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Chairman’s Introduction

A UK Space Innovation and Growth Strategy 2010 to 2030

1 Chairman’s Introduction

Contents

Minister for Science and Innovation’s Foreword 2 Chairman’s Introduction 4 Executive Summary 6 Recommendations 24

2 1 Chairman’s Introduction Minister for Science and Innovation’s Foreword

Minister for Science and Innovation’s Foreword

The Space industry has moved far beyond its This report maps out those opportunities The UK Space sector is a genuine origins in programmes whose motivation was and points to an exciting future. Government “ national prestige. Today, it is integral to the will respond to the report in full. success story. We’re responsible digital economy. Space-based technologies are helping us to understand and address climate In the meantime, I want to thank Andy Green and change, keep our armed forces safe, and deliver his team for producing this innovation and growth for world-class science in our urgent aid when natural disasters occur. strategy. It is an ambitious, yet viable, blueprint for joint action by industry and government. laboratories and on international The UK Space sector is a genuine success story. We’re responsible for world-class science in our laboratories and on international missions. We missions. We manufacture many manufacture many of the satellites surrounding the Earth, and are experts in software design and of the satellites surrounding the systems integration. The sector contributes £5.6 Earth, and are experts in software billion to the economy and supports 68,000 jobs. Following a decade of consistent growth, the market for Space services has distinguished design and systems integration. The itself by being recession-proof. That trend should continue, given the emerging role for the sector sector contributes £5.6 billion to the in many aspects of the low-carbon agenda as Lord Paul Drayson well as in media and communications. Minister for Science and Innovation economy and supports 68,000 jobs. ”

2 3 Chairman’s Introduction Chairman’s Introduction

Chairman’s Introduction

Space is a vibrant and high growth sector that Industry needs to invest to seize market If ever there was a time to be bold has achieved great things in a relatively short opportunities and deliver the national benefits. “ amount of time and is now an essential part of Investment in Space will result in economic and the engine that drives the global economy. It social returns including the creation of at least with industrial strategy it is now. has revolutionised capabilities in areas such as 100,000 high-skilled, high-value jobs. Industry international communications, global navigation will help raise awareness of careers in the We should seize the opportunity to and national security, and has also provided a Space sector in order to inspire young people way to monitor the Earth’s climate. These are to choose science, technology, engineering and fast growing markets in which the UK could mathematics related subjects and meet take a successful UK Space sector enjoy a stronger position. the demand.

and transform it into a foundation It would have been safe to focus on what the If ever there was a time to be bold with UK does well in Space and simply look for the industrial strategy it is now. We should seize the opportunities in niche markets that use the opportunity to take a successful UK Space sector stone of our future economy. UK’s industrial and science capabilities. But and transform it into a foundation stone of our I have encouraged the team to be more wide future economy. ranging — to look for specific opportunities that enable the sector to go further, faster. This is Investment will also provide an opportunity for less comfortable. In difficult financial times we the UK to take the lead on global issues such as outline that the UK needs strong governance, managing food and energy supplies, monitoring a National Space Technology Strategy, and we climate change, and reducing its carbon ” advocate a national procurement of an Earth emissions by up to 40 million tonnes. observation service. I would like to thank the experienced team of All this will cost money. However, our experts who worked with me on this IGT report recommendations should enable the UK to for the UK Space Industry and I look forward to cost effectively meet national needs for services seeing our recommendations becoming reality. delivered from Space and to promote new UK- based services into overseas markets. It is true that these actions are attractive to industry. But they also provide the basis to help energise an economy emerging from recession. Andy Green, Chairman

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Executive Summary and Recommendations

Executive Summary

Space: a vibrant and high even more important to us for ensuring not only The overall world market for the Space industry is Space is an industry that punches above its growth sector the quality of our lives, but also the very essence likely to grow from £160 billion in 2008 to at least weight in the UK economy. Oxford Economics, of our existence. The supply of food, energy and £400 billion by 2030 — a 5% annual growth rate in the highly respected forecasting agency, At half the age of the automotive and humanitarian relief, the security, safety and constant 2007 values. Although we expect growth estimates that the UK Space sector, including sectors, the global Space industry has achieved support of our citizens and the combating of in government spending on Space to moderate, suppliers and induced employment and services, an enormous amount in a very short time. climate change will all be supported by Space- particularly in the US and Europe, whilst contributes around £5.6 billion in value added to Having set foot on the moon in 1969, astronauts based services, technologies and capabilities damage to fiscal balances is repaired, demand the UK’s GDP and supports around 68,000 jobs now routinely live and work in an international to a far greater degree than they already are. in commercial and security markets is forecast directly and through its wider spending. Space Station orbiting above us. We have also to grow strongly. In particular, high growth sent Space probes to the far-flung corners of the This report sets out the opportunities for is expected in Earth Observation (EO), Global Science remains a very strong and key part Solar System in pursuit of answers to the most the UK to take advantage of the coming Space Positioning Services (GPS) applications and of our success in Space, with the UK being the fundamental questions about our origins. revolution, not just for the benefit of society global internet delivery. second-largest publisher of major Space science as a whole, but also for sound commercial papers in the World, providing a knowledge base These almost unbelievable endeavours have for many other developments. The technology and economic reasons. UK Space: a hidden success story been widely publicised, and have entered into the spin-offs from Space affect industries from public consciousness as evidence of mankind’s Space has been one of the hidden success stories medicine to manufacturing. The end-user The Space market unlimited imagination and boundless ingenuity. of British industry over the past few decades. applications affect our lives in every way, from However, what is less generally recognised is Between 1999 and 2007, the UK’s Space In 2007, it generated revenues of £5.9 billion in communication at home and work to security, that whilst these high-profile expeditions were sector grew by an average of 9% per year. This the UK, of which £2.8 billion contributed directly safety, entertainment and travel. grabbing the headlines, behind the scenes, Space impressive growth highlights the resilience of to the nation’s Gross Domestic Product (GDP). was rapidly becoming a fundamental part of our our Space industry to the effects of economic The sector also accounted for 19,100 jobs as Exceptional growth from exploiting R&D everyday lives and an essential engine of the and political turmoil, and is due to the diverse a direct result of its activities, with employee Avanti was a small company operating its internet global economy. Space-derived data and services, customer base for Space-enabled services — productivity more than four times the national service from London using space rented on existing together with the infrastructure needed to deliver from commercial telecommunications, weather average. It consequently contributes some satellites. In 2005 it committed to buying its first satellite them, have revolutionised capabilities in areas forecasting, global transport networks, military £145,000 per worker to UK GDP. Significantly, — a new breed that can change frequency and power. as diverse as international communications, operations, civilian emergency services and both manufacturing and operations are capital This was only possible because a partnership of , global navigation and worldwide radio and TV environmental monitoring. It is built on a mix intensive and require highly skilled people Avanti, BNSC and ESA came together to develop and broadcasting. Furthermore, as global warming of market demand and strong UK industrial resulting in graduates filling nearly two-thirds de-risk this novel architecture. This satellite will launch assumes ever greater importance, Space provides capabilities. The UK has long-standing and of all jobs. Space manufacturing is a uniquely in 2010 and will deliver a 10 Mbps broadband service to governments and the scientific community with deep-rooted strengths in satellite manufacturing, advanced technology sector that builds very high- rural communities in the UK and benefit those not able to a unique and comprehensive means to study satellite operations, Space exploration, remote value bespoke products, which have to operate connect to a service that most of us take for granted. By creating this supportive environment, the UK has helped changes to the Earth, its ecosystems and climate. sensing and in the vast array of services that are with guaranteed reliability for up to 20 years in Avanti secure £600 million of private investment over the There is no doubt that over the past 40 years since enabled via Space-based systems. Although data a remote and hostile environment. Overseas last 5 years to purchase satellites and set up services the moon landings we have become increasingly for 2008 and 2009 is not yet available, increasing demand for products and services will always and sell broadband capacity in Europe, the Middle East reliant on Space for our security, commerce and revenues by both manufacturers and operators far outstrip domestic needs, meaning the vast and Africa. The city has reacted well to this growth future well-being. Equally, it is no exaggeration to highlights that growth even through these difficult majority of the UK’s Space products and services model: Avanti’s share price has doubled between 2007 say that over the next 20 years, Space will become years has been positive. are exported. and 2010.

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Helping the trains run on time and QinetiQ provide entire systems integration solutions, software and applications technology. Rail operators increasingly need reliable, real- Inmarsat, Paradigm and Avanti Communications time, information about their trains if they are to are very profitable UK-based satellite operators maintain the safety, security, and performance of and BSkyB is one of the largest providers of the network. They need access to performance broadcast content using satellites with over data and diagnostics as the network operates to make real time decisions about how best to run the 12 million customers. Innovation in the sector service. This data is critical if there is an incident is not just technical: Paradigm has provided a and useful for assessing drivers. To really develop a world leading PFI solution for secure satellite fleet-wide real-time information and management communications for the Armed Forces. services needs a seamless communications service across the network. By integrating terrestrial and The UK’s supply chain is relatively strong. It satellite communications with traditional train comprises many companies that have the high reporting systems and satellite navigation services, integrity manufacturing needed for Space Nottingham Scientific Limited (NSL), a UK based systems and companies generally have access SME, is working with ESA and the train operators to implement a proof-of-concept solution. This will to facilities that they need such as specialised allow operating companies to communicate with clean rooms. However, the relatively low volume their trains anywhere on the network and data to of some very high value, bespoke, components be uploaded or downloaded in real time. Initial means that only a very few companies applications will include train tracking, remote manufacture these and they are all located engine monitoring, incident management and overseas. For example, radiation-hardened driver training. application-specific integrated circuits are most often procured from the US. The value of these Advanced Manufacturing components can be significant: on one of the and Services UK’s flagship programmes some £15 million of Satellite manufacturing in the UK is worth £800 components were bought from abroad. million, around 14% of the UK’s Space sector. Many of these manufacturing capabilities are Government support is key to world-class. For example, Astrium, a pan- unlocking economic benefits European satellite manufacturer, builds one- quarter of the world’s telecommunications The UK Government provides direct and indirect satellites and chooses to manufacture the entire investment in the sector, by supporting research payload and mechanical systems for these in and technology, Space science and missions. Not its UK sites, together worth 50% of the value of only is it a customer, it is also a sponsor and it the satellite. Surrey Satellites has developed offers further help by promoting civil and defence an enviable reputation as one of the world’s exports. In 2008/09, Space received some £265 best small satellite manufacturers, integrating million in national project funding through ESA commercial off-the-shelf components to contributions, the Technology Strategy Board and supply complete small satellites to a growing Research Councils. However, this project funding commercial and institutional market for represents good value for money as each activity affordable Space capability. UK companies must demonstrate that the economic and social are also developing disruptive manufacturing benefits exceed the investment, including the technologies, for example, Ltd opportunity costs of investing funds elsewhere is developing propulsion technology for next in the economy. generation ‘single stage to orbit’ . There is also the potential to link across As part of her support for the ‘Innovation and manufacturing sectors where UK is particularly Growth Report’, the Chief Economist at the With co-ordinated action we can create a strong, such as autonomous systems, advanced Department of Business Innovation and Skills has comparative advantage for UK technology and robotics, encryption and power systems. published an assessment of the economic impact of the UK’s Space sector. This draws on common services. We can secure greater wealth creation, The UK also has a world recognised services data sources but the analysis is independent. sector. Companies such as Logica, Finmeccanica more jobs and enhanced intellectual leadership

