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Europe (and Italy) Must Be in the Front Row

, by Simonetta Di Pippo - SDA Professor of practice e direttore dello Space Economy Evolution Lab SDA Bocconi, translated by Alex Foti
In order not to miss out on space exploration, the Old Continent must make its voice heard. In our country, which has no shortage of skills, thanks to the national recovery and resilience plan, the space economy can have a bright future, but legislative tools are needed to favor cohesion and also competitiveness

Europe cannot afford to miss the opportunities that will be offered by human exploration of the solar system. This is argued in the report of the High-Level Advisory Group to the Directorate General of the European Space Agency (ESA) on the topic of Europe's role in space exploration. The EU, as underlined in the report, although it has made its voice heard in space sectors such as Earth Observation, risks missing the boat of space exploration. For a systematic exploration of the Moon, Mars and beyond, as well as to ensure a massive presence in low-orbit satellites, some key technologies are missing. Although dredging up the past is of limited usage, already in 2010, in my role as Director of Human Flight at ESA, I had pointed out Elon Musk's progress with reusable launchers and the lack of Europe's competence on issues such as re-entry and landing. In this regard, I had started phase A of a project called ARV - Advanced Re-entry Vehicle - seen as an accelerated evolution of the ATV, that Automated Transfer Vehicle, a supply vehicle for the International Space Station (ISS), which I had contributed to stabilizing, in order to achieve the first industrial-scale production in ESA history, launchers excepted. If ESA member states had taken that path, today the EU would have a better global positioning in astroanutics. It took ESA several years to take its first steps in the space economy industry.

On the other hand, when we talked about commercialization of space activities in 2008-2010, the term space economy had not yet been officially coined. It was the OECD that formally defined it in 2012 as "The set of activities and use of space resources that create value and benefits for humanity during the exploration, understanding, management and use of space". The OECD continues by indicating that it includes all entities, public and private, engaged in developing, providing and using space-related products and services: research and development, construction and use of space infrastructures (ground stations, launch pads, satellites), applications deriving from space (navigation instruments, satellite telephones, meteorological services, etc.), as well as the scientific knowledge resulting from these activities.

The space economy goes far beyond the space sector in the strict sense, because it also applies to the increasingly pervasive and changing impacts (in terms of quality and quantity) of the products, services and conditions that derive from space.
The space economy, according to the latest report published by the Space Foundation, is worth $546 billion, which if compared to the value reported last year, equal to $469 billion, shows a 17% year-to-year increase. If forecasts are met, we should hit the trillion-economy mark by 2040. Space is at the heart of sustainable development, the climate crisis and the green economy, digital transformation, artificial intelligence. And the space economy entails space traffic management, commercial space stations in low orbit, the development of lunar economy markets, and cloud computing and solar energy in space.

In Italy we have the skills, the funding and the knowledge to develop the sector at the national level and serve the institutional and commercial markets, but also to better position ourselves on European and global markets. In Europe, in addition to ESA, we are witnessing an ever-increasing involvement of EUSPA and the European Commission itself. The space economy, thanks also to the national recovery and resilience plan (PNRR), has a bright future in Italy. It would be desirable for us to act as a leading country in the EU by adopting a strategic and inclusive approach, also looking to the United Kingdom. And with an eye on the Mattei Plan, which could include significant spatial projects. We need to have a link of founding values and skills, and new legislative instruments that allow for greater cohesion and at the same time promote competitiveness. Because there is no true collaboration without autonomy. Autonomy and technological excellence enable a more balanced collaboration and promote the success of space enterprises, with diplomacy playing the key role it deserves.