Public–private partnerships in fostering outer space innovations

Abstract

As public and private institutions recognize the role of space exploration as a catalyst for economic growth, various areas of innovation are expected to emerge as drivers of the space economy. These include space transportation, in-space manufacturing, bioproduction, in-space agriculture, nuclear launch, and propulsion systems, as well as satellite services and their maintenance. However, the current nature of space as an open-access resource and global commons presents a systemic risk for exuberant competition for space goods and services, which may result in a “tragedy of the commons” dilemma. In the race among countries to capture the value of space exploration, NASA, American research universities, and private companies can avoid any coordination failures by collaborating in a public–private research and development partnership (PPRDP) structure. We present such a structure founded upon the principles of polycentric autonomous governance, which incorporate a decentralized autonomous organization framework and specialized research clusters. By advancing an alignment of incentives among the specified participatory members, PPRDPs can play a pivotal role in stimulating open-source research by creating positive knowledge spillover effects and agglomeration externalities as well as embracing the nonlinear decomposition paradigm that may blur the distinction between basic and applied research.

Space exploration and economic growth: New issues and horizons

“…Refs. 24 and 25 in this Special Feature offer perspectives on this question. Two challenges, in particular, stand in the way of harnessing space activity to boost economic growth: research and development spending and policies governing the use of space.…”

“…In addressing this question, ref. 24 argues that Public-Private Research and Development Partnerships (PPRDPs) between government, private industry, and research universities can effectively link the private sector to public sources of financial and intellectual capital. They can also coordinate private innovation activities and intellectual property rights to maximize their impact.…”

“…However, the allocation of control rights, which involve decisions in the face of contingencies not fully specified ex ante, is a central issue in implementing effective PPRDPs for space R&D. To address this issue, ref. 24 proposes a decentralized autonomous organization framework. This utilizes smart contracts—software programs that are executed automatically when prespecified “if-then” conditions are met—to reduce counterparty risk and dependency on trust among members.…”

“…Third, although space exploration has the potential to boost future economic growth and scientific progress ( 24 , 37 ), it comes at a time of increasing global income and wealth inequality ( 49 ) and unprecedented climate-driven disruption ( 50 – 53 ). While the transition to space mining may help meet ambitious climate goals without reducing economic growth ( 42 ), this transition may disrupt production patterns, potentially impacting workers in mining-dependent countries.…”