The senator visited the university yesterday to officially open the Australian Institute for Innovative Materials (AIIM), and said cutting-edge research done by the two scientific teams housed within the building would help ensure the Illawarra remained a "manufacturing hub" into the 21st century.

"This unique Innovation Campus ... will match the research capabilities of the university and its specialist institutes to the research needs of industry," Sen Carr said.

"Fewer than 1 per cent of Australian businesses get information and ideas for innovation from universities - it is time we reached out to the other 99 per cent.

"(AIIM) addresses one of the critical challenges facing us today - the challenge of building sustainable growth in a rapidly changing world.

"The institute's mission is to carry out world-class research into advanced technologies, developing real-world applications with the potential to benefit the economy and society at large."

Sen Carr said work done within AIIM would help transform existing industries and open up new ones.

"It's about bringing together the white collar and the blue collar," he said. "A lot of people think universities are remote from everyday life, but that's not the case.

"Universities can play an important role in the growth of new industries and they ensure economic opportunity for everybody."

Sen Carr was joined by a host of dignitaries for the opening, including CEO of the Australian Research Council, Professor Margaret Sheil, university vice-chancellor Professor Gerard Sutton and local MPs Sharon Bird and Jennie George.

Prof Sutton said in the next 10-15 years the Innovation Campus will employ 5000 people and would prove critical in terms of opening up new industries for the region.

"We have the capability to take research being done here and turn it into new hi-tech industries for Australia," he said.