Edinburgh Innovation Hub hailed as major benefit to East Lothian as City Region Deal marks its halfway point

From Fife to the Scottish Borders, the Deal is delivering investment across housing, transport, innovation, culture and skills and employment.

The Edinburgh Innovation Hub, which welcomed its first tenant in December last year, is one major benefit for East Lothian thanks to investment and partnership working as part of the Edinburgh and South East Scotland City Region Deal (ESESCRD).

Almost 30,000 jobs have been created or supported across the Deal region since 2018 thanks to ESESCRD, which is at the halfway point in its 15-year delivery timeline and has already contributed £3.6 billion in economic growth.

From Fife to the Scottish Borders, the Deal is delivering investment across housing, transport, innovation, culture and skills and employment.

The Edinburgh Innovation Hub (EIH), next to Queen Margaret University (QMU), is one of seven across the area designed to increase links between university research and industry

East Lothian Council welcomed an update report on the Hub in October last year, which showed that the completion of this £40m flagship development by the council and QMU signalled the project partners’ ambition to create a nationally significant facility to capture, support and grow innovation-led enterprise in East Lothian and the Edinburgh region.

EIH is a joint venture between East Lothian Council and QMU featuring flexible laboratory, office and fully equipped meeting and conference spaces for rent by small to medium enterprises. The venture has been supported by £28.6 million from the UK Government, £1.4 million from the Scottish Government and £10 million from East Lothian Council as part of ESESCRD.

Councillor Norman Hampshire, Leader of East Lothian Council and now Chair of the ESESCRD Joint Committee, said: “The vision of creating a flexible, forward-thinking development space for innovative new and existing businesses, right here in East Lothian, has come to fruition thanks the collaboration and funding opportunities brought forward by the City Region Deal that has enabled the construction of the Edinburgh Innovation Hub.

“The halfway point of the Deal is an important milestone and I’m excited to see the other benefits that will come to East Lothian during the rest of the Deal period and beyond. Blindwells is one of the strategic sites identified as part of the Deal. Working with partners, we have produced a prospectus and are developing a business case that we hope will be supported by Government and draw in capital and revenue funding from the public sector, via the Deal and beyond, as well as significant private sector investment. The aim is for Blindwells to reach its full potential, with an infrastructure-first approach and high-quality affordable service provision. This could help to achieve many of the aims of the Deal in East Lothian including availability of quality and affordable housing, transport links, building strong communities and providing employment opportunities.”

EIH will help to initiate development of the wider Edinburgh Innovation Park on land adjacent to the QMU campus. The development was granted planning permission in principle in March 2019, as part of a wider mixed use development, including new homes and a new primary school, business & industry use and community facilities.

Councillor Hampshire added: “The emerging business park around the Edinburgh Innovation Hub has the potential to become a major economic driver for East Lothian, building on the Hub’s role in connecting university research with innovative businesses. As the wider innovation park develops, it will create an attractive location for high-growth companies, supporting new investment, high-quality jobs and collaboration between industry and academia.

“This project will deliver for the people of East Lothian. This growth means more opportunities to work locally in skilled sectors, reducing the need to commute while strengthening the region’s economy. The development will also stimulate wider benefits, from increased demand for local services and supply chains to improved infrastructure and community facilities linked to the surrounding mixed-use development. Together, the Hub and its surrounding business park will help position East Lothian as a centre for innovation and enterprise, ensuring the long-term economic benefits of the City Region Deal are felt by residents, businesses and future generations across the county.”

More information on the Edinburgh Innovation Hub is on the website and Blindwells updates are on the East Lothian Council website.

The Edinburgh and South East Scotland City Region Deal is a 15-year, £1.7 billion programme designed to drive economic growth and create opportunities across the region. The Deal benefits from £600 million of equal investment from the Scottish and UK Governments, with regional partners contributing over £1 billion across five themes: Research, Development & Innovation, Integrated Regional Employability and Skills, Transport, Culture, and Housing.

Borders Innovation Park development progressing as City Region Deal marks mid-point

At the half way point in its 15-year programme, the Edinburgh and South East Scotland City Region Deal is continuing to deliver, including the development of the Borders Innovation Park.

