"Europe has proven to be quite an open business environment for Huawei," company spokesman Roland Sladek said.
Huawei said it plans to employ over 14,000 employees in Europe within three to five years, doubling the current workforce of around 7,000.
It also plans to spend 70 million euros ($91 million) over five years on the new R&D center in Finland, the company's eleventh center in the region, which will focus on developing smartphone technology.
The company has said it wants to launch new smartphones including Windows Phone 8 devices, which would add to the competitive pressure on Finnish mobile phone maker Nokia.
Mobile devices accounted last year for 22 percent of Huawei's business, which mostly focuses on routers and other telecoms equipment.
On Monday Huawei declined to give an estimated launch date for a new Windows Phone 8 device, but said its plans were "short term".