12:53 6th October 2008
London has been selected by Microsoft as one of three cities to host its new European research centres.
The other two research centres, which will focus on improving Microsoft's search technology, will be located in Paris and Munich.
Each headquarters will be staffed with local researchers and will also pay special attention to improving retail operations in Europe.
The multi-national technology corporation does have other offices in the continent, including research facilities in Cambridge and a development centre in Dublin.
Steve Ballmer, chief executive of Microsoft, said: "To compete in a global, innovation-driven economy, we need to draw on the worlds smartest, most creative minds. Increasingly, we are finding the talent we need here in Europe."
Last week, the social networking site Facebook chose Dublin as the new site for its international operations.
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