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The Prime Minister has announced a $25 million science package at the University of Auckland's Tamaki campus this afternoon.
The Government is pledging $25 million over 10 years with the Auckland City Council earmarking $20 million worth of land for the first stage development of the New Zealand Innovation Centre (NZIC).
The centre's aim is to create a cluster of companies and support organisations that will foster growth of high-tech research and development companies.
Up to 100 businesses are hoped to be on the site by 2014.
Dignitaries from the private sector, the University of Auckland and the Ministry of Economic Development were present at this afternoon's announcement.
Helen Clark said the centre would boost New Zealand's economy. She said the Innovation Centre would improve New Zealand's global rating in terms of research and development funding.
"Internationally we perform quite well but we have a way to improve," Helen Clark said.
She said New Zealand had been a long way behind with Research and Development parks but this was a step in the right direction.
Research, Science and Technology Minister Peter Hodgson said if National did scrap the Research and Development tax credit then New Zealand would lose that investment to Australia.
"I'm opening an R&D research facility later today. It was a straight toss up - Australia or New Zealand? They chose New Zealand, they built the facility, they found the policy has reversed on them and they are now wondering what to do," Mr Hodgson said.
Building on the centre will begin next year and is due for completion in 2014.
Mr Hodgson and Helen Clark released a joint statement saying the centre's benefit to the country would be enormous.
"Combined with the $700 million Fast Forward fund and the research and development credit, the Innovation Centre shows the Government's commitment to science and innovation.
"The tax credit alone is predicted to increase New Zealand's private sector R&D investment from 33 per cent of the Western World average to 66 per cent of that average in four years.
"It is a recipe for a smart economy - not the dumb one favoured by National."
Mr Hodgson said by 2025 the economic benefit of the NZIC for the country is estimated to be about $400 million.
One of the groups behind the project is Auckland Plus, a regional economic development agency for Auckland.
"The centre would give the New Zealand economy a substantial boost," group manager Clyde Rogers said.
"Auckland and New Zealand will never compete internationally on cost. Where we can and must compete is in the area of knowledge and innovation and as an exporter of high value products and services."
