washington

The US state of Michigan is to fund a $50 million-a-year research programme in basic life sciences with money that it will receive from tobacco companies under last year's settlement between the industry and state governments.

The state government hopes that the programme will help to create the critical mass of research needed to nurture a biotechnology industry. Additional impetus will come from major research institutes being built by the University of Michigan and the VanAndel Institute, a private foundation.

Michigan is the first state to dedicate such substantial resources to biomedical research. Scientists hope the idea will be taken up by other states with healthy budget surpluses that are set to receive substantial revenues from tobacco companies.

Governor John Engler said the programme “promises to make Michigan a world-class biotechnology powerhouse”. The programme is intended to build on the strengths of the University of Michigan, Wayne State University, Michigan State University and the VanAndel Institute.

Under legislation that was signed by Engler last week, half the money will be directed at collaborations involving at least two institutions, 40 per cent will go to standard investigator grants for basic life science, and the rest will be used help to commercialize discoveries.

The use of tobacco settlement money for biomedical research has been suggested in Washington over the past two years, but Michigan is the first state to put it into practice (see Nature 391, 424; 1998).

“The symbolism of using tobacco money for research is very important,” said Frank Press, former president of the National Academy of Sciences, speaking at a meeting in Washington at which Engler announced the initiative.

A 14-strong advisory panel, to be appointed by the governor, will draw up details of the programme, which will be administered by Michigan's Economic Development Commission. The first $50 million will be distributed during the next fiscal year, which starts in October. The law authorizes $50 million to be spent on the programme each year for 20 years, but actual spending will be subject to annual review by the state government.

Michigan's economy has traditionally been heavily reliant on the motor industry. Although the recent boom in that sector has helped the state, Michigan's political leadership is looking to diversify its economic interests.