GLASGOW University’s principal has called for powers over skilled immigration to be devolved to Scotland as part of a strategy to boost universities, in a major new report.

Professor Sir Anton Muscatelli insisted Scotland “does not have access to all the tools” it needs to attract cash for research and development.

In a report commissioned by Finance Secretary Derek Mackay, the top economist also flagged the potential loss of access to EU-wide networks after Brexit.

He said: “Just to take one Brexit-related example, skilled immigration from the EU may be a key problem in ensuring that innovation can be supported by an adequate skills base which can improve the absorptive capacity of our business and industry.”

Sir Anton launched his report, Driving Innovation In Scotland – A National Mission, at the Royal Society of Edinburgh.

Afterwards, he said Scotland’s immigration system could be differentiated from the UK’s through tax arrangements.

He said: “We already know from Canada and from other jurisdictions that it’s possible to do this quite easily.

“We have Scottish tax codes – you could easily have Scottish codes around national insurance which ensure that somebody would be able to work in parts of the UK and not in others. Scotland and other areas of the UK, like London, have very different needs.

“Actually a differentiated immigration system might be what the UK will need post-Brexit to ensure that we can balance the needs of some nations and regions compared to, perhaps, lesser need in other areas.

“There are ways to do that, and other countries have experimented with those systems.”

He added: “You can easily shape a policy around immigration which is territorially based and not just sector-based.”

Sir Anton’s report also calls for “some flexibility” in the relevant tax incentives between devolved nations.

Elsewhere, he said cash for research and innovation in the higher education sector must be focused “in such a way that maximises our ability to attract external funding”.

Mr Mackay said it is important to ensure Scotland’s universities “can continue to fulfil their significant potential”.