As part of the plan, a manufacturing technology and innovation centre will receive more than £140m over a six-year period.
The centre is formed from seven research and technology facilities from across the country and according to the Department for Business, Innovation and Skills, it will help to kick-start a sustained manufacturing revival by commercialising science.
The Technology Strategy Board (TSB) will run a £18m scheme, Technology Inspired Innovation, to fund products inspired by new discoveries and breakthroughs, such as advanced materials, biosciences and nanoscale technologies.
Business Secretary Vince Cable said: "Manufacturing has a key role to play in economic growth and rebalancing the economy, in particular driving exports and productivity.
"The Government is supporting manufacturing through a modern industrial strategy fit for the 21st century. We are assisting manufacturing companies and their supply chains directly through the Regional Growth Fund and other schemes and supporting them to build strong businesses via our commitments to apprenticeships and fostering technology."
