Space insurance : Comments from an observer

The space insurance industry has suffered serious financual setbacks in recent years. These setbacks, amounting to a net cash outflow of hundreds of millions of dollars, have resulted in substantial increases in insurance rates and the withdrawal of a number of firms from the launch insurance market. After two decades of commerial space activity a number of questions may be raised: What has been learned from the experience to date? What are the causes of the poor performance of the space insurance industry? What can be done to improve performance? What are the likely prospects of the insurance industry and the likely impacts on the communications satellite industry? In order to answer these questions several examples are considered and analytic approaches discussed. The implications of mission modes, failure/recovery paths and multiple correlated payloads are considered, and analytic approaches based upon computer simulation techniques are described which are required to understand the complex insurance environment and the setting of policies and rate structures.     

Space policy for late comer countries: A case study of South Korea

Korea’s space development program was created almost 40 years behind those of the advanced countries but it has nevertheless made remarkable progress. Korean space development has been focused on technology catch-up, where commercialization and growth of industrial competitiveness are important rationales. However, the program has several problems, including: lack of a space equipment manufacturing industry, total system companies in the space manufacturing industry and communication between industry and researchers, and much concentration of projects and initiatives in the Korean Aerospace Research Institute (KARI). This study analyzes the problem by comparing space agencies and programs in Korea and other countries, particularly Japan and the USA. It is shown that the role of a national laboratory is critical in space industry development and argued that KARI should make greater efforts to promote the Korean space industry by encouraging technology transfer, sharing equipment and communication between companies. For successful space development, the main organization – usually the national research institute – should change its role from a research-only laboratory to manager and supporter of space development and industry. Such a move would invigorate Korea’s space industry and allow it to catch up with countries with a similar environment.     

Norway's future in space

Norway has recently published its national long-term plan for space activities (1993–1996) and the main points of this are reproduced here. While telecommunications, positioning and navigation and Earth observation are understandably given a high priority, there is also an emphasis on space transportation and space science, and a belief that Norwegian industry and research institutes are capable of gaining contracts beyond the agreed scope of the country's participation in ESA.     

Space technology transfer: Spin-off cases from Japan

Government organizations have to justify high expenditure during periods of financial crisis such as the one we are experiencing today. Space agencies have attempted to increase the returns on their investments in space missions by encouraging the commercial use of advanced technologies. This paper describes two technology transfer (TT) cases promoted by JAXA, in order to identify the organizational models and determinants of TT. The development of a TT process from space to Earth not only benefits the aerospace industry but also the network of national companies. The aim of the paper is to investigate who the actors are and the nature of their role, as well as the determinants of the TT process in the Japanese space sector. The case studies confirm the typical path of transfer as ‘Earth–space–Earth’.     

Exploration for the masses? Or joyrides for the ultra-rich? Prospects for space tourism

A space tourism industry appears to be about to take off. Businesses have announced plans to launch people into suborbital space for $200,000/person, with flights beginning as early as 2008. A brief review of the history of the idea of space tourism over the past four decades—and an awareness that many ventures have quietly shelved their grandiose plans—might aid thinking about the prospects for development of a safe and thriving space tourism industry. Today's space tourism model emphases the concept of luxury, and the lifestyle of hyper-consumption. It may be worth considering whether and how this conception of space tourism might affect the future of space exploration.     

Space: a challenge for Europe

This Viewpoint presents an industrial perspective of the policies needed to support and advance the capabilities and competitiveness of the European space industry. It is argued that Europe needs a coordinated longterm space policy to help create the climate in which industry can invest in and exploit space. Europe must also accelerate the development of advanced technology products and services, improve its competitiveness in applications and commercial markets including launchers, and secure fair and reliable international partnerships in in-orbit infrastructure and manned space activities. To this end European governments are urged to acknowledge the increasing political, economic and military importance of space and their continuing governance of space activities, and to establish mechanisms that promote industrial competitiveness; the development of the commercial sector; autonomy in key technologies; and international partnerships which are fair and affordable.     