At the current Borders Railway terminus at Tweedbank, phase two of the project is progressing, creating further high quality business space.

£29m project to support businesses, jobs and growth

Costing £29 million, including contributions from the City Region Deal, ScottisH Borders Council and South of Scotland Enterprise, the project is being completed in three phases. It is stimulating business growth and associated job creation, enhancing the area’s inward investment offer, particularly to high-value sectors, and supporting existing businesses to improve their competitiveness and grow. 

Attracting better quality, higher paid jobs is also helping to address inequalities in the area, providing greater opportunities for local people and also encouraging others to relocate to the Scottish Borders.

Councillor Scott Hamilton, Executive Member for Economic Growth and Developing the Borders

“The creation of the Borders Innovation Park is one very visible sign of the how the Edinburgh and South East Scotland City Region Deal is delivering for the Scottish Borders.

“Thanks to the Deal funding, our own investment and support from partners we are creating much needed business space which is helping deliver additional and new job opportunities.

“The City Region Deal is also supporting the Borders in other ways, including through the Regional Housing Programme, projects aiming to transform the energy efficiency of housing and tackle transport issues, and through the Integrated Regional Employability and Skills Programme. The latter has included the piloting of a Telecoms Academy within the Borders to support local jobseekers.

“As we now move into the second half of the Deal programme we need to continue to grasp the opportunities this funding and the collaborative work with partners across south east of Scotland provides.”

Ongoing project works

Construction of the Borders Innovation Park began in July 2020, with the first building in phase one opened in July 2022. It is fully occupied and construction of the phase two building is underway, and due for completion this summer. It will accommodate up to four businesses.

Delivering on the Deal

The Edinburgh and South East Scotland City Region Deal has delivered impressive results since launching in 2018, and has now reached the halfway point of its 15-year programme. So far, it's contributed £3.6billion to regional economic growth.

The Deal was signed in August 2018 and involves East Lothian, Midlothian, West Lothian, Fife, City of Edinburgh councils and ourselves, along with universities and colleges, the private sector, the third sector and relevant public sector agencies.

The 15-year Deal is worth £1.6bn, which includes £600m of Government funding and £1bn of funding from other partners.

The Borders Innovation Park project is part of the Research, Development and Innovation Programme within the Deal. Over 15 years, the UK and Scottish Governments have committed a combined £350 million to support the development of a number of initiatives in this part of the programme. Including partner contributions, this is worth a total of £791 million alone.

Laying the Foundations - Dunard Centre Annual Report

Construction of the Dunard Centre – Edinburgh’s first purpose‑built concert hall in more than 100 years – is well underway. Tucked behind the historic RBS branch at St Andrew Square, the construction site has been transformed into a hive of daily activity since we broke ground back in December, giving us an early glimpse of all the vibrant, bustling energy that will animate this space in four years’ time.

Read more in the Dunard Centre 2024/25 Annual Report

Data-Driven Innovation programme publishes latest annual report

The University of Edinburgh and Heriot-Watt University’s Data-Driven Innovation (DDI) initiative has published its latest Annual Review, highlighting achievements from the academic year 2024-25.

Twelve case studies feature in the review, covering start-ups and spin-outs, research, and partnerships delivering positive impacts for a range of industry sectors.

2025 closed with the news that the DDI programme was named Collaborative Initiative of the Year by the Institute of Economic Development, with judges describing DDI as a flagship model of collaborative economic development, delivering innovation, skills, and infrastructure at scale.

The year also marked the conclusion of DDI's investment phase and completion of the final two Hubs. In April, Edinburgh Futures Institute (EFI) was officially opened by the University of Edinburgh Chancellor, HRH The Princess Royal, alongside Jenny Gilruth MSP, the Cabinet Secretary for Education and Skills, the Lord Provost of the City of Edinburgh and other city representatives.

The DDI Hubs continue to deliver significant economic benefit, with many examples noted throughout the report. By combining strengths across the University of Edinburgh, Heriot-Watt University and City Region Deal partners, the initiative is driving inward investment, including support to grow emerging companies.

