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Sky is not the limit Building Queensland's space economy February 2019
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Page 1: Sky is not the limit Building Queensland's space economy · Sky is not the limit 3 Building Queensland's space economy Sky is not the limit Space has always ignited human curiosity

Sky is not the limitBuilding Queensland's space economy February 2019

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Contents

Glossary

Executive summary

1 Introduction

2Definingthespaceeconomy

3 Global and national context

PART ONE | BOTTOM UP ANALYSIS

4 Queensland’s space economy

5 Queensland’s competitive advantages 35

6AreasforfuturegrowthinQueensland’sspaceeconomy 45

PART TWO | TOP DOWN ANALYSIS 50

7BaselineprofileofQueensland’sspaceeconomy 51

8 Future scenarios for Queensland’s space economy 59

PART THREE | REFLECTIONS 69

9Reflections 70

Appendices 74

Sky is not the limit

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Contents

Glossary

Executive summary

1 Introduction

2Definingthespaceeconomy

3 Global and national context

PART ONE | BOTTOM UP ANALYSIS

4 Queensland’s space economy

5 Queensland’s competitive advantages 35

6AreasforfuturegrowthinQueensland’sspaceeconomy 45

PART TWO | TOP DOWN ANALYSIS 50

7BaselineprofileofQueensland’sspaceeconomy 51

8 Future scenarios for Queensland’s space economy 59

PART THREE | REFLECTIONS 69

9Reflections 70

Appendices 74

Sky is not the limit Building Queensland's space economy

Appendix A – Capability directory 75

Appendix B – Capability assessment matrix – detail 80

Appendix C – CGE modelling assumptions 88

Appendix D – Shortformdatacaptureandcapabilitysurvey101

References 112

End notes 115

Contact us 117

Limitation of our work 118

Building Queensland's space economy

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Acknowledgement

Deloitte Access Economics would like to acknowledge the valuable input provided by businesses, universities and research organisations in Queensland’s space economy through the data capture process and industry forum.

Queensland Space Industry Reference Group

• Air Vice-Marshal (Ret) Neil Hart AM, Queensland Strategic Defence Advisor - Aerospace (Chair)

• Dr Shane Arnott, Director Boeing Phantom Works International

• Stu Blackwell, Manager Advanced Communications and Simulation, Northrop Grumman

• Dr Kimberley Clayfield, Executive Manager, Space Sciences and Technology, CSIRO

• Adam and James Gilmour, Founders, Gilmour Space Technologies

• Nick Green, General Manager, Defence and Aerospace, PFi (Products for Industry)

• Tammy Halter, Director, Absolute Data Group

• Peter Kinne, Regional Director APAC/Australasia, DigitalGlobe

• Derek Lockett, Director of Sales Asia Pacific, Honeywell

• Peggy MacTavish, Vice President, Civil & Defence Services, Elbit Systems of Australia

• Prof Peter Schubel, Executive Director, Institute for Advanced Engineering and Space Sciences,University of Southern Queensland

• Prof Michael Smart, Chair of Hypersonic Propulsion, University of Queensland

Sky is not the limit

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Acknowledgement

Deloitte Access Economics would like to acknowledge the valuable input provided by businesses, universities and research organisations in Queensland’s space economy through the data capture process and industry forum.

Queensland Space Industry Reference Group

• Air Vice-Marshal (Ret) Neil Hart AM, Queensland Strategic Defence Advisor - Aerospace (Chair)

• Dr Shane Arnott, Director Boeing Phantom Works International

• Stu Blackwell, Manager Advanced Communications and Simulation, Northrop Grumman

• Dr Kimberley Clayfield, Executive Manager, Space Sciences and Technology, CSIRO

• Adam and James Gilmour, Founders, Gilmour Space Technologies

• Nick Green, General Manager, Defence and Aerospace, PFi (Products for Industry)

• Tammy Halter, Director, Absolute Data Group

• Peter Kinne, Regional Director APAC/Australasia, DigitalGlobe

• Derek Lockett, Director of Sales Asia Pacific, Honeywell

• Peggy MacTavish, Vice President, Civil & Defence Services, Elbit Systems of Australia

