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Space solutions: Practical applications for governments and markets
Space Policy 27 (2011) 113e115
Contents lists available at ScienceDirect
Space Policy journal homepage: www.elsevier.com/locate/spacepol
Report
Space solutions: Practical applications for governments and markets I. Jarritt a, W. Peeters b, *, K.-U. Schrogl c a
ManSat, Isle of Man, UK IISC, Isle of Man University Center, Old Castletown Road, Douglas, IM2 1QB, Isle of Man, UK c ESPI, Vienna, Austria b
a r t i c l e i n f o
a b s t r a c t
Article history: Available online 23 May 2011
The second Forum of the International Institute of Space Commerce (IISC) was held in Douglas, Isle of Man on 20 November 2010. This report summarizes the main findings. Ó 2011 Elsevier Ltd. All rights reserved.
The IISC mission is to provide independent think-tank-based information, mainly on commercially oriented space activities. It can, however, not ignore the fact that space still operates in an environment where public and private funding interact closely. In order to stimulate this dialogue, a number of joint workshops are taking place at regular intervals, on specific topics. The most recent looked at the practical benefits from space and was opened by Mr Alex Downie, member of the Isle of Man Government Legislative Council with Responsibility for Space. To illustrate the Island’s growing stature in the commercial space arena, Mr Downie cited the recent publicity surrounding the publication in September’s issue of Ascend Magazine of research which ranked the Isle of Man behind only the USA, Russia, China and India in the race to return to the Moon; this on the strength of the close involvement the island has with the Google Lunar X-Prize and the fact that a number of competitors have domiciled their companies in the Isle of Man. He also quoted from the UK’s prestigious Economic Policy Centre which, in the recent publication of its findings on how the UK can re-energise its commercial space industry, suggested as prime recommendations that “the UK should examine and aim to copy the success of the Isle of Man space regulatory environment” and “should seek to learn and copy from the Isle of Man’s favourable operating environment for space commerce”. The main topics presented are discussed below.
1. Social benefits from space This presentation encompassed such issues as the cost of space activities and the spin-offs generated from that expenditure. These aspects were illustrated by various case studies and the session
* Corresponding author. E-mail address: [email protected] (W. Peeters). 0265-9646/$ e see front matter Ó 2011 Elsevier Ltd. All rights reserved. doi:10.1016/j.spacepol.2011.04.005
concluded with a consideration of where Europe will stand in the growing climate of globalisation. To put matters into perspective, the European annual expenditure of V10 per capita on space investment is modest when set against the V11,175 spent each year on healthcare, the V1135 on education and V425 on defence. It was also indicated that the health of a nation’s space industry can be illustrated by the number of scientific articles emanating from it. In this respect, while the USA, as might be expected, has maintained its lead in this field, China is making large strides. Similarly the USA’s space budget outpaces the rest of the world by some margin. However, Brazil, Russia, India and China are increasing their commitment while, perhaps disappointingly, that of Europe is slipping back in terms of percentage of the whole. Moving on to the direct spin-offs seen recently as a result of space research, many examples of benefits such as navigation support for the blind, Sudden Infant Death Syndrome (SIDS) prevention using the remote monitoring techniques developed for astronauts on the International Space Station (ISS), and the development of materials and manufacturing techniques for the production of prosthetic parts for athletes were described. In addition, more efficient fire-fighter suits are now being made thanks to space research; greater accuracy in the assessment of the spread of malignant tumours is now possible through tomography techniques; we now have better monitoring of anaesthetic gases, non-reflective coatings for PC screens have been developed, as have better emergency blankets and more efficient mammogram screening. Two case studies were used to illustrate the strides being taken. The first concerned oil spill detection using Earth observation satellites. It has been estimated that a one-hour earlier warning of the commencement of a major spill will reduce the clean-up cost by 30% (in relation to the present average clean-up cost of US$16 000 per tonne to $11 000 per tonne). When extrapolated to the average yearly costs of such activity, such a system will yield expected savings of $1.9 billion per annum.
