IBM announced yesterday that it will establish a new think tank in Dublin because of the State's good economic performance. The Global Research and Analysis Institute will be one of five IBM Institutes of Business Value located around the world - the others being in Australia, the Netherlands, China and the US.

The institute - to be based in Blanchardstown - will examine why and how economies grow, and study the relationship between information technology and competitiveness. It forms part of a programme of investment announced by the company last year, involving € 46 million in expenditure and the creation of 300 jobs.

Speaking in Dublin yesterday, IBM's vice-president and global leader of business value services, George Pohle, said the decision to locate in Dublin reflected Ireland's record on economic growth and high technology activity.

"Ireland's impressive economic development track record, combined with its ongoing innovative approach to new business creation, makes it an ideal location," Mr Pohle said yesterday.

The institute aims to inform senior business decision makers on which parts of the world are likely to experience economic growth and the business opportunities that will be created as a result.

Labour party finance spokeswoman Joan Burton, who represents the Blanchardstown area, yesterday welcomed the news "Following all the bad news of job layoffs in the technology sector in recent months, the suggestion that IBM could expand up to a further 300 jobs in research and development will come as a welcome relief."