In recent years Scottish designers have been the hottest names on the world's catwalks. UK Vogue began its review of Christopher Kane's debut show at London Fashion week in 2006 saying: "There are certain moments in fashion history where you want to be able to say, I was there'."

The Motherwell native has since designed outfits for Kylie and Beth Ditto from The Gossip. He also advised Donatella Versace, whose designs helped advance the career of Scottish supermodel Kirsty Hume. She sported one of Versace's ensembles at 1998's Milan fashion show. Meanwhile, the Glaswegian Jonathan Saunders has been feted by Alexander McQueen and now divides his time between London and New York.

Kane and Saunders are prime examples of Scottish talent that has left Scotland, both studying at the world famous Central Saint Martins College in London, whose alumni include Stella McCartney, Terence Conran and John Galliano. The Scottish Academy of Fashion hopes to arrest this migration.

Alan Murray, head of design at Edinburgh College of Art, said the academy "will promote excellence in Scottish fashion and textiles, both nationally and internationally, through strong partnerships between academic institutions and industry. We also hope to work collaboratively with key organisations to ensure that young Scottish design talent is nurtured and retained in Scotland, and can make a valuable contribution to our creative industries."

ECA currently offers a fashion MA and regularly shows at London Fashion Week, the only Scottish institution to do so. But insiders say the academy will take fashion education and research to the next level, and through bolstering links with manufacturers in Scotland, bring the whole industry with it.

Officials are in negotiations with the School of Textiles and Design in Galashiels to build one of the key partnerships between other academic institutions. "There is no reason why there shouldn't be a fashion industry in Scotland," said Ian Howard, principal of ECA. "I was in Dublin recently and there was a thriving industry there, so there's no reason why not here. The talent in Scotland just isn't joined up with the industry in Scotland. That's why so many go to London."