3.Basis for Funding

The DTI space business plan is targeted at maximising the return from related investments in the development and use of space being made across HMG and by the European Community and European Space Agency. As outlined in the Innovation Report and the preceding rationale, innovation and a strategic approach to technology can contribute significantly to maximising the return to the UK.
Space systems produce significant economic benefits and the emerging opportunities associated with Environmental Monitoring, European Defence and Security and Broadband Communications are three examples of the potential for increasing utility of space applications. Characteristically benefits are:
• Over long time scales
• Achieved primarily in downstream services
• Predominantly accrued in the public sector
As a consequence space markets entail substantial commercial and political risk and difficulties for the initial investors to capture the benefits. Government intervention can mitigate the risk and bridge the gap between enabling technology and the end user services.
To make the UK the most developed user of space-based systems in Europe, as outlined in the UK Space Strategy, requires the UK to have an industrial capability that is innovative, competitive, and focused on
developing applications, services and infrastructure that meet users’ needs. DTI’s Technology Programme
will play an essential underpinning role in achieving this, connecting research and other users of space to
suppliers of products, technologies and services throughout the economy.