Oct 27, 2016

Space and innovation: the next frontier

(Claire Jolly, Head of the OECD Space Forum is the co-author of today’s post) Space-based technologies are now as much a part of everyday life as electricity or running water. Satnavs are among the most obvious examples, but a range of other activities from paying with a smart card to playing Pokémon Go use satellite networks to transmit data or get a positioning signal. Even a, literally, down-to-earth business like farming is adopting space technology, as John Boelts, Vice President of the Yuma County Farm Bureau, in Arizona explains: “By using GPS on the tractors, the entire process from leveling the field to planting the seed to irrigating the crop has been much more efficient than in the past”.

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There are also many indirect, sometimes surprising, uses spinoffs from space programmes. The scanning technologies developed to find a safe landing spot on the Moon were adapted and contributed to give us ultrasound, MRI and CAT scanners, while the impedance cardiography-based devices designed for astronauts evolved into some of the cardiac monitors used today in hospitals and in wearable devices.

However, despite the numerous innovations generated by space programmes, the need for systems to be reliable and durable sector means that the space sector has been risk averse in some respects. The basic technology for sending payloads into space using liquid propellant rockets was first proposed by Russian schoolteacher Konstantin Tsiolkovsky in 1903, and Robert H. Goddard successfully launched a liquid-fuelled rocket in 1926.

These two pioneers were Russian and American and their two countries still dominate the world’s spending on space. According to Space and Innovation, a new OECD publication, US and Russian government budgets dedicated to space were over 0.2% of GDP, well ahead of the next biggest spenders France, at 0.1% and Japan at 0.06%. Governments are still the major funders of space programmes, particularly for public good-related activities such as environmental monitoring, weather forecasting, and major scientific missions. National agencies, research centres, universities and publically-funded laboratories still perform fundamental research, applied research, and experimental development in the space sector, but in some countries their mission is evolving to include co-ordinating and enabling broad knowledge diffusion as well as developing start-ups.

The increasing importance in scientific publications of satellite navigation systems and the many location-based and timing services derived from them can also be traced to recent patenting activities by businesses, demonstrating that much innovation occurs today in downstream space activities. National security and science objectives do however remain the main drivers of innovation, with human space exploration important too.

The indicators quoted by Space and Innovation suggest that the space sector may be on the verge of a fifth cycle of development, following previous cycles that started with the space race and Sputnik in 1958 and go through to the present cycle, number 4, starting in 2003 and lasting until around 2018. Cycle 4 sees ubiquitous use of space applications in various fields thanks to digitalisation and a new generation of space systems (small satellites) prompted by integration of breakthroughs in micro-electronics, computers and material sciences; and globalisation of space activities (large and very small national space programmes coexist, development of global value chains).

The next cycle, projected to last about 15 years, will be characterised by growing uses of satellite infrastructure outputs (signals, data) to meet societal challenges such as helping bridge the digital divide by supplying Internet access to remote areas without the need to build expensive infrastructures, or contributing to mitigate climate change with global satellite monitoring. In parallel, innovative mass-market products could be on the horizon, plus a more extensive mapping of our solar system and beyond thanks to new telescopes and robotic missions. Cycle 5 is also expected to see new generations of smart satellites and orbital space stations, while a number of commercial space activities could be coming of age, including new human-rated space launchers and in-orbit servicing.

If the promises of Cycle 5 are to be fulfilled, policymakers will have to play a role. They can do this in three broad areas. First, look at the specifics of the space sector and see if national policy instruments that support space innovation are effective, paying particular attention to knowledge diffusion networks. Second participate in and encourage downstream activities, for example through policies that enable start-ups and innovative firms to find or retain niches where they can make the most of their capabilities. Third, space agencies should systematically examine and track the spin-offs and technology transfers to other sectors that are derived from space investments.

The closing session of a symposium on “Space and innovation” being organised today by the OECD Space Forum will discuss whether space is becoming a daily commodity. It is, but as Stephen Hawking says, it is far more than that: “Raise your sights. Be courageous and kind. Remember to look up at the stars and not at your feet.”

The Space Economy at a Glance