Intelligent fridges and digital shopping assistants could soon be commonplace - thanks to Saltaire-based Pace Micro Technology.
The company, which is Europe's biggest set-top box manufacturer, has joined a new £40 million research coalition.
The Department of Trade and Industry initiative is set to pioneer new technology through a coalition of hi-tech firms.
The coalition, which is called the virtual Interdisciplinary Research Centre (vIRC), combines companies such as Pace with innovative universities.
The move aims to bring together organisations to share research projects and expertise.
Projects will look at the latest innovations and technologies and test the mass-market appeal of new products. The vIRC will also look at security and privacy issues involved in new technology.
Douglas Alexander, e-commerce minister, said: "Only a few years ago, these kind of technologies and devices were only seen in the movies.
"The vIRC will help to make these innovations a reality."
Potential products could include:
l fridges, boilers and washing machines which alert a service centre when a part is faulty
l security appliances which link directly to the police or security companies, so that doors and windows can send an alarm signal if they are opened when they shouldn't be.
Other plans include domestic appliances being fitted with LCD screens so that fridges and microwaves can double as extra TV sets.
The centre also plans to look at technology which would allow a mobile phone to alert its owner if they passed a shop selling items the individual needed.
Mr Alexander added: "We already have the technology and expertise.
"What this centre will do is test the business potential of employing the technology, allowing the UK to maintain its strong lead in hi-tech industries.
"I am delighted to see so many organisations taking part in the centre.
"This programme will bring us closer to mass-market products and services with the potential to improve home security, cut energy costs and improve quality of life."
Other members of the vIRC include Hotpoint, Dyson, Siemens and IBM. Universities include Cambridge and Kings College, London.
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