Cisco Systems Inc. said Wednesday it will invest $1 billion to help foster high-tech innovation in Russia.
Cisco CEO John Chambers made the commitment at a meeting at the company's San Jose headquarters with Russian President Dmitry Medvedev, who was visiting the computer networking equipment manufacturer as part of a tour of Silicon Valley.
Medvedev has said he wants to bring more high-tech innovation to Russia's oil-dependent economy and create the country's own Silicon Valley outside Moscow.
"We're very honored to commit to your dream," Chambers said as the men signed a memorandum of understanding, with California Gov. Arnold Schwarzenegger and other guests looking on.
Cisco said it plans to establish a physical presence in the country's new technology center and set up a second global headquarters for its emerging technologies group in Skolkovo. The $1 billion investment will be spread out over 10 years.