ESA commits more than $100 million to encouraging private space companies
Capitalism in space: The governmental officials representing all of the partners in the European Space Agency this week decided to commit $122 million to a program designed to encourage private independent and competing space companies.
This budget represented a 17% increase.
The ScaleUp programme, which has two elements, supports a company along its entire life cycle. First, it assists in the development of the enterprise with business incubation, business acceleration, intellectual property and technology transfer services (ScaleUp Innovate), and then, it facilitates the scaling up of their products on new markets (ScaleUp Invest).
ScaleUp is business-focused and not technology or sector specific and applies within all ESA programmes. This programme targets start-up companies, applied research and innovation centres, and more mature companies such as SMEs, Mid-Caps and large system integrators.
While encouraging news, the language of the press release and the size of the budget indicates that these European governments are being dragged kicking and screaming into this new capitalist aerospace world. It is clear that ESA has been losing out by sticking with its government-run and government-owned Arianespace operation. At the same time, it is also clear that ESA officials and their governments are showing the same reluctance Congress showed in the last decade when NASA wanted to transition from its government-run and -owned system. At that time, Congress consistently resisted budgeting the commercial space line in NASA’s budget, thus delaying the launch of both Dragon and Starliner significantly.
In the end the effectiveness of competition, private property, and freedom however won out in the U.S. I expect it will do the same in Europe, though it might take another decade or so before Europe’s governments realize it.
Capitalism in space: The governmental officials representing all of the partners in the European Space Agency this week decided to commit $122 million to a program designed to encourage private independent and competing space companies.
This budget represented a 17% increase.
The ScaleUp programme, which has two elements, supports a company along its entire life cycle. First, it assists in the development of the enterprise with business incubation, business acceleration, intellectual property and technology transfer services (ScaleUp Innovate), and then, it facilitates the scaling up of their products on new markets (ScaleUp Invest).
ScaleUp is business-focused and not technology or sector specific and applies within all ESA programmes. This programme targets start-up companies, applied research and innovation centres, and more mature companies such as SMEs, Mid-Caps and large system integrators.
While encouraging news, the language of the press release and the size of the budget indicates that these European governments are being dragged kicking and screaming into this new capitalist aerospace world. It is clear that ESA has been losing out by sticking with its government-run and government-owned Arianespace operation. At the same time, it is also clear that ESA officials and their governments are showing the same reluctance Congress showed in the last decade when NASA wanted to transition from its government-run and -owned system. At that time, Congress consistently resisted budgeting the commercial space line in NASA’s budget, thus delaying the launch of both Dragon and Starliner significantly.
In the end the effectiveness of competition, private property, and freedom however won out in the U.S. I expect it will do the same in Europe, though it might take another decade or so before Europe’s governments realize it.