The Changing Economy of Space Application and Exploration: A Catalyst for International Cooperation?

by Jana Fey & Walter Peeters

"As such, the first phase of the emerging space economy was firmly embedded within the national security agendas of the United States and the Soviet Union during the Cold War."
"Whereas 'traditional space missions have societal and national benefits as their primary stakeholder needs’, New Space places shareholder profits and returns on investment as central aspects of space activity. . ."

 The evolution of the space economy can be understood in terms of three waves. Initially, space programs were driven by government objectives and national security and financed mainly through public funding. Even in this early phase, however, we saw critical international partnerships in support of space activities, such as the UNOOSA Outer Space Treaty (1967). Government support was then gradually replaced by profitable commercial space applications, with companies using their own capital and debt financing. Since around 2000, we have witnessed a third wave, a paradigm shift, in the form of New Space, which has attracted the attention of equity investors such as venture capitalists and private equity firms. This paper shows how the economic evolution of space activities corresponds to changes within international relations, especially geopolitical tensions.

 Space Policy

About the Authors

 Jana Fey is an interdisciplinary researcher with a background in international relations. In 2023, she joined the International Space University in Strasbourg as a Postdoctoral Researcher in Space Policy. Her research interests concern the intersection of politics and science.


Walter Peeters
 joined the International Space University after a career in ESA, mainly dealing with project management and human spaceflight astronaut activities. After his nomination as Dean of ISU he was elected as President of ISU and is presently President Emeritus. He introduced several entrepreneurship-oriented activities and workshops and created a space incubator in ISU. His present publications focus mainly on the New Space economy.