ALMOST £90m is being invested in two new centres of excellence to help the region become an innovation hotspot.

In his Autumn Statement the Chancellor pledged cash to build laboratories at Netpark in County Durham for scientists to develop the next generation of detergents, medicines and cosmetics; and to set up a centre on Tyneside to find ways of supporting people in old age.

Netpark science and technology site at Sedgefield will become home to the new National Formulation Centre, which ministers hope could lead to 12,500 new jobs across the UK when it opens in 2016.

Operated by the Centre for Process Innovation (CPI), it will be the headquarters of a national research and development network to develop life-changing products - such as washing detergents that can be used without water, lubricants to make engines run faster, and breakthrough medical treatments.

A n investment of £28m from the government is expected to be matched with about £20m of private funding.

Vince Cable, the Business Secretary, said: “This multi-million pound investment will drive innovation and growth across our manufacturing sector where the UK is a world-leader. It will safeguard the UK supply chain, and allow us to capitalise on the huge potential of the UK’s research and development capabilities.

"This will keep our UK businesses ahead of the game.”

The centre will employ about 40 specialist staff and provide companies with high tech labs and equipment to develop their ideas into products.

Sedgefield MP Phil Wilson said: “Ten years after Tony Blair opened Netpark it is great to see it going from strength to strength. This will help to bring the kind of high quality jobs, well paid jobs that this area needs.”

As part of a package of measures to kick-start the north, the Chancellor also gave £20m towards the creation of a National Centre for Ageing Science and Innovation (NASI) in the West End of Newcastle.

NASI, which will be part of Newcastle University, will lead efforts to improve the health and well-being of older people by developing new technologies and services to help pensioners live in their own homes and remain socially active for as long as possible.

Professor Chris Brink, Vice-Chancellor, at Newcastle University, said the University would match the funding with a further £20m.

He added: “Securing a national centre of this scale in the north will be a major economic boost, but crucially, it will provide a critical mass of experts in this field which will allow the UK to compete with the rest of the world.”