2.Rationale for the Space Technology Strategy

Space activities are characterised by a combination of features that exhibit some unique attributes, both from the perspective of the space environment and opportunities for exploitation but also the intense geo-political issues that dominate both European and global markets. A number of factors that strongly influence the Space Technology strategy are reviewed below, these underline the need for a strategic approach for successful exploitation.
The development of technology for space use is typically characterised by high risk. This arises from a number of technical, political and market sources. A strategic approach to technology development responding to market pull and the development of new technology led approaches can impact significantly on the mitigation and management of risk.
Space serves a number of application domains that exhibit differing requirements. These user led domains develop their own plans for exploitation depending on specific commercial or scientific priorities. At the technology level synergies can be identified that, through the strategy, can be exploited to significantly improve effectiveness of available development resources and increase the available market.
The global market for upstream space products is strongly influenced by US suppliers that have derived commercial advantage from extensive military programmes and emerging low cost base suppliers. European markets are strongly politicised resulting in significant over capacity in some sectors and high costs base. Competing on cost alone is not a realistic option in this environment. Through its technology strategy UK focus is directed towards high added value, unique and innovative opportunities.
Downstream services and derivation of economic benefit have hitherto not been closely coupled to the upstream providers of infra structure whose associated risks are high. Traditional market forces that shape technology development through commercial mechanisms are highly distorted and/or are very weak. The development of a national strategy for space technology can address this issue in the round, establish better linkages between user need and enabling innovative technology and establish a more robust framework for downstream exploitation.
UK has chosen to achieve its strategic objectives in space primarily by investment through the European Space Agency (ESA). The ESA co-ordinates technology strategy and planning through its European Space Technology Master Plan (ESTMP); this is also co-ordinated with the EC Framework Programme. ESA also implements a Technology Harmonisation Programme in conjunction with the National Space Agencies. The management of UK technology priorities through the framework of a technology strategy allows UK objectives to be managed within the ESA framework.
Major European partners and governments of international competitors maintain strong national satellite and technology development programmes. As a result of this high level of activity, underlining the significance of space, the UK Space Technology Strategy and programme are of increasing importance to sustained scientific, social and commercial development. The development of innovative technology within UK national programmes is essential to ensure that freedom to engage in commercial and institutional opportunities, securing control of key know-how and intellectual property required to compete, is maintained.
Establishing IPR is a key measure for innovative technology and commercial exploitation. UK investment at the critical early stages of development, focused through a UK technology strategy, will create opportunities for UK inventors to establish IPR in key areas. A strong IPR base will enhance the position of the UK in European and global partnerships, commercial markets and in European harmonisation negotiations.
UK space industry has a strong heritage of exploiting technology innovation. For example it has established world class capabilities as a systems integrator of advanced mobile telecommunications payloads (Inmarsat and Skynet) and small low cost satellites together with a number of successful lower tier products (avionics, software, lithium ion batteries, ion engines etc). The strategy is required to build on established strengths and also to provide for the potential diversity of lower tier products. The UK has a large world class academic research base that has historically not been well exploited to the benefit of the economy. The space industry has a good record of collaborating with research scientists, but has been comparatively weak in exploiting the academic research base. Implementation of this technology strategy will address several related issues including in particular stronger linkages with the engineering research base; also a stable framework for long term collaboration and a focus on innovative, high value added opportunities for both researchers and industry. Space applications can also provide a significant pull for terrestrial technologies e.g. advanced autonomy and intelligent systems required for the Aurora exploration programme.
A number of new challenges associated with environmental monitoring, defence and security and broadband communications are emerging in a European context. Space has a significant role to play in meeting these challenges. They also present opportunities for the UK to exploit its new strategy for innovation.