The Technology Strategy Board (TSB) will establish a 'Catapult' centre for satellite applications.
"We are extremely pleased to be introducing the Catapult in Satellite Applications," said TSB CEO Iain Gray. "The Catapult will help UK businesses create many new products and services across a wide range of areas, such as distance learning, telemedicine, urban planning, precision agriculture, traffic management and meteorology.
Previously mooted as the 'space' Catapult, the satellite Catapult will focus on applications of R&D in four areas: communications, broadcasting, positioning and observation. The change from 'space' to 'satellite' clarifies that the centre has nothing to do with space exploration or manned space.
According to the TSB, the centre is expected to open this autumn, and "provide UK businesses, including SMEs, unique access to advanced systems for data capture and analysis to support the development of new services delivered by satellites".
There will also be in-orbit test facilities.
"This approach was recently pioneered in the TechDemoSat project, which was jointly funded by the Technology Strategy Board and Surrey Satellite Technology," said the TSB.
Where the centre will be located has not yet been decided - consultations begin in the next few weeks. However it is likely that it will be located close to, and be run by, a company with existing satellite activities, A TSB spokesman told Electronics Weekly.
Funding has not yet been announced.
According to the spokesman, the existing cell therapy catapult is getting £10m per year for its first five years.
The Government has committed "at least £200m to the catapult programme", said the Board, with the TSB planning to establish a minimum of six Catapults by summer 2013.