Synopsis
Here is a summary of the key points from the research paper:
- Space activities have contributed substantially to economic growth historically, with large positive spillover effects on GDP growth during the 1960s-1980s space race era. However, these growth impacts have diminished in recent decades as public investment has declined.
- Empirical analysis shows space activities in the 1960s-70s had much larger positive impacts on long-run GDP growth compared to space activities since the 1980s, when public space investment started declining in the US.
- The global space economy has been growing rapidly in recent years, led by private sector investment and new commercial applications like satellite broadband. More countries are developing space programs and capabilities.
- Key trends driving space economy growth include falling launch costs, in-space manufacturing potential, and opportunities for developing countries. However, measuring the space economy remains challenging due to data limitations.
- Realizing the full potential of space for inclusive growth requires international cooperation on issues like space sustainability, access, and resource management.
- Public-private partnerships can promote innovation by linking firms with public funding and research expertise. New models like decentralized autonomous organizations may improve governance.
- Optimal policies are needed to address issues like inefficient use of orbital resources, environmental damages, and imperfect competition in satellite services.
- Major new public investments in space could help counter secular stagnation trends in advanced economies. Space mining could enable continued metal use on Earth while reducing environmental costs.
- More research is needed on military motives, inequality, climate impacts, data collection, and global coordination related to expanding space activities.