Utilization is the correct spelling of the noun derived from the verb to 
utilize.

In British as well as American English.

There is no 'utilise' in the Oxford English Dictionary, although it notes -ise 
as an
alternative ending.

This was a plot feature in one of the Inspector Morse stories, with Morse 
differentiating
between an 'educated' and an 'uneducated' man by their correct use of -ize on a 
number of
English words that are spelt that way.  There is no universal "-ise is British 
English
and -ize is American English' rule.  Similarly several British English -ise 
words take a z in
the noun form.  Oddly enough, the alternate spelling 'utilise' is one of them.

Time, perhaps, for the OED to be updated.  'Utilisation' appears in Google ten 
times as often
as the (correct) 'utilization'.

-- 
  Phil Payne
  http://www.isham-research.co.uk
  +44 7833 654 800

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