Microsoft is expected to establish an innovation center in south China's Hainan Province, the first of its kind on the Chinese mainland.
An agreement in this regard was signed between Microsoft and the Hainan provincial government, state run Xinhua news agency reported.
Microsoft will also build a "Microsoft IT Academy" in Hainan to boost the training of IT experts, the report said.
Microsoft founder, Bill Gates is currently in Hainan attending the Boao Forum for Asia.
Based on Microsoft's leading technology platform, the Microsoft Innovation Centre will attract software enterprises in the fields of tourism and agriculture in Hainan, Li Guoliang, deputy governor of Hainan said.
Li said the government hopes to nurture an ecology-related industrial software chain worth 5 billion yuan (USD 798 million).
Microsoft will carry out strategic cooperation with Hainan regarding technological development, software training and intellectual property rights protection, according to a memorandum of understanding inked by the Hainan provincial government and Microsoft (China) Co. Ltd on the sidelines of the ongoing Boao Forum for Asia.
Microsoft Group Vice President Orlando Ayala said global tourism hot spots are moving to the Asia-Pacific region, adding the company's cooperation with Hainan will prop up the province's efforts to become a major international tourist destination.
Microsoft Innovation Centres are state-of-the-art facilities designed to foster collaboration on innovative research, technology and software solutions, involving a
combination of government, academic and industry participants.