I had a laboratory in Ireland from 1981 to 1994. These were times of economic depression and no funding for research, but I learned some useful survival skills. One was that there were benefits beyond the financial in working with industry; another, that participation in EU project teams brought more than a grant for research, it introduced new ideas and helped get experiments done that would be impossible otherwise. Funding really is the oxygen of research, though, and without it aspirations of high-impact publications were unachievable.

After 14 years as executive director of the European Molecular Biology Organization (EMBO) based in Heidelberg, Germany, I returned to Ireland last July to take the helm at Science Foundation Ireland (SFI). I wanted to get back to the revitalized Ireland, and I hoped to contribute through SFI to a major economic experiment. Succinctly, the aim is to transform the Irish economy. Where manufacturing predominates, we want an economy that is equally successful but is based on converting "brains to business." It is an experiment that is being repeated all over the world, and, while not everyone will be successful, I am confident that Ireland will be a winner.

The Irish government is steadily increasing investment in science and engineering in a well planned manner through the Strategy for Science Technology and Innovation (SSTI) 2006-2013. One goal set down in the SSTI is to double the number of PhD graduates by 2013; another is to increase the number of active supported researchers by 75% over the same time period. The gearing of the increases in funding, together with the capacity growth, means that an active and successful researcher in Ireland has access to grants that are higher than those available in most countries. Awards of €250,000 per annum are routine, and more has been provided in quite a number of cases. In parallel, researchers' aspirations have risen.

With funding secure, and the numbers of researchers growing steadily, the government's expectation is that there will be a return on investment through economic activities. It's here that I have learned to appreciate the special traits of Ireland. The government agencies responsible for industrial development (IDA Ireland and Enterprise Ireland) and the agency responsible for graduate and postgraduate educational institutes (the Higher Education Authority) all work together with SFI, towards the same goal. This is the new "Team Ireland." The increasing quality of the researchers is encouraging a growing level of R&D in companies that previously saw Ireland merely as a great site for manufacturing. Moreover, it is a magnet for others that have had no activity in Ireland; many companies are making their first contacts with the country through research.

The government's National Development Plan 2007-2013, under which SFI and the other agencies are funded, provides the blueprint and the metrics that must be met. We're a small and sociable country so networking is particularly strong. It is as if Ireland is a company rather than a location and the different "departments" act collectively to add value. It had seemed to me when I was on the outside that this was the case; it is a delight to see that it's true.

The lessons from the lean years also add to the probability of this particular experiment being successful. There is a high level of cooperation between research groups and colleges; many of the complex proposals that SFI examines are multi-institution, and a large proportion of scientists have ongoing collaborations with industry.

My task is to ensure that the philosophy upon which SFI was founded does not get distorted. This philosophy is that excellent science is the only level of activity that should be supported. At the end of my five years at SFI in 2012, I intend to have delivered the numbers of scientists that are needed for a high-tech economy. The quality of research will make Ireland a special place for exciting research. And, the traditional divide that exists between the great researcher and the great deliverer of economically important discoveries will be removed and replaced by a better and more demanding dynamic where both goals are achieved.

Frank Gannon is Director General of Science Foundation Ireland.