114
I. Jarritt et al. / Space Policy 27 (2011) 113e115
The second study looked at an application of the research currently being undertaken on the ISS in the field of bone density loss in space. The annual cost of treating osteoporosis is running at around $200 billion. It has been estimated that the efficiencies space-based research has provided in treatment for this debilitating disease will amount to at least 1% of the current cost, or in other words, an annual saving of $2 billion. 2. Space commerce in the European space policy The work of the Vienna-based European Space Policy Institute (ESPI), which has as its mission to provide decision makers with an independent view and analysis of mid- to long-term issues relevant to the use of space was highlighted by its director, Kai-Uwe Schrogl. ESPI endeavours to facilitate the decision-making process, to increase awareness of space technologies and applications among user communities, opinion leaders and the public at large, and to support students and researchers in their space-related work. In order to set a context for these remarks on space commerce in the European Space Policy, a historical background to the situation that exists today was provided. When space activities commenced they were solely the preserve of national governments. Then in the late 1980s some narrow commercial space applications began to emerge. These were boosted by the paradigm change which followed the ending of the Cold War and the subsequent privatisations of national institutions. It was this, coupled with the cutback in national space budgets that paved the way for the present proliferation of commercial space activity. The debate then moved on to a consideration of the bases on which space activity can be justified. In this regard Dr Schrogl developed the concept of ‘utilitarian’ e a basic financial commercial return use e versus ‘trans-utilitarian’ which endeavours to justify space activity on the basis of the enhancement of knowledge and, indeed, the pure fascination of the subject. It was conjectured that politicians in the 1990s wanted to focus solely on the utilitarian aspect, the creation of new markets and jobs. They had no interest in the pure pursuit of knowledge and understanding. However, as a consequence, this approach did not lead to a better public perception of space. Hence the care that is taken today to justify space activity for both utilitarian and transutilitarian reasons and regard them as a continuum, with a large “middle ground” where space for security, or human space activities, can be located. The founding of the European Space Agency (ESA) in 1975 has led to an organised extension of space policy. This is based on two pillars which are, first, the strengthening of the manufacturing base and, second, the fostering of domestic markets. By way of illustration Dr Schrogl cited the establishment of the annual meetings of the European Space Council, which promotes space commerce and policy, and its endorsement at a meeting in Brussels a few days before the workshop of a resolution that called for the necessary actions to deliver a space strategy that supported the “flagship” Galileo and Global Monitoring for Environment and Security (GMES) programmes as priorities for Europe. In this regard the importance of publiceprivate-partnerships is recognised, as is the need for firm financial commitments from the EU. In comparison with the USA, where, among other things, space prizes have proved a draw, the availability of seed and early finance is undeveloped in the EU. This, coupled with what was described as the more risk-averse approach among European entrepreneurs, has contributed to the slower rate of development. Happily some prizes have now been set up in Europe and the establishment of the ENCADRE network, an informal European platform to support the creation of a market strategy in the field of space- and Galileoderived applications, is seen as a positive development.
