The committee acknowledged the 'priorities' of Iraq and Afghanistan

It said that although operations in Iraq and Afghanistan took priority, it urged the Ministry of Defence not to cut long-term research funding.

It also said "that the gap between the UK and the US in defence research spending is widening".

The UK could also fall behind other countries' spending, it warned.

The committee was examining the work of the Defence Science and Technology Laboratory, as well as funding of defence research.

In its report it described the laboratory as being "regarded as a world authority in many fields of defence research".

Committee chairman James Arbuthnot said: "The government's own analysis has shown that military advantage depends on the research and development investment made over the previous 25 years.

The government cannot just rely on industry to fund research, but must itself invest for the future James Arbuthnot Defence committee

"The UK's defence research is currently amongst the best in the world, but this is at risk.

"If the UK continues to fall behind other countries in defence research spending, our armed forces will lose their capability advantage and fighting edge."

The government spends �2.64bn a year on defence research - about 10% of the US budget of �23bn.

The UK research spending is 9% of the total defence budget or 0.18% of GDP, while the US equivalent is 16% of its defence budget and 0.46% of GDP.

Mr Arbuthnot said: "The government cannot just rely on industry to fund research, but must itself invest for the future." He said the chancellor's comprehensive funding review should include more funds for research.

The lab provides independent scientific and technological services to the MoD, the Armed Forces and government "in those areas inappropriate for the private sector".