• Prof Peter Schubel, Executive Director, Institute for Advanced Engineering and Space Sciences,University of Southern Queensland

• Prof Michael Smart, Chair of Hypersonic Propulsion, University of Queensland

Sky is not the limit

1

Building Queensland's space economy

Glossary

Acronym Full name

ABARES Australian Bureau of Agricultural and Resource Economics and Sciences

ABS Australian Bureau of Statistics

ADF Australian Defence Force

ANZSIC AustralianandNewZealandStandardIndustrialClassification

ATMS Automated Train Management Systems

BOM Bureau of Meteorology

C-D Cobb-Douglas

CDE ConstantDifferencesofElasticities

CES Constant Elasticity of Substitution

CGE Computable general equilibrium

C-ITS Cooperative intelligent transport systems

CNSA ChinaNationalSpaceAdministration

COSSA CSIROOfficeofSpaceScienceandApplications

CRESH ConstantRatiosofElasticitiesSubstitution,Homothetic

CSIRO CommonwealthScientificandIndustrialResearchOrganisation

DAE-RGEM Deloitte Access Economics Regional General Equilibrium Model

DoD Department of Defence

DSDMIP Department of State Development, Mining, Infrastructure and Planning

ELDO EuropeanLauncherDevelopmentOrganisation

EO (S) EarthObservation(fromSpace)

ERG Expert Reference Group

ESA European Space Agency

FTE Full time equivalent

GIS GeographicInformationSystem

GNSS Global Navigation Satellite Systems

GPS Global Positioning System

GSP Gross State Product

JAXA Japan Aerospace Exploration Agency

NASA National Aeronautics and Space Administration

NPV Net Present Value

OECD Organisation of Economic Co-operation and Development

PNT Position, Navigation and Timing

PV Present Value

SME Small-medium enterprise

VR Variable Rate

WRE WeaponsResearchEstablishment

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Executive summary

Sky is not the limit

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Executive summary

Sky is not the limit

3

Building Queensland's space economy

Sky is not the limit Spacehasalwaysignitedhumancuriosity– fromtheAncientMayan’sastronomy;toGalileo;NASAlandingonthemoon;andnowthelikesofSpaceXandanewwave of private sector investment inspacecapability.Thecontinuousgrowthinknowledgeandtechnicalcapabilityhaspropelled our collective understanding ofspace,andwhatitcanbeusedfor.

Today, space is an economic opportunity, as well as an intellectual and spiritual curiosity.Theyoungmindsexcitedbyrocketlaunchesandpeopleonthemoonhavebecomegloballeadersinscience,technology,engineeringandmathematics;producinghighvalueadded,knowledgeintensive goods and services traded in a globalsupplychain.

Daily,theglobalspaceeconomyprovidesessentialdataandinformationforeachandeveryoneofus.Fromtheinternetandpersonalbanking,tothenavigationsystemweuseinourcarsoronourphones.Spaceisalsoresponsibleforthenecessaryinformationthatenablesweathermonitoring, emergency planning and management;andservesasthefoundationforgenerationsofresearchers,scientistsandmathematiciansthathaveinnovatedeconomiesandsocietiestohigherlivingstandardsandtechnologicalprogress.

Thepotentialforspilloversfromspacetechnologyandresearchendeavoursarebroadeninginscope,andbecomingricherintheirapplication.ValuedatUS$345billion(in2016),theglobalspaceeconomyissizeableandgrowing.Formuchofitshistory,thespacesectorhastypicallybeenanindustryled,financedandmanagedbygovernment. International space agencies havedominatedtheagendaanddrivenstrategyandgoalsettinginternally.Thehighentrycostsandrisksassociatedwiththespaceindustryofoldhasnecessitatedconsiderable government involvement.

Thisischanging,andchangingfast.Therecent trend towards decentralisation of activityoutofgovernmentandintotheprivatesectorhasspurredgrowthinthecommercialcomponentsofthesupplychain;theglobalspaceeconomytodayischaracterisedbyanincreasingnumberof private organisations and investors, working alongside space agencies to achievetheaspirationalgoalsoftheglobalspaceagenda.Thishasopenedupopportunities for countries like Australia toparticipatein,andbenefitfrom,thespace economy.

