With £60 million per annum being spent over three years, the £180 million research initiative will have a major impact on third-level research, but in terms of some statistics the effect may be negligible. In 1995, Ireland spent £108 million on third-level research, which represents 0.27 per cent of GDP, OECD figures show. In the same year, Finland spent 0.46 per cent of its GDP on higher education research, while Denmark spent 0.47 per cent of GDP in 1995, dropping to 0.41 per cent in 1997. At the top of the scale, Sweden spent 0.79 per cent of GDP on third-level research in 1995.

"We're talking about a 50 per cent increase on top of the £108 million," says Michael Fitzgibbon, who is manager, science and technology indicators, Forfas. "But between 1995 and 1999 our GDP has also increased by 50 per cent, so there will be very little change in the HERD (Higher Education Research and Development) figures and hence in our international comparison position."

The new money will, though, improve Ireland's position on the ground and without it, "our comparative position would have deteriorated significantly", he says.

The good news, however, is that the £150 million, which is to be spent on the capital side, will give our third-level institutions the potential to improve Ireland's position in future years, according to Fitzgibbon. "Without it we would be out of the game. It's vital that it happened."