Clue: Development happens here when ship enters dead space (4,4)
Answer: DARK ROOM
Explanation: Definition: Development happens here
 ARK(a ship or boat, such as Noah's Ark) **contained in**(enters) [ D(abbrev. for "dead") + ROOM(space/an unoccupied area).
Defn: …, ie. development of photographic film … and perhaps more: