DEVON'S prosperity depends on more young people studying maths, science and engineering, says an expert on the regional economy.

Juliet Williams, chairman of the South West Regional Development Agency, was speaking at yesterday's Weathering the Storm conference held by Devon County Council. The event focused on how the recession is affecting the county.

Devon businesspeople heard the council outline the ways in which it planned to help local people and firms through the stormy financial times.

The conference saw the launch of Money Matters, a booklet which is to be sent to every household in Exeter to help residents maximise their income and survive the economic downturn.

Delegates heard from business organisations about what measures could be introduced to support Devon's economy. Ms Williams said: "We are trying to understand what is going on in the market place and gather intelligence. Businesses should be doing their own economic health checks.

"One of the things that always comes out is that it is difficult to find people who are skilled.

"We have realised the importance of manufacturing in this region and making sure that the workforce is skilled and fit for purpose.

"We need to encourage mathematics and science students to continue their studies into higher education. We can't afford to lose them to popular subjects like media studies.

"Engineering and physical sciences are a critical area of our economy going forward. Therefore, we have to be equipped.

"It's important to be creative and inventive, but unless there is a market they will not become part of the economic cycle.

"We must respect innovation, manage change and allow things to blossom."

Professor Steve Smith, vice-chancellor of Exeter University, outlined how the university's ambitious plans for expansion would benefit the local economy.

He said: "We hope to build a better climate for business and build confidence in the region.

"Applications and international admissions for the university are up on last year and the only limitation is the lack of halls of residence."

As a result, Exeter would be one of only five universities in the country not processing applications from students who failed to get in elsewhere.

Every student spends an average of £5,000 a year in the city. The annual contribution to the economy is £314m a year.

Prof Smith said that the university felt it had a "moral responsibility" to support the county's economy through its ongoing programme of investment, including the expansion of its business school.

"Companies that don't last after recession are companies that did not invest in it," he said.

Visit www.devon.gov. uk/weatheringthestorm or call 01392 382091 for further information about the issues debated at Weathering the Storm.