Synopsis
Here are the key points about the benefits of public investment in space activities:
- Space activities deliver wide-ranging economic, societal and scientific benefits. They underpin critical services and infrastructure relied on daily by citizens, firms and government.
- The space sector makes substantial contributions to the UK economy. It contributes over £7 billion directly to UK GDP and supports around 48,000 highly skilled jobs. It is also highly productive and R&D intensive.
- Space capabilities enable services across the economy and public sector, from satellite TV to weather forecasting. At least 18% of UK GDP relies on satellite services.
- Space plays a vital role in efforts to monitor and tackle climate change through earth observation data. It also promotes UK influence, sovereignty and national security.
- The sector inspires the public and provides insights into fundamental questions about our universe through space science. Around 2,000 people applied to be astronauts in the recent ESA selection.
- Public investment offers strong returns. On average each £1 spent on space generates £4-10 in wider socioeconomic benefits. Public investment also attracts private investment.
- Market failures like high barriers to entry and knowledge spillovers mean the private sector underinvests in space. Public investment is crucial to realise opportunities and benefits.
- Government coordination and oversight ensures sustainability and the provision of public goods like navigation signals. International cooperation also pools resources efficiently.
- The sector can aid ‘levelling up’ through the development of regional clusters, bringing investment and jobs. Public investment helps catalyse growth across the UK.
In summary, the space sector delivers substantial and far-reaching benefits to the UK economy and society. Public investment unlocks these opportunities, offers strong returns, and helps overcome market failures constraining private investment.
