He said the institute would be set up at the University of the West Indies (UWI) or the University of Technology.
Speaking yesterday at a luncheon and awards ceremony hosted by the Sugar Industry Authority at the Mona Visitors' Lodge, UWI, Mr. Golding said he has started discussions with representatives from the two universities and all the research agencies.
"Research must be academically driven but it also has to have that commercial practical application," the Prime Minister said, noting that the local research centre would be linked to similar institutes abroad.