ANEW academic year is about to begin for universities and the North East’s 130,000 higher education students will soon transform the pace of life in our cities.

Universities are a major resource, pulling in investment, talent and innovation.

The role of universities in nurturing entrepreneurial students and start-up companies which can make a difference to the regional economy is well-stated and understood by businesses.

But the longer-term benefits of universities, although less often aired, are equally important and it is these that business and education are increasingly working together to protect and cultivate.

The skills and ideas that year-on- year evolve from universities underpin the dynamism of many companies and organisations.

As more employers and employees become aware of universities’ open doors, flexible training and the relevance of higher education to their future confidence, partnerships and take-up from regional companies to universities is growing.

The multiplier effect of higher education on the regional economy is an obvious boost for the North East. Many thousands of students, research staff and lecturers working and living in the region create significant numbers of jobs, revenue and sales for local businesses.

Other financial rewards include the new technologies, start-up companies and research can have important, indirect effects on industry.

A research study into ‘The University and the Creative Economy’ argues that higher education institutions play an important role in the three ‘Ts’ of regional economic development – technology, talent and tolerance.

Although innovative technology and talent retention and attraction are rightly recognised, tolerance is not so widely acknowledged.

Universities attract students and staff from many racial and ethnic backgrounds, of all ages and all social and economic environments. The university culture encourages ideas, diversity and meritocracy.

In essence, universities, like the best businesses, seek to develop talented people and stimulate thought, application and invention. This aspect of universities is pivotal to regional and national momentum.

We are fortunate in having five strong universities in the North East. The role they play in shaping our region and working in its interest during the months and years ahead cannot be understated.

Dr Sonal Minocha is Associate Dean, Faculty of Business and Law at the University of Sunderland