This paper investigates the impact of a major extension to Lancaster University's Management School on the North West regional economy. It differs from earlier university impact studies since the estimated impact is not confined to backward linkage effects but focuses specifically on the forward linkage effects that will occur as a result of greater engagement with firms in the region's SME sector. The paper demonstrates that the expansion of the university sector can have far greater beneficial effects on their regional economies than is indicated by conventional impact studies. Specifically, the provision of business advice to SMEs can be a significant factor in increasing their sales volume.
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