The setting-up of Media Lab Europe in the Republic is to be welcomed, despite the controversy over the allocation of up to £43 million to it in public funds.

This development reflects an acceptance by the Government that support for research is fundamental to the State's economic development - and it represents a significant shift in the attitude of a Government and its agencies which had hitherto viewed research as best conducted in other, richer countries.

For many years, this State languished at the bottom of the league for spending on research. It was thought the future lay in the application of the fruits of research conducted elsewhere, rather that in the development of new ideas at home.

However, recent significant inward investment by technological companies confirmed the need for the State to foster a high-value economy, in which new ideas and innovations would feed economic development. This requires a steady stream of skilled and innovative "free thinkers", capable of maintaining Ireland as an attractive location for inward investment and developing the steadily increasing number of indigenous Irish high-technology companies.

This change of policy has resulted in some significant developments in the Republic, for instance, the allocation of nearly £1,900 million for research in the National Development Plan. The State agencies charged with dispersing these funds have done so with considerable skill and expertise, particularly in view of their limited experience in this regard.

For instance, the Science Foundation of Ireland has been established, and in the coming years will be responsible for spending some £500 million. The first £50 million of this is now being allocated under rigorous peer review assessment, with recognised experts in particular fields providing their views on the quality of the proposed research.

The Humanities and Social Science Research Council has an established and impressive peer review process for the allocation of its funds, and it continues to develop its assessment methods as new funding opportunities arise. The Higher Education Authority has also a sophisticated assessment regime in place for the allocation of funds under its Programme for Research in Third-Level Institutions.

To date, the HEA has allocated nearly £250 million to these institutions to develop their research infrastructures. Researchers in Irish universities, and their colleagues in other countries, value having their ideas properly assessed and evaluated by other researchers in their disciplines. This is seen as a means of guaranteeing the quality of their work and also ensuring the funds allocated to them will be well spent.

Many academics are becoming concerned that while the proposals of researchers in the universities are rightly subjected to peer review, the same rigours may not be applied to research conducted in Media Lab Europe. Arguments that the type of research conducted by it does not lend itself easily to peer review could equally be applied to the work of the many excellent and innovative "free thinkers" currently in our universities. Why should these be treated any differently to those working in Media Lab Europe?

While researchers in the universities welcome all investment in research, it would be unfortunate if any particular institution were to receive favoured status in terms of funding allocation, which could ultimately have a negative impact on its credibility.

Conor Long is dean of research at Dublin City University