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We have set a clear challenge to firmly establish the UK as one of the World’s leading Space nations and grow the UK’s share of the 10%market share global market

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She concludes: to deliver more services to its citizens. Space • Between 2000 and 2008 the global Space is a diverse sector resilient to fluctuations in sector grew at a rate of 7% to 8% per annum in economic growth; it has high growth potential, real terms with growth accelerating in the last it produces advanced technology, has low three years. The UK grew at a rate of 9% per carbon credentials and strong scientific annum in real terms during the period 2006 foundations. The UK should, therefore, allocate and 2007. a disproportionately higher share of industrial • Government investments in Space deliver funding to capitalise on the opportunities for measurable direct benefits which are, on a growth that Space offers. proportional basis, at least as big as those in Space should have the opportunity of delivering related areas. Space is a credible investment more cost effective services for UK citizens. within a wider portfolio of private sector An advantage of providing services from technology investments. Space is that often this is truly national (if not wider) — one solution can replace the need Space combines high-value to integrate many local and intermediate manufacturing and services, delivery systems. Aggregating requirements for advanced technology and an ability cooperative services should, therefore, include to deliver key government policy central government departments, devolved objectives administrations, local government, agencies and emergency services. It is the local part Space is a complex market characterised by of government that delivers the services most strong government interventions prompted visible to citizens and where the majority by issues surrounding international standing, of public spending is committed. national prestige, influence in international negotiations and military superiority. The US Government alone spends over $60 billion on The time for positive action is now Space annually, representing a mammoth 25% We are at a crossroads in terms of the strategic of the global market. Furthermore, France, direction for the UK. The UK’s share of the world Germany and Italy contribute as much to Space market in 2007 was around 6%. This indigenous Space programmes as they do to substantial figure is about twice the size of many ESA. Brazil, China and India, are also investing other major UK industrial sectors, but less than strongly in Space infrastructure. Therefore, that of our leading industries. However, if we take successful competition in the Space sector a positive decision to go for growth, we can raise requires industry, academia and governments the market share significantly. But, if we fail to working together at a national level. Fortunately, step up our efforts there is a strong likelihood thanks to past investments, the UK is well that the sector will slide back to around the 3% positioned for this competition. We have a mark. This might prompt the departure of some The UK does not have strong academic and industrial base and we are of the large multi-nationals which have chosen to technologically ahead of Brazil, China and India. invest in the UK’s Space sector. It would certainly a capability to collect valuable Space is therefore one of the high-skilled, high wipe out much of the UK’s past investment in technology sectors where the UK should focus data for monitoring climate intellectual capital with a consequent loss of its efforts. But we must recognise that this our existing strengths. change and supporting should be a collaborative effort and UK Government intervention remains essential. activities related to national We should not overlook the fact that the UK is With co-ordinated action we can create a a major stakeholder in this sector both directly and international security, comparative advantage for UK technology and and via the European Commission. The time has despite the fact that services. In doing so, we can secure greater come for us to use these investments to create wealth creation, more jobs and enhanced economic growth and provide the best possible requirements for imagery intellectual leadership. The UK Government is services for citizens at the best possible price. exist across many already a significant investor in — and beneficiary We have therefore set ourselves a clear challenge of — Space, but it could obtain more value from to firmly establish the UK as one of the World’s Government departments its investment and at the same time use Space leading Space nations and grow the UK’s share of

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compete for domestic work. Therefore, we need Promoting Space investment in an a pan-Government National Space Policy that export-led Space industry harmonises the needs of the public sector and Satellite Earth Observation (EO) provides creates opportunities for wealth creation in the valuable data for monitoring climate change UK. Industry will step up to meet UK needs with and supporting activities related to national and innovative technical and commercial solutions. international security. However, the UK does not have a capability for collecting such data itself, Applications and services using Space data despite the fact that requirements for imagery will be one of the most important elements for exist across many parts of the public sector. delivering growth — typically the lifetime return Today, although the UK is involved in a number from services is 10 times that of manufacturing of pan-European EO programmes, as a nation, — so an industry/government partnership must we are reliant on Space EO data from other aggressively develop these too. nations, particularly the US. We also purchase data from commercial suppliers. The reasons The UK should, therefore, consider the for this are varied, but it has been argued measures needed to enable UK operators that no single department has a significant to grow. Indirectly, this will also provide new enough requirement to warrant a separate UK opportunities for UK-based manufacturers EO satellite service. However, when all of the the global market to 10% over the next 20 years. To succeed, Space must be seen as a strategic to compete for business and exploit emerging public sector’s combined EO satellite usage is This drives Space in the UK from a £6 billion to a sector in the UK and one that can offer an technology. A large communications satellite considered together it seems more than likely £40 billion sector. Of course, we will not achieve important infrastructure for our economic and and its launch can cost up to £400 million. that there is a sufficient user community to justify this overnight, and the scale of the investment security needs. Britain does not secure as good Furthermore, a return on this significant an indigenous capability. An important aspect for needed to achieve this will only be manageable a return on investment as other Space nations investment can sometimes take as long as seven such a capability is that the UK chooses what to if it is selective. But, what we can do now is set a because it lacks a single, strong focal point. The years to accrue. However, overseas competitors view, at home or abroad, without interference or trajectory for growth. It is vital that we create the UK’s current civil Space policy is not sufficient are able to take advantage of government-backed delay, and understands exactly how that data right business environment and seize the market to generate the change required — Space in loans or export credit guarantees to fund the is processed. opportunities to deliver the national benefits. the UK is a successful but small sector — but a procurement and launch of satellites. The UK, We outline these elements below. better definition and commitment to a long-term on the other hand, operates schemes that may be policy should deliver significantly more in terms suitable but are generally at a scale lower than If the UK wishes to play a prominent role in Providing the environment of innovation and growth. It should provide the overseas agencies, and this leaves the UK at a future security, disaster relief and climate- change activities, the national need for access to for success framework for the UK to participate fully in the competitive disadvantage. definition and build-up phases of new European independent data is likely to increase. Moreover, If we are to realise our vision, industry will need programmes. By delaying entry to programmes This report forms a starting point for a national the UK’s economic well-being and trading to feel confident enough to aggressively and and funding in an ad-hoc manner, the UK policy and sets out options that will help deliver interests will be better served from independent significantly increase the amount it invests in has lost both the best industrial work and the the 20-year vision. data that can be used to derive new climate Research and Development (R&D), its capabilities ability to influence programmes to best meet change, emissions monitoring and emissions and in its people. It will need to take the required national needs. Examples include Galileo and An important start to more agile governance trading models. Over a 20-year timeframe, many risks involved in grasping new opportunities the Global Monitoring Environment and Security has been made by the current Minister of nations will build or procure an indigenous Earth in order to be first to market with innovative programmes. The UK is generally perceived as a State for Science and Innovation with the Observation capability, and the UK will be seen as services. We recognise that the majority of follower rather than a leader in Europe on large announcement of the establishment of a UK less relevant in the international arena if it cannot investment to meet the growth target will have Space programmes. Executive Space Agency. Although this is a offer high quality analysis in this area. China’s to come from industry rather than government. much welcomed decision, it is imperative that reluctance to accept independent monitoring That will require private venture capital taking The UK Government has done much to promote the Executive Space Agency has the resources of its carbon emissions at the December 2009 advantage of opportunities offered in commercial Space in recent years but does not have a needed to effectively deliver the National Space Copenhagen Climate Change Summit highlighted markets and Private Finance Initiative (PFI) coherent, overarching policy that encompasses Policy and the business and science opportunities the future role that Space-based assets will play. style arrangements to meet future government civil, defence and security components. for the UK. Moreover, the UK Executive Space requirements for end-to-end services. Likewise, Consequently, it is difficult to draw together Agency should cover civil space, security and The UK has deep-rooted strengths in Space operators must be able and willing to raise the disparate government funding and requirements, defence requirements, be responsible for technology and a strong record in ground- capital needed in financial markets. The overall and set out clear policy with associated procuring Space programmes and lead on all breaking systems exploitation. It also has scale of the private investment required will be implementation guidelines. A fragmented Space-related activities in national and multi- tried and tested expertise in risk-sharing and large, certainly exceeding several billion approach across the public sector wastes money national negotiations. innovative commercial business models. The UK pounds. and reduces the opportunities for UK industry to UK’s Skynet 5 military satellite communications