Our role in the New Space eraThenewnationalagendaisclear–Australiacan,andshould,playaroleinthegrowthoftheglobalspaceeconomy.Thisvalueisderivativeoftheinherentimportanceof space as an economic sector, but moreimportantly,thespilloversofspacerelatedtechnologyintootherkeysectorsoftheeconomy.Withprovenexpertiseinnicheareasoftheglobalsupplychain,theAustralianindustryhasthecapabilitytocapitaliseonthisgrowthpotential.TheAustralian Government’s space industry Expert Reference Group set an ambitious andexcitinggoalfortheAustralianspacecommunitytotriplethesizeoftheAustralianspaceeconomyfromthe2015-16estimateof$3.94billion,to$10-$12billionby2030.Thiswillcreateanindustrythatisroughlyone-thirdthesizeofAustralia’s current agricultural output, and willstimulateinvestmentalongthesupplychain,fromresearchanddevelopmentthroughtocommercialisationandexport.

TheQueenslandspaceeconomyhasgrandambitions of its own – ambitions to grow, and to be globally recognised.But,theseambitionsaregroundedintherealitythatQueensland is a small player in a global supplychain.TheaimisnottocompetewiththeentrenchedagglomerationsintheUS,ChinaandEurope;the aim is to continue to develop niche, globally competitive, high value added goods and services that can be exported to the world.

Thesmallsizeoftheindustrytodayisactuallyastrength–organisationsacrossQueensland’s space economy are actively collaboratingwitheachother,buildingspecialisedresearchcapabilitytosupportcommercial organisations and building commercial organisations out of specialised researchcapability.Thispresentsaunique opportunity for Queensland to develop a space ecosystem, whereupstreamanddownstreamplayershaveaco-ordinatedapproachtocompetingintheglobal supplychain.

ThefutureofQueensland’sspaceindustryisstrongandthereareopportunitiestobehad.However,thisisanindustrywhereconnectionsmatter,wherereputationsmatterandwhereentrenchedcompetitiveadvantagesariseastheresultofdecadesof investment in specialised capability – thisisnotanindustrythatcanbebuiltovernight.Queenslandisfortunatethatdecisionsmadedecadesagohavecreatedtheconditionsforanindustryripeforgrowth.Thequestionnowiswhatdecisions do we need to make today toensurethattheseopportunitiesandambitionsarerealised,forthebenefit of Queensland?

Queensland’s niche, but globally competitive space economyWiththeglobalgrowthprospectsstrong, a renewed national focus, and an ambitious localindustry,thespaceeconomyisanareathatwarrantsunderstanding,yetthereisnotanexistinginformationbase in Queensland.

ItisinthiscontextthatDeloitteAccessEconomics,withsupportfromtheDepartment of State Development, Manufacturing, Infrastructure and Planning, developed a data capture processtomapoutthecurrentstateofplay in Queensland’s space economy.

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Whilestillinitsinfancy,theresultantQueensland Space Economy Capability Directoryprovidesinsightsintothesize,scope and capability of organisations currentlyoperatinginQueensland–eitheras organisations located in Queensland or asorganisationswithastrongQueenslandpresence.ItprovidestheplatformforthedevelopmentofaspaceecosystemwhichcanacceleratethedevelopmentofQueensland’s space industry.

ThecapabilityreviewhasprovidedseveralkeyinsightsintoQueensland’sspaceindustry and ecosystem:

• Wherethereexistsmomentum acrossthe space supply chain, organisationswhosecorebusinessisspacerelatedare drawing on transferrable skillsandexpertisefromotherareasoftheQueenslandindustry/economytoachievetheirgrowthaspirations.

• Organisationsthatdonotconsiderspacetheircorebusinessareoperatinginindustries with transferrable skills andexpertise suchasDefence(aerospace/aviation), Mining, Manufacturing andResearchandDevelopment.

• Space activity is highly interdependent; meaning relationships are critical to success. WhileorganisationsinQueensland’sspaceeconomyarehighlycollaborative,growthwillrequireincreasedrepresentation of Queensland’scapabilities and competitive advantageson an international platform to remainrelevantinthecommerciallydrivenNewSpace environment.

