Yorkshire and Humber has moved up the country's economic league table according to the new 2002 edition of Progress in the Region.

The report, which is produced by Yorkshire Futures, the Regional Intelligence Network, provides a major economic, social and environmental analysis of the region.

The first issue of PIR, published last August, underlined the diverse strength of the regional economy.

The latest survey reveals the region has continued to follow a recent pattern of growth in GDP. The most recent data suggests that the gap between the region and the EU and national averages is closing.

It also shows the region is beginning to show improvement in a number of key areas of performance. Firms in the region are increasing their relatively low levels of investment in research and development, with the region moving up the UK table.

The survey revealed that more than £270 million was spent in research and development in the region's ten universities, one of the highest levels in the UK.

The report includes findings from the first reliable regional e-commerce survey to be commissioned, showing 60 per cent of firms have access to the internet, while 51 per cent have their own website - the third highest figure in the UK.

Regional businesses are estimated to spend around £1.55 billion through e-commerce, while making £2.8 billion from sales. Yorkshire and Humber also had the largest proportionate increases in internet access in the country in 1999/2000.

The survey found the region has weathered the impacts of September 11 and foot and mouth comparatively well.

Yorkshire and the Humber was the only region to see the level of new firm formations increase in 2001.

Findings from the report are set to be used to influence the review of the region's blueprint for creating a world-class economy - the Regional Economic Strategy - which takes place this summer.

Graham Hall, chairman of the regional development agency Yorkshire Forward, said: "We set demanding targets three years ago to make Yorkshire and Humber a world-class, prosperous region and analysis such as this by Yorkshire Futures measures our progress.

"It enables us to keep our eye on what needs to be done; how, when and where, if we are to succeed.

"Overall progress is sound and we have every right to describe ourselves as being among Europe's fastest growing regions. But progress is slower in areas such as tackling deprivation and stimulating enterprise; areas we shall address in the review of the region's economic strategy."

Professor John Tarrant, chairman of Yorkshire Universities, said: "This report shows a welcome improvement in Yorkshire & Humber. I'm pleased it recognises the role which the universities and colleges play in regional development."