Almost £10 million has been awarded to encourage the development of innovative new products and processes in health care and eco-friendly vehicles.
The University of Warwick will hand out the money through the Warwick Innovative Manufacturing Research Centre - it has been given £9.5 million by the Engineering and Physical Sciences Research Council.
The money will be used to support research projects in the areas of healthcare and intelligent and eco-friendly vehicles over the next five years.
These are crucial areas for the UK economy and particularly for the manufacturing sector and they will have significant impact on our daily lives.
Dr Ken Young, director of WIMRC, said: "It is important that our work is directly relevant to the UK population and to companies operating in the UK.
"We need to be solving not only their current problems but also the problems that they will face over the next 20 years.
"This award enables us do that and also demonstrates great confidence in our research team," he added.
The research, which will be carried out at the University of Warwick, will address issues of concern both in the National Health Service as well as in industry and the centre's core mission is to transfer that innovative research into industry.