Scotland is set to become a global hub for innovation in virtual production thanks to a new £9 million investment in cutting-edge research and development (R&D) facilities. A team from the University of Edinburgh is working with Abertay University to deliver this ambitious project which looks set to revolutionise the screen, gaming, and performance industries by providing world-class resources and expert support to creative and technology companies across the UK.

A significant milestone for virtual production in Scotland

The CoSTAR Realtime Lab opened its first dedicated virtual production studio at Chroma Developments’ Water’s Edge in Dundee on Tuesday 18 February marking the start of operations for the major infrastructure project that will provide a significant boost to Scotland’s screen industries.

Additional facilities will be established in March 2025 at the University of Edinburgh, including a state-of-the-art studio at First Stage Studios, with further expansion planned at Edinburgh College of Art in 2026. These studios will be connected through the Realtime Cloud Lab, enabling remote access and global collaboration.

This initiative is part of the CoSTAR Network, the largest investment in Creative Industries R&D to date with a £75.6M grant awarded by the UKRI Infrastructure Fund and delivered by the Arts and Humanities Research Council. 

Industry and academia working in partnership 

Led by Abertay University, the CoSTAR Realtime Lab is operated in partnership with the University of Edinburgh, CodeBase, Interface and Chroma Developments. 

At the heart of the CoSTAR Realtime Lab is virtual production – a cinematic technique that merges Computer-Generated Imagery (CGI), Augmented Reality (AR), and motion capture to create immersive digital sets for film, gaming, and live performance. Researchers will collaborate with industry partners to enhance production pipelines through advancements in 3D environments, video processing, performance and motion capture, facial animation, automated speech, and hyper-realistic digital film sets. The CoSTAR Realtime Lab’s work will also explore ways to enhance spectator experiences at concerts, live events, and museums using AR and Virtual Reality (VR).

By combining Abertay University’s world-class expertise in video games and technology with the University of Edinburgh’s leadership in AI, animation, and film, the partnership will create transformative tools, workflows, and processes. This will help creators scale up, diversify, and compete in global markets with reduced financial risk.

Supporting creators and creative businesses

The CoSTAR Realtime Lab will open doors for Scotland’s creative professionals, providing them with next-generation production technologies to experiment and push the boundaries of their work. Resources will be accessible through various open programmes, allowing companies and creatives to test, develop, and refine their ideas.

One of the flagship initiatives, the CoSTAR Realtime TEST Lab, offers companies, creatives, and innovators the chance to experiment with virtual production and emerging creative technologies before making major investments. This programme is supported by funding from Screen Scotland, ensuring that Scotland’s creative community can benefit from cutting-edge advancements in content production and software development.

Additional support is available through Collaborative R&D, which enables partnerships between businesses, individuals, and project staff to drive innovation. CodeBase will also provide scale-up and start-up training through its Techscaler programme, equipping entrepreneurs with the skills and resources they need to grow their ventures.

Further funding and development for Scotland’s creative sector

Beyond the CoSTAR Realtime Lab, the wider CoSTAR Network offers further access programmes including the Pilots and Prototypes Programme (PPP), a £3.6 million fund designed to help UK companies develop new ideas by accessing technical and research capabilities, while the Enterprise and Commercial Programme (E&C) supports the growth of inclusive and sustainable creative technology businesses.

In addition to its delivery partners, CoSTAR Realtime Lab is supported by Screen Scotland, Scottish Enterprise, Amazon Web Services, Nvidia and VSS-Scotland. 

For more information, visit CoSTAR Network or follow @costarnetwork for updates. Full details on funding calls and access programmes can be found online: Access Programmes | CoSTAR

Professor Gregor White, Director of the CoSTAR Realtime Lab said: “With the technologies that power our screen-based experiences in film, games and performance rapidly converging there’s an opportunity for companies working in these sectors to diversify their offer, explore new markets and push the boundaries of what was previously thought possible in their sectors. Bringing together international-quality academic researchers with industry experience and enterprise support, CoSTAR Realtime Lab is a truly collaborative project which will break down barriers for the Scottish creative industries, encourage entrepreneurship and experimentation, and provide a space where innovation can flourish.”

Professor Melissa Terras MBE, Edinburgh College of Art, Co-director of the CoSTAR Realtime Lab said: “Scotland has vibrant creative industries, with world-leading activity in festivals, film/TV, music, heritage, and games in particular. Building a bridge between creatives and technologists will allow us to support the development of new products and services, while also ensuring that we are encouraging diverse access to cutting edge facilities, which will then produce diverse outputs. The partnership behind CoSTAR Realtime Lab is expertly placed to deliver this exciting innovation vehicle to support our creative communities”.

AHRC Executive Chair Professor Christopher Smith said: “The CoSTAR Realtime Lab will build on the strong foundations of Scotland’s gaming cluster, bringing together next generation production technologies, the latest in video game development, and AI and machine learning, to support innovators in the creation of new technologies, experiences, and markets. As part of the CoSTAR network it will play a key role in ensuring that the UK’s creative industries act as a key driver of growth as identified in the government’s industrial strategy. It is by strategically investing in the industries of the future that AHRC shows how arts and humanities research drives innovation and growth in a 21st century economy.”