Unleashing European NewSpace: A refresher

A few years ago, I lost my sleep daily, dreaming about #NewSpace in Europe. I was not on my way to making history (or the future or even the present) in the industry; however, I was very passionate about knowing more and finding intertwined connections between the industry's current and future state, especially in the European region. I must confess that Space knows no border, and to be successful in Space, we need to dissolve the boundaries on Earth; for now, we'll park this topic for another day (our parking lot keeps getting crowded). Fast forward to now when #ChatGPT demonstrated in basic terms how technology is poised to change our planet as we know it - for good or for bad (here you go, next parking ticket!). Many cutting-edge technologies have been the bi-product or a consequence of efforts by the space sector (want to know more – please park on the first floor with others), but we need to talk more about the impact of technologies in the commercialization of the NewSpace industry in a sustainable way before the sun sets on us.

I realized that my EDBA papers école des Ponts Business School, co-authored with Professor Daphne Halkias, PhD., have left some sparks igniting curiosity about the development of the industry in the European region. So I've decided to pick up a blank canvas set on the tripod of our previous work and go on a journey to question, challenge, and draw without inhibitions. But first, I have to get the basics in place (AI, you go and park too, but we'll let you park at senator lounge – you get to leave first).

Inspired by the integrative literature review titled "Success Factors for European Commercial Activities in NewSpace," we unravel the key factors that pave the way for success in #EuropeanNewSpace endeavors. We'll explore these insights, drawing upon notable examples from #Luxembourg, European Space Resources Innovation Centre (ESRIC), and the European Space Agency (#ESA). Let's summarize our findings aligned with the developments:

Regulatory Agility: A Catalyst for Success

One of the cornerstones we found in the review is the regulatory environment. Forward-thinking European countries and organizations like Luxembourg Space Agency (#LSA), ESRIC, and ESA have showcased the transformative power of a sound regulatory framework. By establishing transparent and streamlined regulations, these entities provide certainty, stability, and ease of business in the space sector. Such regulatory agility attracts investment and fosters innovation, propelling European NewSpace endeavors to new heights.

Driven by the agility and business-friendly approach, Luxembourg has attracted over 70 space or satellite companies, doubling the number since the launch of Spaceresources.lu in 2016. While the sector has witnessed significant growth and, as already discussed in the public media, profitability is still a work in progress.

Fueling Ambition: Access to Funding

The fuel that drives commercial activities in European NewSpace is none other than funding. Luxembourg's strong financial sector, alongside dedicated focus by Luxembourg Space Agency, plays a pivotal role in providing access to financing for startups and companies engaged in NewSpace ventures. European NewSpace companies partnering with organizations rely on adequate financial resources to fuel their research and development efforts, launch missions, and scale their operations. These public-private partnerships demonstrate the importance of fostering investment opportunities and establishing funding mechanisms to ensure the success of European NewSpace endeavors.

Entrepreneurs with courage and ideas are now getting more and more confident in experimenting; however, more ground has to be covered to convert the momentum into a fully functional ecosystem of investors and entrepreneurs.

Collaboration Breeds Innovation: Building Ecosystems

Creating a collaborative ecosystem stands out as another critical success factor. Luxembourg's commitment to collaboration is evident through its initiatives like Luxembourg Space Agency, which foster partnerships between industry players, research institutions, academia, and government entities. Additionally, the ESRIC serves as a platform for collaborative efforts in the region while keeping a global approach. Furthermore, the ESA significantly fosters collaboration and cooperation among European countries in space exploration and commercial activities. By nurturing collaborative networks, knowledge exchange, technology transfer, and collective problem-solving, these entities accelerate #innovation and drive the growth of the NewSpace industry in Europe.

The Power of Talent: Nurturing Skills

Access to a talented workforce is fundamental to European NewSpace ventures' triumph. Luxembourg and other European countries prioritize nurturing skills by promoting #STEM education and attracting professionals skilled in space-related fields. Initiatives across various European institutes have popped up, bringing innovative Space courses into the mainstream, raising awareness, and preparing the next generation for the much-needed transition. The European region is witnessing more and more efforts being incubated across areas developing a supportive environment that encourages entrepreneurship and innovation. By doing so, European countries are taking up their role in the global NewSpace landscape and contributing to the success of commercial activities in the space sector.

Charting the Course: Europe's NewSpace Success

The integrative literature review on "Success Factors for European Commercial Activities in NewSpace" discussed the path to triumph for European commercial space ventures. By understanding and addressing regulatory agility, access to funding, collaborative ecosystems, talent and skills, and technology and infrastructure, European countries can create an enabling environment for NewSpace #entrepreneurship and industry growth. As Europe seizes the opportunities presented by the NewSpace sector, these success factors, coupled with the remarkable examples from Luxembourg, the ESA, and other pioneering initiatives, will unlock Europe's full potential in commercial space activities.

...challenges ahead

While refreshing the paper, we wrote in 2020; I could only wonder about the complexities of implementing a holistic strategy for an inherently global topic. The great entrepreneurs – the "giants" of technology industries have taken up the task of setting up commercial firms in the space industry, disrupting barriers every day and inspiring many other innovators to join the force. However, the challenges of democratizing the industry, bringing in more collaboration, making the industrial efforts sustainable, bringing use-cases that help humanity, and moving beyond just a profit-seeking (next trillionaire journey for an individual) machinery led by a few leaders is a challenge that should be addressed sooner than later.

The #blueplanet from outer space shows no border; eliminating "space" between us is the way forward (and upwards)!

Note: The article is a personal opinion, and the content of this post incorporates the findings from "Success Factors for European Commercial Activities in NewSpace: An Integrative Literature Review, By Madan, Bharat and Halkias, Daphne" and real-world examples from the NewSpace industry. The examples mentioned serve the purpose of demonstrating the idea and should be seen as such.