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Smart Homes developed nations have such complementary Using Space to meet national ‘big technology funding programmes. A national challenge’ objectives In the near future Smart Homes will use new technology to increase the energy efficiency of dwellings. strategy should be part of an integrated end- Integral to these homes of the future will be ‘Smart Meters’, a technology proven to stimulate home owners to-end process that drives manufacturing There is a clear opportunity for the public sector to be more economical by providing information on energy usage, but also reduces costs by providing a link to and applications technology from ‘blue skies’ to increase its use of Space-enabled services to the energy supplier removing the need for manual meter readings. All UK homes and businesses are to have concept development to research and then to obtain tangible benefits for UK citizens. These smart meters by 2012. demonstration and exploitation. Such a model benefits would be accrued through, for example, lower costs to consumers for obtaining a service, Low data rate 2-way satellite communications offer the prospect to connect all of the UK’s 26 million would naturally need clearly defined roles for lower carbon emissions for running a service and homes to the energy supplier’s control centre with a common system. One satellite, already available in academia, industry and Government. access to a service for all UK residents regardless orbit, provides more than enough capacity. It is a green solution — the meters would link to modems which of location. Already, Space telecommunications themselves could be solar powered. Supporting disaster relief with are vital for delivering important entertainment commercial satellites Space will have to compete with existing, local solutions and show it is lower cost than alternatives. But and commercial activity such as live sporting the attraction of Space is one, national, integrated solution to a straightforward need, and technology and In 2004, DMC International Imaging started a events and up-to-date news coverage. In two IPR that may be exportable to overseas markets. commercial service that provides quick-response years’ time, the London 2012 Olympics will be satellite imagery of disaster areas that helps a showcase UK event which will be broadcast programme has been delivered using an A characteristic of Space programmes is that a the international community plan its emergency to every corner of the Earth. innovative service-based approach which disproportionately larger national and industrial relief efforts. This system has been deployed has enabled the UK to export secure satellite benefit will accrue from a greater involvement in following the 2004 Asian Tsunami, Hurricane Space has the potential to enhance other aspects communication services to a wide range of a targeted number of programmes as opposed to Katrina and the recent earthquake in Haiti. DMC of daily life. It will improve many future journeys overseas organisations. There is considerable a fragmented, small-scale involvement in many International Imaging is a spin out company from be they by air, sea or rail. For example, Space can scope for applying this business model to ESA projects. This will be even more important Surrey Satellites, itself a company that grew cost effectively improve rail journeys to work by acquiring a UK-based EO capability, so that in as the European Commission assumes greater out of a spin off from the University of Surrey. replacing ageing signalling systems with a Space addition to meeting national needs it can catalyse responsibility for determining a European Space Surrey Satellites has been highly successful in navigation-based application. This will enable a significant export business. Strategy under the terms of the Lisbon Treaty. As developing small, low-cost, satellites and now more trains to run on the network at peak hours. ESA becomes an executive agency for EU Space exports these globally. Although this success The European Space Agency — policy, there will be increasing opportunities to is based on the innovative ‘affordable satellite’ Success in the business of Space will be based winning a better return for compete for a share of European programmes concept, of equal importance was the vital on exploiting its unique benefits: • ubiquity of service, for example, delivery to all British Space on a more commercial basis. support and protection the company received in its formative years as part of the University of parts of the UK, At the moment, UK R&D funding for Space is In addition to establishing a UK national Space Surrey. Not surprisingly, the company retains • low-carbon delivery of broadcast and largely provided through the European Space R&D effort, as we emerge from recession, the these close links with academia to this day. broadband services, Agency. Although this creates benefits for Europe UK should also set a pathway for significantly • affordable deployment to remote and that would not otherwise be possible due to increasing its ESA contributions more in line Rocket launchers rural communities, the high cost of research and demonstration with other leading ESA Members States. This • a resilient and secure alternative infrastructure programmes, it also requires compromise for the will enable larger-scale Space programmes to Following the difficulties of the Sea Launch to terrestrial infrastructure, UK in multi-national decision making. Moreover, be deployed from the UK and strengthen the Partnership, the prices of alternative rocket • export potential of services and systems. UK dependence on ESA for preparatory and UK’s influence in ESA decision making. launchers have reflected a lack of supply. This development programmes has resulted in some shortage is a concern. The UK needs to keep Space-based services: the UK’s areas of UK technology development becoming The wider global competitive a close watch on this situation but cannot ‘second’ ICT infrastructure eroded to the point that they are no longer realistically enter this sector alone. However, benefits of a national Space The UK should seize the opportunity of industrially sustainable. the UK needs to retain technological options that technology programme have potential for future application, for example fully developing satellite-based systems to complement the UK’s fibre optic and wireless In order to increase the UK’s influence in ESA It is important that the UK continues to secure autonomous ‘single stage to orbit’ Spaceplanes networks. Fibre optic and wireless will provide programmes and to maintain capabilities in key a comparative advantage from developing and that could launch satellites at significantly lower the majority of the superfast broadband in the technologies, the UK needs a complementary exploiting technologies for future markets in cost and risk than today’s systems. UK as set out in Digital Britain. But access for all national Space technology programme aimed at both the manufacturing and applications areas. citizens to broadband will become important as generating economic and social benefits for the The UK can best achieve this by establishing provides an exciting new potential new services and entertainment are only available UK, and reinforcing areas of national strength. a National Space Technology Strategy (NSTS), market for Space. It is also possible that launch via the internet. Such a programme would enable the UK to underpinned by technology road-mapping from vehicles such as ’s White Knight assume a greater leadership role in ESA’s R&D research to market, with a ring-fenced budget, and Spaceship 1 could provide the basis not just programmes and missions as well as increase separate and additional to ESA budgets. This for tourism but also low cost launch to the edge our say when considering technical options. would not be extraordinary, as most other major of Space.

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The proposed expansion will provide an estimated 100,000 new jobs in the 100,000 UK, and to meet this new jobs demand our schools and universities will need industry support

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The internet will be increasingly used by Using Space to inspire and educate Government to deliver lower-cost services for The general public, some elements of the citizens. ‘Smarter Government’ itself asserts business sector and even parts of the UK that it can be four times cheaper to deliver Government have a limited understanding of services over the internet than by post. The the true value of Space. To counter this, the Space sector is helping deliver a fast solution Space industry needs to continue to improve and to the Universal Service Commitment (USC) build up a greater awareness of Space-enabled for broadband from 2012, as set out in the capabilities. This is particularly important given Government’s ‘Digital Britain’ strategic vision the need to influence a public policy and industrial paper. The Government can also drive additional agenda if we are to grow this sector. investment by accelerating the procurement of part of the next-generation superfast broadband The proposed expansion plans will provide an from Space as part of a national approach. Space estimated 100,000 new jobs in the UK, and to will have to deliver value for money to achieve meet this demand our schools and universities this. A UK solution also opens the door for export will need industry support to raise awareness opportunities in a global market for ‘internet of the opportunities afforded by a career in the from Space’ that we estimate is likely to be Space sector. Industry will also need to offer worth £29 billion per annum by 2030. more training and apprenticeships to fill the jobs that will arise from the planned growth in By playing to the very high efficiencies of manufacturing and services. Consequently, the broadcast from Space and by optimising the way Space industry will collaborate with other Space that broadband internet services are delivered, stakeholders to launch a publicity campaign we estimate that the UK can achieve a reduction to inspire young people to choose courses of up to 40 million tonnes of CO per annum from 2 based on Science, Technology, Engineering that required to run an equivalent terrestrial and Mathematics — the so-called STEM- broadcast and broadband service. Space is also related subjects. likely to be the only cost-effective way to deliver a good choice of High Definition TV and broadband to rural communities. Because it is quite separate The Space Age from terrestrial infrastructure, it also provides The global data network is undergoing two an important element of commercial and massive changes. Firstly, the volume of data Government resilience to natural disasters being moved around the Earth is finally hitting and terrorist attack. the vertical part of the J-Curve which was being predicted during the dotcom boom.

Reusable launch vehicles

In the 1970s, the UK made a choice not to develop new rocket launchers. But this may not be the last word — a growing demand for greener, more reliable and lower cost launching systems for satellites could enable the UK to re-enter a profitable niche in this sector. Reaction Engines are developing novel propulsion technology that will be needed for a single stage to orbit (SSTO) ‘reusable’ , research that is combining company, ESA, BNSC and Technology Strategy Board funding. Spaceplanes are researching alternative SSTO concepts. Virgin Galactic could provide an earlier satellite launch capability to the edge of Space based on their now maturing White Knight and Spaceship 1 Space tourism vehicles. There is no shortage of ingenuity and technology in the UK to help make something happen.

Revolutionising access to Space may have wider economic benefits. Can we reduce the build costs of satellites if they can be launched at a fraction of today’s costs? Do we need to retain spare capacity in orbit if satellites can be launched at very short notice? Will insurance costs reduce significantly if a Spaceplane based on aircraft technology replaces a rocket?

These potential benefits, as well as the industrial manufacturing benefit, means the UK must continue to develop such disruptive technologies.

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The use of multimedia by consumers, and video • year-on-year growth of inward investment in particular, is resulting in end-users doubling for Space-related activities over the their demand for data each year, but new 20-year strategy, We must make up our minds applications emerging in navigating, monitoring • the UK plays a more strategic role in and measuring our World are compounding this. the use of Space for European and world-wide Secondly, governments globally have realised security, where we want to go and where that high-speed data connectivity is both a crucial • the UK becomes the first 100% broadband- infrastructure and also needs to be universal enabled country in the world, we want to be in 20 years time if major populations are not to suffer serious • a leadership role in global climate-change economic and social disadvantage. Thus, high monitoring and up to 40 million tonnes of data-volume applications and ubiquity will reductions in UK carbon emissions, characterise the next phase of the evolution • reduced costs of delivering Government of the Internet. services to all citizens, regardless of their location, This plays directly into the hands of the Space • increased student up-take of STEM subjects. industry since those are the very two advantages that Space technology has over terrestrial Implementation of the technology. Already satellites dominate the 2010–2030 strategy global TV market and this will accelerate. In A joint industry and Government partnership is future, no-one will make a journey which is not needed to take our Space strategy forward and enhanced in some way by satellite navigation. this should take the form of a Space Leadership Only satellites can deliver the social inclusion of Council, jointly chaired by the Secretary of universal global access to broadband and mobile State for Business, Innovation and Skills and the communications. And the only way to determine President of the UKspace trade association. We for certain how serious the climate change envisage that this Council will oversee progress problem is and how we need to manage our and implement the specific recommendations environment is to gather a vast amount of data in this Strategy until the new Space Agency is in real time — only satellites can do this. With fully operational. comparably low investment, satellites can provide universal global coverage. As demand grows, Over the last decade, industry and Government capacity can be added in a scalable fashion. have collectively failed to grasp the opportunities Moreover, it can be moved if demand patterns we identify in this report. Space in the UK has change. Terrestrial technologies provide a been characterised by review after review patchwork solution to some of the issues evolving allowing other countries to steal a march on us. in the corporate, institutional and consumer This must now cease and be replaced by positive markets. Satellite technology development is and practical actions. We must make up our necessarily slower than elsewhere because of minds where we want to go and where we want to the physical challenges of operating in Space, be in 20 years time. but we have caught up with the terrestrial telecommunications and computing advances of a Today, through this Space Innovation and decade ago. Finally, satellite technology is coming Growth Strategy, industry has made its choice. of age, and thus the next phase of evolution might We will raise our game and go for growth and rightly be characterised “The Space Internet”. innovation. We ask Government to support us by providing the critical opportunities and the clarity Space-related benefits of commitment and purpose that the Space community needs to succeed in this endeavour. There will be extensive economic and social Given the prize on offer, this is a challenge that returns from Government and industry’s we should all be prepared to meet. investment in Space-enabled services. Most prominent of these are: • the creation of at least 100,000 high-skilled high technology jobs over 20 years,

