Muswellbrook Tertiary Education Centre aims to drive regional collaboration and entrepreneurship

The tertiary education centre opened in 2016 and comprises University of Newcastle Upper Hunter and TAFE.

Professor Alan Broadfoot, a senior manager in the research division that oversees UON Upper Hunter, said the innovation centre would be a valuable addition.

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"There will be an overlap between what they're doing in spin off companies in the region versus where we're going to be next door, where we can house researchers to work with them, that's the next phase," he said.

"They're looking at engaging with schools...students can experiment and understand the concept of innovation and may be attracted to go into some of the science and engineering skills."

Professor Broadfoot said UON Upper Hunter was a "node" of the university and a "dynamic space dictated by the need", comprising 12 work stations, a meeting room and a training room. He said around 1500 people used the space each year.

The node serves as a base for undergraduate and postgraduate students completing work integrated learning and research, in areas including drawing resources from waste, food research and rehabilitating mined land.

Professor Broadfoot said UON was also working with industry on local projects including to establish a second generation biofuel facility, Ethtec.

The node also facilitates greater engagement between UON and the community through supporting HunterWiSE, which aims to increase the number of girls and women in STEM, the Family Action Centre and Uni4You, which encourages enrolment in UON pathway programs.

"I've always seen education as more of an enabler in providing choice, the generational choice is different," Professor Broadfoot said.

He said the biggest challenges for the globe were energy, food and water security and resource sustainability.

He said power station and mine workers would be able to adapt their skills for the new energy economy and that agriculture and food processing may be reborn as farming was displaced from Sydney.

He said there were also opportunities in water security, tourism and the wine and equine industries.

He said providing choice of employment in the region was vital and it was important the current skills shortage didn't "hamper our ability to take advantage of current economic conditions".

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