Managing foreign participation in government-funded applied space research and product development

Using the example of the USA, this article examines the economics of foreign participation in applied R&D space projects, with an emphasis on those with the goal of commercializing technology. Following an overview of the arguments within applied high-tech research in general — fear of subsidizing other countries economies and jeopardizing national prestige; benefits from nationally unavailable skills, reducing government costs and increasing domestic incentives for innovation — the authors consider specific characteristics of markets for space technology in the light of these arguments. They conclude with a discussion of policy options, such as the use of licenses or levy of royalties, to preserve the virtues of foreign competition while addressing concerns about ‘underwriting’ foreign competitors.     

Advantages and disadvantages of prizes in a portfolio of financial incentives for space activities

The National Aeronautics and Space Administration (NASA) has proposed to use financial prizes to encourage innovation in space technology. Public debate about the use of prizes questions their effectiveness, the role of government compared with the private sector in administering prizes—for example, the Ansari X-Prize for human suborbital flight was privately funded and administered—and other issues that are likely to influence the success of this approach.     

A Herculean task? Economics, politics, and realigning government in the case of US polar-orbiting weather satellites

In 1994 one of the most radical institutional restructurings in the USA's government provision of critical weather information took place after eight previously unsuccessful attempts. The President merged weather data collection by satellites operated by the Department of Defense and satellites operated by the Department of Commerce. Reorganization involving agencies with different objectives, economic constraints, and operating cultures is rare. This paper reviews the decision leading to “convergence,” discusses economic arguments, and addresses the problems confronting the new organization. The paper also discusses the implications of the new organization for incentives to engage in space R&D and the increasingly large role played by these satellites in collecting not only weather but also climate-related data.     

Policy for robust space-based earth science,technology and applications

Satellite remote sensing technology has contributed to the transformation of multiple earth science domains, putting space observations at the forefront of innovation in earth science. With new satellite missions being launched every year, new types of earth science data are being incorporated into science models and decision-making systems in a broad array of organizations. Policy guidance can influence the degree to which user needs influence mission design and when, and ensure that satellite missions serve both the scientific and user communities without becoming unfocused and overly expensive. By considering the needs of the user community early on in the mission-design process, agencies can ensure that satellites meet the needs of multiple constituencies. This paper describes the mission development process in NASA and ESA and compares and contrasts the successes and challenges faced by these agencies as they try to balance science and applications within their missions.     

The value of information: Measuring the contribution of space-derived earth science data to resource management

Governments around the world, as well as private industry, invest heavily in remote sensing spacecraft to obtain data about natural and environmental resources, climate change, and the relationship of earth science to human health and quality of life. Numerous studies have been undertaken to describe and measure the value of the data from these spacecraft in order to justify further investments. The studies use a wide variety of methods and generally find a large range of benefits, from quite small to very large, in part because of differences in methodologies. This article offers a general framework for measuring the value of information. The framework serves two purposes. One is provision of a comprehensive and common basis by which to conduct and evaluate studies of the value of earth science. The second is to better inform decision makers about the value of data. Decision makers comprise three communities: consumers and producers of information, public officials whose job is to invest in data acquisition and information development (including sensors and other hardware, algorithm design and software tools, and a trained labor force), and the public at large.     

Supplying Earth-observation data from space

This article uses the context of the Earth Observing System (EOS) to address two sets of economic and policy issues that have been fundamental to the rancorous debate over EOS, and which promise to figure prominently in future discussion of other US space activities. The first set of issues concerns whether the purported cost savings from larger-scale spacecraft and multiple-sensor coordination are substantial enough to justify large-scale approaches, and the differences in the risk associated with the large-scale projects compared to smaller-scale alternatives. The second set of issues concerns the institutional organization of projects, namely whether a project's technology should be an almost exclusively governmentally funded, owned and operated activity as is now the case, or whether there could be a larger role than now envisaged for the commercial space sector.     

An economic assessment of space solar power as a source of electricity for space-based activities

Those in the space community interested in deploying space solar power (SSP) need to know whether it would make economic sense. This article aims to develop a conceptual model of the economic value of SSP as a source of power to in-space activities, such as spacecraft and space stations. We offer several estimates of the value based on interviews and published data, discuss technological innovations that may compete with or be complementary to SSP, and consider alternative institutional arrangements for government and the private sector to provide SSP.     

Is the vision of the Earth Observation Summit realizable?

At the Earth Observation Summit in 2003 at the US Department of State, environmental ministers from more than 30 countries joined three US cabinet secretaries to plan the creation of a system for international sharing of data about the atmosphere, the oceans and the land. The meeting grew in part out of commitments by leaders at a G-8 summit meeting in France to build an integrated global earth environmental monitoring system. Opportunities and problems both figure prominently in implementation of the Summit's vision. The challenges include who pays for infrastructure, training, and administration; whether to control data access; how to include the private sector; and whether problems of collective action will plague the effort.     

Launch vouchers for space science research

Recent US space policy proposes the use of space transportation ‘vouchers’ for space science payloads. Vouchers could affect the pace of space science and developments in space transportation both in the USA and internationally. This article focuses on the economic costs and benefits of vouchers, and strategies for effective programme design.     

Can power from space compete?

This report summarizes the findings of a report entitled Can Power from Space Compete? produced for NASA by Resources for the Future (RFF). In considering how well satellite solar power (SSP) is likely to compete in the market for electricity from the present to 2020, it finds that neither perceived shortages of fossil fuel nor climate change factors are likely to be major issues in this time frame. Moreover, the high costs of SSP and possible concerns over public health and national security will continue to constrain its development. This does not mean, however, that R&D into the subject should cease; it may well have a future in the short term when applied to non-terrestrial systems. The full report is available at http://www.rff.org.