GOVERNMENT INTERVENTION IN THE SPACE SECTOR: POLICY RECOMMENDATIONS FOR TURKEY

Year 2020, , 265 - 282, 31.12.2020

Türksoy Emen

https://doi.org/10.14780/muiibd.854382

Cited By: 1

Abstract

After Russia launched the first satellite, Sputnik I, into Earth orbit in 1957, Space Race started between the
US and Russia. Both governments allocated huge budgets for space missions until the second half of the
1970s. But space research didn’t remain limited to the two countries over the years; some other countries
established their space agencies and started engaging in space activities. At first, NASA was at the center
of the US civilian space sector; it coordinated the market purchasing from aerospace firms. But later it
changed its strategy and began to collaborate with private space companies in certain space missions using
Public Private Partnership method in particular. Some other space agencies also adopted this method. This
change has helped to increase investments and has encouraged start-ups to get into the market. Today,
the global space economy has reached a significant size along with the increasing number of companies
and diversified production. So the governments have intervened in the market not only to correct market
failures, which provide a rationale for government intervention but also to create the market. In this context,
this study discusses the need for government intervention in the market to create a private space sector in
the light of the NASA and ESA experiences, and develops economic policy recommendations for Turkey
examining the Decree that has established the Turkish Space Agency formally.

Keywords

Market Failures, the Global Space Economy, Space Research, Turkish Space Agency

References

• Aerospace (2017). The State of the European Space Industry in 2016, Facts and Figures Press Release – June 2017, p.1.
• Aerospace Security (2019). History of the NASA Budget, https://aerospace.csis.org/data/history-nasa-budget/, (Accessed on: 17.07.2019.
• ANDERSON, C. (2013). Rethinking Public-Private Space Travel, Space Policy, 29 (2013), 266-271. Commonwealth Secretariat (2010), Public–Private Partnerships Policy and Practice: A Reference Guide, Edited by HK Yong, Commonwealth Secretariat, United Kingdom,
• COMSTOCK, D. (2010). The Socio-Economic Benefits of Space Technology Applications and Spinoffs, United Nations/Turkey/European Space Agency Workshop on Space Technology Applications for Socio-Economic Benefits, Istanbul.
• ESA (2019). ESA Budget, http://www.esa.int/spaceinimages/Images/2019/01/ESA_Budget_2019, (Accessed on: 18.07.2019).
• European Space Agency Handbook (2011). Strategic Information and Contact, International Business Publication, Washington D.C., USA-Belgium.
• Federal Aviation Administration (2009). State Support for Commercial Space Activities, US.
• HAWKING, S. (2018). Brief Answers to the Big Questions, Bantam Books, New York.
• JONES, K. L. (2018). Public-Private Partnerships: Stimulating Innovation in the Space Sector, Center for Space Policy and Strategy, USA.
• KAKU, M. (2018) The Future of Humanity, Doubleday, New York.
• KRIGE, J., RUSSO, A., SEBESTA, L. (2000). A History of the European Space Agency 1958 – 1987 (Volume II The story of ESA, 1973 to 1987), European Space Agency, The Netherlands.
• LEWIS, S. J. (2015). Asteroid Mining 101-Wealth or the New Space Economy, Deep Space Industries Inc.
• London Economics (2016), Return from Public Space Investments-An Initial Analysis of Evidence on the Returns from Public Space Investments, Final Report, UK.
• MASUR, J. S., POSNER, E. A. (2015). Toward a Pigouvian State, University of Pennsylvania Law Review, Vo. 164, 93-147.
• MAZZUCATO, M. (2013). The Entrepreneur State, Anthem Press, UK and USA.
• MAZZUCATO, M. (2016). From Market Fixing to Market-Creating: A New Framework for Innovation Policy, Industry and Innovation, Volume 23, Issue 2, 79-103.
• MAZZUCATO, M., ROBINSON, D. K. R. (2016). Market Creation and the European Space Agency: Towards a Competitive, Sustainable and Mission-Oriented Space Eco-System, The Final Report for ESA.
• MAZZUCATO, M., ROBINSON, D. K. R. (2018). Co-Creating and Directing Innovation Ecosystems? NASA’s Changing Approach to Public-Private Partnership in Low-Earth Orbit, Technological Forecasting Social Change, 136 (2018), 166-177.
• MCCURDY, H.E. (2019). Financing the New Space Industry Breaking Free of Gravity and Government Support, Palgrave Studies in the History of Science and Technology, Switzerland.
• NARDON, L., VENET, C. (2011). The Development of Public-Private Partnerships in the European Satcom Sector, Actuelles de l’Ifri, The Europe & Space Series, No. 4, p. 5.
• NASA (2013). Emerging Space-The Evolving Landscape of the 21st Century American Spaceflight.
• NASA (2019). NASA FY 2020 Budget Request, https://www.nasa.gov/sites/default/files/atoms/files/fy2020_agency_fact_sheet.pdf, (Accessed on: 17.07.2019).
• National Space Policy of the United States of America, June 28, 2010.
• NATO (2017). The Space Domain and Allied Defense, NATO Parliamentary Assembly-Defense and Security Committee Report.
• OECD (2014). The Space Economy at a Glance.
• OECD (2019). The Space Economy in Figures-How Space Contributes to the Global Economy RAI, A., ROBINSON, J.A., BROWN, J.T., BUCKLEY, N., ZELL, M., TASAKI, K., KARABADZHAK, G.,
• SOROKIN, I.V., PIGNATORA, S. (2016). Expanded Benefits for Humanity from the International Space Station, Acta Astronautica, 126 (2016), 463-474.
• SADEH, E. (2015). Public Private Partnerships and the Development of Space Launch Systems in the United States, Astropolitics The International Journal of Space Politics & Policy, 13: 1, 100-115.
• SALTER, A. W. (2015). Space Debris-A Law and Economics Analysis of the Orbital Commons, Mercatus Working Paper, Mercatus Center, George Mason University, Virginia.
• SAMUELSON, P.A. (1954). The Pure Theory of Public Expenditure, The Review of Economics and Statistics, Vol. 36, No. 4 (Nov., 1954).
• STANLEY,M. (2017). Space: Investment Implications of the Final Frontier.
• STIGLITZ, J., ROSENGARD, J.K. (2015). Economics of the Public Sector, Fourth Edition, W. W. Norton & Company, Inc., New York.
• T.C. Resmi Gazete, 13 Aralık 2018 .
• TALEVI, M. (2016). ESA Education Activities, 7th CCI Co-Location Meeting, Esrin (ESA Centre for Earth Observation).
• UK Space Agency (2018). UK Space Agency International Partnership Programme-Space for Agriculture in Developing Countries, UK.
• US National Aeronautics and Space Act of 1958 .
• UTRILLA, C. M. E. (2017). Asteroid COTS: Developing the Cislunar Economy with Private-Public Partnerships, Space Policy, 39-40 (2017), 14-19.
• WEINZIERL, M. (2018). Space, the Final Economic Frontier, Journal of Economic Perspective, Volume 32, Number 2, Spring 2018, 173-192.
• World Bank (2018). Private Participation in Infrastructure (PPI) H1 2018 Report.