"The development of a new aerospace strategy will help set the general direction of growth in order to build a globally competitive aerospace sector, while ensuring we keep New Zealanders and our national interests safe", he said.
Nash said he wanted New Zealand to have a space sector of "global importance" by 2030.
"By 2030, we aim to have an aerospace sector of global importance that is co-ordinated in its activities, can leverage its shared strengths and is at the forefront of innovation. This strategy sets out ambitious goals and an action plan to guide us there," Nash said.
Research, Science and Innovation Minister Dr Ayesha Verrall announced the funding which is split into a $9 million tranche for research partnerships with Nasa and another $3 million tranche for funding of research projects under the Government's Airspace Integration Trials Programme.
Associate Transport Minister Kieran McAnulty announced $3.7m in new funding for the Civil Aviation Authority to establish an "Emerging Technologies Programme".
"The programme will support the CAA to increase their regulatory capacity," McAnulty said.
The announcements were made at the inaugural New Zealand Aerospace Summit in Christchurch.
Nash also announced the beginning of a review into New Zealand's space policy.
"The Space Policy Review is an opportunity for New Zealanders to have their say on the values and policy objectives that inform our Government's activities and engagements in space," Nash said.
"Feedback will contribute toward the development of a new National Space Policy that will capture our values regarding space and inform future space policy development, including any regulatory or legislative changes to the Outer Space and High-altitude Activities Act 2017," he said.
