Auckland University's Bionic Joint project has been recognised by Europe's largest applied research institution and is set to receive funding from Germany's Fraunhofer Society.
Prime Minister John Key made the official announcement this week in Berlin, adding that it has been awarded ICON status.
Scientists from the University of Auckland's Bioengineering Institute have been collaborating with Fraunhofer IPA since 2012 to develop a bionic elbow joint for use in human exoskeletons intended to reduce workplace injuries and aid recovery of upper arm functions in stroke survivors.
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Science and Innovation Minister Steven Joyce said the project has the potential to improve the quality of life for those with impaired limbs.