GlaxoSmithKline (NYSE: GSK) will move ahead with plans to build some $780 million in new facilities in the United Kingdom after the government lowered taxes regarding patent income.

Andrew Witty, GSK’s chief executive officer, also said this week that the drug giant will add 1,000 jobs in the U.K. and set up a $75 million venture capital fund targeting life science startups.

The British government’s new “Patent Box” plan led to GSK’s decision to build a new facility focusing on what the firm calls “green chemistry” as well as a new production plant.

“The introduction of the patent box is a bold and forward-thinking measure which builds on the UK’s strength as a global centre of excellence for science and R&D,” Witty said in a statement. “In the current challenging and uncertain economic environment, this is a welcome step by the Government to improve the attractiveness of the UK as a place for the private sector to locate and invest.

“When implemented, the patent box has the potential to transform the way in which the UK is viewed by companies such as GSK as a location for new investments in high added-value R&D and manufacturing,” he added.

A year ago, Witty threatened to move investment out of the U.K. unless changes were made in tax policy.

GSK operates its U.S. headquarters in RTP.

For the full announcement, read here.

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