The document discusses the UK space economy, which had a turnover of £11.8 billion in 2012/13 and is growing at an annual rate of 8.6%. It notes that the UK has strengths in satellite communications and small satellite manufacturing. The UK Space Agency leads the UK's civil space program and works with partners to invest approximately £370 million annually, mainly through the European Space Agency, to support the UK space sector and take advantage of future opportunities in small satellites and satellite applications.

1. gov.uk/ukspaceagency
The space economy and
the role of the UK Space Agency
Northern Space Consortium,
Liverpool, 18 March 2016
Elizabeth Seaman
UK Space Agency

2. What is the Space Economy?
OECD Handbook on Measuring the Space Economy, 2012
Space sector
– Not one space activity but many across different fields of science
and technology, including astronomy (including astrophysics, space
science), aerospace engineering, applied mechanics, atmospheric
sciences.
Space economy
– Wider than the space sector
– Can be defined in many ways such as by products (e.g. satellites);
services (image delivery, broadcasting); programmatic objectives
(human spaceflight, robotic exploration)…
– upstream space industry (infrastructure and technology),
– downstream space industry (direct space services)
– the wider space economy (space-enabled value-added
applications)

3. Turnover and growth
UK space economy had aggregate turnover of
£11.8bn in 2012/13
Compound annual growth rate of 8.6% since
2008/09
3,976
4,570
5,015
5,360
5,870
6,074
6,450
7,009
7,894
8,510
9,236
9,838
11,380
11,848
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
£m,2012/13prices
Note: due to improvements in methodology 2011/12 and 2012/13 figures include additional space
applications companies, so actual growth between 2010/11 and 2011/12 will be lower than that shown here
Source: ‘Case for Space 2015’, commissioned from London Economics by the UK Space Agency, Innovate
UK, Satellite Applications Catapult and UK Space trade association
Launch of Sentinel 1-A,
April 2014

4. Exports
UK space exports in 2012/13 were estimated at £3.6bn
Survey data suggest 31% of turnover from the UK space economy is generated
from exports, more than twice the export share of the UK as a whole (15%)
When big broadcasters (BSkyB) are not counted, this rises to 66%
UK-built telecommunication satellites account for 25% of the world market
The UK has particular strengths in satellite communications, and in
manufacturing small satellites
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
UK economy average Space economy Space economy
(excluding BSkyB)
Export Intensity - % of turnover from
exports
Source: ONS input-output tables; ‘Case for Space 2015’

5. R&D spending
The UK space industry is an R&D intensive industry
As a proportion of total output , average R&D spend in the sector is
around 9 times the UK average
Higher than many other high-technology sectors such as telecoms and
computer programming services

6. Knowledge spillovers
Advances in the space industry often lead to R&D and knowledge
“spillovers”
While hard to predict, these spillovers can lead to market growth,
improved productivity, and improved wellbeing
Example: knowledge spillovers from the European space industry

7. Future Opportunities
UK has a strong small satellite market with some of the world’s largest
manufacturers and suppliers of sub-500kg satellites
Demand for small satellites is projected to grow substantially with a step-change
in the number of satellites requiring launch
In particular, new constellations of hundreds of satellites are currently planned
The UK space industry is well-placed to benefit from these future opportunities
Number of satellites (all mass) requiring launch
Source: Euroconsult, Satellites to be built and
launched by 2025, September 2015
Number of 1-50kg satellites requiring launch
Source: SpaceWorks, Nano/Microsatellite Market
Assessment, January 2014

8. The UK Space Agency leads the civil space programme
– Policy advice to Ministers
– Regulation
– Investment
– ~80 staff (Swindon, London and UK Space Gateway)
Is an executive agency sponsored by Department for
Business, Innovation & Skills (BIS) and was established in
2011
Responsible for:
– all strategic decisions on the UK civil space programme
– provision of a clear, single voice for UK space ambitions
Role of the UK Space Agency

9. Working in partnership with others
We work with a wide range of partners such as Research
Councils (e.g. STFC), other government departments,
agencies, academia and also businesses.

10. Funding - International
UK Space agency invests about £370m annually of programme funds
– Approximately 80% (circa. £300m) goes through the European Space Agency (ESA),
mostly on science programmes
The UK is selective in its
investments, playing to UK
industrial and scientific strength
International collaboration is
often preferable due to large
programme costs
UK also gets full scientific outputs
while only paying a share of the
costs – well placed to capitalise
given strength of UK research
base

11. Funding - National
To address UK-specific needs or opportunities
Funding is used for a range of purposes:
International
Partnership
Space
Programme
(IPSP)
Core
programme
Spectrum
National
Space
Technology
Programme
Novasar
SABRE
(Synergetic
Air Breathing
Rocket
Engine)
Space for Smarter
Government Programme
National programmes 2015/16
(circa. £70m p.a.)
– Developing infrastructure to enable sector
growth
– Bringing new technologies and
applications to market to meet UK’s
strategic needs
– Supporting cluster development, e.g.
‘space gateway’ at Harwell
– Ensuring a supportive regulatory
environment
– Encouraging the take-up of satellite-based
applications in Government to deliver more
cost-effective services
– Develop scientific instruments to ensure
UK maximises its return from ESA science
missions

12. IGS Recommendation 5: Stimulate a vibrant
regional SME sector
Need to bring in new entrants
– All sizes – start-ups to corporates
– Growing existing players…
– …but also bringing in new companies from outside the
traditional space sector – in particular in the downstream
Work with Local Enterprise Partnerships and
Devolved Administrations to:
– Raise awareness of opportunities in the space sector –
engaging companies that could use space-derived data
– Build and support clusters
– Capitalise on academic excellence and physical
infrastructure developments
– Expand business incubation support for the space sector
Support balanced growth of the space sector across the country
Supporting growth across the UK

13. The Vision: UK Space Gateway at Harwell
Harwell is critical for the UK’s space sector….
Direct employment:
– ~200 space-sector workers in 2010
– ~600 in 2016
– Targeting 1000+ by 2020, 5000+ by 2030 (plus a
further 5000 in Oxfordshire)
A vibrant international community
– Expertise and national facilities
– Collaborative working: industry, academia and public
sector
– From start-ups to corporate HQs

14. The Vision: UK Space Gateway
A focal point to support the whole of the UK
Links to regional centres of expertise
– UKSA working with partners to develop local
strategies and new communities
Universities and other public funded research
SA Catapult Centres of Excellence
– 3 in place, 2 further recently announced
Regional networks
– Wales, Northern Ireland, Oxfordshire
Incubation Centres
– SETsquared collaboration, 6 further centres to be
announced
Places for space
– Space Enterprise Zones (Cornwall, Westcott)
– Space Park proposal (Leicester)
A key vehicle to deliver the UK’s growth strategy

15. Harwell’s role in the UK

16. More information
UK Space Agency web site:
https://www.gov.uk/government/organisations/uk-
space-agency
UK Space Agency blog: https://space.blog.gov.uk/
@spacegovuk on Twitter
Spacegovuk on YouTube
Spacegovuk on Flickr