Observations on the evolution of satellite launch volume and cyclicality in the space industry

Satellites have been rightly described as the lifeblood of the entire space industry and the number of satellites ordered or launched per year is an important defining metric of the industry's level of activity, such that trends and variability in this volume have significant strategic impact on the space industry. Over the past 40+ years, hundreds of satellites have been launched every year. Thus an important dataset is available for time series analysis and identification of trends and cycles in the various markets of the space industry. This article reports findings of a study for which we collected data on over 6000 satellites launched since 1960 on a yearly basis. We grouped the satellites into three broad categories – defense and intelligence, science, and commercial satellites – and identified and discussed the main trends and cyclical patterns for each of these. Institutional customers (defense and intelligence, and science) accounted for over two-thirds of all satellites launched within our time period (1960–2008), and, in the 1960s and 1970s, they accounted for 90% and 73.5%, respectively. A fair conclusion from this data is that the space industry was enabled by, and grew because of the institutional customers, not commercial market forces. However, when the launch data is examined more closely, a growing influence of the commercial sector is noticeable. Over the past two decades communication satellites accounted for roughly half of all launches, thus reflecting an important shift in the space industry in which the commercial sector is playing an equal role (on a launch volume basis) to that of the institutional market. Cyclical patterns in the satellite launch volume over the past decade are separately discussed before we sum up with a conclusion.     

资产评估执业环境现状分析及对策研究

资产评估是商品经济的产物,它总是在一定的环境中存在和发展,其发展速度和功能的实现程度受到环境的制约。我国资产评估是伴随着市场经济体制的日臻完善而逐渐产生并得到了迅速的发展。在全球化和知识经济时代,深刻变化的国际国内环境为资产评估行业提供了更为广阔的发展空间,同时也出现了大量的新情况和新问题,资产评估行业正面临环境所赋予的机遇与挑战。基于此,我们有必要在诸多学者研究成果的基础上,多角度分析我国资产评估行业所面临的内部和外部环境,并深入探讨改善我国资产评估环境的对策和措施,以保证资产评估行业健康发展。本论文主要分析资产评估执业环境的现状及存在的问题,并且从波特五力模型的角度来分析对策。     

Is there really any duplication in Europe''s space activities?

At a time of declining space budgets in Europe, and of a consequent need to make savings, accusations of wasteful duplication—resulting from the large number of national agencies pursuing programmes alongside ESA—are rife, as are calls for the space industry further to consolidate. This viewpoint argues that duplication is not really the issue, however, since most national agencies have become specialists in particular fields. Nor would industry restructuring be straightforward, given the fact that Europe cannot be satisfied with a single source of supply. What is needed is better coordination between space agencies upstream to avoid later duplication, as is now being pursued through ESA's ‘harmonisation process’. The move to create a Network of Centres could also promote worthwhile collective action. These initiatives are more realistic than the technocratic aim of completely restructuring European space.     

A new role for a new millennium? The changing nature of space activities

Space activity has lost the momentum it had in the past. During the Cold War the use of space was constrained by specific political and military conditions which gave it a strong but narrow identity. The aerospace industry, in particular, was in a position to develop protected and exclusive ties with the public sector. These times have passed and diminishing competition between the two main space powers has had consequences for the planning of major space undertakings. Space activity is in the process of being thoroughly transformed as it is forced to become more connected to general economic and industrial activity, especially in the field of information. An opportunity for a sector that has been struggling could also prove to be risky as space activity is losing some of its previously strong identity. Space currently seems to lack the high level of public support from governments it once enjoyed, while not finding an alternative in the industry itself to this declining investment. This situation should lead both the space community and the political authorities to consider new general space applications that will be more in line with the preoccupations of our modern societies and thus contribute to solving the principal global issues of tomorrow.     

Turning space tourism into commercial reality

On 7 June 2006 the Royal Aeronautical Society (RAeS) hosted a one-day conference entitled ‘Space Tourism: From Lofty Dreams to Commercial Reality’ in London. The conference brought together parties interested in the future of passenger flights into space, presenting perspectives on the evolution of the private spaceflight industry over the next decade, with the goal of stimulating enthusiasm for the creation of a profitable industry and affordable space travel for a mass, global market. The conference chairman reports on its outcomes.     

Competitiveness of the European space industry. Lessons from Europe's role in NATO

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.     

Third-party liability insurance and space launches

This article discusses a number of issues related to the US commercial expendable launch vehicle (ELV) industry and government's role in ensuring its competitiveness, particularly third-party liability insurance for space launches. The author finds that the space insurance industry has become a major constraint on the commercial development of space. The future implications are considered of US government involvement with the launch services industry, initially through providing third-party insurance itself. The author concludes that, for a stable commercial ELV industry, it will be necessary for the USA either to establish fair-trade agreements with other space-capable nations, or to maintain a significant government involvement to support the industry.     

