Whitepaper: Fostering the Global Commercial Space Industry

 

 

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Foreword

The Role of the Global Commercial Space Industry in International Affairs and Diplomacy

By Frank Justice, Vice President of Open Diplomacy Programs and Director of the Meridian Space Diplomacy Initiative 

Meridian is proud to release this whitepaper with Diana Jack, of Renaissance Strategic Advisors (RSA), on advancing global commercial space industry integration and growth. As an institution, we are guided by our Open Diplomacy framework and the recognition that government alone cannot advance the interest and needs of a nation. The U.S., as all nations, need the full weight of their athletes and artists, municipal and state leaders, and scientists and technologists, to maximize and advance the full potential of its international ambitions. Within the context of outer space, this means leveraging the expertise and relationships of astrologists, astrophysicists, engineers, chemists and of course, astronauts. In all contexts, it also means capitalizing on the insights of business leaders and corporations in general. Under the U.S. democratic system, federal and subnational governments neither financially support nor engage with other nations and their economies singlehandedly. Rather, our government relies on our private sector and our industries to serve key complementary roles. That’s why we at Meridian are believers in corporate diplomacy. Private sector actors wield critical capabilities and responsibility in shaping how the world works through their decisions in areas like supply chains and investments, and in their increasing weight in strengthening international relationships, building trust and the adoption of principles, standards and systems.

Nations are eager to establish and expand their space ecosystems, and they want to do that in partnership with the United States. The NASA partnership is nearly always at the top of the wish list, but it isn’t realistic for every nation to collaborate with the American civil space agency. This void can be filled through commercial space partnerships.

Take, for example, what took place over a span of two days earlier this month. French President Emmanuel Macron announced a partnership with U.S.-based Vast to send French astronauts to the International Space Station and participate in the development of the company’s commercial space station Haven 1. The UK Government and Vast announced a parallel agreement that could send the first person with a physical disability to live in orbit aboard Haven-1. And Axiom Space expanded its European footprint by establishing a Swiss subsidiary to serve as a hub for collaboration with the European Space Agency (ESA), national governments, and industry partners across the continent. At a time when the transatlantic alliance is strained among governments, global commercial space partnerships – whether public-private partnerships or business-to-business projects – offer continued engagement and result in relationship building.

Alongside transparency, these relationships are paramount to cultivating, and subsequently sustaining, trust, which is a requisite not just for diplomatic success, but also for maintaining safety and security. Whether with respect to extraterrestrial concerns such as space collisions and debris or the myriad other crisis situations here on Earth, it may all come down to whether or not the right person knows who to call and for that person to pick up on the other end. In this manner, international relationship redundancy provided through the global commercial space industry strengthens a nation’s resilience.

Although many countries want to deepen cooperation with the United States as they build out their space sectors, their primary objective is progress and they will pursue it with whichever spacefaring partners are prepared to engage. From a national security standpoint, that makes it imperative to create more avenues for collaboration with the U.S. When those avenues also strengthen the American economy through commercial partnerships, the result is a strategic win on both fronts.

Commercial space leaders who engage internationally do not need the red, white and blue stars and stripes flag on their shoulder to be viewed as American. This happens naturally and it makes commercial space companies an important contributor to advancing the use of space for soft power and public diplomacy as well. While one may argue there is no better American brand than NASA, non-U.S. astronautical engineers and space scientists are just as excited to meet with their SpaceX, Blue Origin and Lockheed Martin counterparts, as they have shared with me on multiple occasions. This is also evident at any international space conference where space leaders and enthusiasts alike flock to hear from representatives of these American companies.

We also know that the technical expertise on the most critical issues of the day increasingly lies within the private sector. This is the case with emerging technologies, such as AI, and increasingly with respect to the space sector as well.

United Nations Office of Outer Space Affairs (UNOOSA) Director Aarti Holla-Maini has embraced this reality by making private-sector participation a priority in multilateral space discussions. She has brought commercial space companies into her office-led tabletop exercises, organized briefings between satellite operators and member states, and encouraged national governments to engage more directly with their domestic space sectors.

That is precisely why Meridian’s partnership with RSA on this white paper makes sense: Diana’s analysis shows that a more connected global commercial space industry is not only an economic imperative, but also a strategic one. For Meridian, that reinforces a central premise of open diplomacy—that stronger international relationships, including those built through business and technology, are essential to advancing American leadership in a more networked world. An economically healthier and more interconnected American and international space sector will pay dividends to the U.S.’ strategic goals in space.

Whitepaper - Executive Summary

Fostering the Global Commercial Space Industry

Three quarters of a century after humans first began operating in outer space, the world is again turning to the domain as a source of geopolitical and technological advantage. This time, the global space industry that has developed in the intervening years offers a crucial tool to achieving governmental and economic goals. The commercial ecosystem has matured slowly due to the history of the industry, but three concurrent developments have recently accelerated growth:

1. The establishment of commercial space firms, such as SpaceX, and their provision of space capabilities as a service;
2. The US’ renewed focus on the Moon and its engagement of international partners to support the Artemis program;
3. The doctrinal shift to space as a warfighting domain and allied-by-design

While these factors are necessary to attract additional space investment, they are insufficient to produce a self-sustaining, scaled commercial ecosystem. Except for the satellite communications segment, which has flourished for decades, truly commercial space applications have yet to catch on. Government requirements remain at the center of most space investment cases, a trend reinforced by Golden Dome for America and similar programs. More work is required to foster a healthy, demand-responsive, and resilient space industry, across regulation, acquisition rules, industrial policy, investment theses, supply chain development, and corporate strategy.

Still, there are opportunities for governments seeking a smart space industrial policy, for investors keen to identify high-growth niches, and for companies hoping to strengthen business cases, such as:

1. Refocused space business cases that serve terrestrial commercial markets such as industrials, energy, logistics, communications, and
2. Investment in the global space value chain below the prime level, such as in new sources of existing technology, scaled manufacturing, and in new technologies.
3. Clearly identified programs and technologies where governments will accept and encourage foreign participation, to reify specialization among domestic industries.
4. Commensurate regulatory reform and transparency to support cross-border industry integration and investment certainty.

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About Our Partner

Diana Jack is an Associate Principal at Renaissance Strategic Advisors and a leader in the firm's space practice. She advises clients across the space industry, drawing on experience at Blue Origin and from aerospace industry and foreign policy roles. Renaissance Strategic Advisors is the leading Aerospace, Defense, and Government sector focused strategy consulting and M&A advisory firm. They address their clients’ needs to grow or realign, create value, and outperform across full lifecycles of strategy and M&A activities while navigating the complexities of our industry. Their 85+ professionals and 250+ senior advisors leverage decades of multi-disciplinary experience and sector expertise to bring clarity and confidence to our clients’ most consequential initiatives. Their client value proposition emphasizes sector expertise, rigorous analytical methodologies, a focus on outcomes, and formation of trusted relationships. They are a global firm with local presence in Washington, DC; London, UK; Paris, France; Tokyo, Japan; and Melbourne, Australia.

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