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The Potential for Public–Private Partnership in Commercializing Space
7 June 2019
17:00—18:15
KEY CONCLUSIONS
Cooperation between the state and the private business helps develop the space industry

These two realities cannot be contraposed: so-called new space represented by these daring, beautiful, interesting initiatives, and so-called traditional space, which is conservative and public. They are not opposites; in fact, one cannot exist without another. There is no private structure that could build a business, creating the industry and at the same time developing the infrastructure — Dmitry Rogozin, General Director of the Roscosmos State Corporation for Space Activities.

If we want to achieve our goals, we cannot rely exclusively on state companies and large corporations – we need efforts from everyone, we need all our intellectual potential. If we involve various private enterprises, we will be able to make a technological breakthrough in the space industry, especially in developing new production methods and technologies — Zhijian Wu, Chairman of the Management Board, China Space Foundation.

Commercial interest is being developed for the market of space services. In this case technologies of public-private partnerships and concessions can be used as one of financial stimuli and effective mechanisms of technology and market development. The main thing here is not attraction of extrabudgetary financing, although it is important; it is the fact that the state can successfully transfer the risks of complicated processes to private partners that can efficiently manage them — Igor Snegurov, General Director, VIS Construction Group (VIS CG).

Private companies are growing their share on the space services market

According to the American venture company Space Angels specializing in space start-ups, from 2009 to 2018, investments in the new space sector – new private space companies – were growing by around 30% per year and reached approximately USD 18 billion for this period, with 3 billion in 2018; so there is a significant increase. Just around a fourth of transactions on the space economy market are formed by budget funds — Mikhail Remizov, President, National Strategy Institute .

Now we see many new players on the launch market. In the early 2000s, we had three major players: Arianespace, ILS and Sea Launch. But then SpaceX emerged, Blue Origin entered the game; also, we have ULA Team that is developing new rockets, the Japanese with new H3 rockets — Kirk Pysher, President, International Launch Services (ILS).

ISSUES
Lack of funding

To build a private space body, free investment capital is needed. In the US it exists in abundance; in Russia we lack it. You know our bank rates: it is difficult to develop industries given such fiscal and bank policies — Dmitry Rogozin, General Director of the Roscosmos State Corporation for Space Activities.

If we are talking about what is traditionally called the public market segment, the problem of decreasing public space budgets is not unique for Russia. Each and every year NASA faces big problems with protecting its budget that is decreasing just as here in Russia. And that is where initiatives to involve private companies stem from — Alexey Belyakov, Vice-President, Executive Director of Advanced Manufacturing Technology Cluster, Skolkovo Foundation.

Space pollution

The number of satellites on the near-earth orbit, in the near-earth space will be growing. If we are talking about small groups, for example, about Microsat systems, there will be less possibilities to manage them. There is a risk that these two factors can lead to disastrous consequences, when we have so much space garbage that orbits will not be accessible for research. It is the best way to kill any business in this sphere — Jean-Pascal Le Franc, Director for International Relations and Quality, National Centre for Space Studies.

SOLUTIONS
Improving international and national regulation

We need stability to work and develop projects. I mean stable regulation – not only in Russia, but also in other partner countries — Lionel Champeaud, Vice President, Head for Eastern Europe, Russia, Central Asia and the Caucasus, Airbus Defence and Space GmbH.

It is important to work together and have precise regulatory documents. We need to make up our minds and make decisions, for example, about space garbage. It should a legally binding international document rather than just a directive. The existing documents are outdated, they cannot be applied to newly emerging companies. Moreover, these requirements are not obligatory — Jean-Pascal Le Franc, Director for International Relations and Quality, National Centre for Space Studies.

Use of new technologies, and digitalization

We understand that the new quality and dramatic decrease of the launch cost can only be the result of brand new approaches to carrier rocket design: digital modeling, digital experiments, additive technologies, new materials, composites etc. — Alexey Belyakov, Vice-President, Executive Director of Advanced Manufacturing Technology Cluster, Skolkovo Foundation.

It is really difficult to imagine digitalization of the global economy as well as of Russian economy without the space industry. Digitalization is an integral part of the future economy as a whole — Andrei Dubovskov, President, Chairman of the Management Board, Sistema President, Chairman of the Management Board, Sistema.

The material was prepared by the Russian news agency TASS