Tim Berners Lee, who developed the Web in 1990, will head up Britain's Institute of Web Science.
The institute - which has been given 30 million pounds ($45 million) funding - will aim to help Britain develop 250,000 new jobs in the technology sector.
Prime Minister Gordon Brown said Monday it will put Britain at the cutting edge of "emerging Web and Internet technologies."
He said the institute would work on opening up government data for public use, such as developing smartphone apps, or interactive maps.
Brown pledged to ensure all Britons have access to high-speed broadband by 2020.