Labour sought to boost its technological credentials last night with the announcement of government support for two new hi-tech initiatives.

The e-commerce minister, Douglas Alexander, announced plans to develop "smart" technology in the home - whilst Patricia Hewitt said that the government is set to give an £86 million boost to the European Space Agency's Galileo navigation research project.

Alexander launched plans for a Virtual Interdisciplinary Research Centre which will develop home appliances with the latest computer systems or "smart" technology.

Government support is aimed at speeding the emergence of devices that streamline access to services or improve energy consumption.

The centre will be funded by the government, industry and universities. Companies involved include Hotpoint, Siemens, Dyson and IBM with research coming from Cambridge, Warwick, Nottingham and Surrey universities.

Meanwhile Hewitt said the Galileo project would create up to 1000 new UK jobs, improve air and traffic management and reduce pollution.

"Our main goal must be to ensure that the UK is at the forefront of the wider economic and consumer benefits that will come from establishing innovative new services using global navigation systems," Hewitt said.