A $1.9 million grant from the Government is set to bring Otago a new design research centre run by the University of Otago and the Otago Polytechnic.
The centre will offer practical help to business in the form of design expertise and has been heralded as recognition of the strength of design in the region.
Economic Development Minister Pete Hodgson announced yesterday the Government had "agreed in principle'' to provide the money to the Otago Institute of Design to establish an Applied Design Research Centre in Dunedin.
The centre would be a joint venture between the university and polytechnic, with funding from economic development group Otago Forward, and would provide design services, research and education to industry.
"Given the undertaking by Fisher and Paykel deputy chairman John Gilks earlier this week that 90 employees will be retained in Dunedin for project design, it is obvious a centre of this kind has real merit,'' Mr Hodgson said.
Asked how the centre would work, polytechnic spokesman Mike Waddell said customers might want research, development, market testing or advice for a plan they had.
In some cases, they may pay for the help, or payment may be "in kind''. "There's no one fixed way [of payment],'' he said.
Between the university and polytechnic there were good specialised design skills at design departments, Mr Waddell said. "This is recognition of that.''
The centre would provide good opportunities for both undergraduate and postgraduate students, he said. The tertiary institutions had yet to decide where the centre would be housed.
Polytechnic chief executive Phil Ker said the funding recognised the design innovation that already flowed from Otago. "It offers us the chance to take another step up to offer design services to a wider range of businesses throughout New Zealand.''
Queenstown Mayor Clive Geddes, the chairman of Otago Forward, said the funding reinforced that regional economic development could work in Otago. "Otago Forward has looked at numerous projects in the past, but the design institute is the first to receive major funding.''
