Assessment of the utility of a government strategic investment fund for space

Abstract

A robust private sector in space can be instrumental in achieving major space policy goals, such as those promoted by the U.S. Government: fostering private space markets and reducing the cost and time required for the government to develop and procure space systems. Meeting these goals will likely require increased government attention to the challenges facing the private sector, as well as potential implementation of new or underutilized regulatory, policy, and economic mechanisms. This article focuses on a government strategic investment fund as a potential economic mechanism, which would make equity investments in companies pursuing activities of interest to the government, and offers examples of past and current funds both in the United States and internationally. This article then assesses the utility of such a fund in addressing the challenges with meeting these 2 policy goals; these challenges were identified through a literature review and interviews with >60 space experts, economists, and other stakeholders. We identified 5 major challenges to fostering the growth of private space markets and 4 challenges to reducing government costs and accelerating the development and procurement of space systems. Our analysis concludes that although a government strategic investment fund may be useful in select scenarios, it will not most effectively address the current challenges.