Microsoft chief Steve Ballmer was in Oslo and visited Prime Minister Jens Stoltenberg, who was quick to hail Microsoft's move.

Stoltenberg claimed that Microsoft's selection of Norway signaled major recognition of Norway's search technology expertise. He called it "a fantastic thing," and said Microsoft's commitment to Norway would also stimulate and strengthen local competence.

Microsoft earlier this year acquired Oslo-based Fast Search & Transfer ASA, calling it a "leading provider" of enterprise search solutions at the time. The acquisition was aimed at bolstering Microsoft’s enterprise search efforts and increasing its research and development presence in Europe.

Ballmer had high praise for Fast’s founder sJohn Markus Lervik and Bjørn Olstad on Tuesday, calling them "fantastic" as well. He said Microsoft's own search efforts were "always getting beaten by Fast," so in the end, Microsoft didn’t see any way out but to buy them up.

Around 300 researchers and product developers now work for Microsoft-Fast in Norway. Expansion plans call for recruitment of another 50.

Ballmer said Microsoft wants to become a major player in enterprise search technology. It now battles Google for market share.