The money was part of $671,000 in the fund for business in the 2009-10 financial year, a sector the council was supporting, Cr John Bezett said at a small ceremony to announce the funding.
The increased funding for businesses came after budget hearings last year added $461,000 over two years to the council's economic development industry project contestable fund.
The idea behind the move was to make the most of opportunities presented by the recession and gain ground on competitors, leaving the city in a strong position once the downturn ended.
The funding, to assist collaboration between Dunedin businesses and industry organisations, was provided to help them overcome barriers they faced, and bring economic benefits to the city.
Kris Bennett, of the Otago Polytechnic, said the $72,000 her project received would go towards a $217,900 project to encourage people in the workforce with experience in design to train as technology teachers for New Zealand schools.
The project was a collaboration between the polytechnic and the University of Otago, and those two organisations would make up the rest of the funding.
People interested in teaching would have their experience recognised, allowing them to finish their training more quickly.
Attracting teachers was a strategic priority for the Government as there was a "huge shortage", and the project would benefit Dunedin by attracting more people here to study.
Cr Bezett said much of the discussion about the results of grants in the past had been discussed in committee, as they were commercially sensitive.
The council was working to find a way to make the results more public, without putting businesses off applying for funds.
Other grants announced yesterday were: ICT cluster, for internship programme, $75,500; Education Dunedin education cluster, for developing new markets in international education, $45,000; Biotechnology cluster, for Dunedin-based partnership of biotechnology businesses, $70,200.
