A manufacturing leader has welcomed Government plans to enable universities to drive local growth plans and support entrepreneurship and innovation.

Andy Tuscher, Northern regional director of manufacturers’ organisation EEF described the plans for university enterprise zones as “a great idea”.

Universities are being invited to bid for a share of a £15 million scheme to encourage students to create the Yahoos and Microsofts of the future. University enterprise zones will provide funding to locations across England.

Launching the scheme, David Cameron said it would boost the economy by giving universities the tools to “be even better at cultivating the seeds of growth as well as knowledge”.

Andy Tuscher said: “Piloting university enterprise zones to make it easier for small companies and start-ups to work with universities is a great idea . Many smaller firms already work with universities to overcome barriers to innovation such as a lack of access to equipment, expertise and facilities but this is not always straightforward.

“University enterprise zones are a positive step to address this but we now need to see the Government’s response to the Witty Review (into the role of universities) to get the full picture.”

A contest will be held in the new year to select the pilot zones.