An inclusive innovation ecosystem is key to Australian commercial space ambitions
New frontiers of the Space sector are being established and explored in Australia beyond what many people may expect is the traditional focus of the Space sector. Space commercialisation is witnessing rapid growth in new critical areas, including business ventures, government programs, human capital, investment, and application of Space datasets for benefit here on Earth. Globally, the Space economy grew to US$469 billion in 2021, with the commercial Space sector having 6.4% revenue growth since 2020 and more than 1000 Spacecraft placed in orbit during the first six months of 2022. In Australia, the commercial value of the Space sector was estimated at around A$4 billion in 2019. On the global stage, this is a drop in the ocean, yet likely a number that would surprise many Australians today.
Australia’s place in the second Space race
The Australian Space Agency (ASA) has set an ambitious goal for our growing Space sector with a target of A$12 billion in revenue in the Space sector by 2030, with an expectation to attract A$1 billion in investment by 2025 and targeting another 20,000 jobs in our Space sector by 2030. Whilst in Australia, Space developments have typically been led by our defence sector, we now increasingly see industry sectors such as agriculture, marine, mining, and financial services seeking new opportunities to leverage Space capabilities to improve their everyday operations by making them more efficient and sustainable.
Earth Observation (EO) has been one of Australia’s key areas of core capabilities in the Space sector, with just over a quarter of EO’s direct economic contribution of over A$280 million coming from commercial organisations in 2020 and estimated benefits of over A$2.5 billion flowing to end users in the Australian community through its application. Commercialising Space and garnering engagement and investment in Australia’s sovereign Space capabilities is at the core of a sustainable and strong Space economy, and we suggest that activities that engage broadly and ensure collaboration, participation, and inclusivity are key to driving the commercial interest, innovation, and investment in our Space sector.
Building a Space innovation ecosystem - entrepreneurial activities to solve problems that matter
In recent years, South Australia has emerged as an important centre for the Space ecosystem in Asia-Pacific. Adelaide is home to the Australian Space Agency (part of the Department of Industry, Science, and Resources), a thriving Space ecosystem including more than 100 Space-related companies and organisations, and a mission control centre developed and operated by an Australian company.
The Australian Space Agency also opened the Australian Space Discovery Centre to promote community engagement. Adelaide’s growing Space ecosystem also brings together researchers from local, interstate, and international universities and industry practitioners and supports entrepreneurs developing new business models leveraging the outputs of Australia’s and the world’s, growing Space technologies.
The range of active Space sector players in South Australia regularly come together through events like the biannual Andy Thomas Space Foundation’s National Space Forum and quarterly Space Community Town Hall hosted by the South Australian Space Industry Centre and Stone & Chalk, Australia’s largest innovation community of startups, scaleups, and innovators, with a special commitment on supporting Space-tech entrepreneurs solving commercially scalable problems here on earth.
On Monday 20th March 2023, Stone & Chalk and Australian Space Agency welcomed the current NASA Administrator Senator Bill Nelson and Deputy Administrator Pamela Melroy, to address industry representatives, further demonstrating the central role that Adelaide has in convening and encouraging the Space innovation ecosystem in Australia.
Solving our problems that matter with Space
The emerging Space innovation ecosystem in South Australia has national appeal with the potential to contribute to several industries operating in other Australian states that are vital to the Australian economy. Consider Australian agriculture, which accounts for 55% of Australian land use, with about 72% of output earmarked for exports, and a diverse and persistently changing farm population, managing the land sustainably is critical for the sector and the general public.
Earth observation satellites help the agriculture industry by delivering field-specific datasets and providing guidance on water and fertilisers to improve crop yield efficiencies. Australia’s marine industry, which is essential for national security and the linked blue economy, represents one of Australia’s fastest-growing industries, worth more than $68 billion and employing close to 400,000 people, uses radio frequency and heat sensing capabilities from satellite technology to track ships with no active identification systems, helping to ensure the integrity and security of global supply chains. These “downstream” use cases represent the growing importance of Space for Australia’s existing industries and how it can help Australia’s businesses be more competitive in a global market.
Your next job might come from Space
It has long been held that entrepreneurs and emerging companies create jobs at a higher rate than traditional companies and institutions, and entrepreneurs bring creativity and important commercial translation of Space technologies and datasets that can solve existing challenges facing industries here and globally. We believe that now is the time for our Space sector to show the Australian public that it is already so much more than what might be expected; launching rockets and exploring other worlds (known as “upstream” by those in the Space sector).
Whilst recognising that nothing in Space can be done without the physical and technical Space infrastructure, we believe that working more closely with existing industries and helping more entrepreneurs and startups thrive through a supported and diverse innovation ecosystem will help Australia to better understand current and emerging Space capabilities and demonstrate how Space can help Australia tackle emerging critical issues related to climate disasters and international security.
Thought leaders
Dr Tim Mahlberg is the Director of Ecosystems in South Australia at Stone & Chalk, Australia’s largest innovation community. He works closely with key organisations in the emerging Space ecosystem in Australia. In addition, he is a qualified organisational psychologist, has previously worked at the National Australia Bank, and received sponsorship from Deloitte to complete his doctorate in corporate innovation and intrapreneurship at the University of Sydney (Australia).
Dr Jiye Kim is an Assistant Professor at Ritsumeikan Asia Pacific University (Japan) and a researcher affiliated with the University of Sydney (Australia). Her research contributes to the emerging discourses on international relations and international security with a particular focus on the Asia-Pacific. She regularly publishes in renowned peer-reviewed journals, including the Pacific Review and Pacific Affairs.
Dr Arpit Raswant is an Assistant Professor at the Deakin University (Australia) and a Visiting Researcher at the Lancaster University (United Kingdom). He is a former Korea Foundation Fellow at Korea University (South Korea). His research focuses on firm investment from social, economic, and security perspectives. He has published in renowned peer-reviewed journals, including the Journal of World Business and the Pacific Review.
