The 'Oxford phenomenon' could be exported to the rest of Britain, if ambitious expansion plans by Oxford Innovation come to fruit.

The company, which provides premises for hi-tech start-ups, is to merge with Cambridge-based consultants SQW, which in 1985 produced a ground-breaking report on the 'Cambridge Phenomenon', describing how economic prosperity was created by the commercialisation of scientific research.

The merged group, with more than 150 employees in six locations across the UK, is preparing for a stockmarket flotation in two to three years to raise money to expand.

The group expects to take on about 30 more staff this year, of whom about 10-12 will be based in Oxfordshire.

Its latest project is a new innovation centre near the former Orgreave Colliery in Sheffield to encourage hi-tech start-ups, creating jobs in an area where hundreds of miners have been made redundant since the 1980s.

Oxford Innovation is a spin-off from the charity The Oxford Trust, set by by Sir Martin and Lady Audrey Wood to promote science and technology.

It runs eight innovation centres in Oxfordshire and four elsewhere, providing homes for 350 fast-growth technology companies. It also runs investment networks.

Ian Laing, an Oxford-based property entrepreneur and business angel investor, becomes the new group chairman. He said: "This merger brings together two successful companies with complementary skills and shared values.

"The merger had the unanimous backing of both sets of shareholders and will enable the group company to scale up its operations, as its geographical coverage expands."

Oxford Innovation chief executive Dr David Kingham becomes chief operating officer of Innovation Services, which will continue to be based at Mill Street in Osney, Oxford.

He said: "The merger won't fundamentally change the things we do, but it will change the scale on which we are able to do them.

"SQW's network of offices provides a springboard to market our innovation services and develop new innovation centres in regions beyond the South East."

SQW does economic development and management consultancy for councils and Government bodies on urban and rural regeneration; science policy, innovation and business development; skills development and social inclusion policies; and public service performance.

Named after the firm's founders Nick Segal, Roger Quince and Bill Wicksteed it has offices in Edinburgh, Leeds, London and Manchester.

Mr Green said: "As well as expanding in our current locations, we now plan to open further offices, with the East Midlands identified as an initial area of interest, and the South West, Northern Ireland and Wales as longer-term possibilities."