A Pounds 30 million science park for Northern Ireland was announced this week.
The government is providing Pounds 10 million in pump priming with private sector funding making up the remaining Pounds 20 million.
Gerry McKenna, Ulster University's pro-vice-chancellor, said the scheme will take advantage of research in software development at Magee College, bioscience at its Coleraine site and engineering and information technology at the Jordanstone campus.
The park will create 200 jobs at Magee and 500 at Coleraine. Queen's University, Belfast, will collaborate in the development.
"If we do not invest in new technologies, we will be left behind our competitors," Professor McKenna said. The project will encourage investment in the work of scientists and technologists at the two universities and help prevent a "brain drain".
Lord Smith, vice-chancellor of Ulster, said the two universities will provide 60 per cent of local research and development. "It represents a gilt edged opportunity for investors and new business development across the province," he said.
The initiative will hope to reverse the poor performance of Northern Ireland in attracting venture capital. A recent study by researchers at the universities of Southampton and Ulster found Pounds 20 million in venture capital was pumped into the region, just 0.7 per cent of the UK total.