Rural Affairs Secretary Richard Lochhead said the Roslin Institute benefited farmers both at home and abroad.
Roslin hopes its genomics and genetics research can help create a better understanding of diseases in livestock.
BBC: Roslin Institute gets ?23m for animal sciences research
The Roslin Institute in Midlothian has been awarded the funds to help develop an international livestock improvement centre.
Prof Wilmut and his team at the Roslin Institute, near Edinburgh, created Dolly in 1996 and unveiled her publicly early in 1997.
One surprising possibility, being tested by Mitchell Roslin, a surgeon with Lenox Hill Hospital in New York City, is in treating obesity.
Roslin director Prof David Hume said the award highlighted the importance of its research to the productivity of the UK livestock sector.
BBC: Roslin Institute gets ?23m for animal sciences research
But the work at Roslin, Colman said, was aimed at producing medicine.
Professor Ian Wilmut is to receive a knighthood for his pioneering work at the Roslin Institute near Edinburgh - including cloning the first mammal.
The award will also support a multi-million pound national avian research facility, which is a collaboration between Roslin and the Institute for Animal Health.
BBC: Roslin Institute gets ?23m for animal sciences research
Those planning on staying in have a choice of entertainment, led by BBC One's 28-hour long 2000 Today programme, hosted by Michael Parkinson and Gaby Roslin.
The Roslin Institute has research and development partnerships with more than 45 companies involving livestock production as well as looking at improvements that can be made in animal and human health.
BBC: Roslin Institute gets ?23m for animal sciences research
By connecting leads from Cyberonics' nerve stimulator to extensions of the vagus nerve near the stomach, Roslin hopes to amplify the "I'm full" signal in obese patients, so that they don't overeat.
His role at the Roslin Institute in cloning Dolly the sheep, the world's first clone from an adult cell, led to an OBE in 1999 and he has been elected a fellow of five scientific academies worldwide.
The Roslin Institute's Dr. Ian Wilmut, who pioneered the technique that cloned Dolly from a single mammary cell from an adult sheep, said that while human cloning is theoretically possible, he saw no reason to do so.
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