ESD.10 Space 1/94 Policies, Incentives, and Growth in the NewSpace Industry

Space flight is a technically challenging, expensive and risky endeavor. As such, for decades conventional thought has held that it can only be done by governments and large corporations. This notion has been reinforced by the domination of the two major space markets- government contracts and commercial satellites- by large government-dependent contractors such as Boeing and Lockheed Martin. In recent years the industry has witnessed the emergence of a leaner, more agile business model capable of surviving and innovating in a competitive private market. The numerous small start-up companies that subscribe to this model have been labeled “NewSpace”. Many are targeting the budding space tourism market, but several are also working to capture a major share of the existing launch services market through radical technological, process, and business-model innovations. Additional market segments related to lunar exploration, commercial space stations, and suborbital point-to-point flights are also being explored to varying degrees. A number of stakeholders- including federal and regional governments, the National Aeronautics and Space Administration (NASA), private individuals, and many others – have reason to support these NewSpace firms. Consequently, a variety of policies have been used a