The investment will go towards the high-tech plan called the "863 Programme" to develop technology, such as micro-electronics and information security techniques.

The programme, so-called because it was suggested in March 1986 by four Chinese senior scientists, highlighted the development of biotechnology, aviation, information science, automation, energy, new materials and ocean utilization technologies as important to the growing Chinese economy.

Vice-Minister of Science and Technology Ma Songde said the plan would contribute to the country's economic restructuring at a press conference in Beijing Wednesday.

He said a management teams dominated by scientists would be expanded among the institutions involved in the 863 Programme to create a more favourable climate for academic research.

Ma said inefficient bureaucratic administrations would be phased out.

The new funds will be channeled to projects focussing on information technology £¨IT£©, biotechnology, advanced manufacturing, automation techniques, and new materials and energy, said Li Jian, director-general of the Department for High-Tech Development and Industrialization of the Ministry of Science and Technology.

The ministry will establish provisions and project guidelines to help implement new 863-related projects.

Projects will also be opened for private sector involvement so as to attract talented project developers and relevant funds, said Li.

Particular efforts will be directed towards IT development, including computer hardware and software production and information acquiring and processing technologies, he added.

Since the 1980s, many developed countries had concentrated on developing their high technology sectors. The European "Eureka Programme" is an example, according to Wang Baoqing, director of the ministry's general office.

Wang said a total of 5.7 billion yuan £¨US$686 million £© had been injected into the 863 programme over the past 15 years, said Wang.

The programme involves 40,000 Chinese scientists, 200 research institutes, 100 colleges and universities and hundreds of enterprises.

Wang said an example of the achievements of the programme was the spread of computerized information networks among agricultural sectors in 20 provinces, municipalities and autonomous regions.

The ministry will hold an exhibition from February 26 to March 6 in the Beijing Exhibition Hall, to highlight 863 Programme achievements.