Defence plan will create NSW jobs: govt

A planned upgrade for Sydney's Garden Island naval base has been welcomed by the state government among what it says are a number of opportunities in the Commonwealth Defence White Paper.

The paper, released on Thursday, outlines plans for an extra $29 billion to be spent on defence across the country during the next decade.

The spending includes upgrades at Garden Island in Sydney Harbour, which will allow the base to support an expanded fleet, including larger Canberra-class amphibious ships and a Hobart Class Air Warfare Destroyer.

NSW Industry Minister Anthony Roberts said he welcomed upgrade plans and would work with the commonwealth to maximise the opportunities it would deliver for the state.

But the paper says the future of long-term defence bases, including Garden Island, will be considered as issues such as urban development, encroachment and capacity constraints arise.

Mr Roberts has also welcomed the paper's focus on innovation, research and development.

"There are great opportunities that have been outlined for the NSW defence industry to deliver investment and jobs," he told AAP in a statement.

"NSW-based research and development already assists defence maintain its technological edge in areas such as robotics, engineering, ICT (information and communications technology), electronics, surveillance, cyber security and space."

NSW is home to Australia's largest number of defence bases, employing 30,000 people in an industry that contributes $5 billion to the state economy, Mr Roberts says.

He said a federal commitment to invest $1.6 billion over 10 years in programs to build industry skills, drive competitiveness and export potential would help NSW industries to support the Australian Defence Force.