The Role of the State and the National Innovation System in China’s Space Economy

Abstract China’s ascent in the new space economy (NSE) is marked by significant R&D investments, strong innovation, and a growing commercial sector, yet remains primarily state-driven, prompting questions about the dynamics of innovation and commercialization. Using the National Innovation System (NIS) framework, this paper examines the roles of government, state-owned enterprises, private firms, research institutions, and universities in advancing China’s space sector. Through the NIS lens, it unravels the unique challenges and opportunities of a state-led approach, addressing tensions and synergies between China’s space ambitions and broader NSE goals. The findings underscore the importance of studying China’s space model, offering lessons and implications for the future of space innovation and commercialization. This analysis ultimately enriches understanding of China’s influence on the global space economy and its role in shaping the trajectory of space exploration and utilization worldwide.