From its origins in 1981 after the loss of a key industry to the Industrial Development Authority's archrival, Scotland, a Cork-based research centre has become synonymous with job creation.

The National Microelectronics Research Centre (NMRC) is now one of the first ports of call when multinational electronics companies are being persuaded to establish operations here.

And its expertise in research and innovation has been a decisive factor in influencing many of them to opt for an Irish base.

Cypress Semiconductor recently made no secret of the fact that the NMRC's presence was the clincher in its decision to move to Ireland. This year the centre undertook product and process development projects with Intel, Hewlett-Packard, General Semiconductor and Artesyn Technologies.

Under the guidance of Prof Gerry Wrixon, NMRC founder and director, the centre has mushroomed into the second-largest microelectronics research centre in Europe benefiting from EU projects.

It works closely with medium and large multinational electronic companies helping to conduct added-value functions, in particular, product and process development. It has a staff of 220 and an annual budget of £8 million 70 per cent of which is derived from industry and EU sources.

The NMRC was established in 1981 after the pioneering semiconductor group, Mostek, announced it would locate in Edinburgh instead of Dublin because the Scottish location offered access to a student base with expertise in the micro-electronic area. The Government responded by deciding to set up an Irish research laboratory, but the development was not without difficulties.

"There was absolutely no follow up once the NMRC was set up. Down the years we had to follow a boot-strapping policy and rely on kindness from companies to keep functioning. In that sense the original NMRC vision was quite limited, with a very local perspective," says Prof Wrixon.

Two companies in particular have been a source of support to the NMRC: Analog Devices, which Prof Wrixon believes gave the NMRC projects in the early days more to encourage the centre than for any real practical use; and General Semiconductor, which employs about 1,000 people in the area. They have contributed a substantial amount of funding.

The centre has grown over the years and is situated in a converted mill on the banks of the Lee where postgraduates seek to push the boundaries of microelectronics and become the first to develop new products and processes.

From the outset, the NMRC latched on to the EU framework for funding science and technology research and has won many projects through the ESPRIT programme designed to project European industry into the future.

Initially, the NMRC had to struggle to get involved in joint projects with industry, approaching companies like Phillips and SGS Thompson to head the programmes. Now, the NMRC is approached by such companies to lead the projects, particularly in the microelectronics materials area. When the projects finish, it continues to work with the companies on a bilateral basis.

Prof Wrixon is proud of the work the NMRC has done with indigenous industry from manufacturers of mushroom tunnel fan controllers to farm and grassland machinery.

"We help them gain technological advantage by getting microelectronics intelligence into their products. The US, Germany and Japan are very good at leveraging scientific advantage to commercial success. The NMRC can play a vital role by remaining heavily involved with industry, and avoiding being academic snobs. What we do represents a definite commercial opportunity for industry in Ireland."

As board member of a plethora of academic and commercial heavyweights, including General Semiconductor, DII Group and EOLAS, Prof Wrixon is very much planted in the real world of business where the bottom line is often all that counts. He understands the need for Ireland to create firmer ties than simply manufacturing functions.

"We need to create niches for ourselves, not as the most profitable location for manufacturing in Europe, but as the place to develop technology with a cadre of people with knowledge in a specific area."

Now, there is scope for Ireland to exploit electronics in the food industry. The development of sensors to measure food freshness, air and water quality, and alcohol levels is a major growth industry, but Prof Wrixon believes indigenous food companies are not seizing the opportunities. By catering for future requirements through collaborations between design houses and researchers he envisages Ireland becoming a "one-stop shop" for this specific area.

"We have the technology, marketing clout and world-class manufacturing in Ireland. There is a great opportunity for diversification by the food industry."

In the last year, the NMRC has tried to forge the research and development relationship with large multinationals by building up competencies in research areas of interest to them. The centre now has 20 post-doctoral fellows, and within the next two years it is expected there will be 50 PhDs working in a number of areas of emerging technology of interest to large multinational electronic companies. By so doing, Prof Wrixon hopes the research function will embed the activities of existing companies in Ireland.

"New medium- to long-term strategies need to be created and implemented, otherwise we run the risk of dissipating the gains we have already made and not being able to take advantage of the enormous opportunities available to us in this industry as we enter the 21st century."