CHANCELLOR Gordon Brown has challenged Britain's business community to make the UK the most attractive place in the world for science and innovation.

Mr Brown made his comments while launching a consultation document outlining priorities for science and innovation.

In a pre-Budget speech, he said the country needed to invest in science to equip Britain for the new economy.

He said: "To prepare for the challenges of a more competitive global economy, a budget for a Britain of stability and strength has to be a budget for investment and science.

"Faced with the challenge from America, Japan and the euro area, and witnessing the rise of India and China - half the world - as technological powers, we in Britain cannot afford not to invest."

The Chancellor said the Government's priorities for science and innovation over the next ten years included greater collaboration between universities and business to provide a sharper focus for research, better application of new technologies in business and the public sector, and a dynamic research base that met the needs of sponsors.

The Chancellor's comments were welcomed by Herb Kim, chief executive of Codeworks, the Centre of Excellence for Digital Technology, in Newcastle. But he added: "Investing in science and technology is the right thing to do, but it has to be done in the right way.

"Simply pouring money into science and technology won't create thousands of new jobs or wealth. There are lots of wonderful ideas sitting on the shelf waiting for someone to make the most of them. The research being carried out in the region's universities needs to be developed in the right way to make the most of it."