SCOTTISH university research will lose its competitive global advantage after facing a cut in funding, a leading sector figure has said.
The warning comes after new figures show institutions will benefit from nearly £700 million over the next three years.
Although the figures amount to a 0.5 per cent increase in 2015/16, the sector is also facing a £13m drop after the Scottish Government scrapped an excellence fund to help institutions compete with the world's best.
Edinburgh University, which will see its funding fall by some £8m, called for action to reverse the cut.
Professor Sir Timothy O'Shea, the university's principal, said: "The decision to reduce funding for world-leading research in Edinburgh University next year will cause Scotland to lose an important competitive advantage that delivers jobs and opportunities for our communities and businesses.
"We are a small country which has achieved extraordinary innovation and international impact from research and now is not the time to reduce investment in Scotland's future jobs and prospects."
Professor Pete Downes, convener of Universities Scotland, which represents university principals, said institutions had become a "victim of their own success" after a recent UK-wide assessment ranked Scottish research as amongst the world's best.
"It is incredibly disheartening to go from such a high, when our universities were confirmed as world-class, to the latest funding allocations which confirm that many will lose out and there is no scope to build on that success," he said.
"The quality of our research links to our nation's innovation potential, to business growth, to inward investment and ultimately plays a significant role in Scotland's strategy for economic growth.
"We hope the Scottish Government will be open to talking to us about this and that something can be done in the next set of spending decisions taken this summer."
However, a Scottish Government spokesman highlighted the fact that universities benefit from billions of pounds of public spending.
He added: "Scottish universities remain at the forefront of global discovery and innovation and we are demonstrating our ongoing commitment to research by providing £282m for 2015/16, building on increasing levels of funding since 2007."
The government said the global excellence initiative was always expected to be a short-term injection of funds to support the global competitiveness of universities.
Laurence Howells, chief executive of the Scottish Funding Council, said: "Research in Scottish universities impacts on almost every aspect of daily life, from the way we treat patients in hospital to the way we communicate with smartphones.
"This announcement of almost £700m will mean Scotland carries on being a winner in the competitive world of university research.
"It will also mean that Scotland can continue to attract and develop the best research talent and it will mean that organisations such as Cancer Research UK and the Wellcome Trust continue to invest in Scottish universities."
Professor Neal Juster, senior vice-principal at Glasgow University, also welcomed the announcement.
He said: "This announcement is good news. It recognises the strength of research that is carried out here and the growth in world leading and world-class activity noted in the recent UK-wide research excellence framework exercise.
"The total grant funding for Glasgow University from the SFC also notes the significant work undertaken by us to provide access for students with talent and ambition regardless of their background or economic circumstances."
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