3. The UK Space Agency The UK Space Agency (UKSA) representative (Mr Waters) provided a summary of its objectives and the work it has been doing during the transition process. The objectives are to lead civil space policy, to stimulate growth in the UK commercial space market and to represent the UK on the international space stage. As evidence of the successful implementation of these objectives, Mr Waters highlighted a number of the UK’s achievements, which include those of Inmarsat, described as the word’s most profitable satcoms company, the development by Paradigm of secure communications for the armed forces and the work of Surrey Satellite, the world’s leading manufacturer of small satellites. These and other UK activities gave rise to a turnover of £7.5 billion in 2008/09, which contributed £6.5 billion to the UK economy. The industry has created direct employment of 24 900 jobs, 57% of which are held by university graduates and UKSA estimates that the value added per employee is three times the UK average. In addition, and relevant to some of the comments in Dr Schrogl’s presentation, the UK space industry generates six times more R&D initiatives than does the UK economy as a whole. The industry turnover is growing at 9% per annum and has an estimated 7% share of the world market. With an emphasis on the future, in July 2009 the government commissioned a report to develop a 20-year vision to grow the UK’s share of the global space market. The report, entitled A UK Space Innovation and Growth Strategy, was published in February 2010 and made 16 recommendations, the majority of which have been taken on by the coalition government. In summary, the global space market is forecast to grow at 5% pa. The UK is aiming to increase its current market share to 10% by 2030 and, in doing so, to increase its revenues over that period from the current £7.5 billion to £40 billion. It is estimated that in achieving this objective a further 100 000 jobs will be created. The areas earmarked for growth are fixed/mobile broadband and backhaul; Earth observation and climate services; locationand timing-based applications; low-cost access to space; exploration and science (robotics); and new concepts such as power from space. It is expected that the majority of this growth will be generated from the UK’s export markets. To develop these areas the UK International Space Innovation Centre has been created while, alongside it, with responsibility for advising on governance initiatives, the Space Leadership Council (SLC) has been formed. The role of the SLC also includes the provision of advice to UKSA on its work plan and future opportunities; an advisory function on efforts to identify the areas of space activity which the UK should seek to develop; promotion of the UK’s space industry and scientific excellence in space research, technology and applications; and overseeing the implementation of agreed recommendations of the innovation and growth strategy.
4. The Isle of Man and space The specific Isle of Man approach was presented by a specialist local space lawyer (Steven Quayle), who began by giving a summary of the development of the Isle of Man’s space involvement. He discussed the catalyst, which was the government agreement with ManSat in 2000; the establishment in the island of a zero corporate tax rate for space industry participants in 2004; the appointment of a dedicated government department headed by a Director of Space Commerce in 2005; the establishment of an International Institute of Space Commerce in 2008; the creation in 2009 of the Space Data Association e a not-for-profit joint venture between SES, Inmarsat and Intelsat with membership shortly to be
I. Jarritt et al. / Space Policy 27 (2011) 113e115
extended to all satellite operators e and, finally, the holding in the Isle of Man of the Google Lunar X-Prize summit in late 2010. The key to the island’s success is its willingness to work with space-based industry participants to ensure their operations are properly but fairly regulated, that they have access to the decision makers within government and that they are able to generate and retain revenue from the ventures they bring to the Isle of Man. Mr. Waters outlined the relevant taxation issues and the relationship with the UK on certain matters such as import and export controls e in particular the fact that the Isle of Man shares UK treatment for the US ITAR regime. On a more practical note he also reminded participants that the Isle of Man is the leading jurisdiction for bringing small companies to the UK stock market, especially the Alternative Investment Market (AIM). The island prides itself on acting as an educator, sponsor, promoter and, importantly, a politically neutral forum for the benefit of companies registered there. This has led to the development of a significant cluster of space-related businesses on the Isle of Man with a consequent diversification of the economy away from the financial services for which it remains more widely known. Plans to enlarge the involvement in space are continuously refined, with the Isle of Man sponsoring a number of education initiatives geared to the space industry to ensure the development
115
of a workforce in line with its objectives. There is a recognition in many quarters that the space industry is now a model to be replicated in other sectors.
5. Conclusion Although we note increased commercial space activity, public funding in this area remains important. Indeed, many space activities have a strong social return, related among others to safety and security, and can therefore not be delegated to commercial enterprises. Using public money to support these activities requires the consent of the taxpayer and, therefore, requires a good level of information among the general public. The workshop highlighted the large number of potential elements that can be brought forward to convince the general public about the societal importance of space applications. Many initiatives, in particular in the UK, were described in detail during proceedings and demonstrate the great potential of such argumentation. The workshop also emphasised the added value of the IISC as a think-tank on the one hand and, on the other hand, the proactive role of the Isle of Man in this specific field of merging public and private space financing.
