Lincoln Gould, chief executive of Booksellers NZ, said it was important for authors and booksellers to work together to get kids hooked on books early in life.
"I am sure that New Zealand booksellers will take up the challenge of developing creative ideas to enhance the reading experience of young people."
New research shows that the number of books in the family home directly impacts a child's reading level - by as much as three years.
A study across 42 countries and 200,000 cases last year found that having a home library enhances academic performance for all children.
Even if a parent is illiterate, just having a children's book in the home helps. However, it's been tough times for the New Zealand book industry.
Major chain Whitcoulls Queen St has just announced that it's departing its flagship Queen St shop to make room for a new Farmers department store.
Earlier this year, the National Library announced it is scaling back its school lending service - a move criticised by Man Booker prize-winner Eleanor Catton and pop star Lorde.
Last week, it was announced that New Zealand Book Month was being postponed indefinitely after struggling to secure sponsorship.
Reading skills in New Zealand have dropped significantly since 2009, according to the most recent (2012) OECD report on literacy across 65 countries and half a million children.
"Bookshops guard against a future in which far too many children are illiterate," said Mr Patterson.
"So many bookstores are already making a difference in their communities and I'm looking to help bookstores who want to do more."
The star author says he is open to "all sorts of ideas", from after-school bookclubs and story-telling tents, to e-newsletters and spot bonuses to valued employees
Booksellers have until 5pm June 30 to apply for the grant. A total prize pool available is $100,000.
To download an application form, go here.