22 23 Recommendations Recommendations

Recommendations

A trajectory for growth In the future, with the completion of Galileo and Keys to growth are therefore investment in Providing the environment the upgrade of GPS to its third generation, many R&D, targeted and “smart” infrastructure The global Space market is worth a massive for success more applications will be enabled. Applications procurements, co-ordinated efforts to grow $250 billion per annum and is driven such as mobile location-based services and exports, academic research into industrial Recommendation 1 predominantly by commercial and consumer indoor navigation systems, in particular, are exploitation, skills development and the creation services. It includes satellites and their The UK Government should define expected to become more widely used in a of a stable, long-term policy and regulatory associated ground systems, which produce and implement a National Space variety of industries like agriculture, tourism framework, with economic growth at its heart. the Space-based applications as well as the Policy (NSP) that includes the UK’s and transport. consumer services and the numerous bits of Industry is ready to invest for growth in the Space economic, social, industrial, defence equipment used to exploit them. The section Major market growth is also expected in Earth sector and raise the UK’s share of the global and security interests. This NSP of the market that exploits the satellite Observation (EO) data provision and services market to 10%. But, Space is a sector where should combine all Public Sector infrastructure is by far the largest as it crosses where the market has traditionally been national success can only come from industry requirements and funding for many industries such as agriculture, banking, dominated by government applications. As EO and Government working closely together in services that can cost effectively broadcast and transport. In all, the end-user data becomes more accessible to the consumer, a carefully planned and managed way. Both be delivered by Space in order market segment accounts for between 80% through innovations like Google Earth, and as new industry and Government need to be clear about to provide new wealth-creating and 90% of the total market. markets related to climate change and carbon their roles in the strategy and aware of what the opportunities for the UK. emissions monitoring emerge, and existing requirements are. Therefore, we have developed Over the last decade, the Space market has Unlike many other industries, it can take as long security markets grow, this will lead to a further the following 16 recommendations and grouped seen substantial and sustained growth, with the as 20 years for returns on initial investment to significant expansion of the market. Furthermore, them into eight main themes: UK industry growing at a steady 9% per annum new markets and applications are also anticipated cycle through the various phases of programme since 2000. This expansion has been driven most from the integration of EO and position data with 1. Providing the environment for success implementation. This means that a consistent strongly by the demand for telecommunications telecommunications services. 2. Promoting investment in an export-led UK policy environment is more important in the and navigation services, which represent over Space industry Space industry than in many other sectors for 50% of the entire market. Both these sectors have However, for the service markets to prosper 3. Increasing the use of Space within the National promoting investment. A national approach to been growing by more than 10% each year. This and grow, investment is needed in the satellite ICT infrastructure Space would provide industry with important growth is expected to continue for the foreseeable infrastructures on which they depend as access 4. A safer world with more resilient infrastructure information about the likely requirements for future as new technologies enable new services, to them is crucial. But, this access is reliant 5. Regulating Space for success Public sector services that are consistent with faster speeds and greater access. on a whole spectrum of factors — from an 6. Using Space to inspire and educate national needs and affordable. This, in turn, appropriately trained and educated skills base 7. Promoting a UK-wide SME Space sector instils the confidence for industry and academia Over the coming decade, there will be significant to a healthy and diverse domestic Space industry 8. Making it happen to invest in the technology and services that growth opportunities in the telecommunications and public awareness of the benefits and are likely to provide healthy returns and field, particularly in broadband internet from opportunities of this exciting sector. The background information supporting economic value. space, internet on the move, “smart homes” and explaining these recommendations and mobile telephone services as well as High The recommendations for growth in this report is contained in the full report which is available To secure the highest benefits, Space should be Definition (HD) and 3D TV. It is already almost recognise the high growth markets, the need at www.SpaceIGS.co.uk and can be seen as a strategic industrial sector in the UK impossible to make a journey that has not in for innovation and the interdependence between downloaded along with complementary — one that can offer an important infrastructure some way been enhanced by satellite navigation. service provision and the satellite infrastructure. Working Group reports. for our economic and security needs. We ask

24 25 Recommendations Recommendations

that the UK Government recognise Space as a Crucially, if the Public Sector can come together Recommendation 2 • be responsible for the administration of a key high-technology industrial sector alongside to define common requirements that lead to national Space budget and provide the backing aerospace, life sciences, biotechnology and viable and attractive commercial opportunities, We recommend that the UK for the UK to lead national and multi-national defence, and resource appropriately. the UK Space industry is prepared to step up Executive Space Agency (UKESA), programmes, with innovative ways of exploiting the technology • be responsible for procuring Space and when established, should be A major step forward is the announcement of and services in export markets as well as at Space-related programmes wherever a UK Executive Space Agency. But the Agency home. Much technology in Space is dual use resourced and empowered to the procurement budget is held within needs to operate within a clear policy framework. and more can be made of R&D if it is clear maximise the growth opportunities Government, We propose a Cabinet Office-led process to how it can be exploited in both commercial for the UK Space sector. It should • promote the UK’s Space sector. formulate and agree specific policy objectives and defence markets. Moreover, it is likely lead on all UK Space-related that need to be agreed across Departments and the defence and security needs will be met activities including national and Space knowledge, expertise and talent are a signed off at Cabinet level. This report does not by adapting commercial technologies so it is international negotiations and scarce global resource. Our universities produce seek to define Government policy but it would important that defence customers are aware of delivery of the National Space Policy. generic talent in the form of scientists and be appropriate, given the industry effort, for the the potential developments that are being driven It should have a remit including civil, engineers, and there are excellent research early stages of policy to build on this Innovation by commercial demands. This would generate defence and security Space domains. centres producing MSc and PhD graduates and Growth report by identifying a small number major wealth-creating opportunities. with relevant Space sector skills. However, of consolidated Public Sector requirements that The UK Executive Space Agency (UKESA), the majority of Space industry recruits have could produce early opportunities for industry. which will replace the British National Space no direct commercial experience on leaving Centre (BNSC), should provide the mechanism academia. Quite naturally, industry provides for delivering a National Space Policy that this through formal and on-the-job training. maximises opportunities for the UK Space sector. We propose that UK Government benefits from It is therefore absolutely vital that it is sufficiently this training by putting in place a framework to Number Action Timeframe resourced and empowered, as a lack of these promote an exchange of cultures and experience vital elements resulted in the BNSC’s inability between industry and the Agency through staff A1.1 Define the National Space Policy that establishes the January 2011 to fully achieve this goal. The UK Executive secondments. In the early years, industry would UK’s likely public sector needs from Space, highlighting Space Agency should aim to develop itself into be very interested in placing experienced staff where early action by Government and Industry can deliver an organisation capable of being a champion in the Agency to rapidly build its capability, national and economic benefits for the UK’s Space industry both at home and with the intent that this becomes a two-way internationally, and in terms of functions process by 2015. As well as covering science A1.2 The UK Government should recognise Space as a key January 2011 it should: and engineering disciplines, these secondments high-technology industrial sector alongside aerospace, • be empowered to lead on all Space-related should also apply to non–science-based life sciences, biotechnology and defence and resource activities for the UK in national and multi- personnel such as those engaged in finance, appropriately national negotiations and in prioritising economics and law. This activity should be programmes, complemented by steps to expand both the Industry to specify innovative proposals to requirements January 2012 A1.3 • have a broad remit which includes civil, public and private Space education sectors. defence and security requirements, A1.4 Regular joint Government and Industry review of Annual particularly where these will develop cross- policy success cutting technologies and applications,

Number Action Timeframe

A2.1 UKESA fully operational January 2011

A2.2 10 Industry Secondments to Agency January 2012

A2.3 Two way Secondments underway January 2015

26 27 Recommendations Recommendations

Promoting investment in an export- The strategy should be aimed at developing led UK Space industry technologies that can be exploited in commercial and institutional markets. Funding should come Recommendation 3 from both industry and Government and be additional to the UK’s spend on Space science The UK Government and industry through the Research Councils if it is to be should establish a National Space effective in contributing to growth. However, Technology Strategy (NSTS), the NSTS should be seen as part of an integrated with a clearly identifiable budget approach by the UK from academic ‘blue skies’ research through to technology demonstration. separate and additional to ESA It will, therefore, need to be integrated into a and research council budgets. This model that demonstrates how technology will recommendation is a key building be pulled through from Technology Readiness block in delivering the ambitious Level 1 through to exploitation and will need innovation and growth planned and the support of Research Councils new to Space, should be established quickly and such as the Engineering and Physical Sciences funded properly. A National Space Research Council (EPSRC) and the Technology Technology Steering Group should Strategy Board. be set up immediately to oversee the NSTS, chaired by industry, but with Technologies that play to UK strengths in Government representation. autonomous systems, robotics, security, sensors, Space communications and software should be The UK will secure a greater comparative included in this national strategy based on the advantage in research by deploying a National premise that there is a customer for the Space Technology Strategy that is complementary end product. to ESA R&D programmes. This strategy should be owned by a National Space Technology Steering Group (NSTSG), comprising industry subject R&D funding should matter experts supported by relevant Government officials. It should be facilitated through the be maximised as it is Technology Strategy Board KTN (Knowledge this budget that drives Transfer Network) Space Special Interest Group. The NSTSG will be responsible for producing a the ability to be first technology strategy that is underpinned by road- mapping, includes estimated programme costs to market which with and outlines the progression of products from technical superiority will research to market entry. It should deliver the first of its reports and a set of technology road allow the UK industry maps to the Technology Strategy Board before the end of September 2010. to capture a greater proportion of the huge R&D funding should be maximised as it is this budget that drives the ability to be first to market growth available which with technical superiority will allow the UK industry to capture a greater proportion of the huge growth available. A £20 million national As part of the NSTS, the UK should also programme should start in 2010, jointly funded continue to invest in technology for systems by Government and industry, rising incrementally that could revolutionise Space services and as it becomes affordable by Government and access to Space over the next 20 years. This industry to around £100 million per annum by will help retain opportunities for the UK to 2015/16. The exact funding for years 2 to 5 should develop high-risk options that have ‘visionary’ be determined from the road-mapping activity. appeal and potentially very large commercial

