Additional £200m will be poured towards development of manufacturing in Asia.
Sir James Dyson is planning to invest £1bn on research and development of new technologies in the next four years.
The bladeless fan maker is planning to expand its portfolio by launching 100 new products with the investment.
The £1bn will be an addition to Dyson’s annual spending on R&D which was £80m in 2013.
Mr Dyson raised concerns about Germany’s domination in the field of research and development. Mr Dyson said he favours European free trade and free movement of people believing those engineers who study in UK Universities should be encouraged to work in the country following graduation.
BBC reported Dyson saying: "Export is vital for Britain to create wealth.
"In order to export you have to have high technology products that are better than those produced elsewhere in the world."
Dyson added "One important thing we should do is to keep those engineers in Britain.
"A lot of them come from overseas, in fact, 90% of researchers at British universities come from overseas, and we must encourage them to stay here. "I would change our immigration laws to allow the right sort of people to stay here."
Dyson is also planning to invest £200 m to expand the company’s manufacturing unit in south-east Asia, and is planning to invest £50m towards British Universities for external research programme.
The company has already committed to invest £5m on a robotics lab at Imperial College London.