Three bidders will compete to set up a €50 million research and training facility for the biotechnology industry in the Republic.

Consortiums led by University College Dublin, Dublin City University, and University College Cork have submitted applications to IDA Ireland, which is running a competition for the State.

The three bidders have proposed sites in Dublin and Cork for the new institute and have teamed up with other universities and institutes of technology.

At this stage, the Irish-based biotechnology companies have decided to support the concept of the institute rather than support any one bid.

Wyeth and Genzyme told The Irish Times they were strongly in favour of the biotechnology centre yesterday.

The proposed National Institute for Bioprocessing Research and Training will undertake research into bioprocessing technologies, train graduates and act as a magnet to attract further biotech investment from abroad.

Biotechnology is the alteration of molecules, genes and cells - the basic building blocks of life - to develop useful products, processes or services such as new medications and therapies, cloning, genetically modified foods and enhanced crops.

It is becoming a force in drug research, which previously focused on chemical synthesis to formulate treatments.

The Government hopes that the institute will meet a shortfall in biotechnology skills in the Republic and attract investment to create a new "biotech cluster".

Wyeth, Genzyme, Schering-Plough and Centocor have all made significant investments in Irish biotechnology projects.

But other countries such as Singapore, Puerto Rico and Switzerland are competing hard to win the next wave of biotechnology investments expected shortly.

The capital cost of setting up the institute is estimated at about €50 million and will be 90 per cent funded by the IDA.

But the significant ongoing costs of running the operation will have to be met by the consortiums through private sector funding and European and State research grants.

An IDA spokesman confirmed yesterday that three bids had been received by the organisation and said a recommendation would be made to Government next month on the project.

He said the project would promote a collaborative approach to research with Irish universities and it was envisaged that both undergraduate and PhD students in the relevant disciplines would work at the research institute.

Three separate locations in Dublin have been pinpointed as potential sites for the new institute, including Grangegorman, Citywest and Belfield.

The three consortiums include a range of educational backers. But it is understood that Trinity College Dublin has joined the University College Dublin bid.

Cork Institute of Technology is part of the University College Cork bid, and the University of Limerick is part of the Dublin City University bid.