RICHARD Caborn, Minister of State for the Department of Trade and Industry, last night launched the North of England Inward Investment Agency.

It aims to attract more US investment into an area that has a higher gross domestic product (GDP) than that of 15 European Countries.

The North of England's three Regional Development Agencies, One NorthEast, Yorkshire Forward and the Northwest Development Agency, have joined forces to attract US companies seeking a base for Pan-European operations, showcasing the business benefits of the North of England.

World-class research and development, access to more than six million highly-trained staff and one of the fastest and most comprehensive transport networks in the UK, have helped to attract more than 2,000 US companies, making the US the biggest single foreign investor to the North.

The venture will create a clearer sense of identity for the North in the important American market, with a network of offices in Boston, Chicago, Atlanta and on the West coast.

One NorthEast is keen to build on previous success which has attracted US companies such as Procter and Gamble, Huntsman, EDS, Merck Sharp and Dohme and Atmel to locations across Tyne and Wear, the Tees Valley, Durham and Northumberland.

One NorthEast chairman Dr John Bridge said: "We have recognised the need to club together to put more weight and substance behind the promotion of the North of England as a whole.

"Yorkshire, the North-West and the North-East each have their own individual strengths and attributes which are attractive to potential inward investors from North America.

"This joint approach to raising our profile with key business audiences will provide a focus on the North as a whole and will undoubtedly highlight the excellent infrastructure, workforce and quality of life on offer in the North East."

The former Chief Executive of Bio Sci North in Newcastle, Robert McKenzie, has been appointed to head the joint venture.

He has extensive experience of inward investment and the US markets in particular.

l The North of England covers an area of 15,000sq miles, making it twice the size of the state of Maine, and has 22 universities within its borders, from which 100,000 students graduate each year.

Business and education in the region have a strong tradition of collaboration, which has given rise to centres of excellence concentrating on training, research and development in a variety of industries.

The North also boasts a large pool of foreign language speakers, making it a sound base from which US companies can operate in the European market