• Queensland’s competitive advantages lie in its geographic location whichprovidesuniqueopportunitiesforspacesystems,launchactivities, ground systems and spaceenabledservices.Thishasfosteredpocketsofnichecapabilityacrossthespacesupplychaincreatedbyasmall,yethighlyspecialisedcommunity.EvidenceofthisisparticularlypoignantintheResearchandDevelopmentsub-sectorinQueenslandthathasgrownfromsustained long-term investmentbyQueensland universities. However,Queensland'sgeographiclocationisnotcurrentlybeingexploitedtoitsfullpotential;alackoftherespectivephysicalinfrastructureinthelaunchactivitiesandgroundsystemssub-sectorsmayhindergrowthupstream.

• Queensland’s existing economicstrengths, such as Mining,Manufacturing and Research andDevelopment are a solid industrybase from which growth in upstreamactivities can occur. Queensland alsohaslargepotentialend-userindustriesthatcanbenefitfromgrowthinspaceenabled services and applications.

• Accordingly,there exists substantialareas of Queensland’s existingindustry that can support supply toupstream space related organisationsand drive demand for data and analyticssupported by downstream space enabledservices.

Figureiintroducesthesub-sectorsofthespaceeconomyandthenumberoforganisationsoperatingineach.

Figure i. Number of businesses in space economy sub-sectors

Space systems

Launch activities

Ground systems

Space enabled services

Ancillary services

Research & development

Education & training

Other

16 6 6 8 4 2 125

Space systems Designing, building, manufacturing and operating components and systems based in space

Designing, building, manufacturing and operating ground systemsGround systems

Designing, building, manufacturing and operating equipment, services or applications that require data or other services from space-based systems or components Space enabled services

Professional services to support space-based actvitiesAncillary services

Space related research & developmentResearch & development

Space education and trainingEducation & training

Designing, building, manufacturing and operating equipment and services related to the launch of space systemsLaunch activities

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Whilestillinitsinfancy,theresultantQueensland Space Economy Capability Directoryprovidesinsightsintothesize,scope and capability of organisations currentlyoperatinginQueensland–eitheras organisations located in Queensland or asorganisationswithastrongQueenslandpresence.ItprovidestheplatformforthedevelopmentofaspaceecosystemwhichcanacceleratethedevelopmentofQueensland’s space industry.

ThecapabilityreviewhasprovidedseveralkeyinsightsintoQueensland’sspaceindustry and ecosystem:

• Wherethereexistsmomentum acrossthe space supply chain, organisationswhosecorebusinessisspacerelatedare drawing on transferrable skillsandexpertisefromotherareasoftheQueenslandindustry/economytoachievetheirgrowthaspirations.

• Organisationsthatdonotconsiderspacetheircorebusinessareoperatinginindustries with transferrable skills andexpertise suchasDefence(aerospace/aviation), Mining, Manufacturing andResearchandDevelopment.

• Space activity is highly interdependent; meaning relationships are critical to success. WhileorganisationsinQueensland’sspaceeconomyarehighlycollaborative,growthwillrequireincreasedrepresentation of Queensland’scapabilities and competitive advantageson an international platform to remainrelevantinthecommerciallydrivenNewSpace environment.

• Queensland’s competitive advantages lie in its geographic location whichprovidesuniqueopportunitiesforspacesystems,launchactivities, ground systems and spaceenabledservices.Thishasfosteredpocketsofnichecapabilityacrossthespacesupplychaincreatedbyasmall,yethighlyspecialisedcommunity.EvidenceofthisisparticularlypoignantintheResearchandDevelopmentsub-sectorinQueenslandthathasgrownfromsustained long-term investmentbyQueensland universities. However,Queensland'sgeographiclocationisnotcurrentlybeingexploitedtoitsfullpotential;alackoftherespectivephysicalinfrastructureinthelaunchactivitiesandgroundsystemssub-sectorsmayhindergrowthupstream.

• Queensland’s existing economicstrengths, such as Mining,Manufacturing and Research andDevelopment are a solid industrybase from which growth in upstreamactivities can occur. Queensland alsohaslargepotentialend-userindustriesthatcanbenefitfromgrowthinspaceenabled services and applications.

