Bay of Plenty Regional Council expects several thousand new jobs to be created by its $2.5 million investment in a scientific innovation centre.
Crown Research Institute Scion successfully bid for the funding through the council's inaugural regional infrastructure fund.
The centre development will assist the industry with its goal of increasing forestry and wood processing export earnings from about $5 billion to $12 billion by 2022.
Council general manager of strategy Fiona McTavish said the innovation centre would result in 4000 jobs flowing throughout the country, based on analysis by accounting firm Grant Thornton.
The project will be built at Te Papa Tipu Innovation Park.
Scion chief executive Warren Parker said the centre would create new capital, expertise and technology to the forestry and wood processing industry, which the Bay of Plenty region had a 35 percent stake in.
Construction of the Scion Innovation Centre is expected to begin towards the end of the year, with building completed by the end of 2015.