Scion and the Bay of Plenty Regional Council have signed off on a project which could lead to hundreds of new jobs and millions of dollars for the Rotorua economy.
Rotorua-based crown research institute Scion and the regional council signed an agreement on Monday to build an innovation centre at Scion's Te Papa Tipu Innovation Park.
The centre's purpose is to foster innovation in forestry and wood processing industries with the regional council allocating $2.5 million to the project through its Regional Infrastructure Fund.
Regional council chief executive Mary-Anne Macleod said the project had the potential to boost the Rotorua economy and the wider region, bringing employment, economic benefits and innovation.
"The funding is essentially seed funding which will help get this project off the ground sooner rather than later for the economic benefit of the region," she said.