Abstract: | This article aims to illustrate how the predominant role of the US military space capabilities within NATO adversely affects the European space industry's competitiveness and performance, as compared with the USA space industry. Thus, first the intra-NATO specialization is illustrated, followed by an analysis of the economics of the space industry. The connection is made through an economics model whose results verify the hypothesis, and predicts that the recent commitment by the WEU to military space can improve the position of the European space industry, especially if followed by close cooperation between the WEU and ESA. |