Sussex could provide a model for other regions looking to promote links between education and business.
A TUC report warned the Government's £1.25 billion science strategy would fail unless scientific know-how was spread to businesses throughout the UK.
Mike Herd, executive director of the Sussex Innovation Centre (Sinc), said the county was leading the way on such initiatives.
He said: "Sussex has long recognised the economic potential of more active links between universities and business and, through the original public investment in Sinc by Brighton and Hove City Council, East Sussex County Council, the University of Sussex and Seeboard, we have a centre in Brighton that is recognised throughout the UK as example of best practice in this area.
"More than one-third of Sinc companies have direct research links with the university and there are many more academic spin-outs in the pipeline.
"There is certainly more to do to realise all the potential but in Sussex we are certainly taking a lead."
The report, produced with the Work Foundation research group, called on the Government to follow the United States and European countries in developing regional networks of technology transfer, based around the regional development agencies and devolved assemblies.
Relationships between scientists, universities and businesses were best conducted at a regional level.
In the US, where productivity is 45 per cent higher than the UK, centres of cutting-edge research such as California's Silicon Valley and the Massachusetts Institute of Technology are linked to local venture capital funds to spread the benefits of their discoveries.
In Germany, similar arrangements have allowed eastern provinces to make up ground on their richer western neighbours in the decade since reunification and kept the country's productivity 11 per cent ahead of Britain's.
TUC general secretary John Monks said: "This is the key area for the next stage of the UK's innovation policy.
"We cannot import wholesale a system from abroad but we do need to be looking to the rest of Europe and the States for successful regional networks."
Sinc is nearing completion of the construction of its phase 2 extension which will double its capacity for new companies.
The University of Sussex has been given government funding for a new commercialisation company called Sussex IP, which is manag-
ing a programme of research licensing and spin-out companies.
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