This new research initiative could be historic in more ways than one - it could help to move research and development to the centre of Ireland's economic planning.

In his address at the launch of the new programme, the Taoiseach emphasised the relationship between investment in R&D and economic development. "All developed countries are unanimous in their support for research and development," he said. "There is no doubt that it is in our national strategic interest to become more active in this area. Research and development in higher education is absolutely crucial to attracting knowledge-based industries to Ireland. "In the past, the level of investment in research was not consistent with national economic and social development needs or with this Government's aspirations to create a high added value, prosperous and advancing economy." It is now hoped the Government will seek to advance R&D through post-1999 EU funding. R&D, it is argued, should move centre stage and become a key element of economic and social development. Under the last national plan, R&D was a subprogramme of the industry programme.

This latest investment in third-level research could well earn Ireland brownie points in Europe. In the past, the EU has been critical of the level of State support for research infrastructure. Most of the money going in to the area has come from the EU rather than the Government.