SPACE is a course with two goals: to use the tools of economics to better understand the rapidly evolving space sector, and to train the next generation of commercial space leaders. We pursue these goals through a systematic study of the growing space economy, proceeding through a series of case studies that chronicle the past, describe the present, and help us to speculate about the future of what is arguably the industry most important to the future of humanity. The cases cover the full range of civil, commercial, and national security space, and they confront the most pressing and substantial questions facing the sector. We pair each case with at least one classic tool of economic analysis, providing both rigor and generalizability of the lessons learned.
Space is becoming a potential source of value for businesses across a range of sectors, including agriculture, pharmaceuticals, consumer goods, and tourism. To understand what the opportunities are for your company, the authors advise you to consider the four ways in which using space could create value: data, capabilities, resources, and markets. For most companies thinking about their space strategy over the next five to 10 years, data will be the dominant focus. For instance, many companies are turning to remote-sensing satellites for data that will inform business decisions. Whether it's tracking the number of cars parked in retail locations, detecting costly and environmentally damaging methane leaks from natural-gas wells, or assessing soil type and moisture content to maximize crop yields, creative uses for data gathered from space abound. Companies looking further ahead will want to explore the value to be gained from conducting activities in space, utilizing space assets, and meeting demand from the new space age. Businesses engaging with commercial space should be willing to experiment and should look for partners.
B case to case 723011 Sitting quietly in the heart of the New Mexico desert in the summer of 2014, Spaceport America (SA) housed little of the activity its supporters anticipated when opening its hangar doors in 2011. Despite $1 million in annual rent from Virgin Galactic, British billionaire Richard Branson's space tourism company and SA's anchor tenant, the spaceport was still heavily reliant on government funds. Flight delays and a crash on Halloween of 2014 that left one pilot dead and stalled Virgin Galactic's testing and development meant that the New Mexico Spaceport Authority (NMSA) was not receiving critical user fees to run spaceport operations. As a result, state and local taxpayers were bearing much of the cost of the underutilized spaceport, even after having invested $218 million from local and state funds. With the 2015 session of New Mexico's congress looming, the fate of the world's first "purpose-built" spaceport was in question.
Sitting quietly in the heart of the New Mexico desert in the summer of 2014, Spaceport America (SA) housed little of the activity its supporters anticipated when opening its hangar doors in 2011. Despite $1 million in annual rent from Virgin Galactic, British billionaire Richard Branson's space tourism company and SA's anchor tenant, the spaceport was still heavily reliant on government funds. Flight delays and a crash on Halloween of 2014 that left one pilot dead and stalled Virgin Galactic's testing and development meant that the New Mexico Spaceport Authority (NMSA) was not receiving critical user fees to run spaceport operations. As a result, state and local taxpayers were bearing much of the cost of the underutilized spaceport, even after having invested $218 million from local and state funds. With the 2015 session of New Mexico's congress looming, the fate of the world's first "purpose-built" spaceport was in question.
This case outlines the rise of Spire Global, a young space company using CubeSats to provide weather data and weather prediction services. In addition to tracing the evolution of a space startup from novel idea to publicly-traded company, the case also examines the broader questions posed by the success of Spire and similar space companies: what are the potential costs and benefits to the privatization of remote sensing satellites? What new possibilities are enabled for both governments and private entities by private remote sensing companies? How does the incipience of companies like Spire challenge the established weather data regime? What's the significance of highly-popular special purpose acquisition companies?
In 2017, the Trump Administration made a bold claim-that they would return the next man and the first woman to the lunar surface by 2024, this time to establish a sustainable presence to enable further exploration in the solar system. With the Artemis Program, NASA has demonstrated an interest in bolstering public-private partnerships and developing an international coalition interested in collaborating in lunar exploration. A central piece of infrastructure will be the Lunar Gateway, an orbiting habitat and command module in cislunar space. Should NASA prioritize the Lunar Gateway, especially considering its history managing the International Space Station?
In building the International Space Station (ISS), NASA opened the door to the development of a robust in-space economy in low-Earth Orbit, and yet the decision to build the station, and continue to extend its lifetime, placed a huge burden on NASA's Human Spaceflight budget. Should NASA continue to invest in the ISS? Or is it possible for the agency to facilitate the commercialization of the Station and move beyond low-Earth Orbit?
After having proven its base technology (3D printing) through NASA solicitations and contracts, Made In Space was searching for a viable commercial application. But the business case for the leading candidate, high-quality fiber optic cable for use on Earth, remained uncertain. In 2019, Made In Space secured a major contract from NASA for early work on a much grander project, called Archinaut, to build architectures in space that would enable off-Earth habitation. Was that opportunity a more promising path for Made In Space, or did its ambition risk distracting Made In Space from its more managed, incremental strategy? Which strategy would enable MIS to retain its central place in facilitating the development of the space economy?
From the time he transformed the world of online banking, Elon Musk had established himself as a bold innovator eager to challenge the status quo in hopes of, as he put it, advancing human society. After selling X.com to PayPal in 2002, he founded a series of start-ups in pursuit of that dream, starting with Space Exploration Technologies (SpaceX). Hoping to "make human life multiplanetary", Musk aimed to establish the first Mars civilization, but was unable to procure rockets that would be cheap or reliable enough to make the journey. Over the course of the next decade, SpaceX would develop a line of revolutionary rockets that transformed the commercial space launch industry. Using reusable rockets to exploit the benefits of economies of scale, SpaceX cut costs to orbit by a factor of 18 and captured a large percentage of the global launch market, once thought to be inaccessible to newcomers in the industry. But after a remarkable decade, Musk's original goal to reach Mars seemed both within reach and impossibly optimistic. SpaceX had proven technologies that would be critical in supporting a crewed mission to Mars, but the cost to get there was estimated to be well above $200 billion dollars in 2014. While revenues from the launch services market were impressive, they were nowhere near the $200 billion needed to develop a Mars civilization. Would there be enough demand for launch services to make Elon Musk's vision a possibility, or would SpaceX have to find other ways to get there?
As 2018 drew to a close, India prepared to once again carry out the largest democratic exercise in human history, as in less than six months more than 850 million eligible voters would have the chance to choose their representatives to the Lok Sabha-the country's lower house of parliament-and, thus, their country's Prime Minister and cabinet.[i] The election would pit the ruling party-the Bharatiya Janata Party (Indian People's Party, known as the BJP) led by Prime Minister Narendra Modi-against a collection of parties that included the once-dominant Indian National Congress party (Congress). The 2019 elections would serve as a referendum on Modi's first term in office and, therefore, on a high stakes question: had India's implausibly robust democracy produced the right leader for the right moment, or had it taken the wrong path?