* Aims to move beyond core flight simulator business

* Could spend up to C$274 million over 7 years

* Quebec government could invest up to C$100 mln of that

TORONTO, June 21 (Reuters) - CAE Inc (CAE.TO: Quote, Profile, Research) said on Sunday it will spend up to C$274 million ($242 million) over the next seven years on a new research and development program that could take it beyond its core flight simulator business.

The Montreal-based firm said the aim is to use its modelling, simulation and training services expertise to move into the healthcare, heavy equipment, mining and energy sectors.

"We intend to leverage our expertise into fields that have similar challenges. Fields where safety is imperative and there is little margin for error, where task complexity and costs of training on real equipment are very high," Robert Brown, CAE's chief executive, said in a statement.

CAE said the Quebec government will participate through a repayable investment which could reach C$100 million, making the company's share of the program C$174 million.

It said the new R&D program is in addition a plan announced in March to develop new technologies in its core aerospace and defence markets. ($1=$1.13 Canadian) (Reporting by Jeffrey Hodgson; Editing by Diane Craft)