The Tyndall National Institute in Cork has teamed up with Waterford IT's Telecommunications Software and Systems Group (TSSG) to pursue €82m in funding under the EU's Horizon 2020 research and innovation programme.

If successful, the two institutions aim to use the money to exploit the market potential of internet connected devices, known as the Internet of Things (IoT).

As a result of the Memorandum of Understanding signed today, the two organisations hope to create ten spin-out companies.

It is estimated the global IoT market will be worth €5.5 trillion between now and 2020.

Projects already under way or in planning include examining the affects the IoT could have on tailored rehabilitation in healthcare and the creation of smart farm management systems.

The two organisations will have a staff of 580 hardware and 120 software engineers, support staff and scientists.