Contents lists available at ScienceDirect
Space Policy journal homepage: www.elsevier.com/locate/spacepol
Report
Space solutions: Practical applications for governments and markets I. Jarritt a, W. Peeters b, *, K.-U. Schrogl c a
ManSat, Isle of Man, UK IISC, Isle of Man University Center, Old Castletown Road, Douglas, IM2 1QB, Isle of Man, UK c ESPI, Vienna, Austria b
a r t i c l e i n f o
a b s t r a c t
Article history: Available online 23 May 2011
The second Forum of the International Institute of Space Commerce (IISC) was held in Douglas, Isle of Man on 20 November 2010. This report summarizes the main findings. Ó 2011 Elsevier Ltd. All rights reserved.
The IISC mission is to provide independent think-tank-based information, mainly on commercially oriented space activities. It can, however, not ignore the fact that space still operates in an environment where public and private funding interact closely. In order to stimulate this dialogue, a number of joint workshops are taking place at regular intervals, on specific topics. The most recent looked at the practical benefits from space and was opened by Mr Alex Downie, member of the Isle of Man Government Legislative Council with Responsibility for Space. To illustrate the Island’s growing stature in the commercial space arena, Mr Downie cited the recent publicity surrounding the publication in September’s issue of Ascend Magazine of research which ranked the Isle of Man behind only the USA, Russia, China and India in the race to return to the Moon; this on the strength of the close involvement the island has with the Google Lunar X-Prize and the fact that a number of competitors have domiciled their companies in the Isle of Man. He also quoted from the UK’s prestigious Economic Policy Centre which, in the recent publication of its findings on how the UK can re-energise its commercial space industry, suggested as prime recommendations that “the UK should examine and aim to copy the success of the Isle of Man space regulatory environment” and “should seek to learn and copy from the Isle of Man’s favourable operating environment for space commerce”. The main topics presented are discussed below.
1. Social benefits from space This presentation encompassed such issues as the cost of space activities and the spin-offs generated from that expenditure. These aspects were illustrated by various case studies and the session
* Corresponding author. E-mail address: [email protected] (W. Peeters). 0265-9646/$ e see front matter Ó 2011 Elsevier Ltd. All rights reserved. doi:10.1016/j.spacepol.2011.04.005
concluded with a consideration of where Europe will stand in the growing climate of globalisation. To put matters into perspective, the European annual expenditure of V10 per capita on space investment is modest when set against the V11,175 spent each year on healthcare, the V1135 on education and V425 on defence. It was also indicated that the health of a nation’s space industry can be illustrated by the number of scientific articles emanating from it. In this respect, while the USA, as might be expected, has maintained its lead in this field, China is making large strides. Similarly the USA’s space budget outpaces the rest of the world by some margin. However, Brazil, Russia, India and China are increasing their commitment while, perhaps disappointingly, that of Europe is slipping back in terms of percentage of the whole. Moving on to the direct spin-offs seen recently as a result of space research, many examples of benefits such as navigation support for the blind, Sudden Infant Death Syndrome (SIDS) prevention using the remote monitoring techniques developed for astronauts on the International Space Station (ISS), and the development of materials and manufacturing techniques for the production of prosthetic parts for athletes were described. In addition, more efficient fire-fighter suits are now being made thanks to space research; greater accuracy in the assessment of the spread of malignant tumours is now possible through tomography techniques; we now have better monitoring of anaesthetic gases, non-reflective coatings for PC screens have been developed, as have better emergency blankets and more efficient mammogram screening. Two case studies were used to illustrate the strides being taken. The first concerned oil spill detection using Earth observation satellites. It has been estimated that a one-hour earlier warning of the commencement of a major spill will reduce the clean-up cost by 30% (in relation to the present average clean-up cost of US$16 000 per tonne to $11 000 per tonne). When extrapolated to the average yearly costs of such activity, such a system will yield expected savings of $1.9 billion per annum.