• Accordingly,there exists substantialareas of Queensland’s existingindustry that can support supply toupstream space related organisationsand drive demand for data and analyticssupported by downstream space enabledservices.

Figureiintroducesthesub-sectorsofthespaceeconomyandthenumberoforganisationsoperatingineach.

Figure i. Number of businesses in space economy sub-sectors

Space systems

Launch activities

Ground systems

Space enabled services

Ancillary services

Research & development

Education & training

Other

16 6 6 8 4 2 125

Space systems Designing, building, manufacturing and operating components and systems based in space

Designing, building, manufacturing and operating ground systemsGround systems

Designing, building, manufacturing and operating equipment, services or applications that require data or other services from space-based systems or components Space enabled services

Professional services to support space-based actvitiesAncillary services

Space related research & developmentResearch & development

Space education and trainingEducation & training

Designing, building, manufacturing and operating equipment and services related to the launch of space systemsLaunch activities

5

Building Queensland's space economy

Figure ii. AreasforfuturegrowthinQueensland’sspaceeconomy

Lookingforward,thecombinationofcurrent competitive advantages and globalgrowthopportunitiespresentsanumberofareasforfuturegrowthinQueensland’sspaceeconomy.Whiletheintentionwasnottoidentifyspecificsub-sectoropportunities–thisisfortheindustrytodecide–therearemanycommercial opportunities for Queensland organisationswiththerightcapabilitiesandnetworks.Thebroadareasforgrowth(asdepicted in Figure ii) centre on:

• Connecting Queensland’s organisations totheglobalspaceeconomy,whichissetforsustainedgrowth

• Strengthening existing capability to ensurethatourcurrentareasofnicheexpertise are world class and positioned forgrowth

• Experimenting throughacontinuedfocusonourdeep–albeitniche–expertiseinresearchanddevelopment

• Leveraging currentstrengthsin thespaceeconomy,andbroaderstrengthssuchasadvancedmanufacturing;tomoveintonewareas ofthespaceeconomy.

Moreover,theadoption of space enabled servicesbyotherQueenslandindustrieswas revealed as an area for – potentially large–growth,witheconomicdividendsacrosstheeconomy.Thispotentialisexploredinthefuturegrowthscenariosmodelling (overleaf).

Economic profile of Queensland’s space economyWheretheQueenslandSpaceEconomyCapability Directory provides a bottom up profileoftheQueenslandspaceeconomy,atopdownprofilehasbeendevelopedinordertoestimatetheeconomiccontributionofthespaceindustryinQueenslandtodayandoverthenexttwodecades.Thisapproach‘carvesout’thespaceindustryfromthebroaderQueensland economy.1

Today,theQueenslandspaceindustrydirectly employs around 2,000 full time equivalent jobs (FTEs) and contributes halfabilliondollarsinvalueaddedto Queensland’s economy (2018-19). Thisisequivalenttoabout4.4%ofQueensland’sagricultureindustryor2.4%of Queensland’s manufacturing industry (in value added terms).

Overthenexttwodecades,underamediumgrowthscenariotheindustrycould contribute $1.3 billion in value added to Queensland’s economy and employ around 5,000 FTEs –thisisequivalenttoaboutonequarterofthevalue added by today’s information, media and telecommunications industry in Queensland.

Given uncertainty about future conditions intheglobalspaceindustry–andglobaleconomy more generally – two additional scenarioshavealsobeendeveloped.TheconservativegrowthscenarioputstheQueenslandspaceindustryataround$1.1billioninvalueaddedand4,000FTEs,whilethehighgrowthscenarioprojectsvalueaddedof$1.7billioninvalueaddedand6,000 FTEs.

Theconservative,mediumandhighgrowthscenarioshavebeendevelopedtoestablishpotentialgrowthpathsforQueensland’s space industry. The medium growth scenario represents the base case for the modelling.