A brief analysis of US space employment

Space policy is an area of industrial economic policy. The space economy would vanish without the active role of the state. Although space may appear exotic to economist, it is not impossible to provide a quick economic insight into one of the most important aspects of all economic activities - the people employed. The space industry can attract employees from other industries in two ways. First, according to individual preferences and motivations. Second, on the basis of higher wages. Statistical evidence suggests the latter is more common. Moreover wages do not reflect productivity. NASA employees earn much more than employees in law or medicine. This does not match the social importance of these activities. Space employs many more people that stated by the OECD. Taking all activities together space employs almost half a million people in the USA. $1 billion given to NASA creates up to 24 000 vacancies in the space industry and also provides room for another 40 000 in the space economy in the long run. Current changes to the US national space programme suggest a decrease of $1.6 billion per year, implying a loss of up to 39 000 jobs.     

Rebuilding US launch capabilities

Attempts to rebuild US commercial launch capabilities through stimulating private industry will be constrained by the fact that free-market competition does not really exist in the space industry. As the worldwide supply of launch vehicles grows, the policy now offered by the US government is only likely to fragment the US space launch vehicle industry. The author argues in favour of a proposal to establish a quasi-governmental corporation for space launches which would both safeguard the interests of government and commercial users and ensure that business acumen was applied.     

Exploration of CASC's Commercial Space

China's commercial space activities started from the launch of Asiasat-1 satellite by a LM-3 launch vehicle on April 7, 1990. As the leading force in China's space industry, CASC has been committed to commercial space for nearly 30 years. The article describes CASC's advantages and activities in commercial space sector, as well as outlook for CASC commercial space development. The author concludes CASC is willing to coordinate and cooperate with state-owned and private companies and will create a new pattern for commercial space, opening up a new industry for space development and achieving more splendid achievement.     

Space Development with Chinese Characteristics and its Practical Significance

China's space industry has been developed quickly and consistently setting new records for mankind in space exploration in the past 60 years. Four principles are upheld during its development. Systems engineering and overall thinking have played an important role in the development of China's space industry. What's more, the concept of systems engineering which originated from the space industry, being rooted in society, is a successful example of "Chinese theory" answering "Chinese question" and "Chinese wisdom" guiding "Chinese development", which is a trump card for the country and provides a unique business governance mode with Chinese characteristics.     

空间环境模拟设备低温系统研制中的软件应用及参数化驱动设计

为提升空间环境模拟设备的设计效率和用户体验度,针对北京卫星环境工程研究所成功研制或正在研制的地面产品,运用CAD/CAE软件对其低温系统进行三维建模和仿真分析;依托Inventor软件进行二次开发,设计了一款专门的空间环境模拟设备数字化集成设计平台.通过对专业模型参数化驱动技术的研究,给出热沉系统参数化的各主要节点和驱...     

The impact of US export controls on the Canadian space industry

The International Traffic in Arms Regulations (ITAR) govern the export of defense-related technologies and services from the USA. In 1999 Canada's exemption to ITAR was suspended because of American objections over some Canadian companies retransferring US technology to third countries. This paper is a first attempt to quantify the impact of ITAR on the Canadian space industry. Thirty-two space-related companies were contacted and a total of nine responses were received, representative of around 60% of the Canadian space industry in terms of workforce and revenue. According to the results, the Canadian space industry has been relatively effective in meeting the challenges imposed by ITAR. However, these workarounds do not diminish its negative impacts, particularly with respect to cost and schedule. It is expected that ITAR will continue to affect the Canadian space industry, as no near-term relief from the current regulatory environment is on the horizon.     

Science and technology for national development: The case of Israel's space program

In the last 25 years Israel developed highly advanced space industry and capable indigenous infrastructure of space technology. The special interconnections between the academia, the industry and different government agencies had a valuable influence on this successful process. This paper identifies and analyzes the characteristics of this partnership. It addresses the issue of sustaining this partnership and maintain it as a major driving force of the Israeli space program in order to provide some conclusions for similar actors, seeking to enhance their space activities and capabilities.