In 2007, Microsoft invested a consistent portion of its overall $7 billion R&D budget in Europe. According to data provided by the Redmond company itself, no less than €430 million went to research and development in Europe in 2007, and the software giant is looking to increase its investment in innovation “across the pond.” In this regard, Microsoft Chief Executive Officer Steve Ballmer announced the birth of a new European Search Technology Centre.

“To compete in a global, innovation-driven economy, we need to draw on the world’s smartest, most creative minds. Increasingly, we are finding the talent we need here in Europe. To tap into that talent, we’ve invested in research and development across the region and today, Europe is second only to the United States in the number of engineers and researchers we have working on creating innovative products and services,” Ballmer explained.

Ballmer indicated a strong focus on Europe, a position amply illustrated by the fact that the continent reunites what Microsoft's CEO referred to as the strongest concentration of R&D staff outside of the U.S. In Europe, the software giant accounts for a R&D workforce 2,000 strong and growing.

“The Search Technology Centre is an important step forward in our long-term strategy to invest in local development of search technology in Europe. We believe search is still in its infancy. Developers at the Search Technology Centre will play a key role in helping us redefine search as they create new search products and services for consumers and advertisers here in Europe and around the world,” Ballmer added.

In its race to catch up with Google, Microsoft's European Search Technology Centre will focus exclusively on building what the company referred to as a “world-class search offering.” The Redmond giant indicated that the center would be comprised of no less than three centers of excellence in Paris, London and Munich.

“Microsoft is a big part of Europe’s social, technological and economic growth, with 2,000 of our employees deployed in European research and development. But Europe is also a big part of Microsoft’s own success and this is not simply in terms of sales that add to the bottom line; it is in the vast innovative resources that the continent offers. It is hardly surprising then that we have made long term and high value investments in European economies, businesses and individuals - and will continue to do so,” Ballmer concluded.