28 29 Recommendations Recommendations

value, for example, autonomous ‘single stage launch spare capacity. We should pursue these finance. COFACE, the French export guarantee and expertise in London. We should encourage to orbit’ Spaceplanes that could launch satellites alternatives through international and national agency, has been particularly active and French a selection of UK banks to actively develop at a fraction of today’s cost and risk. R&D funding programmes and they should be Space companies have won major contracts capabilities in co-financing Space projects included in the UK’s technology roadmaps. with the likes of O3B, Globalstar and others due involving European Space Agency and Export These sorts of alternatives, often termed to their Government’s proactive stance. The UK Credit Guarantee Department contributions. We disruptive technologies, could revolutionise lags in this area, and this has become more of should also promote the AIM market as a Space much of the Space economy by dramatically an issue now that there is a significant difference venture market by identifying and publicising reducing the cost of satellites and the need to between central bank rates and commercial those city institutions which have an interest rates following the recent financial crisis. in investing in Space projects.

Number Action Timeframe Space finance expertise is scarce but is a key On the one hand, tax reliefs like Venture Capital factor in exploiting UK technology in commercial Trusts (VCT) and the Enterprise Investment A3.1 Establish the National Space Technology Steering Group April 2010 and institutional markets. In London, we have Scheme (EIS) have been instrumental in enabling primary Space expertise in insurance, law, new companies to enter the market. On the A3.2 Launch a National Budget with funding April 2010 debt and equity capital markets but not enough other, their reduction has further damaged the transaction flow to compete with New York. ability of small UK companies to compete. It is We have a venture capital industry which has therefore imperative that macro issues like this A3.3 Finalise Technology Roadmaps September 2010 produced several Space winners, but is under are addressed so that these domestic businesses threat from New York and Hong Kong following are better able to compete in the global A3.4 Identify increasing budget in line with roadmap needs 2011 the removal of tax advantages. Space market. and industry ability to co-fund

A3.5 Increase annual budget to £100 million (£50 million private 2015 It is important that we maximise the use R&D matched by £50 million co-funding) of private finance to make Public Sector procurement of Space technology efficient, A3.6 Review alternative (disruptive) technology development 2015 and in doing so strengthen transaction flow and funding

Number Action Timeframe Recommendation 4 Commercial activity in Space is capital intensive and start-ups can sometimes be very difficult A4.1 Industry will set out all projects that will need intervention December 2010 The UK Government should provide to get off the ground. Moreover, it is a feature of to proceed more capital guarantees and/or this market that large upfront investment is often followed by protracted construction and payback anchor tenancy agreements to allow A4.2 Government to clarify methods of awarding loan December 2010 periods, with significant risks along the way. UK-based operators to raise the guarantees or anchor tenancy that will satisfy But, when a company gets it right, it can create city investors necessary finance to buy satellites a business capable of generating huge cash and fund launches so that they can flows. It also raises the barrier for competitors A4.3 Government to review (in concert with other hi-tech, December 2012 enter new Space-enabled service to enter into the same market segment. Another hi-risk industries) wider financial mechanisms to grow markets and grow their businesses. characteristic of this market is that the cost the Space market Although this need is not unique of satellites is frequently much greater than to the Space sector, we ask the investment required to set up and run a Government to note the high capital service operation. However, a major plank of costs involved in the procurement our 20-year strategy is to expand UK Space and launch of individual satellites operations as part of a broad approach to the and the need for the UK to be first sector which encompasses large multinationals to market to exploit a growing as well as home-grown Small and Medium-sized Enterprises (SMEs). export market. Recently, a number of major commercial contracts have been secured by foreign companies in high-value export markets thanks to the availability of overseas government-backed

30 31 Recommendations Recommendations

Promoting Space investment in an and flood risk, light pollution, measurement export-led industry of UK carbon usage, project management of north/south high speed rail line and all-weather Recommendation 5 monitoring of shipping volumes in the channel, in addition to international needs. The UK Government should procure an innovative indigenous Although no single UK Government Department Earth Observation (EO) data service has a requirement for EO data significant enough that meets all Public Sector needs to warrant a separate UK EO satellite service, and creates wealth for the UK in when all of the Public Sector’s combined EO domestic and export markets. satellite usage is considered together it seems Industry, in parallel, will offer credible that there is a sufficient user community to justify an indigenous capability. It would innovative technical and commercial also meet objectives to join up Government options to provide a PFI service and Departments to achieve more from the same — work with UKTI to maximise export or even less — funding. opportunities.

A specific and very realistic opportunity for UK manufacturing and service organisations is in the fast-growing export market for Earth Space-enabled Observation data and systems. A co-ordinated digital mapping approach from Government and industry is critical to secure a UK position in this market, services, like Google particularly as this is destined to expand Earth, are attractive dramatically on the back of climate-change monitoring and mitigation activities. to many different Earth Observation is a huge and, to date, customers, including a relatively immature market. Many countries in Asia, the Middle East and South America those interested in are looking to develop or procure EO services monitoring climate because of the commercial, security and institutional value they generate. Space-enabled change, disaster relief digital mapping services, like Google Earth, are attractive to many different customers, including and border protection those interested in monitoring climate change, disaster relief and border protection. The UK has an opportunity to build sovereign capability in this A study should be conducted across all market and to take advantage of data and system potential users within the Public Sector to export opportunities ahead of its competitors. gather and combine requirements, including a consideration of the potential savings available Government can use innovative procurement and the industrial/commercial benefits as well as methods to meet UK needs for an indigenous international partnership and sovereignty issues. digital planet-mapping and observation service Industry should offer options for providing this and at the same time build new industrial service as a Private Finance Initiative (PFI) which capabilities that can be deployed in an important would meet the anticipated UK requirements and world market. If the Public Sector can identify the have significant export opportunities. EO needs that generate most value, industry is prepared to commit to technology development and capital financing to make a PFI service attractive. Public Sector national needs could range from regular monitoring of heat emissions across the county, estimation of coastal erosion

32 33 Recommendations Recommendations

Recommendation 6 Together with the challenge, there is a significant opportunity for UK businesses to lead the world Government, in partnership with in the Space-based technologies and services industry and academia, should that will play a significant role in climate change validation, mitigation and adaption. map out a strategy for the UK to Measurements from Space are the only means secure world leadership in the of gathering global and independent evidence technologies and services related for validation of climate change and carbon to climate-change validation, agreement verification, and are often the most adaption and mitigation. This should cost-effective means for supporting mitigation include verifying international and adaption activities on the ground. The UK is carbon agreements. The UK should well positioned to exploit these new technologies ensure that it levers its world-class and services with an already strong industrial research and modelling capabilities and academic base. This is expected to grow in climate change to full economic to a major global market, offering a significant and social effect and support ESA’s economic growth prospect for the UK. contribution to climate change through its recently established There is a significant ESA Climate Office at Harwell. opportunity for UK Climate change is undoubtedly one of the greatest challenges facing mankind for businesses to lead the generations to come, and there is an urgent world in the Space- need for the UK government to join international efforts in validation, mitigation and adaption. based technologies An early priority is to regain public confidence in the scientific evidence for action through and services that will the gathering of independent, incontrovertible play a significant role evidence of the changes in climate. There is an equally urgent need to measure and to gain in climate change The Technology Strategy Board (TSB) and SEEDA to encompass the demonstration of an affordable greater understanding of the “essential climate validation, mitigation (South East Development Agency) are UK EO capability, including UK-developed variables” in our ecosystem and atmosphere — currently considering the procurement of a small synthetic aperture radars for small the causes of climate change. and adaption satellite platform for flight demonstration of satellite systems. various industrial payloads. We welcome this initiative and urge that the scope is expanded

Number Action Timeframe Number Action Timeframe

A5.1 UKESA to identify full future Public sector needs and December 2010 A6.1 UKESA with academia & industry to form a task force to September 2010 aggregate their use of Space-based EO data develop a UK strategy

A5.2 Accelerate the TSB/SEEDA initiative to produce a December 2010 A6.2 Develop the strategy with EU partners December 2010 demonstration satellite to test the most likely payload needs including EO A6.3 Identify implementation plan actions into NSTS, EO data July 2011 needs and ISIC A5.3 Joint industry and Government project study to respond July 2011 with a PFI to meet the aggregated requirements

A5.4 Offer an anchor tenancy/PFI programme to a UK-based December 2012 operator for Government EO data

34 35 Recommendations Recommendations

Increasing the use of Space within by 2017. The cost of achieving ubiquity in next- the national ICT infrastructure generation services will be extremely high, and future decisions which avoid disadvantaging rural Recommendation 7 communities will mean that terrestrial solutions start to become impractical as we move to The UK should seize the opportunity 100% accessibility. to develop Space-enabled services to become the complementary Government can also drive additional investment Information and Communication by accelerating the procurement of the next- generation broadband from Space as part of a Technologies (ICT) infrastructure national approach. This UK solution opens the to both the fixed fibre optic and door for export opportunities in a global market wireless networks. for ‘internet from Space’ that we estimate is It will not be affordable to provide fast broadband likely to be worth £29 billion per annum by 2030. services to all of the UK’s communities as part of the Next Generation Access using just fibre Future broadband and broadcast requirements optic or mobile networks. However, a mixture will stretch the UK’s technology base. Over of fixed and mobile Space services can deliver the 20-year period covered by this report, more efficient High Definition TV broadcast for satellite manufacturers will need to increase everybody and ‘Next Generation Broadband’ satellite capabilities to deliver at least 100- to rural communities in the UK. The issue to fold improvements in bandwidth and develop resolve, therefore, is exactly how much of the satellites that can deliver a true 50 Mbps country must be covered by broadband from broadband and a large broadcast capacity at Space because it will take time for industry the same time. This will offer consumers a true to provide this capacity. ‘one dish’ solution for a Space infrastructure.

