The demonstration programme will involve at least 10,000 older and disabled people and in this first joint project between the Technology Strategy Board and the Scottish Government, the Scottish Assisted Living Demonstrator agreement was signed by (left) Health Secretary Nicola Sturgeon and (right) Iain Gray, CEO of the Technology Strategy Board.

"Supporting people to live independently at home is what older people have consistently said they want and we know it is generally better for people's health to remain at home wherever that's possible, said Sturgeon.

"The experiences from the Scottish Assisted Living Demonstrator will also be used to inform and provide invaluable opportunities for Scottish businesses in support of economic growth."

"The key objective to the demonstrator is to help break the barrier between new healthcare technology and implementation and use of the technology in the public sector, such as NHSScotland, the private sector, for example in housing and in the insurance sector and the third sector, including by charities and social enterprises. Other key agencies involved in development of the demonstrator are NHS 24, Highlands & Island Enterprise and Scottish Enterprise," said Iain Gray.

The demonstrator will also show how cost savings could be made alongside provision of improved health benefits for both public and private provision, opening new social innovation, service innovation and wellness markets.

The Scottish Assisted Living Demonstrator is likely to be the first of a number that will be established across the UK by the Technology Strategy Board under a programme named DALLAS - Demonstrators of Assisted Living Lifestyles at Scale (below).

Details of the Scottish Assisted Living Demonstrator programme, and the geographic focus, will be agreed in discussions between the Scottish Government, its agencies and the Technology Strategy Board.

The demonstrator programme sponsors, and anticipated funding contributions, are: Technology Strategy Board (£5m), Scottish Government (£3.9m), Highlands & Islands Enterprise (£0.8m) Scottish Enterprise (£0.3m). NHS 24 will be the delivery arm for Scottish Ministers and the Scottish Government's Health & Social Care Directorate.

Further details of the programme will be developed and established by the Scottish Government, its agencies and the Technology Strategy Board over the next year, as preparations are advanced for implementation of the Scottish Assisted Living Demonstrator from April 2012.

The programme is run through the Technology Strategy Board's Assisted Living Innovation Platform (ALIP), which is responding to the challenge of the demographic shift - in essence promoting independence by making technology better, cheaper and more desirable. By 2021 half of the UK's adult population will be over 50. By 2025 almost 1.5m people will live with age-related disability.