27 new businesses and 3000 new jobs are to be created in Derby by 2020.
The announcement is part of a £40 million programme by Derby City Council which is being backed by the government's Regional Growth Fund.
The money will be used in the aerospace, rail and automotive supply chains for various projects.
The Regional Growth Fund resources were allocated to Derby last October and these funds are used to support businesses to grow.
Vince Cable MP, Business Secretary, said: "We need growth that is more evenly balanced across the country. This is why we are supporting manufacturing centres like Derby through the Regional Growth Fund."