A planning application for the new Mountain Bike Innovation Centre in Innerleithen has been approved by Scottish Borders Council, paving the way for a project that is predicted to contribute £138 million in Gross Value Added (GVA) to the Scottish Borders economy over ten years.

The new facility, funded by a £19 million investment from the UK Government, is also expected to create over 400 jobs.

The planning application was submitted in June and received the green light on Wednesday, 3 September 2025. Demolition of the main building on the Caerlee Mill site is now scheduled to begin in October 2025, with the construction of a new building due to start in March 2026. The new Mountain Bike Innovation Centre is aiming to open its doors in 2027.

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The project is being led by South of Scotland Enterprise (SOSE) with support from Scottish Borders Council and Edinburgh Napier University. It will offer a space for both local and international businesses to showcase innovative products and for academics to conduct research. The centre will include a bike engineering workshop, brand experience units, events space, and teaching rooms.

Russel Griggs OBE, Chair of SOSE, said the approval and timetable mean the local community and mountain bike industry "can now start to see how our plans are going to become reality." The UK Government's Scotland Office Minister Kirsty McNeill added that the project will bring jobs and investment to the region. The £19m investment includes £4 million allocated to the Tweed Valley Adventure Bike Park and Trail Lab.

The project is part of the Borderlands Inclusive Growth Deal, a £350 million investment from the UK and Scottish Governments, with the UK Government contributing £65 million to Scottish projects. Councillor Scott Hamilton, of Scottish Borders Council, said the approval is a "major milestone" that will redevelop the brownfield site into a "thriving, vibrant and innovative space."