The States of Jersey have approved £449,000 of funding for a Digital Jersey project.
The funds will be used to set up an 'Internet of Things (IoT) Lab', to promote the growth of the digital sector in Jersey.
The IoT Lab is designed to help start-ups and the telecomes industry to develop new products and services to solve local problems and attract inward investment to Jersey as a "technology testbed".
Assistant Minister, Deputy Scott Wickenden said this investment from the States would create opportunities for innovative product development.
CEO of Digital Jersey, Tony Moretta said the company were excited to turn digital sector ideas into commercial ventures for Jersey.
Digital Jersey believes that the IoT Lab will complement existing digital spaces on the island to advertise Jersey as a marketable digital business centre, both on and off island.