Global financial services firm Fidelity Investments plans to expand its Irish presence with the establishment of a research and development (R&D) function in Galway.

The firm said that within three years of being set up, the new R&D centre should have a team of 49 full-time employees, who would collaborate with 12 academics.

The R&D function will be operated by Fidelity Technology Group (FTG), and supported by the IDA.

Announcing the investment yesterday, Minister for Trade, Enterprise and Employment Micheál Martin said the centre would be one of the largest R&D functions ever located in Ireland.

He said the decision to locate here would be hugely beneficial to the academics who would work with FTG Ireland.

"This Fidelity investment is a significant increase in the benchmark by which other global financial companies can judge Ireland's abilities, particularly at regional locations, to successfully support next-generation R&D," he said.

"It further demonstrates Ireland's proven ability to provide knowledgeable and skilled graduates with financial and other disciplines."

Paul Murtagh, manager director of FTG Ireland, said the company was "extremely excited" to be expanding its Irish presence.

"With this new R&D function, Fidelity is well positioned to further expand its current operation in Galway and contribute to future technology projects."

Mr Murtagh said a combination of the quality of the Irish workforce, the success of Fidelity's existing Irish operations and the "world-class" research being carried out in Irish universities were the key factors that persuaded the company to select the Republic as the location for expansion.

Fidelity has already built up a 300-strong Irish workforce split between its Galway and Dublin offices, having first established a presence here in 1996.