The Science, Technology and Prototyping Centre is being built on land at the University of Wolverhampton Science Park.
A ground-breaking ceremony was held at the site last week to mark the start of work.
The three storey development will offer 4,000 sq m of space and feature high quality offices, labs and workshops, as well as a café and space for parking.
The project has been funded through a £4.8m grant from the Growth Deal to the Black Country Local Enterprise Partnership, with the remaining £5.3m coming from the University of Wolverhampton.
Deputy vice-chancellor, Prof Ian Oakes, said: “This exciting new development will be the only facility of its type in the Black Country and will build on the university’s investment in science and engineering in the last two years.
“We already have around 80 businesses based at the science park and this new centre will attract another 30 science and technology-based companies right to heart of Wolverhampton.
“It is a huge opportunity for the city and the university. We want to work with these businesses to help them grow and develop new products and processes and also give our students the chance for placements and graduate jobs.
“Job creation is a huge priority for the city and the Science, Technology and Prototyping Centre will attract new businesses bringing with them high-value jobs for the area and for graduates.”
The centre is due to be completed in Spring 2017.
A video of the ceremony can be found below: