A new £11m space technology centre is to be built in Edinburgh.

The centre will be named the Higgs Centre for Innovation, after scientist Peter Higgs, and was announced by Chancellor George Osborne in his Autumn statement on Thursday.

It is understood the facility will be constructed at Edinburgh's Royal Observatory site, and will be paid for by the UK Treasury. The site is home to the UK Astronomy Technology Centre (ATC) which is operated by the Science and Technology Facilities Council (STFC) at the Royal Observatory.

According to the government, it will focus on "big data", large-scale computer processing, and space, two of the most promising technologies of the future. It will also house up to 12 small businesses, plus a team of scientists and students.

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Professor Higgs, 84, who was awarded a share of the Nobel Prize in Physics earlier this year, said: "This support from the Treasury and the STFC will create an environment in which future generations of scientists from around the world can share and develop ideas in theoretical physics."

Prof John Womersley, chief executive of the STFC, added: "Particle physics, astronomy and space science all address one of the biggest questions in science, what is the universe made of.

"The Higgs Centre for Innovation will significantly increase the positive impact that arises from fundamental research like this, both in job creation and economic opportunities and growth in the UK."

The Higgs Centre for Innovation is scheduled to open in 2016.

A capital investment from the Treasury of £10.7m will be used to build the facility, which will then receive operational funding of £2m from the STFC over a period of five years.

(JP/CD)