Cisco is to invest €26 million in its research and development centre in Galway, creating 115 jobs.

The investment, announced this morning by Taoiseach Enda Kenny, will be made over the next two years and is being supported by IDA Ireland.

Mr Kenny described it as “most welcome news” for Ireland and the region.

“The decision by Cisco to expand its Research and Development capabilities here in Galway demonstrates the value of economic stability and Ireland's position in Europe when it comes to our ability to attract the overseas operations of world-leading multinational companies such as Cisco,” he said. “Today’s announcement displays Cisco’s continued commitment to its Irish operations and staff.”

The US multinational currently employs about 180 people in research and development and in its European customer “interaction” centre at Oranmore.

The investment will enable the Galway operation to move into new areas in communication and collaboration software technology, including desktop virtualisation and real-time web communications.

Cisco, which was set up by a husband-and-wife team in California in 1984, is one of the world’s largest manufacturers of equipment for computer networks. It was valued at about €30 billion in 2010.

Earlier this year, its European president, Chris Dedicoat, said investment was part of the company’s growing commitment to Ireland. “Ireland is delivering exactly what it was expected to do and more,” he told The Irish Times at the Davos World Economic Forum last January.

The multinational recently signalled that it intended to be “aggressive” in its acquisitions when it bought the NDS Group in a deal valued at about $5 billion (€3.78 billion).

The company established its presence in Galway in early 2007, having already initiated a financial asset management operation in Dublin, which currently employs about 100 people.