Public Procurement for the New Space Economy

Abstract This chapter discusses the role of public procurement in the new space economy (NSE). Public procurement is a vital component of the NSE, connecting public and private actors: Space agencies define requirements in terms of scientific performance and costs, and leave the responsibility for the technological project, manufacturing, and operation to private companies. Space agencies have the necessary high skill and technical internal competences, proper budgets to drive investments, and a clear innovation-oriented mission. Accordingly, their procurement is a powerful tool for enhancing innovation. This chapter presents some illustrative cases of new public procurement actions for innovation led by NASA and the European Space Agency. In the end the chapter summarizes empirical evidence on the aggregate impact of space procurement on economic activity and the drivers leading to benefits such as the direct effects on space agencies’ suppliers, technology transfer from the space sector, and the impact on the downstream space industry.