The announcement coincides with this year’s Farnborough Air Show, one of the biggest showcases of aerospace and defence technology in the UK.
The money will go to the Aerospace Technology Institute to fund faster, quieter and greener plane tech. The UK’s aerospace sector is seond only to the US in size, and recent figures revealed it was growing ten times faster than the economy at large.
£42m of the funds will be put into the development of wings; half the world’s advanced passenger jets are flying on wings made in Britain. 20m will go into engines, 49m into aircraft structures and 13m into radio.
SMEs will have the ability to bid for a 50m pot from October 2014.
Nick Clegg, the deputy Prime Minister, said: The UKs aerospace industry is going from strength to strength and helping our economic recovery. We are the number 1 aerospace industry in Europe and second only to the United States globally.
I want to ensure the UK remains at the cutting edge of aerospace innovation, which is why I am pleased to announce that we are investing 154m for research to explore new technologies like the 3D printing of plane parts and creating lighter, greener aircraft.