MIT has announced plans to set up a new research centre in Adelaide's Lot Fourteen CBD innovation precinct.

The Massachusetts Institute of Technology (MIT) will establish a Living Lab for the public and private research sectors and data analytics.

“The Living Lab means local researchers will have access to invaluable data to identify how we can drive sustainable population growth, create jobs and strengthen our economy,” SA Premier Steven Marshall said.

“Furthermore, it will bolster South Australia's entrepreneurial activity across a range of industries and ensure that this state remains at the forefront of global innovation and enterprise.

“This Australian-first collaboration is a real game changer for South Australia, which helps us build a stronger and more prosperous economy that allows and encourages young people with ideas to stay here and pursue them.”

Living Labs have been popping up in cities around the world, providing information to help governments form policy and initiatives.

MIT media arts and sciences professor Alex Pentland said they allow greater insight into the complexities of life.

“We identified Adelaide early on as the prime location for a Living Lab in Australia and the broader region due to its leadership in data analytics and machine learning,” he said.

The Lot Fourteen innovation precinct, located on the site of the old Royal Adelaide Hospital, will also host the headquarters of the Australian Space Agency and other labs, tech businesses and education facilities.