NASA, Astropreneurs and future markets: new models of the U.S. innovation policy for space industry
Authors: DANILIN I. V. 
Published: January 2019

Article analyzes the changes in the space economy, as well as the U.S. federal policy for preserving American domination in this area. The evolution of the space economy in the United States is briefly considered, including formation of venture businesses since late  1990s (due to the computer and Internet revolution and development of space technologies). Of particular importance is  a so-called Astropreneurship – growth of startups, developing space  launch systems and spacecrafts. Amid technological factors, the  main driver for the rise of Astropreneurship was a suboptimal  technological and market strategy of Boeing and Lockheed Martin  duopoly. It created conditions for disruptive innovation development  in the industry and transition to a new, more open model of  innovation processes there. Although in the 1980–1990’s federal  government enacted a business-friendly regulations for the commercial space sector and set measures to support it through  public procurement, a new situation in the markets and in sectoral innovation system has become a challenge for national  policy, enforced by budget constraints and other factors. Catastrophe of the Columbia space shuttle in 2003, which raised the  issue of maintaining independent U.S. access to the International Space Station and, in the future, to other orbital  operations after shuttles’ phase-out, triggered changes in federal  policies for the industry. As a result, since 2006 NASA (with some  DoD support) initiated several programs to develop new space  launch and delivery systems. These programs were based on the  public-private partnerships with active involvement of small and  medium innovative enterprises, primarily startups. The results  turned out to be more significant than originally intended: formation of a new model of federal industrial and technological  policy in the space sector, almost similar to the DARPA principles. The new policy assumes the role of NASA and, more  broadly, the federal government as an equal (rather than a  dominant) participant in space industry innovative processes and as  a more active organizer of the industry`s innovation system (considering changes in its nature). Despite all activities are  mission-oriented, more attention is paid to the development of  complex partnerships, ecosystems, etc. – with an emphasis both on  satisfaction of government needs and on ensuring market leadership  of the U.S. companies. However, this new model faces  sever al problems: ambiguity of federal expenditures on space- related research and development; need to restructure NASA science and technology organization; efficiency of federal efforts in support  of new partners and processes – taking into account specifics of  available policy instruments. The future of federal efforts will be  determined by the solution of these problems and by the need to  extend new model and practices to the key (in terms of market size  and technology advances) segments of space economy – satellite  manufacturing and the use of space data.