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An International Comparison of Space History, Policy and Industrial Capability

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An International Comparison of Space History, Policy and Industrial Capability An International Comparison of Space History, Policy and Industrial Capability Gabriele Lania Intern – Universita’ Commerciale Luigi Bocconi Supervisor: Nicola Sasanelli AM Director – Space Industry and R&D Collaboration DefenceSA Government of South Australia June 2016 Page 2 of 60 Disclaimer: While every effort has been made to ensure the accuracy of the information contained in this report, the author does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained in this report. The conclusions and the recommendations represent the views of the author and should not be taken to represent the views of Defence SA and of the South Australian Government. Page 3 of 60 ACKNOWLEDGMENTS This study is the result of a three month work at Defence SA, and it is the result of the direct and indirect help of many people that I would like to thank. An obligation goes to Sarah Strathearn, which helped me in the insanely hard revision of this paper. Thanks to Peter Nikoloff and to Alex Grant for their advice, extremely useful for the Directory project, and to Michael Davis for the help provided in these three months. My thanks go also to the whole Defence SA team for the friendly environment created in these three months. Finally, I would like to thank Nicola Sasanelli. He gave me the opportunity to come here, teaching me important lessons inside and outside the workplace. Page 4 of 60 Page 5 of 60 CONTENTS CHAPTER 1: SPACE INDUSTRY AND ECONOMY .............................................................. 10 DATA AND COMPOSITION ................................................................................................... 10 DEVELOPMENT FACTORS ............................................................................................................. 12 SPACE MANUFACTURING SUPPLY CHAIN ..................................................................................... 12 RAW SATELLITE SERVICES AND VALUE ADDED SERVICES ......................................................... 13 SPACE RELATED R&D AND SUPPORT SERVICES ....................................................................... 14 HISTORIC AND FUTURE TRENDS ......................................................................................... 14 CHAPTER 2: SPACE INDUSTRY GLOBAL PLAYERS ......................................................... 16 CANADA ........................................................................................................................... 16 CHINA .............................................................................................................................. 20 FRANCE ........................................................................................................................... 25 GERMANY ......................................................................................................................... 29 INDIA ................................................................................................................................ 33 RUSSIA ............................................................................................................................. 42 UNITED KINGDOM ............................................................................................................. 46 UNITED STATES OF AMERICA ............................................................................................. 50 CHAPTER 3: AUSTRALIA AND SOUTH AUSTRALIA.......................................................... 55 SOUTH AUSTRALIA ........................................................................................................... 56 CONCLUSION .................................................................................................................... 57 ANNEX: SPACE INDUSTRY’S REVENUES, 1973-2014 ..................................................... 60 Page 6 of 60 Page 7 of 60 SYNOPSIS This paper will focus on Space and Space-related activities, and is linked with a wider plan for the development of a Space strategy in South Australia. Focusing on the South Australian space economy, the study uses internationally recognised categories and applies them to the Australian case. The first chapter provides overview data and outlines the characteristics of the space economy by applying categories used by the Asian Pacific Aerospace Consultant (APAC) and by the Australian and New Zealand Standard Industrial Classification (ANZSIC). These categorisations will be useful both for future studies and as benchmarks of the State’s space environment. The second chapter provides information and statistical data on world leading space economies. For each country analysed, the twofold objective is to provide international benchmarking and to understand each country’s space framework (and the process that led to it). This provides insight into the countries historical involvement in space, present policies pursued by the governing bodies as well as the industrial composition of each national space economy. It is worth noting that different policies implemented by the national space agencies examined led to some incongruences in the data available. For example, the United Kingdom Space Agency has, by mandate, a large focus on the downstream application of the space industry, and its studies tend to include a very broad range of downstream applications, resulting in data bias. On the other hand, countries such as France or Italy tend to have a stricter vision of the space industry, focusing on the upper stream of the value chain, resulting in an underestimation of the economy. As for China and India, the intense evolution of their space economy (policy, industry and research and development activities) qualifies them as key international actors where the establishment of profitable partnerships may be possible. The last chapter briefly highlights Australian space activity. In this context the South Australian challenge is to support space industry growth and increase research and development collaborations. In particular, the State aims to exploit the high level of sophistication of the Space industry in order to promote South Australian science, technology, engineering and mathematics (STEM) capabilities and to increase collaborations between private companies and research organisations. The paper concludes by highlighting some policies successfully implemented by countries such as UK and Canada which could be considered best practices in context of developing South Australia’s Space strategy. Page 8 of 60 Page 9 of 60 CHAPTER 1: SPACE INDUSTRY AND ECONOMY DATA AND COMPOSITION ‘Space Industry’ is a broad term. It Figure 1. Comparison of the mean annual growth for Space includes a huge variety of different revenues and World GDP sectors and industries. It is not easy to track down an accurate definition Mean annual compund grow rate of its boundaries. Estimations of the global value of the industry present 12.00% significant discrepancies. It can be 10.65% agreed, however, that the Space 10.00% industry generates important revenues: SIA1 estimates USD 322.7 8.00% billion of global revenues for the 6.28% industry in 2014, while the Space 6.00% Foundation2 estimates USD 330 4.00% billion. 2.96% 2.72% The space economy has presented a 2.00% constant and sustained growth over the last 40 years. As can be observed 0.00% in Figure 1 in the last 40 years space 1973-1998 1998-2013 sector revenue’s has grown significantly faster than the global Space Revenue World GDP GDP. Moreover, the development of many modern widespread Source: see Annex technologies have been driven by the investments sustained in space. Not only satellite television, phone services and GPS; but also scratch-resistant lenses, fire-resistant materials, electronics and lasers3 have benefited from space related technology and the subsequent products and services provided by the space industry. It can be concluded that space is a driving force for technological development and for the global economic growth. The space economy comprehends a multiplicity of sectors, industries and even individuals, and because of its broad application to an extensive range of diverse stakeholders, some of which cannot alone be defined by their relationship with the space community, it is not easy to clearly track down its boundaries. Each actor will have bring a different perspective that will inform their relations within the space community and their actions. In broad terms, the literature4 distinguishes between three different sectors: scientific, military, and commercial. The scientific sector aims to develop new academic and technological knowledge, providing other sectors the capabilities needed for their activities. Universities and research institutes are important scientific and technological actors. The military sector, on the other hand, provides the conditions required to secure national assets. Last but not least, the commercial sector aims to create richness and business growth out of the Space industry. The commercial sector is of fundamental importance for the sustainability of the Space sector as a whole, as, in contrast to the scientific and military sectors, is the only one specifically designed to be profitable. The final objective of this paper is to provide an overview for the development of a sustainable, innovation driven, space economy in South Australia, the commercial and the scientific sectors will be the crucial units of analysis of the paper, but
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