0102

ConnectingFostering international networks to seize growth opportunities

AdoptingRealising the application of space technology

across the Queensland economy

StrenghtheningBuilding on our existing space capability

0304

ExperimentingContinuing to invest in R&D

LeveragingDrawing on our broader economic strengths to grow space related capability

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Potential future scenarios for Queensland’s space economyInadditiontothebaselineeconomicprofileofQueensland’sspaceindustry,threescenarioshavebeendevelopedtopaintapictureaboutwhat’spossibleforspaceinQueensland.Analysisofthesescenarioshasbeenconductedusingthepreviouslyestablishedmedium growth scenario as the base case (or business as usual).Therefore,subsequent economic scenario modelling is measured relative to the medium growth scenario, or base case.

Introducing the scenariosWherethebaseeconomiccontributionfocusesonthe‘core’ofthespaceindustry,two of the three scenarios take a broader perspective on the potential economic dividends to Queensland from growth in the wider space economy – namely through the adoption of space enabled services by Queensland’s powerhouse industries (i.e. agriculture, mining, transport, construction, telecommunicationsandutilities).Allthreescenarios are measured incrementally to whatwouldalreadyhavehappenedinthebasecase,orthemediumgrowthscenario.

• Scenario 1istriggeredbyastep-changeincreaseintheadoptionofspaceenabledservicesbyindustriesinQueenslandthatcansignificantlybenefitfromtheearthobservation and positioning capabilities ofthespaceindustry;

• Scenario 2, like scenario 1, is triggered by astep-changeincreaseintheadoptionof space enabled services, albeit under moreconservativeassumptions.Thepurposeofthisscenarioistoprovidea sensitivity analysis for scenario 1 toprovidean‘orderofmagnitude’assessmentofthepotentialbenefitsoftheadoptionofspaceenabledservices(andexploretheimpactofassumptionsontheendresults).

2019

2036

Intheproductionofspacerelatedgoodsandservices,theindustrydirectly:

Employs approximately 2,000 FTEs

Generates $760 million in revenue

Generates $500 million in value added(thedirecteconomiccontribution).

Intheproductionofspacerelatedgoodsandservices,theindustrydirectly:

Employs approximately 4,000 FTEs

Generates $1.7 billion in revenue

Generates $1.1 billion in value added

Employs approximately 5,000 FTEs

Generates $2.0 billion in revenue

Generates $1.3 billion in value added

Employs approximately 6,000 FTEs

Generates $2.7 billion in revenue

Generates $1.7 billion in value added

Conservative growth Medium growth (base case) High growth

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Potential future scenarios for Queensland’s space economyInadditiontothebaselineeconomicprofileofQueensland’sspaceindustry,threescenarioshavebeendevelopedtopaintapictureaboutwhat’spossibleforspaceinQueensland.Analysisofthesescenarioshasbeenconductedusingthepreviouslyestablishedmedium growth scenario as the base case (or business as usual).Therefore,subsequent economic scenario modelling is measured relative to the medium growth scenario, or base case.

Introducing the scenariosWherethebaseeconomiccontributionfocusesonthe‘core’ofthespaceindustry,two of the three scenarios take a broader perspective on the potential economic dividends to Queensland from growth in the wider space economy – namely through the adoption of space enabled services by Queensland’s powerhouse industries (i.e. agriculture, mining, transport, construction, telecommunicationsandutilities).Allthreescenarios are measured incrementally to whatwouldalreadyhavehappenedinthebasecase,orthemediumgrowthscenario.

• Scenario 1istriggeredbyastep-changeincreaseintheadoptionofspaceenabledservicesbyindustriesinQueenslandthatcansignificantlybenefitfromtheearthobservation and positioning capabilities ofthespaceindustry;

• Scenario 2, like scenario 1, is triggered by astep-changeincreaseintheadoptionof space enabled services, albeit under moreconservativeassumptions.Thepurposeofthisscenarioistoprovidea sensitivity analysis for scenario 1 toprovidean‘orderofmagnitude’assessmentofthepotentialbenefitsoftheadoptionofspaceenabledservices(andexploretheimpactofassumptionsontheendresults).

2019

2036

Intheproductionofspacerelatedgoodsandservices,theindustrydirectly:

Employs approximately 2,000 FTEs

Generates $760 million in revenue

Generates $500 million in value added(thedirecteconomiccontribution).

