The UK government is set to spend one billion pounds on the aerospace industry over a seven year period, Deputy Prime Minister Nick Clegg announced Monday.

The move, made under the Aerospace Growth Partnership, to increase the industry's market share is part of a wider investment strategy intended to grow the economy.

The funding will be used to create an institute for aerospace technology to develop next generation technology.

Clegg said: "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."

The move is expected to generate as many as 115,000 jobs.

The investment is in addition to the £120m pledged for aerospace research by Business Secretary Vince Cable last year.

Other sectors, including auto-mobiles and agriculture, will receive £500m.

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