Sir Paul, who has taken over as President of the Royal Society, which represents the UK's leading scientists, warns that countries such as China and Singapore are actively courting overseas scientific talent.
"Why do we put hurdles in the way of the people that are actually going to drive our economy? It makes zero sense."
The Nobel prize-winner describes the UK's science base as "fragile" because of a combination of steep visa costs, funding pressures and the negative signal, current immigration rules.
He urges ministers to rethink a system that forces scientists to pay an annual NHS surcharge and to prove they have thousands of pounds in the bank before they arrive.
