Doosan Power Systems will initially create 200 jobs at a research and development centre to be located at its existing Scottish facility at Renfrew, on Clydeside.
It is also looking for a Scottish port site for a new manufacturing plant that could employ another 500 staff, with a further 1,000 jobs created in the supply chain.
The announcement was supported by Scottish First Minister Alex Salmond, and follows decisions by Mitsubishi and Gamesa to also set up wind facilities on Clydeside.
Director of Doosan’s windpower group Mark Garnett said the company wanted to inject "new blood" into the European offshore wind market. He said the company was looking to develop a bigger machine than its current 3MW turbine.
Speaking about the machine’s design, Garnett said there would be an emphasis on an advanced transmission and drive train. The specification expected to be approved in the next few weeks.
"We will then work up a prototype by 2013 with a view to demo-ing four units in Scottish waters for two years after that."
Garnett added that with at least 50% of the new turbine being sourced in the UK this would be a truly European turbine.
He said: "It could be worth £1.4 billion in terms of investment value to the Scottish economy," he said. "We are seeing the emergence of Clydeside as a hub for European offshore wind energy."
Further announcements about the turbine specification and location of the manufacturing and assembly port will be made in June or July.
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