The term "biotechnology" was first used in 1919 by an agricultural engineer, although its application stretches back to the process of brewing beer.

It is used to alter molecules, cells and genes to produce products for the pharmaceutical, agricultural or medical industries.

Ireland has a small biotechnology research and commercial base compared to the US and larger European states. But its strong base in pharmaceuticals should give it an advantage in attracting this type of investment.

Drugs are one of the first products that have come to market as a result of biotechnology, but it must be recognised that there are important differences between the industries. Pure biotechnology firms, which began to evolve in the 1980s, are generally much smaller than drug companies and spend a larger proportion of their income on research.

Science Foundation Ireland is currently funding several big biotechnology projects at universities to boost Irish research skills and link colleges and industry.

Major projects include studies to develop treatments for AIDS, Alzheimer's and Crohn's disease. There are also projects to target food production and agriculture.