The Highlands and Islands of Scotland is to be the location for a unique world class research institute.

As the first of its kind anywhere in the world, Distance Lab will carry out research into how digital media and information and communications technology (ICT), can help manage the impact that distance has on individuals, communities and businesses in the north of Scotland and other areas of the world.

Where television, the telephone and mobile phone has revolutionised the world in the 19th and 20th Centuries, Distance Lab will research and develop new technologies and products that help break down the barriers of communication and distance even further in the 21st Century.

It will help develop new products in existing businesses, encourage 'spin-outs' of new firms based in the Highlands and Islands and develop products at the leading edge of communication technology and emerging high growth sectors like medical research.

The project will see an overall investment of £5million over the next five years with around £3million coming from the Highlands and Islands Enterprise (HIE) network which is driving the project.

Chairman of HIE William Roe said: "Distance Lab aims to create a new breed of technologies that enable people to deal with distance in terms of space, time, society and culture and to bring these technologies into everyday use which I believe the Highlands and Islands is well placed to lead on.

"The lab will be at the forefront of innovation in digital media and communication technologies and will be a world centre of excellence in these fields. These technologies are the gateway to prosperity and an even greater quality of life in the area."

As part of the overall concept, Distance Lab will be structured as a distributed research laboratory with satellite centres around the Highlands and Islands.

It is expected that researchers working at Distance Lab will be inspired to create valuable high growth business starts and settle locally to commercialise their ideas which will help grow the local economy by providing high value jobs.

Distance Lab will also focus on cutting edge international activities making an impact far beyond the Highlands and Islands and Scotland whilst bringing greater benefits to the area.

Although Distance Lab will be a research based organisation, there will be a strong emphasis on practical projects and working prototypes. These projects may have the potential to be commercially successful leading to new products and services developed by the private sector and generating revenue for Distance Lab from licensing agreements and sales of intellectual property.

Distance Lab will also offer a range of services from consultancy to carrying out contract research and offering specialist services to academia. Although Distance Lab is initially supported by HIE, it will operate competitively and sell its services at market prices.

It will seek to engage with micro businesses and SMEs in the Highlands and Islands, many of which are highly entrepreneurial and innovative firms.

Large corporations are also likely to be interested in tapping into the technologies emerging from Distance Lab and sponsorship deals are therefore likely to be sought with it to allow access to some of the intellectual property being developed there.

The health, culture, leisure and education sectors will be the main initial focus for Distance Lab, but emerging sectors like energy may also provide opportunities. It is anticipated that there will be a close working relationship between Distance Lab and UHI Millennium Institute (UHI) and discussions are taking place with a view to Distance Lab becoming an associate institution of UHI.

Professor Bob Cormack, principal of UHI Millennium Institute said: "Breaking down the barriers of distance is a key component in the effective delivery and availability of education and training in the north of Scotland. We look forward to working with Distance Lab to further enhance the experience of students studying throughout the Highlands and Islands and also to extend the reach of our courses beyond the region."

Distance Lab will be accommodated at Horizon Scotland - an innovation and incubation centre at The Enterprise Park, Forres. HIE Moray has dedicated a significant package of funding to Distance Lab as they see it as critical to helping the area develop a better knowledge economy.

Chief executive of HIE Moray James Gibbs said: "Forres is an excellent location for Distance Lab as there is a pool of skilled personnel at the nearby RAF bases. Moray's economy has one of the lowest average wage rates in Scotland and projects like Distance Lab have the potential to make an impact on this and provide more opportunities for graduates in the area."