Space Economics

From Orbit to Chips: How Space and Semiconductor Innovation Shape R&D Policy and Strategy

Giorgia Fedozzi, Infineon Technologies Austria

Brazilian space exports and imports

Andrea Cabello, University of Brasília (Brazil)

The presenter and her coauthors analyze the role of space products in the Brazilian trade balance from the late 1990s up to 2020. They use trade balance data from Brazil and compare the performance of the space sector with the performance of the country’s trade as a whole. Exploring the challenges of extracting the relevant data from national economic metrics to effectively measure the Brazilian space sector, the author calls for a global effort to standardize data collection on space-related economic activity.

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From Sputnik to Starship: Estimating the Learning Curve of Space Launch Technology

Alessio Terzi, University of Cambridge

Space launch costs have fallen dramatically over the past six decades, opening new economic and scientific frontiers. Yet precise, long-term estimates of these cost reductions remain sparse, and the underlying rate of technological learning is poorly understood. Using a novel dataset of historic rocket launches to date, the author tracks changes to the average cost of launching material into Low Earth Orbit and compares the technological learning curve to historical examples like steamship freight and modern solar photovoltaics.

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The Law and Economics of Tradeable Satellite Debris Permit Market Design

Jeffrey Wagner and Mitchell Rieder, Rochester Institute of Technology

Significant growth in orbital commerce is generating satellite congestion and debris that requires policy intervention. Previous research primarily considers forms of Pigouvian taxation; however, as with carbon taxes, significant political resistance to taxes has blocked their implementation. Inspired by the recent FuelEU Maritime Regulation that restricts EU port access to ships that participate in the EU carbon emissions trading system, the authors propose that the US leverage access to its large satellite services consumer market to establish a regional satellite debris tradeable permit market that could grow into a global market.

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Technology Spillovers from the Final Frontier: A Long-Run View of U.S. Space Innovation

Luisa Corrado
Research Fellow, University of Cambridge

Recent studies suggest that space activities generate significant economic benefits. This presentation attempts to quantify these effects by modeling both the business cycle and long-run effects driven by space sector activities. The authors developed a model in which technologies are shaped by both a dedicated R&D sector and spillovers from space-sector innovations. Using U.S. data from the 1960s to the present day, they analyze patent grants to distinguish between space and core sector technologies. By leveraging the network of patent citations, they further examine the evolving dependence between space and core technologies over time. In doing so, the authors highlight the positive impact of the aerospace sector on technological innovation and economic growth, particularly during the 1960s and 1970s.

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Who owns the Moon, the stars, and the orbits?

Katrin Nyman Metcalf
Chair of International Relations Committee, European Space Agency

Outer space and celestial bodies can be used, but not appropriated. This basic rule of space law, codified in the 1967 Outer Space Treaty but also seen as customary law, does not clarify how to determine when use may turn into appropriation. If someone uses an orbital position, no one else can use the same - the mineral that someone extracts is not there for anyone else to extract. This is obvious, but what could not be foreseen when the treaty was written was that it would be of actual practical relevance. It is only relatively recently that space has become less infinite...at least when we look at mankind's plans for it. The issue is relevant both for space resources and for mega-constellations, already today and probably even more in the future.

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Reevaluating Space-Based Solar Power as a Dispatchable Power Resource


Ely D. Sandler
Research Fellow, Harvard Kennedy School

Falling launch costs and rising electricity demand have renewed interest in space-based solar power (SBSP). However, recent cost estimates show SBSP is unlikely to compete with traditional baseload generation. Instead, SBSP could serve as a dispatchable complement to terrestrial solar—delivering power at night or under cloud cover to reduce reliance on batteries and other grid resources. While expensive compared to conventional sources, pathways exist to achieve costs below $0.20/kWh, making SBSP competitive with flexible sources like gas peaker plants in high-renewable grids. Sandler will discuss how policy can support SBSP as dispatchable rather than baseload power.

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How Geopolitical Competition and Commercialization Shape Public Support for Space Funding


Lars Hornuf and Daniel Vrankar


Space has been central to geopolitics since the Cold War, driving substantial public funding worldwide. This study examines how citizens' support for space budgets is affected by comparative rhetoric about adversaries' spending and the rise of private space companies. We find that information about adversaries' space funding reduces support by nine percentage points. Most citizens show no preference between agencies and private companies, except in the U.S., where mentioning private companies instead of NASA decreases approval by 27 percentage points. These findings suggest policymakers should avoid comparative rhetoric, as it may inadvertently reduce public support for space funding.

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