Government and industry should work together An important aspect of using Space-enabled to define the infrastructure and architecture services for broadband is that capacity can be that enables Space to provide an affordable, added incrementally. Moreover, a single satellite ubiquitous delivery mechanism that is an enabler covers a very wide area and so there is less risk of a modern, low-carbon, digital economy. Space than laying long cables to remote regions in the will help deliver a solution to the Universal hope that it will result in a substantial take-up Service Commitment (USC) set out in Digital of premium broadband use. In addition, and Britain for broadband to all communities by 2012. depending on the model selected, Space-enabled Moreover, the Government has committed itself services can provide for competition at the to supporting investment in the next-generation, wholesale and consumer levels. superfast broadband reaching 90% of homes

Number Action Timeframe

A7.1 Digital Britain team to assess how Space can assist June 2010 the Universal Service Commitment for Next Generation Broadband A single satellite covers a very wide A7.2 Digital Britain to support the current initiative by Space June 2010 operators at no Government cost area and so there is less risk than

A7.3 The UKESA to fund a study by UK industry to respond with December 2010 laying long cables to remote regions a Next Generation Broadband Architecture to allow early development of suitable hardware in the hope that it will result in a A7.4 Government to propose a complementary satellite January 2012 substantial take-up infrastructure to add to fibre optic and mobile networks

36 37 Recommendations Recommendations

Recommendation 8 potential, when deciding which infrastructures A safer world with more resilient defence and economic benefits of adapting to use to deliver the next generation of infrastructure launch systems from emerging Space tourism The UK should use the low-carbon broadband. Likewise, it should consider Space vehicles and reusable Spaceplanes. characteristics of delivering when allocating radio frequency spectrum to Recommendation 9 mobile and satellite operators. Government may The role of Government should be to ensure broadcast and broadband services be in a position to accept higher commercial The UK Government and industry that the reliability, inherent resilience and from Space to help meet our national risks in adopting novel infrastructures than a surveillance offered by future Space services are emissions reduction targets. should set up a senior-level panel civil operator. Government can therefore, act to ensure that Government can used in future infrastructure planning. Security Low-carbon services will be critical if we are to to pull through new technologies. Government take a strategic view of emerging should be interpreted in its widest sense given and industry should work together to establish the increasing importance of secure back-up meet national carbon emission reduction targets, Space capabilities and sovereign and we therefore propose to use the potential whether low carbon delivery of services from systems for UK businesses and Government in Space is a case where there is huge potential industrial capabilities, and reflect the modern economy. It is for industry to set out of Space as a way of reducing the ICT sector’s them in future national security carbon footprint. We should not constrain ICT for growth and export opportunities. how new Space services can improve security and defence planning. This panel growth, but this sector must also play its part in for the citizen and resilience of Space-based achieving the 80% reduction in carbon reductions However, as an industry we need a clear and should contribute directly to and terrestrial infrastructure. by 2050 promised by the UK Government. early indication from Government that it will the forthcoming Strategic Crucially, Space services can help the ICT promote Space-enabled services for the UK’s Defence Review. Space, like security and defence as a whole, remote communities. This will enable the offers key opportunities for us to build upon sector grow whilst controlling its emissions. The importance of security in the future is clearly industry to provide them with access to High a strong industrial base which, in many cases, Depending on the architecture adopted for the explained in the Cabinet Office National Security Definition TV and broadband. In turn, this will already offers world-leading capabilities. Next Generation Broadband infrastructure, Strategy (NSS), published in June 2009. The NSS encourage UK operators to buy new satellites However, to be successful in this respect we Space can deliver as much as 40 million tonnes reflects the radical changes that have occurred of CO savings per annum for the UK compared and UK manufacturers to bid for these contracts. need to realign our national policies and build an 2 since the start of the new millennium, including Without doubt, this is an extremely important environment and mechanisms which will enable to terrestrial infrastructure. This is a complex the emergence of a wide range of threats which aspect of building industry investment and our industry to service our own resilience needs argument and needs to be developed fully in the will continue to evolve against the backdrop of growth in this sector. effectively. At the same time, it should support light of independent studies being produced an increasingly complex global environment. As our ability to offer competitive export services for ESA. identified in the NSS, Space has a key part to to our global partners and allies. This requires play in assuring the security of our nation and close and effective co-operation between It is important that the new Digital Britain our people; indeed in assuring the security and Government and industry. delivery team, UK infrastructure and Ofcom prosperity of all nations and all peoples from take full account of the wider environmental and both man-made and natural threats. ‘ubiquity of service’ issues, as well as export This panel should also review the future need for low cost launching of small satellite systems and related services, with an emphasis on the Number Action Timeframe

A8.1 Using ESA’s independent investigation into low carbon December 2010 delivery of broadcast and broadband delivery, UKESA to Number Action Timeframe form a team with industry and BIS to propose a strategy of carbon reduction A9.1 Government set up an expert panel to advise the Cabinet April 2010 Office on the industrial and operational issues of Space- based capabilities

A9.2 A review of future Space-enabled services to be included December 2010 in a Strategic Defence Review

A9.3 Cabinet Office to identify if additional action is required January 2012 to ensure all Public sector groups and contractors have resilient back-up systems

38 39 Recommendations Recommendations

Recommendation 10 navigation, image recognition, sensor data, and video, to build an accurate real time Number Action Timeframe operational picture. We recommend that the UK take A10.1 Convene a group of interested parties from industry April 2010 and Government to agree Sat-Mob requirements the lead in promoting the use of Private Mobile Radio (PMR) networks, such and approach mobile satellite-based services as TETRA, are largely narrowband and can only (MSS) as a core element of the UK’s support voice and limited data communications. A10.2 Above group to engage with other relevant EC interested December 2010 and Europe’s future emergency, Public 3G networks are increasingly used parties, including ESA and various US safety and security communications to support some of the more content-rich applications, but offer limited control over service infrastructure. MSS can work A10.3 Take lead in supporting pan-European PPP with July 2011 availability and security. Therefore, existing with and extend the capability UK-based satellite operator to complement private funding terrestrial mobile communications used by of terrestrial private mobile of necessary infrastructure networks in a cost effective, safe emergency, safety and security organisations are and immediate way. We therefore at a crossroads. Significant investment would be required to up-grade terrestrial PMR networks to strongly advise the UK’s relevant reach the same level of capability already offered Regulating Space for success providing additional spectrum or orbital slots departments and agencies to by MSS. The use of MSS can reduce these costs if it desires to have effective competition from work with European national and time to market by providing a pan-European Recommendation 11 multiple providers. governments and EU agencies overlay service to complement and extend to support UK proposals for a terrestrial networks by introducing vehicle The UK Government should take As part of its climate change agenda, the pan-European Private Public based relay functionality and/or dual mode full account of the wider value Government should make a clear international Partnership (PPP) initiative to (TETRA/MSS) handsets. Furthermore, satellites, of Space-enabled services when signal that it backs the retention of the C-band complement private funding of with their EU wide footprints, enable seamless engaged in activities relating to frequencies in current use for satellite services the necessary infrastructure cross-border operations between national radio frequency spectrum allocation, as a key component of its support to the poorer and European-level agencies, for example, and product development. the operation of the Outer Space nations who rely on these frequencies for high in controlling the Schengen border. Close cross- Act, allocating orbital slots for new availability services, especially after disasters. Mobile Satellite services (MSS), including both border collaboration is currently hindered by satellites and treaty negotiation with communications and positioning, are already the proprietary and national nature of most Ofcom and the UK Executive Space Agency vital to the success of emergency rescue and PMR networks. other Space nations. should take a lead within Europe in establishing disaster relief operations around the world. MSS The UK should make specific allowance for new a more effective process for eliminating the provides highly responsive, flexible, cost effective European satellite programmes, especially growth in bandwidth for Space infrastructure registration of unlikely satellite launch bookings and dependable communications when local the Inmarsat EuropaSat system, which was and services as this is likely to require reserved — so-called paper filings — from the ITU infrastructure is compromised, destroyed or awarded with an EU wide S-band license by the rights to that part of the radio frequency spectrum (International Telecommunication Union) register non-existent. Mobile and fixed satellite services European Commission in 2009, could realise that is most useful to satellite-based operations. and to secure fully co-ordinated orbital frequency played a key role following the 9/11 attacks and the vision set out above. However, the public Reserved spectrum for future satellite-based resources for existing and aspirational the 2004 Indian Ocean tsunami, as they do today safety and security nature of this opportunity operations will allow for competition within the UK operators. in support of the relief efforts following the make this a fragmented market, which is Space framework. Haiti earthquake. regulatory dependent. Joint government and The UK has a multitude of MoUs (Memoranda industry support is required to align the diverse We must ensure that we have the right of Understanding) with other governments There is however a much more permanent stakeholders, both at home and across Europe. regulatory environment in the UK that does not concerning agreements about aid, scientific opportunity for MSS to be used within the UK The EU wide S-Band license award to a UK inadvertently constrain growth or the adoption research and a wide range of civil and military and wider European emergency, safety and company offers the UK the opportunity to take of new technologies or services in commercial technologies. When competing in international security communications infrastructure. the lead in shaping and promoting this capability or institutional markets. Immediate concerns markets, MoUs play an important part in Advances in MSS technology can complement across the EU. The UK’s emergency and security are the availability of spectrum for the Universal ensuring that UK firms are playing on a level and extend terrestrial mobile networks services stand to gain significantly in their own Service Commitment (USC) and ‘Final Third’ field, and the industrial benefits from MoUs are without requiring a permanent terrestrial right, but such a capability also embraces EC projects set out in Digital Britain to ensure often long term. For example, the UK has MoUs infrastructure. Broadband data and mobile initiatives to further harmonisation of public that the government services which move to regarding the long-term access to launchers video communications are becoming an safety and security services across Europe. This electronic delivery are accessible to everyone. at preferential rates, the ability to bid on equal essential operational tool for the future, they offers an export opportunity for UK industry Additionally, if the growing market for direct- terms in foreign national procurements and will enable greater situational awareness via the implementation and future operation of to-home HDTV and broadband services by agreements to collaborate on future Space allowing emergency and security personnel to mobile satellite services. satellite in the UK encourages new entrants into missions. Nonetheless, UK Departments share a wide range of multimedia tools such as, this market, then the UK will have to consider sometimes take a narrow view of the benefits of

