North America EditorThe Tánaiste has appealed to Irish scientists working in the US to return to Ireland to help promote the development of the bio-technology sector in the Republic.

Ms Harney promised financial support for returning scientists during a meeting with some 18 Irish bio-technology specialists in Silicon Valley, where she is on a week-long tour.

The Government wanted Ireland "to be up there with the best in terms of research and development, and we are trying to encourage a lot of our scientists who went abroad because there were no opportunities in Ireland to come back", she said. "We're trying to put support packages behind them coming back."

Ms Harney, who was accompanied by Ms Ena Posser, head of research at Elan and a board member of Science Foundation Ireland, said it was "very encouraging to see the level of interest in returning to Ireland".

In contacts with US firms in Silicon Valley about future investment, Ms Harney said she found rising labour costs in Ireland were becoming a disincentive.

"Our labour costs have been rising very rapidly, more rapidly than in some of our competitor economies and that has been raised as an issue," she said.

Among the main competitor countries for high-level investment in research and development were India and China, she said.

Working in Ireland's favour were low corporate tax rates and political stability, which she said were important at a time when there was concern among investors about instability threatening US interests abroad.

Yesterday Ms Harney spoke at a dinner in Beverly Hills for a business mission of Irish digital media firms and executives of major firms in Los Angeles as part of a drive to raise the profile of the Irish digital media sector.