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.

Expansion at Tweedbank

Expansion at Tweedbank is delivering premium business space through the Borders Innovation Park, while the adjacent Lowood Estate is one of the city region’s seven strategic sites, delivering much-needed housing. This is attracting inward investment, strengthening local businesses, and tackling inequality by providing quality employment and affordable housing. The site is well-connected via the nearby Borders Railway terminus.

Watch this short video to find out more:

You can watch other videos which show how the City Region Deal’s projects and programmes are helping people, in the Annual Report 2024/25

Edinburgh Innovation Hub already providing huge community benefits

The new Edinburgh Innovation Hub has had Community Wealth Building at its heart from the very start of its planning and construction, Minister for Public Finance Ivan McKee MSP heard yesterday.

Mr McKee visited the Edinburgh Innovation Hub (EIH) next to Queen Margaret University, Edinburgh - a joint venture between East Lothian Council and Queen Margaret University (QMU). It will be a nationally significant centre for innovation-driven business growth, creating new high-value employment, and is the anchor project of the planned Edinburgh Innovation Park. 

The 7,200 sqm Hub, which commenced construction in early 2024, is expected to be ready for new tenants by mid-October. If offers flexible laboratory, office and fully equipped meeting and conference spaces for rent by small to medium enterprises (SMEs) with a particular focus on life sciences, food and drink, tech, start-ups and companies and organisations with links to the university and strategic partners. There has been significant interest from potential tenants.

EIH is part of the Edinburgh and South East Scotland City Region Deal (ESESCRD) and is supported by £28.6 million from the UK Government, £1.4 million from the Scottish Government and £10 million from East Lothian Council.

Mr McKee met representatives from EIH, East Lothian Council, QMU, ESESCRD and the contractor Heron Bros on-site today and was particularly interested to hear about the embedding of Community Wealth Building from the outset.

Highlights include:

• Local spend: Heron Bros’ local spend within a 40 mile radius is over £400,000 over the course of the project, with more than £22,000 of charitable donations made and 50 hours of Heron Bros staff volunteering over the period.

• Local employment: More than 400 staff employed during the construction period, with 66% of labour from within the region. Two East Lothian residents were supported into newly created positions and have sustained their roles for the duration of the construction phase.

• Progressive Procurement – Meet the Buyer: Heron Bros and ESESCRD held a ‘meet the buyer’ event, inviting suppliers and contractors from the local area to attend during a critical procurement period of the project. Notable outcomes included: a local bricklaying subcontractor who attended the event being contracted to install all brickwork at EIH, now moving onto other projects with Heron Bros across Scotland; the local concrete supplier also attended the event and provided all concrete for the main structure, slabs and kerbing; the on-site caterer was an East Lothian social enterprise. The event also helped potential subcontractors gain a better understanding of public procurement including processes, timelines and accessing support from local enterprise agencies, giving them the best possible advantage to secure future work.

• Employability and Education: ESESCRD and Heron Bros engaged with various local schools and education partners offering numerous site visits and work placements. During these placements the site team and sub-contractors engaged in daily taster sessions with placement attendees, giving them real-world experience of the daily task of painters, electricians, plumbers, joiners, engineers and site managers.

• Construction Skills Academy/Scottish Pathways to Construction: Heron Bros, along with various industry partners, took a central role in the launch of a new industry-wide construction programme designed to support local individuals from under-represented groups progress into fair, secure and supported opportunities within the construction industry. Heron Bros delivered and shaped training, site visits and work placements – a great opportunity to engage the local population in construction and the EIH. The success of this pilot has led to the programme now being rolled out across Scotland.

Community Wealth Building has been a central pillar of the ESESCRD, with the ethos embedded across all projects, including the Edinburgh Innovation Hub, ensuring that investment delivers long-lasting benefits for our businesses, communities and people.

Community Wealth Building is a progressive economic model with a people-centred approach, which redirects wealth back into the local economy through various means including progressive procurement, fostering more social and environmentally-orientated businesses and co-ops, and fair employment including Real Living Wage employers and increased employment opportunities for local people and from priority groups.

QMU and East Lothian Council are recognised leaders in applying Community Wealth Building principles. QMU presented its approach as a national case study at the Local Government Improvement in Scotland conference in April 2025, while East Lothian Council has been cited by COSLA and the Scottish Government as an early adopter of the Community Wealth Building model. The joint venture to deliver the EIH is central to their shared work.

Mr McKee said: “The Edinburgh Innovation Hub at Queen Margaret University is a great example of how the Edinburgh and South East Scotland City Region Deal has embedded Community Wealth Building into investments made under the deal. To support further progress across Scotland, we have introduced a Community Wealth Building Bill to ensure that more wealth is retained in communities through fairer employment opportunities and the growth of local enterprises.”

Councillor Norman Hampshire, Leader of East Lothian Council, said: “The major investment in this project by the council and UK and Scottish Governments will help drive economic growth in our region and is already demonstrating significant and tangible benefits to our local communities, as the Minister heard today. I am delighted that the project, at its very early stages, has boosted local employment and local spend and has benefited our young people in work experience and placements and given a boost to important community groups and charities.”

Sir Paul Grice, Principal and Vice-Chancellor of QMU said: “QMU is proud to be at the forefront of the Community Wealth Building movement, and to be delivering the Edinburgh Innovation Hub in our joint venture with East Lothian Council. Along with driving inclusive economic development locally and nationally, the Hub will act as a gateway into QMU for businesses, increase opportunities at the University for industry-relevant research and knowledge exchange, promote an entrepreneurial culture, and increase the vibrancy of the area around the campus. The Hub is not just a new building, it is a new business.”

Cathal Heron, Regional Director of Heron Bros, said: “It’s been a privilege to help bring the Edinburgh Innovation Hub to life. From day one, we’ve worked hard to ensure the project delivers real benefits for the local community – not just through the building itself, but by creating jobs and supporting local businesses. We look forward to seeing the positive impact the Hub will have when it opens its doors.”

For more information on the ESESCRD Community Wealth Building and Benefits Portal please visit the website.  

More information on the Edinburgh Innovation Hub is on the website.

For more information on East Lothian Council’s Community Wealth Building approach, visit our website.

For more information on Queen Margaret University’s Community Wealth Building approach, see its website.

Fife Industrial Innovation Investment Case Study Video

The Fife Industrial Innovation Investment (i3) Programme is a £58 million, ten-year programme delivered by Fife Council with funding support from the Edinburgh and South East Scotland City Region Deal. The investment delivers new business premises and immediately available serviced employment land. These are located within existing business clusters in mid and south Fife, adjacent to the M90 and A92 growth corridors.

You can watch other videos which show how the City Region Deal’s projects and programmes are helping people, in the Annual Report 2024/25