Nokia and MIT's Computer Science and Artificial Intelligence Laboratory have teamed up to develop the next generation of mobile phones.
The Nokia Research Centre will look at new technologies that can be applied to mass market products rather than experimental technology.
Among the first areas to be developed is Project Simone, which is aimed at using voice commands to control a mobile phone.
"Our mission is to explore and develop technologies that will be available in the marketplace in five to 10 years, not just novelties but technologies that will see mass market demand from consumers and enterprises," said Bob Iannucci, head of the Nokia Research Centre.
Other research areas include improved access to web services, integrating phones into the next-generation internet and finding ways to increase the computing power of mobile handsets without hurting energy efficiency.
"Our collaboration with Nokia and the subsequent opening of the Nokia Research Centre in Cambridge is an exciting opportunity for all parties," said Professor Rodney Brooks, director of the MIT Computer Science and Artificial Intelligence Lab.
"Not only do we have the opportunity to work on truly compelling research with Nokia's highest-calibre researchers, but we have confidence that our joint research will be deployed throughout the world, ultimately having a positive impact on the daily lives of hundreds of millions of people."
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