I just stumbled upon the Serious Games Institute (SGI) at Coventry University. Their aim is, “to become an international centre of excellence for serious games and a model of best practice for regional development through technology innovation.” (About Us) They seem to be focused on developing games to teach business, and the games seem to be fairly sophisticated. (See their Showcase.) It is interesting how serious gaming is being used to revitalize a region. nGen (Niagara Interactive Media Generator), recently announced by Brock, is a similar initiative that is connecting with Silicon Knights to kickstart game development as a way of generating new industry.
The Serious Games Institute seems to use Second Life a lot where they have an island.