Intheproductionofspacerelatedgoodsandservices,theindustrydirectly:

Employs approximately 4,000 FTEs

Generates $1.7 billion in revenue

Generates $1.1 billion in value added

Employs approximately 5,000 FTEs

Generates $2.0 billion in revenue

Generates $1.3 billion in value added

Employs approximately 6,000 FTEs

Generates $2.7 billion in revenue

Generates $1.7 billion in value added

Conservative growth Medium growth (base case) High growth

7

Building Queensland's space economy

The third scenario centres on the establishment of space infrastructure in the launch activities and ground systems sub-sectors of Queensland’s space economy; such as a rocket launch facility, or a major satellite communications park. These capabilities will support Queensland's space industry to actively participate in the global supply chain. Launch and ground system capabilities were identified by the industry as potential enablers for future growth – noting the establishment of a launch facility in Australia would require coordination by the Australian Space Agency.

For the first two scenarios to come to fruition, major changes are required in the understanding of the value of space enabled services in industries outside of the ‘core’ space industry, and for the third scenario to come to fruition, development of space infrastructure would be required.

Scenario resultsThe scenarios are modelled using Deloitte Access Economics’ Computational General Equilibrium (CGE) model. Each of the three scenarios is constructed around ‘shocks’ – with scenarios 1 and 2 reflecting productivity shocks, while scenario 3 reflects a capital shock in Queensland’s space industry. The productivity benefits to downstream industries (e.g. agriculture, mining) are assumed to be additional to those that would have implicitly occurred in the base case.

The two adoption scenarios are reported jointly to demonstrate the range of potential economic benefits derived from increasing the adoption of space enabled services by key industries in Queensland.

The modelling indicates that the Queensland economy could increase (above the base case) by between $3.5 billion and $6 billion (in present value terms) over the period 2019 to 2036. By 2036, Queensland’s gross state product (GSP) could grow in the order of between $650 million to $1.15 billion above the base case.

The potential employment generated by the activity is estimated to range from 1,800 to 2,700 full time equivalent (FTE) employment (in average annual terms) over the period 2019 to 2036. By 2036, FTE employment could increase in cumulative terms by between 3,300 and 4,900 FTEs above the base case.

These results highlight that even under moderate productivity assumptions, the adoption of space enabled services by other industries will deliver economic dividends for Queensland.

• Scenario 3 is triggered by thedevelopment of space infrastructure.

By their very nature, scenarios are generalised and do not precisely capture all aspects of the hypothesised future economic state. None of the scenarios presented in this analysis are inevitable, but at the same time they are not unrealistic and provide us with a meaningful place to start discussions about supporting growth in Queensland’s space economy.

Table iii Summary of economy-wide impacts for Scenario 3 (incremental to the base case)

Source: Deloitte Access Economics Source: Deloitte Access Economics

Gross state product

$6 billion $3.5 billion

FTE employment

4,900 FTEs 3,300 FTEs

Total project (2019-36)

Construction phase (2019-23)

Operations phase (2024-36)

Gross state product

$82 million

(in NPV terms over the total project)

$9 million

(annually on average over the construction phase)

$7 million

(annually on average over the operations phase)

FTE employment

24 FTEs

(annually on average over the total project)

57 FTEs

(annually on average over the construction phase)

12 FTEs

(annually on average over the operations phase)

Scenario 1: High productivity

Scenario 2: Moderate productivity

Table ii Summary of economy-wide impacts for Scenarios 1 and 2 (incremental to the base case)

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Sky is not the limit

The modelling estimates show that the establishment of space infrastructure in the launch activities and ground systems sub-sectors of the industry has the potential to grow Queensland’s GSP by around $82 million over the period 2019 to 2036, adding 24 FTE jobs.

However, while not directly modelled here, the broader economic value of launch or ground system capabilities, whether built in Queensland or elsewhere in Australia, is not derived from the construction and operation of space infrastructure alone. Value is derived from the ability of existing organisations to capitalise on the opportunities associated with significant space-related infrastructure investments.

When combined with Queensland’s existing competitive advantages, the broader economic value of both launch and ground system capability is the potential for Queensland to develop world class launch supply chains – i.e. the dynamic effects generated by deepening scale and broadening the scope of the sub-sectors. This would enhance the development of an advanced manufacturing supply chain, with productivity spill over effects into the state’s other major industries (e.g. agriculture, mining).

