The Flanagan Institute was sponsored by the Principality of Zeon, which was established in June of U.C. 0079 at Baldur Bay colony of neutral Side 6 (L4) to investigate Newtype phenomena. In addition to scientific research, the Flanagan Institute's work involves developing weapons for use by Newtypes, recruiting Newtype test subjects, and training them to use their powers in battle. With the discovery of "Newtypes" among the human population, the Principality of Zeon saw the potential of using these Newtypes - many of them possessing precognition, enhanced intuition, and lightning-fast reflexes - as tools in their war against the Earth Federation. The Flanagan Institute was charged with the study of Newtype candidates and the development of new weapons capable of making use of Newtypes' abilities. The institute completes a prototype “psychic communicator” (Psycommu) system on U.C. 0079.10, and one notable member of the institute, Chlust Moses, was responsible for developing the EXAM System. With the end of the One year war, The Flanagan Agency is reorganized into the Newtype Research Institute on U.C. 0080 and relocated to Axis. Eventually, the first Neo Zeon movement would take over operations of the facility and create a number of Artificial Newtypes and special mobile weapons.