Innovation will be awarded at this year's Northland Business Awards.

The region's economic development agency, Northland Inc are sponsoring the new award that recognises those looking to help diversify the regions economy and help it reach its potential.

CEO David Wilson says innovation is especially important now when the region's two key sectors, dairy and forestry, are struggling.

"We're looking for some originality, and we're looking for the opportunity to commercialise or in the process of commercialising some ideas."

"We already know there are a number of innovative businesses in Northland so we just want to recognise that."

Entries for the award close tomorrow with the winner announced in October.