Up to 2,500 jobs will be created at a new enterprise zone dedicated to the aerospace industry.
Business minister Mark Prisk launched the so-called Aerohub, which will be based at Newquay Cornwall Airport, with the aim of attracting aerospace businesses.
Speaking at the Farnborough International Airshow, he said: "Aerohub is a great example of how enterprise zones will be instrumental in stimulating local growth and job opportunities.
"It will help further strengthen the sector's skills base while attracting further business that will directly benefit Cornwall's economy."
Chris Pomfret, chairman of the Cornwall & Isles of Scilly Local Enterprise Partnership, said of Aerohub: "It offers an operational airport with one of the country's longest runways, buildings, no air traffic control restrictions, easy access to the major road network and a nascent aerospace cluster in one of the most desirable places in the UK in which to live.
"It combines these attributes with the benefits that come with Enterprise Zone status."
