The Canadian federal government has created a $54 million fund to support research and innovation in the country's aerospace sector and in particular to foster the development of technologies, materials, systems and components for the next generation of aircraft.

The fund will be managed by a consortium of 15 companies and research institutions in the country, headed by Bombardier Inc. The consortium's primary goals are to realize state-of-the-art avionics, on-board instrumentation and aerodynamic systems.

Canada's aerospace industry is concentrated in the province of Quebec, home to nearly 200 companies that generate more than 50 percent of the industry's sales and employment.