New research into drug treatment will be led in Dundee after an £8m investment by the government.
A state-of-the-art robotic drug treatment lab at the University of Dundee will help develop new drugs.
Education Minister Michael Russell announced the funding during a visit to the university.
The money has been awarded to the Scottish Universities Life Sciences Alliance to create a UK National Phenotypic Screening Centre in Dundee.
Phenotypic screening is a form of biological research which studies how drugs affect organisms at a cellular level.
Research led at the university's College of Life Sciences will aim to build on recent advances in genetic engineering, stem cell technology and cell and organ culture systems.
Announcing the funding, Mr Russell said Scotland's universities "consistently deliver world beating results".
He said: "Today's announcement of £8m for new equipment will put Scottish universities at the forefront of drug discovery world-wide.
"This is a hugely exciting development for the development of new medicines worldwide.
"The Scottish Universities Life Sciences Alliance has determined that the University of Dundee will host the centre and it will work with some of Europe's top pharmaceutical companies to form a large public-private in the field of novel therapy research and development, adding further strength to Scotland's strength in the field."