A university and business task force has called for a new "innovation funding system" to help turn Scottish research into profit.

The Growing Value Scotland Task Force made the recommendation in its final report looking into business innovation across the country.

On Thursday the group, which is part of the National Centre for Universities and Business, also called for higher education institutions to collaborate further to provide better focus for business graduates as part of nine recommendations it made.

Deputy first minister John Swinney welcomed the report, saying: "I would like to thank the National Centre for Universities and Business and specifically the Growing Value Scotland Task Force for their valuable contribution to the debate on innovation reform in Scotland.

"I welcome the recommendations from their report, which complement the Scottish Government's plans on innovation reform by simplifying the Scottish innovation ecosystem and maximising collaboration between higher education institutions and business."

Mr Swinney added: "Scotland has a comprehensive range of higher education institutions. The research they undertake, combined with our high quality workforce, means we clearly have many of the tools that will allow us to succeed in delivering greater prosperity in Scotland's economy."

The group found there are "significant business demand problems" in Scotland's innovation sector, while it recommended that "universities, research institutes and public funders must ensure more and simpler visibility for the research they undertake".

Rob Woodward, STV chief executive and co-chairman of the task force, said: "To maintain Scotland's competitive edge at the forefront of global innovation, it is vital that the country moves quickly to adapt.

"Scotland must harness the creativity and inventiveness of its universities to bring about transformational change in all aspects of its business ecosystem, processes, services and technologies; have a relentless focus on entrepreneurship and business skills, and realign its policies and investments to make this vision a reality."

Professor Sir Ian Diamond, principal and vice-chancellor of the Aberdeen University and co-chairman of the group, said: "Universities stand ready to play their part in the transformation of Scotland's innovation system.

"We look forward to working with businesses and government on the major challenges that flow form the task force's recommendations."