The successful business case was put forward by Priority One, Tauranga's economic development agency alongside the University of Waikato and a consortium of eight local companies with the working name 'Plantech'.
Priority One chairman Brett Hewlett said it was a hugely exciting development for the Bay.
"The Plantech concept will see leading edge, commercially focused research and development expertise in our region and provide important new resources to our companies."
Plantech aimed to accelerate the growth of individual companies as well as build regional and national capability in advanced technologies, he said.
Alistair Scarfe, founder and chief technology officer of Robotics Plus Ltd, one of the member companies, said partnerships forged in Plantech would strengthen high-tech exports and give New Zealand primary industry a high-tech productivity boost.
Zespri was also part of the initiative and its innovation general manager Carol Ward said to compete in the technology space ''our sector needs new capabilities and this regional research institute, located in the 'living lab' of the Bay of Plenty offers an innovative way to grow these capabilities.
''Its research focus on data science and analytics, autonomous devices and mobile decision support has exciting potential to develop innovations that can improve productivity in the kiwifruit industry."
Tauranga MP and Economic Development Minister Simon Bridges said it was a game- changer as ''we are already a world beater in horticulture''.
''It is a remarkable story when you think about the ravages of Psa and in a way, we were down on our knees in this area. Now the growth is bigger than ever but what we can't do is rest on our laurels.''
Mr Bridges said it was also pleasing that the Government was not paying all the bill.
''It's a public-private partnership and terrific we are working together with Bay of Plenty companies . . . and a model we are increasingly trying to use. It's pretty simple really if the private companies are willing to invest you know it has a better chance of success.''
''I am confident it's going to deliver world class solutions to keep us up at the very top of the horticulture game globally.''
Bay of Plenty MP Todd Muller said improving the productivity and sustainability of the horticulture sector had the potential to drive significant economic benefits for the Bay of Plenty.
"Plantech will initially focus on research to enable digital automation of devices for growers, including robotics and digital sensing, with the aim of becoming a leader in supporting customised, precise and automated production systems accessible for business" he said.
Tauranga mayor Greg Brownless said it was a major boost with numerous benefits including employment and recognition ''of the way we do things''.
Plantech founding group
Bluelab, Cucumber, GPS-It, Eurofins, Plus Group Horticulture, Trimax Mowing Systems, Waka Digital and Zespri International, alongside Priority One and the University of Waikato.
Regional Research Institute initiative
Seeks to maximise the unique business, technology and economic growth opportunities in our regions by establishing research centres that help build research and development intensity and lift innovation in key regional industries.