40 41 Recommendations Recommendations Recommendations

A sector worth Applications and services using Space data will be one of the most important £40 billion elements for delivering by 2030 this growth

42 43 Recommendations Recommendations

MoUs and this constrains and prevents the UK operators to provide the UK Government with an Using Space to inspire and educate positioned people to influence students are their from accessing these new opportunities. unlimited indemnity against damages resulting teachers. Having a strong research and teaching from an accident and provide £100 million Recommendation 12 staff with particular expertise in Space science, Therefore, Government Departments should insurance cover. This is a potentially important engineering or in Space law is the best way to give prompt and well-informed support to the consideration as the technology used for Space The Space industry and UKESA promote such an interest in a student. UK Executive Space Agency in evaluating and tourism could provide the basis for launching should show exemplary and agreeing MoUs in market sectors prioritised small satellites into low-Earth orbit, a potentially proactive support in championing Industry will increase participation in graduate by a joint Government and industry advisory lucrative niche market where launch capacity initiatives aimed at addressing entry schemes, advanced apprenticeships and committee. Moreover, the ongoing evaluation could become scarce. the STEM (Science, Technology, sandwich courses at universities to attract and of the potential MoU with Russia should be retain high-quality entrants and meet modern Engineering and Mathematics) concluded early in 2010. gender and ethnic diversity objectives. It will also issues in our schools, colleges, work in concert with the Science, Engineering There is a possibility that we will deter Space universities and businesses. and Manufacturing Technologies (SEMTA) sector tourism operators from developing UK launch The ambitious expansion plans outlined in our Skills Council to ensure that Higher Education locations because the Outer Space Act requires 20-year Space strategy will provide an estimated representatives and employers collaborate on 100,000 new jobs in the UK. But, to ensure the design and scoping of degree and higher that these plans can be realised, industry and degree qualifications. Government must guarantee that sufficient Number Action Timeframe training and apprenticeship schemes exist to meet The Space sector led by the UK Executive this demand and that schools and universities Space Agency will also launch a publicity A11.1 The UKESA to ensure the Outer Space Act does not dis- December 2010 are given the industry support needed to make campaign to inspire young people to choose advantage the UK and constrain future Space tourism or young people aware of the personal fulfilment, STEM-related subjects and help increase the launch activity career benefits and excitement they can get from attractiveness and take-up of related courses working in the Space sector. Among the best- and apprenticeship schemes. A11.2 Government Departments to maximise the use of December 2010 MoUs to facilitate international co-operation and UK wealth creation Number Action Timeframe A11.3 Ofcom and the UK Spectrum Strategy Committee (UKSSC) July 2011 should review the allocation of spectrum to ensure that the A12.1 The UKESA to have promoting awareness of the Space December 2010 quality of existing or future satellite-based services is not sector as an identified and budgeted function reduced by interference A12.2 Develop a national school-level education programme that July 2011 Ofcom and industry should review the effect of market A11.4 July 2011 exploits Space, for the benefit of the national STEM agenda, pricing of spectrum on satellite services in the light of the based on existing regional and pilot programmes IGT growth objectives and the forthcoming strategic review of spectrum pricing A12.3 Industry to double the number of school and college visits July 2012 made by its STEM ambassadors A11.5 Ofcom and the UKESA to ensure suitable orbit slots are July 2012 available for UK future use and to minimise paper filings A12.4 The UK Executive Space Agency and Ukspace to liaise July 2012 with SEMTA to ensure new courses are designed to suit their needs

A12.5 Industry to double its use of apprenticeships to meet January 2015 recruitment needs

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Recommendation 13 The UK is one of the major participants in the ESA Aurora programme and has developed Number Action Timeframe a high degree of competency and leadership The UK should initiate and lead at A13.1 UKESA to negotiate lead positions for the UK in key January 2011 least three Space exploration or in many areas of exploration technology, in particular autonomous robotics, instrumentation strategic areas science missions by 2030. These and sensors. A recent BNSC study, ‘Space missions could be undertaken within exploration: Options for UK involvement’ A13.2 Plan to maximise participation in Aurora to be developed, January 2011 the ESA framework or as separate highlighted the significant economic impact also maximising spinout into terrestrial applications national programmes with other of increased investment within these areas. It international partners. The UK included detailed case studies that outline the A13.3 The UK should participate in both the human and January 2012 should also support exploration potential for substantial returns on investment in robotic elements of the Global Exploration Strategy as activity options as set out in the UK’s exploration robotics and associated technologies. individual programmes become defined and also wider Space Exploration Review published In addition, economic survey work has shown EU exploration initiatives. The UK should actively pursue in December 2009 in line with that a large terrestrial market exists for robotics, strategies which facilitate engagement in HSF activities increased funding levels agreed instrumentation and sensors — from military without incurring significant programme cost in Recommendation 15. equipment through to healthcare systems and transport for the sick and elderly. Germany Despite being a significant contributor to the and Spain are investing heavily in Space-based European Space Agency, the UK has not provided, robotics, and should the UK wish to retain and Promoting a UK-Wide SME A UK-based Earth Observation centre, funded and led significant Space science missions expand its current role, Government investment Space sector particularly if backed by a new UK EO service either within or outside ESA over the recent past. is required. as set out in Recommendation 5, should provide Other countries, particularly France, Germany, Recommendation 14 an opportunity to develop a group of small Italy and Spain are taking the lead in Space businesses to exploit the international market missions by providing increased funding for their National missions and The UK Government should establish for applications in this area. This would include scientists and industry and having their own the instruments and a hub and spoke network to link security-related activities as well as climate- nationally funded missions to complement ESA UK centres of excellence in all change, meteorology and mapping applications. programmes. Such national missions and the systems developed for Space disciplines to drive benefits instruments and systems developed for them We also propose that a Regional Development from closer relationships between often lead to new market opportunities. If the them often lead to new Agency (RDA) partnership should be set up UK were to take the lead on at least three ESA customers, businesses, academia specifically to promote uptake of emerging missions, it would allow the UK Space industry to market opportunities and the UK Executive Space Space technologies in close-to-market end-user develop key technologies and capabilities and its Agency. The IGT community fully applications. Academic-to-industry links and own indigenous Space supply chain. Furthermore, The UK Government should, therefore, endorse support the proposal to establish technology transfer should be achieved through UK Space mission leadership would position the and support the Global Exploration Strategy (GES) an International Space Innovation existing or new partnerships in a joined-up country for future missions not only within ESA and wider EU exploration initiatives. The UK can Centre at Harwell as the best way to regional centre. The hub for this activity should be but also with other Space partners such as China, offer autonomous systems, instrumentation and deliver growth and business benefits the business incubation centre proposed as part India and the US. sensors as contributions-in-kind to unmanned from the Hub. of an International Space Innovation Centre (ISIC). exploration in the short term as well as to the Government and industry should support an Increased investment in academia by industry longer-term aspirations of Human Space Flight The current Space applications and services end- open innovation International Space Innovation and Government to procure research would also (HSF) missions. The UK can best exploit astronaut user sector in the UK has an annual turnover of Centre (ISIC) at Harwell as the centre-of- improve the ability of universities to supply and opportunities and benefit from strategic R&D £750 million. Although there is a concentration of gravity of a UK Space cluster. This ISIC should inspire the next generation of engineers and investment in HSF by focusing on healthcare Space organisations and businesses in the South proactively nurture the development of Small and scientists for the Space sector. As well as helping East, there are strong Space communities across technology for terrestrial applications. Medium Enterprises (SMEs), and improve links the Space industry to meet its skills challenges other parts of the UK like the GRACE and G-step between academia and industry, particularly in and fulfil its own growth potential, this additional navigation applications centres in Nottingham the operations, applications and science areas. proficiency is expected to have wider benefits for and Leicester supported by EMDA and GMES. The ISIC should be used as a centre of focus for other industries reliant on STEM expertise. Wales, Northern Ireland and Scotland also improving the UK’s standing in Space security as have Space-related concerns and all of these well as providing a UK climate hub, which will be sites and academic research centres should be of benefit to all stakeholders and give the UK a linked in a hub-and-spoke model. The proposed national facility with credibility on a global stage. SME partnership would build on these existing centres to involve the geographically dispersed

