A Cost-Benefit Framework to Assess the Socio-Economic Impacts of Space Investments

Abstract The space sector is undergoing a profound transformation known as the new space economy. This shift is marked by innovative, more efficient space technologies and applications, alongside a growing involvement of private entities in supporting public investments or assuming autonomous roles. In this dynamic context, assessing the costs and benefits of space investments is paramount, particularly as the demand rises for assessing the financial and socio-economic impact of alternative projects and programs. In this chapter, we present an evaluation framework to capture the value of investment in the context of the new space economy. Drawing on recent studies in cost-benefit analysis for research infrastructures and the socioeconomic impact of investments in the space industry, we elucidate the costs and benefits of space investment throughout the space value chain, considering different agents, each affected to varying degrees by these investments. Furthermore, we provide empirical evidence of recent applications tailored to Italian firms.