The project is expected to create 6500 new jobs and inject £350million into the Scottish economy every year.

The scale of the scheme has led to concerns in Dundee that the city, which has led the way in life science research in Scotland for years, may be cast into the shadows.

However, Professor Pete Downes, Vice-Principal of Dundee University and Head of the College of Life Sciences, said he believed the development was positive and would add value to the operations in Dundee.

He said, “This investment, which involves a major player in the successful development of biotechnology clusters in the United States, is a further sign of the strength, international recognition and commercial potential of Scotland’s burgeoning life sciences sector.

“Taken alongside the announcements by the leaders of the SNP and Scottish Labour that they will create a Scottish Institute for Life Sciences in Dundee and the development of the Scottish Universities Life Sciences Alliance, with investment of more than £70 million, Scotland’s great strength is the ability of its major academic institutions to cooperate to achieve the critical mass needed to compete in globally-competitive research.

“Dundee, which has been recognised as Europe’s leading life sciences research institution, is a key player and the establishment of a Scottish institute here will secure its role at the heart of a national biosciences cluster.”

The newly-elected Dundee East and West MSPs Shona Robison and Joe FitzPatrick said they were confident Dundee’s pre-eminent position would be maintained.

Ms Robison said, “What it does do is make me want to make sure we push ahead quickly with the life sciences institute in Dundee.

“What Joe and I will be doing is having an early meeting with Alex Salmond as to how we move that forward. Even if we are in minority government I don’t envisage any issue as there has been cross party support.

“As long as we are building the life sciences sector in Scotland as a whole then hopefully that will be to the benefit of everybody.”

Mr FitzPatrick said, “We have got a commitment for a life sciences institute for Dundee and cross party support for that. I think Scotland’s economy is able to take quite a lot of these new biotech jobs.

“Obviously, I want the whole of Scotland to expand, but I believe Dundee should be the centre of life sciences research. Dundee is ahead of the game in this area of research and I want to keep Dundee ahead.”

A Scottish Enterprise spokesman said the new BioQuarter in Edinburgh would lead to spin-off benefits across Scotland. He said, “This is part of an overall strategy for Scotland’s life sciences sector and very much aims to complement work being done in Dundee, Aberdeen and Glasgow.

“Such a big site and investment is really going to put Scotland on the world map and the benefit is going to be felt throughout Scotland.

“The site itself will not just have links with the University of Edinburgh but will have other links with the universities of Dundee, Aberdeen and Glasgow.”