University business schools could bring even more money to regional economies than previously indicated, according to a new study.
The research by Lancaster University Management School (LUMS), estimates that income in the North West will increase by £3.6m per year as a direct result of the university’s Lancaster Leadership Centre expansion.
It’s thought the advice such centres can offer to local small to medium businesses can single-handedly significantly boost regional business by increasing sales volume.
Previous studies into the economic impact that university business schools could have on the local economy focused on their role in generating income and jobs through their own and their students’ expenditure in the region.
According to such reports, the expansion of LUMS was estimated to bring an extra £2.1m per annum into the North West.
However, the new report also measures the wider effects on the business community resulting from an increase in the university’s engagement with regional businesses.
It revealed that the expansion would result in 60 additional firms being assisted per year, a relationship that would create an increase in the region’s income of around £1.3m per year.
The extra graduates expected to stay in the area are also expected to bring an additional £1.5m into the local economy.
Co-report author Prof Jim Taylor, from Lancaster University Management School, said: “Universities are vital to the growth of regional economies because of their impact on the competitiveness of regional business. Our study shows that carefully targeted funding of investment by Regional Development Agencies can generate substantial benefits for the small to medium business sector.”
