Northern Ireland's small and medium-sized companies (SMEs) must make greater efforts to take advantage of university research to increase their technology base, according to a report by the Confederation of British Industry in Northern Ireland.

The research, entitled Improving University-Industry Links, highlights the link between the universities and industry. It finds a large proportion of small businesses in the North are unaware of the research and technical facilities available at Northern Ireland's two universities.

According to the report, many SMEs are also unaware of the existence of support programmes designed to foster links between university research and business knowhow. The director of CBI Northern Ireland, Mr Nigel Smyth, said the companies which used the resources valued them highly.

"It's vital that we get the message out to our growing indigenous companies that they must make greater use of our universities," Mr Smyth said.

"It is also important that the universities increase their marketing efforts and ensure they are responsive to the needs of smaller businesses."

The report notes that employers commend the high calibre of university graduates, but its findings show there are several shortcomings.

It concludes:

There is a need to increase graduates' experience of the workplace;

There is a need to improve key graduates' key skills;

There is a low level of awareness of programmes designed to improve the links between business and the universities;

Few small firms know of, or use, the centres of excellence linked to the universities.

The survey finds 93 per cent of SMEs are generally very satisfied with the intellectual quality of local graduates, while 65 per cent are happy with their level of specialist knowledge.

But firms are less happy with graduates' ability in the areas of communication, IT, team-working, and interpersonal skills.

Many businesses said graduates should be given more experience in the workplace, to increase their understanding of the workplace, and increase their commercial awareness.

The survey shows that many businesses are unaware of the support programmes available to encourage closer links with the universities.

Graduate work placement and the teaching company scheme (TCS) are quite well known.

Two-thirds of firms took graduates on work placement, with 28 per cent using the TCS. But other programmes like SMART, START, LINK, and Manufacturing Technology Partnership were not well known, and in consequence, seldom used.

The report says universities should take a more pro-active approach, using a sectoral focus, to increase knowledge of the programmes, and their potential benefits for Northern Ireland companies.

It also suggests the universities should consider better preparation and supervision of graduates on work placement, and more attention should be paid to a more accurate matching of the abilities of the graduate to the requirements of the company.

Thirteen of the 18 centres of excellence in Northern Ireland are within the two universities - Queen's and the University of Ulster. But the survey found that fewer than 20 per cent of firms are aware of them, and even fewer make any use of them.

Better marketing of the centres, the survey says, is essential.

Information evenings have been arranged by both universities to help companies to learn about the resources available.

They will take place on November 27th at the Magee campus of the University of Ulster.