# Global Power Dynamics in the Contemporary Space System
## 5 System Dynamics--Global Power Dynamics
### Encouraging Space Economic Strength  
Since the beginning of the space industry, states have emerged as the predominant force, while the private sector has historically assumed a more secondary role. However, a consensus among scholars has emerged that a new era in the history of space activities commenced at the turn of the 21 st century, marked by the significant rise in the commercialization and privatization of the space industry [10; 11; 81]. According to some experts [26; 80], the transition to a new space business model is underway. In this model, public space priorities increasingly share the stage with private initiatives. This new form of bottom-up, net-centric, commercially led space innovation is promising cheaper and more timely technological developments to those nations that can effectively exploit them. Consequently, traditional definitions of space power are being reshaped. The United States, with its historically robust and dynamic private sector, has been a leader in facilitating private initiatives within the space industry. The commercialization of space has been a long-standing policy of the U.S. federal government, with corresponding legislation being instituted since the 1980s. However, following the conclusion of the Cold War, the United States government has demonstrated a renewed interest in enhancing the efficiency, innovation, and competitiveness of NASA, thereby facilitating the gradual entry of American companies into the space sector. This shift has led to the emergence of new commercial space companies, such as SpaceX and Blue Origin, founded in 2002 and 2003, respectively. These companies have competed for NASA contracts and have employed NASA scientists, who have been found to execute specific tasks with greater efficiency than NASA [82]. The result has been nothing short of astonishing. A novel ecosystem of American space companies has emerged, demonstrating rapid growth and effecting revolutionary changes in the space industry, including sectors such as space launch and communication. These companies have also played a substantial role in the American Artemis program. This model has been adapted for other states that have recognized the importance of increasing the role of the private sector to strengthen their space economic power. Despite the efforts of Western European countries to cultivate a space commercial ecosystem, encouraging the commercialization and privatization of the space industry--particularly in countries such as France (Arianespace (Le Haillan, France), Airbus (Blagnac, France)), Italy (Leonardo (Rome, Italy), Thales (Rome, Italy)), United Kingdom (BAE Systems (London, UK)), and Germany (OHB (Bremen Germany), ISAR (Ottobrunn Germany))--European Union authorities recognized the necessity to enhance innovation and competitiveness in the face of emerging international competitors. This necessity is underscored by the EU's formal documents, which call for the \"fostering of a competitive and innovative European space sector\" [60] and the provision of enhanced access to financial resources and public contracts for EU space companies [59] (p. 178). Similarly, China and India, two countries with an absence of a space private sector, have transitioned their space policy to encourage the development of private initiatives within the space industry. Since [PERSON] assumed power in 2012, China has permitted the gradual entry of private initiatives into the space domain. The issuance of Document 60 in 2014 aimed to modernize the financing channels of strategic sectors, including the space industry, thereby facilitating private investment in specific areas. Following the implementation of Document 60, China witnessed a substantial surge in private sector investment, with an estimated annual growth of approximately USD 3 billion. The Chinese commercial space market has undergone substantial expansion, exhibiting an annual growth rate that exceeds 23 percent from 2017 to 2024 [83].