The division will be headed up by Dragon’s executive chairman Charlie Methven and new hire Tony Davison, who has joined as a director.
The agency said it would provide clients with a national and international PR and business development service combined with local knowledge and presence.
Methven said: "We already have a first class roster of retained international and London-based clients but I’ve always felt the many great businesses in the area I come from do not have the strategic PR support they ought to have.
"A number of PR agencies have offices in Birmingham and Manchester, but not in the Thames Valley, despite the region being home to numerous exceptional businesses."
Dragon's clients include property investment and asset management company Accrue Capital, as well as Land Lease, the listed property group. The agency is based in Mayfair.