A new research foundation with a budget of approximately £560 million is expected to be set up shortly by the Government as part of the State's increased investment in science and technology.
The Cabinet yesterday discussed an outline plan for the foundation, and the make-up of the group to be responsible for setting it up.
The Cabinet will later - most likely next week - finalise details of the foundation which will become one of the most important bodies in education and science. It will be responsible for allocating the large funds needed to improve the State's research base in two key areas - information technology and biotechnology.
According to sources, the foundation will operate by offering research funds on a competitive, tendering basis. The seven universities and other third-level institutions will compete for the funds, although the increasing trend is for many of them to collaborate to secure the funds.
The foundation is likely to use international expertise to assess the tenders from the colleges.
The remaining issue which the Government has to clarify, according to sources, is whether the foundation can set up its own institutes, without first assessing what is on offer from the universities. The foundation may use two methods - giving money to existing colleges for certain projects and funding to new institutes for other projects.
The Government is understood to be working on a wording which will allow new institutes to be set up after a "needs assessment" exercise has been carried out.
The proposals for the foundation come from the Department of Enterprise, Trade and Employment. In a memorandum circulated in November the Department signalled its support for setting up the new institutes.
However this has been fiercely resisted by the universities who argue they already have the expertise and physical infrastructure to take on the task. They are also worried that any new institutes will draw talented people away from their colleges.
Those in support of the new institutes, including Forfas, say even if new institutes are set up, they will still have links to the universities.
The Department of Enterprise, Trade and Employment, would not comment last night on whether final agreement has been reached but other sources said a general outline of how the new foundation will work has been agreed.
The foundation is being formed under the Technology Foresight scheme set up by the Government two years ago. The £560 million budget is the largest allocation to science and technology research made in the history of the State.
According to sources the foundation will have a full-time director who is likely to be a leading academic figure.
New teaching materials are to be introduced in primary schools to encourage girls to take more interest in science.
The take-up of science subjects has been falling at primary and second level in recent years and the Department of Education believes a lack of interest among girls is one of the reasons behind this.
The materials would show girls how science applies to ordinary life. The teaching materials are included in a pack, developed by the curriculum development unit at Mary Immaculate College in Limerick and launched last night by the Minister for Education and Science, Dr Woods.