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Making it happen With the ratification of the Lisbon Treaty, there is the potential that the EU will choose to exercise Recommendation 15 its greater responsibilities in Space. If it chooses to spend on Space from central budgets, over The UK should invest earlier, more which UK has no direct control, then it will consistently, and at higher scale in become even more important for the UK to retain ESA Space programmes in order industrial capabilities and influence if it is to to maximise the UK’s economic maximise its return from an EU spend on Space and social benefits from these services. The UK can secure greater benefits from ESA missions by engaging early in the formation programmes. We estimate this phase of new programmes because that is when requires a doubling of UK spend, the UK can best influence the requirements for in real terms, including national programmes and hence obtain solutions that programmes, over the next 10 most closely match national needs and enable years. This would raise the UK from industry to secure the greatest industrial benefits. its worldwide current position of 21st to 10th in Space funding as It is important that the UK Executive Space a percentage of Gross Domestic Agency (UKESA) also works with ESA to improve universities and companies that comprise Government and industry should set up a GNSS the agility and pace of European programmes. the end-user segment and make full use of applications test bed, connected to the hub-and- Product (GDP). The UK should continue to invest in programmes the hub-and-spoke model for Space. spoke network, as a focus for the development that deliver the greatest national return but of services using the Galileo GNSS data. This will Investing earlier and consistently should ensure that it invests at a high enough The market opportunities are potentially huge. help companies develop the new applications and will enable the UK to obtain level to lead relevant programmes and secure For example, a recent ESA study on the EU Global technologies to use Galileo as soon as it becomes the highest national benefit by the important industrial and economic benefits. Monitoring for Environment and Security (GMES) operational. This will help UK-based companies influencing programme objectives The UK should also support UK SMEs to ensure project suggests that the revenue generated develop a ‘first-mover’ advantage from combining before these become firm and that are better prepared to work with offshore from climate-change monitoring and mitigation initial Galileo data with existing GPS data, rather enable industry to access the best primes when they lead ESA programmes. In activities alone will reach €7 billion per annum than waiting until the whole Galileo constellation industrial opportunities that are addition to a separate national programme, by 2030. Growth should also come from a more is available. New ideas, such as increasing the usually lost by entering programmes there are major advantages for the UK in systematic joining up of Space companies number of trains that can run safely on a network at a late stage. UK should also participating in ESA-led R&D programmes. with businesses in other sectors as diverse as or being able to locate elderly citizens in a way insist on a greater leadership role Preparatory activities, risk mitigation and agriculture, construction, health and transport that enables them to live in their own homes, in European missions, security technology demonstration opportunities, derived who often have an in-depth knowledge of their rather than residential care institutions, are likely from the national programme, will place UK sector but little or no understanding of the to have a substantial social as well as business projects and R&D as part of any organisations in a better position to collaborate in capabilities of the Space technologies they could value. Moreover, these sorts of applications enhanced funding towards European and international Space programmes be using. These represent major opportunity and services are likely to transfer well to European programmes. and where appropriate, lead them. Therefore, for the UK’s applications and services sector, export markets. Achieving the growth goal to 10% of a the new UKESA should work closely with the particularly small and medium sized companies. growing world-wide market will require a huge user communities and industry to promote commitment and substantial increases in programmes which meet UK needs. By doing Number Action Timeframe investment from everyone: companies, financial this, it will be able to secure roles in the delivery institutions, and the public sector. It will require of those programmes which play to national A14.1 Government and industry to fully support of ISIC at Harwell April 2010 a major uplift in UK funding for Space-related strengths and ambitions. programmes and technologies to enable the A14.2 The UKESA to relocate to Harwell July 2011 UK to maintain its competitiveness in commercial, The UK Government can enable industry to play institutional and exploration capabilities. Most a full part in ESA technology programmes by A14.3 South East England Development Agency (SEEDA) and July 2012 importantly, the UK must maximise the economic maximising national funding which then allows Technology Strategy Board (TSB) should locate and support and social benefits from its funding. It is industry to increase its contribution through a Regional Development Agency (RDA) Partnership/ unrealistic to believed that the UK can achieve its additional company funded R&D. This allows Innovation hub at Harwell and promote centres of growth goal without this increase in public sector industry to generate large-scale technical and excellence as its spokes investment. commercial benefits. This leads to an overall benefit for the UK which is far larger than UK-only A14.4 TSB/RDA to set up a GNSS test bed at a suitable hub Jan 2013 research and demonstration activities. Industry

48 49 Recommendations Recommendations

will task the NSTSG with identifying those participate in programmes that offer the greatest Recommendation 16 the specific recommendations in our strategy. European technology opportunities that offer the economic and social advantage to the UK and that Industry recognises that the UKspace trade highest economic impact. offer best value for money. By following the same A Space Leadership Council association should be substantially strengthened philosophy, we expect that the UK will achieve should be established and chaired in terms of skills, influence and services provided The UK has not invested significant sums in a much greater return from any additional by the Secretary of State for in order to effectively represent industry in the rocket launchers or human Space flight. This monies by exploiting a better position, including implementation of the report’s recommendations. narrower focus — on commercial systems, earth leadership, in these programmes that would be Business, Innovation and Skills It will need to engage more effectively with all observation, navigation, robotic exploration, taken forward anyway. and the President of the UKspace sectors of the industry and with national and local important science — has allowed the UK to trade association. This Council should be tasked with overseeing government. It should also increase engagement the progress of implementing the with society and academia to promote the value of recommendations and actions Space as an engineering profession. in this report. These actions are summarised in the Space Innovation Historically, other industries have been able to and Growth Action Table included advise government and present their issues more in this recommendation. consistently, at a higher level and with more effect, than has Space. UKspace will therefore We are aware that several previous reports on benefit from working more effectively with A|D|S Space have not been fully implemented, and so we and Intellect to improve the way it promotes Space are determined that this report will make a real in the UK. difference. We envisage that the proposed Space Leadership Council (SLC) should implement

Number Action Timeframe

A1.1 Define the National Space Policy that establishes the UK’s likely Jan 2011 public sector needs from Space, highlighting where early action by Government and Industry can deliver national and economic benefits A1.2 The UK Government should recognise Space as a key high-technology Jan 2011 industrial sector alongside aerospace, life sciences, biotechnology Number Action Timeframe and defence and resource appropriately A1.3 Industry to specify innovative proposals to requirements Jan 2012 A15.1 Government and Industry should work together to ensure January 2012 better co-ordination to the next ESA council of ministers to A1.4 Regular joint Government and Industry review of policy success Annual allow better planning for new programmes A2.1 UKESA fully operational Jan 2011 A15.2 The UKESA should take a leading role in defining future January 2012 ESA programmes that support UK policy directives A2.2 10 Industry Secondments to Agency Jan 2012

A2.3 Two way Secondments underway Jan 2015 A3.1 Establish the National Space Technology Steering Group Apr 2010

A3.2 Launch a National Budget with funding Apr 2010 A3.3 Finalise Technology Roadmaps Sep 2010 A3.4 Identify increasing budget in line with roadmap needs and industry 2011 ability to co-fund A3.5 Increase annual budget to £100 million (£50 million private R&D 2015 matched by £50 million co-funding)

A3.6 Review alternative (disruptive) technology development and funding 2015

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A4.1 Industry will set out all projects that will need intervention to proceed Dec 2010 A10.3 Take lead in supporting pan-European PPP with UK-based satellite Jul 2011 operator to complement private funding of necessary infrastructure A4.2 Government to clarify methods of awarding loan guarantees or anchor Dec 2010 Dec 2010 tenancy that will satisfy city investors A11.1 The UKESA to ensure the Outer Space Act does not disadvantage the UK and constrain future Space tourism or launch activity A4.3 Government to review (in concert with other hi-tech, hi-risk industries) Dec 2012 Government Departments to maximise the use of MoUs to facilitate Dec 2010 wider financial mechanisms to grow the Space market A11.2 international co-operation and UK wealth creation UKESA to identify full future Public sector needs and aggregate their Dec 2010 A5.1 Ofcom and the UK Spectrum Strategy Committee (UKSSC) should Jul 2011 use of Space-based EO data A11.3 review the allocation of spectrum to ensure that the quality of existing A5.2 Accelerate the TSB/SEEDA initiative to produce a demonstration Dec 2010 or future satellite-based services is not reduced by interference satellite to test the most likely payload needs including EO A11.4 Ofcom and industry should review the effect of market pricing of Jul 2011 A5.3 Joint industry and Government project study to respond with a PFI to Jul 2011 spectrum on satellite services in the light of the IGT growth objectives and the forthcoming strategic review of spectrum pricing meet the aggregated requirements Jul 2012 A5.4 Offer an anchor tenancy/PFI programme to a UK-based operator for Dec 2012 A11.5 Ofcom and the UKESA to ensure suitable orbit slots are available for UK future use and to minimise paper filings Government EO data The UKESA to have promoting awareness of the Space sector Dec 2010 UKESA with academia & industry to form a task force to develop a Sep 2010 A12.1 A6.1 as an identified and budgeted function UK strategy A12.2 Develop a national school-level education programme that exploits Jul 2011 A6.2 Develop the strategy with EU partners Dec 2010 Space, for the benefit of the national STEM agenda, based on existing regional and pilot programmes A6.3 Identify implementation plan actions into NSTS, EO data needs Jul 2011 and ISIC A12.3 Industry to double the number of school and college visits made by its Jul 2012 STEM ambassadors A7.1 Digital Britain team to assess how Space can assist the Universal Jun 2010 Service Commitment for Next Generation Broadband A12.4 The UKESA and Ukspace to liaise with SEMTA to ensure new courses Jul 2012 are designed to suit their needs A7.2 Digital Britain to support the current initiative by Space operators at Jun 2010 no Government cost A12.5 Industry to double its use of apprenticeships to meet recruitment needs Jan 2015

A7.3 The UKESA to fund a study by UK industry to respond with a Next Dec 2010 A13.1 UKESA to negotiate lead positions for the UK in key strategic areas Jan 2011 Generation Broadband Architecture to allow early development Plan to maximise participation in Aurora to be developed, also Jan 2011 of suitable hardware A13.2 maximising spinout into terrestrial applications Government to propose a complementary Satellite infrastructure to A7.4 Jan 2012 A13.3 The UK should participate in both the human and robotic elements Jan 2012 add to fibre optic and mobile networks of the Global Exploration Strategy as individual programmes become defined and also wider EU exploration initiatives. The UK should Using ESA's independent investigation into low carbon delivery of Dec 2010 A8.1 actively pursue strategies which facilitate engagement in HSF activities broadcast and broadband delivery, UKESA to form a team with industry without incurring significant programme cost and BIS to propose a strategy of carbon reduction. A14.1 Government and industry fully support ISIC at Harwell Apr 2010 A9.1 Government set up an expert panel to advise the Cabinet Office on the Apr 2010 industrial and operational issues of Space-based capabilities A14.2 The UKESA to relocate to Harwell Jul 2011 A9.2 A review of future Space-enabled services to be included in a Strategic Dec 2010 A14.3 South East England Development Agency (SEEDA) and Technology Jul 2012 Defence Review Strategy Board (TSB) should locate and support a Regional Development Agency (RDA) Partnership/Innovation hub at Harwell A9.3 Cabinet Office to identify if additional action is required to ensure all Jan 2012 and promote centres of excellence as its spokes Public sector groups and contractors have resilient back-up systems A14.4 TSB/RDA to set up a GNSS test bed at a suitable hub Jan 2013 A10.1 Convene a group of interested parties from industry and Government to Apr 2010 Government and Industry should work together to ensure better Jan 2012 agree Sat-Mob requirements and approach A15.1 co-ordination to the next ESA council of ministers to allow better A10.2 Group to engage with other relevant EC interested parties, including Dec 2010 planning for new programmes ESA and various US A15.2 The UKESA should take a leading role in defining future ESA Jan 2012 programmes that support UK policy directives

52 53 Chairman’s Introduction

Images supplied with thanks to: SSTL, Astrium, Paradigm, National Space Centre, European Space Agency, Jupiter Images, Inmarsat 54