Ottawa's hi-tech sector has been battered and bruised for several years, but the Liberals are handing out cash to stop job cuts at a major U.S. multinational firm.

Ottawa MPP Bob Chiarelli made no apologies Thursday when announcing a $25-million investment in Cisco, one of the world's largest companies.

"It's going to generate jobs," said Chiarelli, who is also Ontario's minister of infrastructure, at a news conference outside the Ottawa Convention Centre.

Coincidentally, Cisco announced job cuts in the province last month, but it is now reversing that decision.

The company has signed an agreement with the Ontario government agreeing to prevent any layoffs and promising to hire 300 more workers.

Cisco, which recently purchased office space in the former Nortel building on Carling Avenue, has a research and development centre in Kanata.

Chiarelli said he expects staff there will double but some smaller hi-tech firms are concerned the province is ignoring local growth and investment

Queen's University professor John Plinussen argues, though, the province is making smart, safe choices by giving money to sure things rather than what may be fledgling local firms.

"Typically, smaller businesses have a higher failure rate, so there's no guarantee that even if we gave them that money that the promises they hope to implement by spending that money...would eventually be long term," he said.

Plinussen, who teaches innovation at the Queen's School of Business, added giving $25-million to a big international player would also be more effective with voting taxpayers.