry's.

But it would be foolish to be lulled into a sense of complacency, thinking that future prosperity will continue no matter what. There are significant hurdles ahead: some general, some more specific.

Property development and access for business use continues to be crucial but it is slow, oh so slow! The university must wait for the public inquiry for its major new campus extension. York Central, that potentially outstanding development adjacent to the railway station, seems always to be just around the corner but will it ever arrive?

With the exception of the Vangard site at Monks Cross, where building is still to be started, there is little other available, high-quality, business space for which planning approval has already been granted.

The position is exacerbated by the single carriageway road to the north, running past most of the currently important business sites, while the southern bypass, with its dual carriageway, goes through green fields!

An objective observer would wonder how we ever managed to get into this position, and many of our competitors, nationally and internationally, are doing better.

This year's tasks must surely be to build on the commercial success York has already achieved but the going will get tougher and the competition fiercer.

Both locally and nationally, the integration of economic development, planning, roads and transport is a mess, a real mess! Is it just possible that 2006 could see stronger steps taken to determine the requirements for maintaining and enhancing economic development, and then better matching these with a commitment to providing the infrastructure and support facilities that will allow it to happen?

Time is not on our side and many businesses elsewhere around the world are better serve, and therefore more competitive.

Updated: 11:03 Wednesday, January 04, 2006