The global research and development lab will be located at the University of Melbourne and will begin operations during the first quarter of 2011.

IBM expects to employ about 150 people there within five years.

"At IBM, R&D investment plays a critical role in the company's strategy for growth," said Dr. John E. Kelly III, Director of IBM Research. "By combining research and development into one lab to focus on creating smarter planet solutions, IBM is creating a new kind of innovation centre in Australia - unlike anything the company has done before.”

Kelly said that the new lab will work closely with leading Australian scientists and engineers to extend IBM's global R&D footprint.

The new lab will focus on smarter natural resource management and smarter natural disaster management.

Australian Prime Minister Julia Gillard attended the announcement: “We believe there is bright future for ICT in Australia. A big part of that future is encouraging companies such as IBM to conduct research and development in Australia on the significant problems facing Australia and to share their knowledge and expertise."

You can see Gillard’s speech below: