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October 11, 2010 / car.

why countries finance space activities?

It is a fact, a vast amount of the financing of space projects come from the government, either financing the scientific missions or financing R&D projects for their industries. Space is a high-tech sector and, as such, strategic for the country’s economy in a world where only high-tech products can (barely) scape from China’s manufacturing capacity and low cost.

Lots of resources are needed to keep space industry competitive

But, what are the main (economic) rationales for space projects? (as explained by Dr. Simpson in one of his speeches)

  1. Governments try to create a minimum demand for certain high-tech products (ensure minimum profitability of their industries)
  2. Stimulate R&D and innovation to avoid competitive disadvantages over other countries’ industries
  3. Develop and sustain human infraestructure (if your high-tech workers have no job, they will go to other place with their knowledge)
  4. Gain and preserve access to off-earth resources (specially prized orbits)
  5. Meet space-specific technological demand (that can be later applied to other sectors via spin-offs



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