If approved, the centre is expected to explore and identify new ways to reduce the weight and cost of railcars and track structures, as well as develop low-cost connections between suburban and rural areas.
Furthermore, the hub will also research better ways of providing a cost-effective alternative to heavy rail and traditional rapid transit transport systems throughout the city.
The proposed hub is set to include a new building with meeting rooms, laboratories, teaching facilities, an exhibition and conference space and a large engineering workshop.
The council also plans to construct 2km-long twin test tracks featuring test platforms, as well as a pedestrian foot bridge that will link the innovation hub to Tipton Road, the future Metro line and car parking.
A separate planning application for the test track was previously submitted to the council’s planning department in October last year.
Cabinet member for planning and economic development councillor Ian Kettle said: “If given the go ahead, the innovation hub will put Dudley at the forefront of the world’s development of very-light rail technology.”
“We will be able to market this as a product worldwide and significantly boost our opportunities to strengthen and grow our local economy.”
This part of the project is estimated to cost nearly £25m.
Dudley Council has already received £18m from the Black Country Local Enterprise Partnership for the initiative, while a funding bid for the remaining £7m has been submitted to the government.
The planning application is expected to be analysed in the first half of this year.