The aerospace industry and the Government have announced a £2 billion investment to keep the UK at the forefront of world manufacturing.
The Government is investing £1 billion and the aerospace industry is matching the amount.
The money, which is being invested over a seven-year period, will be used to create a UK Aerospace Technology Institute.
The institute will help to develop the next generation of quieter and more energy-efficient aircraft, and it is estimated the investment will secure in the long term up to 115,000 jobs in the aerospace industry and its supply chain.
Making the announcement during a visit to Airbus in Filton, Bristol, Deputy Prime Minister Nick Clegg said: "Aerospace experts with highly specialised skills are working hard to make sure the UK remains Europe's number one aerospace manufacturer.
"We're doing all we can to maintain this jewel in our crown, which is why government is working hand in hand with industry to inject £2 billion into a unique long-term strategy to maintain Britain's position as the centre of aerospace technology.
"The UK's best technical experts can ensure we remain the world's preferred supplier and continue to build and design the planes of the future - lighter, quieter, faster and more fuel- efficient."
Among the firms taking part in the Aerospace Technology Institute are Airbus, GKN Aerospace, Rolls-Royce, ADS, Messier-Dowty and AugustaWestland.
Business Secretary Vince Cable, who chairs an aerospace business leaders' group, said: "This long-term commitment of £2 billion investment in aerospace research and development - half Government, half private - will anchor the sector in the UK for a long time to come. Our aerospace sector already supports more than 3,000 companies and employs 230,000 people across the UK."
Marcus Bryson, chief executive officer of GKN Aerospace and Land Systems and co-chair of the Aerospace Growth Partnership, said: "The creation of an Aerospace Technology Institute puts the UK in a strong position to deliver the technologies, skills, capabilities and investment we need to take advantage of the exciting growth opportunities that are forecast for the sector."
https://www.gov.uk/government/organisations/department-for-business-innovation-skills(Department for Business, Innovation and Skills)