114
I. Jarritt et al. / Space Policy 27 (2011) 113e115
The second study looked at an application of the research currently being undertaken on the ISS in the field of bone density loss in space. The annual cost of treating osteoporosis is running at around $200 billion. It has been estimated that the efficiencies space-based research has provided in treatment for this debilitating disease will amount to at least 1% of the current cost, or in other words, an annual saving of $2 billion. 2. Space commerce in the European space policy The work of the Vienna-based European Space Policy Institute (ESPI), which has as its mission to provide decision makers with an independent view and analysis of mid- to long-term issues relevant to the use of space was highlighted by its director, Kai-Uwe Schrogl. ESPI endeavours to facilitate the decision-making process, to increase awareness of space technologies and applications among user communities, opinion leaders and the public at large, and to support students and researchers in their space-related work. In order to set a context for these remarks on space commerce in the European Space Policy, a historical background to the situation that exists today was provided. When space activities commenced they were solely the preserve of national governments. Then in the late 1980s some narrow commercial space applications began to emerge. These were boosted by the paradigm change which followed the ending of the Cold War and the subsequent privatisations of national institutions. It was this, coupled with the cutback in national space budgets that paved the way for the present proliferation of commercial space activity. The debate then moved on to a consideration of the bases on which space activity can be justified. In this regard Dr Schrogl developed the concept of ‘utilitarian’ e a basic financial commercial return use e versus ‘trans-utilitarian’ which endeavours to justify space activity on the basis of the enhancement of knowledge and, indeed, the pure fascination of the subject. It was conjectured that politicians in the 1990s wanted to focus solely on the utilitarian aspect, the creation of new markets and jobs. They had no interest in the pure pursuit of knowledge and understanding. However, as a consequence, this approach did not lead to a better public perception of space. Hence the care that is taken today to justify space activity for both utilitarian and transutilitarian reasons and regard them as a continuum, with a large “middle ground” where space for security, or human space activities, can be located. The founding of the European Space Agency (ESA) in 1975 has led to an organised extension of space policy. This is based on two pillars which are, first, the strengthening of the manufacturing base and, second, the fostering of domestic markets. By way of illustration Dr Schrogl cited the establishment of the annual meetings of the European Space Council, which promotes space commerce and policy, and its endorsement at a meeting in Brussels a few days before the workshop of a resolution that called for the necessary actions to deliver a space strategy that supported the “flagship” Galileo and Global Monitoring for Environment and Security (GMES) programmes as priorities for Europe. In this regard the importance of publiceprivate-partnerships is recognised, as is the need for firm financial commitments from the EU. In comparison with the USA, where, among other things, space prizes have proved a draw, the availability of seed and early finance is undeveloped in the EU. This, coupled with what was described as the more risk-averse approach among European entrepreneurs, has contributed to the slower rate of development. Happily some prizes have now been set up in Europe and the establishment of the ENCADRE network, an informal European platform to support the creation of a market strategy in the field of space- and Galileoderived applications, is seen as a positive development.
