Innovation Minister Gavin Jennings signed a memorandum of understanding to seal the partnership between the State Government, four councils, Monash University and the CSIRO science community and business and industry partners, to form the South East Melbourne Innovation Precinct.

The precinct boundaries comprise the local government areas of Monash, Knox, Greater Dandenong and Kingston, home to 40 per cent of Victoria's manufacturing activities and more than 56,000 registered businesses.

Dandenong's Bombardier, a national leader in the development of rail rolling stock, is one of those partners.

Director of sales and marketing Andy Spink said the Canada-based giant could help local industry by bringing some of the technologies it had developed "through forums such as the innovation precinct".

"As a global leader, Bombardier can work with local businesses to meet global standards, as we have previously done on other rail projects within our supply chain."

Mr Jennings told guests at the host venue, Davey Water Products at Caribbean Business Park, the initiative would create a centralised business environment.

"Companies and research organisations will benefit from networking opportunities, shared knowledge and information. It will increase international investment and opportunities for Victorian businesses, which will help create jobs."

Mr Jennings said with a focus on high-end growth sectors including chemicals, polymers, machinery and equipment, applications in transport, health, construction and the environment, SEMIP aimed to energise the south-east.

"And create a high-profile innovation business and knowledge capital for the Asia Pacific."

Spe aking on behalf of the mayors of the four participating councils, Knox Mayor David Cooper said

the project signalled "a vibrant future for south-east Melbourne".

"As we know this area is the economic engine of Melbourne and a major driver of the Victorian economy."

Cr Cooper said the partnership was a first for the region. "We welcome it not only for its current focus on building a strong and effective culture of innovation in our region but also because it is a demonstration of how all sectors can collaborate for the benefit of our communities and our economy."