Finance Minister Brian Cowen said he was allocating €300m to the Strategic Innovation Fund for higher education over the next five yearsas part of a major education initiative.
He said competition for these funds would 'stimulate excellence through competition and change'. The details will be announced by the Education Minister over the coming days.
€900m over the next five years is also being committed to third level for capital investment - €630m from the Exchequer, the rest from public private partnerships (PPPs).
The Minister called for change in all third level institutions, calling for the stripping out of duplication and enhanced collaboration. He said the initiative was aimed setting up a 'fourth level' of Ph.D education.
He said such a programme was fundamental to economic and social development.
The Minister said the Budget would soon begin a 'major consultation' process on the next National Development Plan 2007-13.
