Major UK aerospace organisations and the government are to develop a strategic response after the failure of the BAE-EADS merger.

The strategy will aim to support and drive the UK aerospace industry and includes the support of businesses including Rolls-Royce, AgustaWestland and Bombardier.

Strategic development will include the development of an aerospace research centre and a centre of excellence for aerodynamics.

The UK aerospace industry has raised concerns that funding cutbacks, recession, increased competition and reduced budgets for public sector organisations including the military will damage the UK’s position as the second largest aerospace industry in the world.