Hewlett-Packard will invest €21.4 million at its technology campus in Leixlip to set up a new research centre specialising in inkjet technology for printers.

The US firm, which has more than 4,000 staff in Dublin, Galway and Belfast, said yesterday that the investment underlined the progression of its site from manufacturing to research.

It is not yet known how many researchers will work at the new facility at Hewlett-Packard's Co Kildare campus, which already employs 1,800 people, mainly in manufacturing.

The firm's Dublin inkjet manufacturing operation is one of three such Hewlett-Packard facilities globally. Established in 1995, the site manufactures thermal ink jet print cartridges - one of Hewlett-Packard's most profitable operations - for export.

The Irish research centre will partner Hewlett-Packard's US supplies research centre. Initially it will work on a project to develop an integrated print head inkjet technology, which incorporates integrated circuits on print cartridges to store information.

Hewlett-Packard also disclosed that it was in negotiations with Science Foundation Ireland and a number of universities to secure grant aid for research.

The Tánaiste, Ms Harney, said the investment was a perfect fit with the Government's policy to expand research and development activity in the Republic.

"The centre will also provide new opportunities for external research facilities in Ireland, which are to benefit through increased collaboration between Hewlett-Packard and Irish universities," she added.

The Government has already approved IDA Ireland grant aid for the project.