Achievements against targets are:

Talent: The programme exceeded its course target by 15%, meaning that the full end-of-programme Talent target has been achieved. In 2024/25, DDI saw more than 37,000 completions – an 18% increase from 2023/24.

Research: DDI delivered £188 million in research activity – a 17% increase compared with 2023/24. The programme delivered £778 million worth of activity in total, which represents 79% of its total research target.

Adoption: The programme generated £20 million in income alone, representing 21% of total activity to date. DDI has exceeded its end-of-programme target by 79%.

Entrepreneurship: The initiative supported 90 early-stage data-centric companies, surpassing its unique company end-of-programme target by 53%. DDI has exceeded its follow-on funding target by nearly 1,000%, with DDI companies receiving £225 million funding in 2024/25 alone.

DDI's Senior Responsible Officer, Professor Kim Graham, said: "Delivery of these outcomes requires commitment, imagination and ambition. I am grateful to our DDI staff and students for their hard work and thank our industry, third sector and civic partners, as well as the Scottish and UK Governments, for helping make the Edinburgh & South East City Region DDI programme so successful. The City Region Deal is evidence that local innovation funding – focused on growing regional sectors through the application of emerging future technologies – delivers to modern industrial strategies, boosting economic productivity, entrepreneurship and jobs."

Read the full report here

Bush Loan Junction Upgrade Reaches Final Design Stage as Major City Deal Project Hits Halfway Mark

As one of the flagship infrastructure investments of the Edinburgh and South East Scotland City Region Deal, the Bush Loan junction upgrade has now moved into its final design phase. Midlothian Council has confirmed that engineers are preparing detailed designs following planning approval, with contractor appointment expected in mid‑2026 and construction scheduled to begin later this year.

Supporting economic growth

The Deal, launched in 2018 and now at the halfway point of its 15‑year programme, has already contributed £3.6 billion to regional economic growth. The Bush Loan improvement will support further expansion of the University of Edinburgh’s Easter Bush Campus near Penicuik, Midlothian, home to one of six Data‑Driven Innovation hubs funded through the City Region Deal. These hubs are accelerating innovation across key sectors, with the Easter Bush Agritech Hub advancing data‑driven research and industry collaboration to position the region as a global centre for agritech and veterinary excellence.

At the heart of AI

Easter Bush’s importance continues to grow. Last year, the UK Government confirmed up to £750 million in funding for the University of Edinburgh’s Advanced Computing Facility at Easter Bush, which will host the UK's next national supercomputer—placing the region at the heart of national efforts in AI and high‑performance computing.

Shaped by public feedback

The existing Bush Loan junction has longstanding safety and visibility issues, including the lack of a dedicated right‑turn lane from the A702. The approved scheme, shaped by public and stakeholder feedback, will replace the junction with a new roundabout designed to:

 Improve safety for vehicles joining and leaving Bush Loan

• Reduce traffic speeds on the A702

• Support safer, more reliable access to key employment and research sites

• Enable future development across the Midlothian Science Zone by addressing Transport Scotland’s safety concerns

Work has progressed

Since planning consent was granted, early works have progressed, including archaeological assessments, ecology surveys and ongoing technical discussions with Transport Scotland. Ground investigations are being finalised, and consultants are bringing together the remaining information required for the final tender package.

Next steps

Once detailed design work concludes, next steps will include:

 Final agreement on land access

• Competitive tendering of the works

• Completion of contract documentation

• Appointment of a contractor in summer 2026

• Construction starting before the end of 2026

• Targeted completion in 2027

Wider proposals

The Bush Loan upgrade is linked to the wider A701 Relief Road and A702 Spur Road proposals, which remain under consideration by the planning authority.

Local benefits

Midlothian Council’s Cabinet Member for Roads, Councillor Dianne Alexander, said the project will “deliver long‑term safety improvements, support local growth and strengthen connections between communities, education and employment.”

City region Deal joint support

The £1.3 billion City Region Deal is jointly supported by £300 million each from the Scottish and UK Governments, bringing together local authorities, universities and government to support economic growth, improve travel and widen opportunities across the region.