3. The UK Space Agency The UK Space Agency (UKSA) representative (Mr Waters) provided a summary of its objectives and the work it has been doing during the transition process. The objectives are to lead civil space policy, to stimulate growth in the UK commercial space market and to represent the UK on the international space stage. As evidence of the successful implementation of these objectives, Mr Waters highlighted a number of the UK’s achievements, which include those of Inmarsat, described as the word’s most profitable satcoms company, the development by Paradigm of secure communications for the armed forces and the work of Surrey Satellite, the world’s leading manufacturer of small satellites. These and other UK activities gave rise to a turnover of £7.5 billion in 2008/09, which contributed £6.5 billion to the UK economy. The industry has created direct employment of 24 900 jobs, 57% of which are held by university graduates and UKSA estimates that the value added per employee is three times the UK average. In addition, and relevant to some of the comments in Dr Schrogl’s presentation, the UK space industry generates six times more R&D initiatives than does the UK economy as a whole. The industry turnover is growing at 9% per annum and has an estimated 7% share of the world market. With an emphasis on the future, in July 2009 the government commissioned a report to develop a 20-year vision to grow the UK’s share of the global space market. The report, entitled A UK Space Innovation and Growth Strategy, was published in February 2010 and made 16 recommendations, the majority of which have been taken on by the coalition government. In summary, the global space market is forecast to grow at 5% pa. The UK is aiming to increase its current market share to 10% by 2030 and, in doing so, to increase its revenues over that period from the current £7.5 billion to £40 billion. It is estimated that in achieving this objective a further 100 000 jobs will be created. The areas earmarked for growth are fixed/mobile broadband and backhaul; Earth observation and climate services; locationand timing-based applications; low-cost access to space; exploration and science (robotics); and new concepts such as power from space. It is expected that the majority of this growth will be generated from the UK’s export markets. To develop these areas the UK International Space Innovation Centre has been created while, alongside it, with responsibility for advising on governance initiatives, the Space Leadership Council (SLC) has been formed. The role of the SLC also includes the provision of advice to UKSA on its work plan and future opportunities; an advisory function on efforts to identify the areas of space activity which the UK should seek to develop; promotion of the UK’s space industry and scientific excellence in space research, technology and applications; and overseeing the implementation of agreed recommendations of the innovation and growth strategy.
4. The Isle of Man and space The specific Isle of Man approach was presented by a specialist local space lawyer (Steven Quayle), who began by giving a summary of the development of the Isle of Man’s space involvement. He discussed the catalyst, which was the government agreement with ManSat in 2000; the establishment in the island of a zero corporate tax rate for space industry participants in 2004; the appointment of a dedicated government department headed by a Director of Space Commerce in 2005; the establishment of an International Institute of Space Commerce in 2008; the creation in 2009 of the Space Data Association e a not-for-profit joint venture between SES, Inmarsat and Intelsat with membership shortly to be
I. Jarritt et al. / Space Policy 27 (2011) 113e115
extended to all satellite operators e and, finally, the holding in the Isle of Man of the Google Lunar X-Prize summit in late 2010. The key to the island’s success is its willingness to work with space-based industry participants to ensure their operations are properly but fairly regulated, that they have access to the decision makers within government and that they are able to generate and retain revenue from the ventures they bring to the Isle of Man. Mr. Waters outlined the relevant taxation issues and the relationship with the UK on certain matters such as import and export controls e in particular the fact that the Isle of Man shares UK treatment for the US ITAR regime. On a more practical note he also reminded participants that the Isle of Man is the leading jurisdiction for bringing small companies to the UK stock market, especially the Alternative Investment Market (AIM). The island prides itself on acting as an educator, sponsor, promoter and, importantly, a politically neutral forum for the benefit of companies registered there. This has led to the development of a significant cluster of space-related businesses on the Isle of Man with a consequent diversification of the economy away from the financial services for which it remains more widely known. Plans to enlarge the involvement in space are continuously refined, with the Isle of Man sponsoring a number of education initiatives geared to the space industry to ensure the development
115
of a workforce in line with its objectives. There is a recognition in many quarters that the space industry is now a model to be replicated in other sectors.
5. Conclusion Although we note increased commercial space activity, public funding in this area remains important. Indeed, many space activities have a strong social return, related among others to safety and security, and can therefore not be delegated to commercial enterprises. Using public money to support these activities requires the consent of the taxpayer and, therefore, requires a good level of information among the general public. The workshop highlighted the large number of potential elements that can be brought forward to convince the general public about the societal importance of space applications. Many initiatives, in particular in the UK, were described in detail during proceedings and demonstrate the great potential of such argumentation. The workshop also emphasised the added value of the IISC as a think-tank on the one hand and, on the other hand, the proactive role of the Isle of Man in this specific field of merging public and private space financing.