GOVERNMENT proposals for universities to own the rights to research projects undertaken with business and make firms pay more will undermine new product development and damage competitiveness, the CBI has warned.

The employers’ organisation says that at a time when business should be given every encouragement, the proposals would make things harder.

Ministers would like to see more collaboration between business and academia and have begun a consultation.

But the CBI argues proposals that universities should own the rights to all joint research and business should pay more of the overheads are wholly unacceptable.

“The Government fails to understand the research relationship between business and universities,” said Nigel Bourne, South East regional director based in Sevenoaks.

“These proposals will jeopardise the level and quality of UK research, stifling new product development at a time when the future of UK manufacturing depends on it.”

The CBI claims the Government’s review fails to recognise that these are genuine research partnerships and that it is not about business taking advantage of cheap labour in the universities or seeking to unfairly exploit their discoveries.

Mr Bourne added: “Both sides bring expertise and resources to the party and the sharing of costs and benefits should be agreed between them. I am concerned that these proposals will undermine the good work that is going on.

“Universities are right to seek to maximise income from their work, but they are not usually in the best position to exploit it, protect it in world markets or develop it into commercial products. Intellectual property arrangements should reflect the relative contributions from each partner and the risks each takes.”

* The CBI South East is hosting a seminar “Best of British - Brains and Business” at Royal Holloway College, Egham, Surrey on November 20. Details on 01732 454040 or visit www.cbi.org.uk