Japan reworking law that limits its space agency from awarding contracts to private companies
The Japanese government is now in the process of reworking the law that governs its space agency JAXA, in that this law has up to now forbidden it from using any of its budget to directly fund the work of any private companies.
According to sources, the government plans to add a provision to the JAXA Law — the basis for establishing JAXA — to set up a fund to provide long-term, large-scale financial support to the private and academic sectors, and to submit a draft revision at an extraordinary Diet session this autumn.
In the past, JAXA has put money into two private companies out of its own income earned from intellectual property and other sources, and the investment per company was limited to several tens of millions of yen. In March, the Liberal Democratic Party proposed that a fund of ¥1 trillion be established over 10 years.
It appears this limitation might explain why Japan trails so badly in the aerospace sector. JAXA has been forbidden to award contracts to private companies. It has been required by law to do all the work itself.
I suspect one of the two private companies it has sent money to was Mitsubishi, which in turn been a major contractor in building JAXA’s H-2A and new H-3 rockets. The system however has not resulted in rockets that are competitive and inexpensive, which is why Japan has garnered little market share.
If the revision in the law allows JAXA to award development contracts to private companies as they develop their own rockets and spacecraft, owned not by JAXA but by them, then we may see a change.
The Japanese government is now in the process of reworking the law that governs its space agency JAXA, in that this law has up to now forbidden it from using any of its budget to directly fund the work of any private companies.
According to sources, the government plans to add a provision to the JAXA Law — the basis for establishing JAXA — to set up a fund to provide long-term, large-scale financial support to the private and academic sectors, and to submit a draft revision at an extraordinary Diet session this autumn.
In the past, JAXA has put money into two private companies out of its own income earned from intellectual property and other sources, and the investment per company was limited to several tens of millions of yen. In March, the Liberal Democratic Party proposed that a fund of ¥1 trillion be established over 10 years.
It appears this limitation might explain why Japan trails so badly in the aerospace sector. JAXA has been forbidden to award contracts to private companies. It has been required by law to do all the work itself.
I suspect one of the two private companies it has sent money to was Mitsubishi, which in turn been a major contractor in building JAXA’s H-2A and new H-3 rockets. The system however has not resulted in rockets that are competitive and inexpensive, which is why Japan has garnered little market share.
If the revision in the law allows JAXA to award development contracts to private companies as they develop their own rockets and spacecraft, owned not by JAXA but by them, then we may see a change.