REGIONAL GROWTH Developing the Space Sector in the Oxford-Cambridge Arc MARCH 2021 Catapult Open With thanks to the UK Space Agency (UKSA) for sponsoring this report Developing the Space Sector in the Oxford-Cambridge Arc Full Report Prepared for the Satellite Applications Catapult and the UK Space Agency by Red Kite Management Consulting March 2021 This is the full report of an independent review of themes and capabilities in the space and related sectors in the Oxford-Cambridge Arc, setting out a vision and action plan to maximise the potential of space-related activities across the Arc. It shows how the Arc space sector can collaborate with other Arc strengths to solve societal challenges, lift a globally significant space cluster to an even higher orbit, and export its capability and value nationally and internationally – Rising to the Challenge. Catapult Open Contents Introduction ........................................................................................................................... 3 Part 1: Existing Recommendations and Activities ............................................................. 4 Introduction to Part 1 ................................................................................................................................................................................ 4 1. Relevance Ratings .................................................................................................................................................................................... 4 2. Space -sector strategies, recommendations and activities .............................................................................................. 5 3. N ational and Regional strategies, recommendations and activities ....................................................................... 14 4. Synergies between Space-sector, National and Regional strategies and recommendations ................ 39 Part 2: Regional Capabilities in Space and Adjacent Sectors ......................................... 41 Introduction to Part 2 ............................................................................................................................................................................. 41 1. Broad capabilities across the Arc ............................................................................................................................................... 42 2. Capabilities in the Arc Upstream Space Sector ................................................................................................................ 46 3. Capabilities in Adjacent Sectors .................................................................................................................................................. 58 4. Key Space and Space-related organisations ......................................................................................................................... 86 Part 3: Vision, Recommendations and Action Plan for the Arc Space Sector ............. 91 O verview – Rising to the Challenge .............................................................................................................................................. 91 A space-enabled Arc, a space-enabled nation, a space-enabled world ................................................................ 102 Vision for the Arc Space Sector .................................................................................................................................................... 109 Recommendations and Draft Action Plan .............................................................................................................................. 112 The Red Kite Team Red Kite Management Consulting Limited 19 Bostock Road, Abingdon OX14 1DP, UK www.redkiteconsulting.uk, [email protected], +44 (0)1865 507500 2 Catapult Open Introduction The O xford-Cambridge Arc is a globally significant area for innovation and has great potential for economic growth, but it also faces challenges. The Satellite Applications Catapult and UK Space Agency asked us to review the themes and capabilities in space and related sectors in the Arc, and to set out a vision and an action plan to maximise the potential of space-related activities in the Arc. The study was led by Red Kite Management Consulting, with economics and public policy input from Connected Economics, and space sector expertise from Commercial Space Technologies. We found that the challenges faced by the Arc are a concentrated version of UK national challenges: challenges of clean growth, environment, transport and health. The Arc has strong capabilities to address those challenges, and its space sector can link with these capabilities to tackle Arc and hence national challenges. This insight underpins our vision, and to enable it we propose a problem and market focused approach to innovation. The Arc’s space sector has achieved great things over the last decade, and it can continue this success and growth with investment in space technologies and clusters, improved collaboration across the Arc, and foundational capabilities (e.g. skills and workspaces). W ith the approach we describe, the Arc’s space sector can solve some of the biggest challenges we face locally in the Arc, nationally, and across the world. These breakthroughs will deliver benefits, develop capabilities and build businesses across the UK, to both support national growth and cement the Arc as a global centre of research and problem solving in the emerging global space economy. 3 Catapult Open Part 1: Existing Recommendations and Activities Introduction to Part 1 In this Part 1, we review existing Recommendations in two main sections, first the ‘ve r t ical’ Space sector which strongly features recommendations of the collaborative ‘Space Growth Partnership’ that spans business, academia and the public sector. W e also cover N ational Space Policy and recommendations from the space trade association. In the second main part, we cover national and regional strategies including the N ational Industrial Strategy, relevant Science and Innovation Audits, the Ar c’s ‘founding documents’ leading to the Arc LEPs’ Local Industrial Strategies and delivery plans. We also review current activities in the Arc that support the space sector and other technology sectors. There are many recommendations and strategies across these documents, which comprise over 1600 pages in total. We have edited many for brevity, duplication and relevance, but have left many in that are not directly in the Arc/Space cross-over, partly to give a full flavour of these strategies, but mostly because there are opportunities for the space industry in the crossovers. For example, using satellite solutions in Health ‘Living Labs’, ensuring that skills programmes both benefit from the inspiration of space and produce people with skills useful for space, and using satellite applications for infrastructure planning or environmental monitoring. After each main section, we examine the main themes across the recommendations and strategies in that section. Finally, we examine the synergies between the between Space-sector, National and Regional strategies and recommendations. 1. Relevance Ratings We rate each of the recommendations on its relevance to the Arc Space Sector. Space-sector recommendations Rating Arc/National recommendations Rating Specific t o or high-impact for the Arc H Specific to space H Advantage for Arc, or Arc version possible M Advantage for Space, or Space version possible M Benefits space sector in general L Benefits the Arc or industry in general L As an example Medium relevance, we give this rating to Growth recommendations in the Space IGS because although these were recommended on a national basis, many of them had strong Arc impact due to the space sector presence in the Arc, and looking ahead many of them could be taken forward on an Arc or LEP area basis. e.g. an Arc-wide initiative to develop geospatial markets linked to natural capital, o r e xist ing LEP-led business support schemes with an enhanced focus on space-related and other priority sectors. 4 Catapult Open 2. Space-sector strategies, recommendations and activities The recent development of the UK space industry can be traced back to the Space Innovation and Growth Strategy of 2010. A joint initiative between government, industry and academia the Space IGS set out the importance of the space sector for the UK, and a 20-year vision and growth strategy for the UK to become a world lead in space. It covered five key areas: Markets, Capabilities, Public Policy, Skills and Awareness, and Finance. The Space IGS led to renewed interest and investment in the UK space sector, and it was no coincidence that the UK Space Agency was formed in the same year and the Satellite Applications Catapult in 2012. We won’t note its recommendations here as they are superseded by the Space Growth Action Plan. The Space IGS 2014-2030: Space Growth Action Plan (SGAP) followed on from t he Space IGS in November 2013 and set the target for the UK space industry to achieve 10% market share by 2030. It was again produced by a cross-sectoral team and had 5 main recommendations with 40 actions. Progress on these actions was reported to the Space Leadership Council, which comprises senior representatives from IGS stakeholders and the government minister. The detailed actions are not listed because they are superseded by the 2015 Update Report below. Space IGS Space Growth Action Plan –