The potential benefits of developing space infrastructure in Queensland or another location in Australia, should be weighed against the costs and risks, including customer and market demand, which are beyond the scope of this report. Who leads and pays for the infrastructure is also beyond this report’s scope.

Technical note: Scenarios 1 and 2 are based on productivity ‘shocks’ to downstream industries with the potential to make greater use of space enabled services (e.g. agriculture and mining). Scenario 3 is an isolated capital ‘shock’ to the space industry and upstream construction industry due to development of space infrastructure (i.e. there are no downstream impacts captured in this scenario).

Where to next?The Queensland space economy is poised for, and actively seeking, growth – growth in activity, growth in value, growth in people. However, the pace of growth is not unique to Queensland; rather, the sheer volume of global demand for the commercial activities associated with space is going to benefit any region with a competitively positioned space industry. The question for Queensland is how fast the local space industry can expand to meet this demand.

Today, Queensland has a highly specialised, but highly competitive, space economy. The organisations, research institutions and individuals that comprise the ‘core’ space industries have world leading expertise and are already experiencing rapid growth.

However, the small scale of the Queensland industry means that there is not currently sufficient critical mass in many upstream and downstream industries in the local supply chain to ensure that the space economy in Queensland works as a co- ordinated local market. For the Queensland space economy to rapidly scale up to meet global demand, greater depth and key anchor points are required in the supply chain. Queensland needs to support growth in existing capabilities, build out capacity in adjacent areas to current strengths, improve connections within the existing supply chain, leverage untapped local demand from other industries(e.g. agriculture) and continue to invest in the early stages of research and develop-ment. These could be enhanced by space infrastructure which could reduce business and anchor the supply chain by generating demand for products and services.

In saying that, the global nature of the space economy means that it does not make sense for Queensland to be actively pursuing all growth opportunities; rather, Queensland is, and will likely always be, a small, niche, player in the global space economy and this means we need to decide where we fit in the national and global supply chains.

The resultant growth will take time. This is not an industry that can be built through short term investments. The space economy is built from decades of investment in research, equipment and, most importantly, people. The competitive advantages of Queensland’s space economy in 2030, 2050 and beyond, will be the result of decisions made today. Government plays an important role in shaping the future growth path of this industry.

What the analysis in this report demonstrates is that investments in the space economy do have wider benefits for Queensland. From space education in schools, to the realisation of economic value from the commercialisation of space activities, there are economic dividends to be had across the spectrum of space sub- sectors.

Deloitte Access Economics

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Sky is not the limit

The modelling estimates show that the establishment of space infrastructure in the launch activities and ground systems sub-sectors of the industry has the potential to grow Queensland’s GSP by around $82 million over the period 2019 to 2036, adding 24 FTE jobs.

However, while not directly modelled here, the broader economic value of launch or ground system capabilities, whether built in Queensland or elsewhere in Australia, is not derived from the construction and operation of space infrastructure alone. Value is derived from the ability of existing organisations to capitalise on the opportunities associated with significant space-related infrastructure investments.

When combined with Queensland’s existing competitive advantages, the broader economic value of both launch and ground system capability is the potential for Queensland to develop world class launch supply chains – i.e. the dynamic effects generated by deepening scale and broadening the scope of the sub-sectors. This would enhance the development of an advanced manufacturing supply chain, with productivity spill over effects into the state’s other major industries (e.g. agriculture, mining).

The potential benefits of developing space infrastructure in Queensland or another location in Australia, should be weighed against the costs and risks, including customer and market demand, which are beyond the scope of this report. Who leads and pays for the infrastructure is also beyond this report’s scope.

Technical note: Scenarios 1 and 2 are based on productivity ‘shocks’ to downstream industries with the potential to make greater use of space enabled services (e.g. agriculture and mining). Scenario 3 is an isolated capital ‘shock’ to the space industry and upstream construction industry due to development of space infrastructure (i.e. there are no downstream impacts captured in this scenario).

Where to next?The Queensland space economy is poised for, and actively seeking, growth – growth in activity, growth in value, growth in people. However, the pace of growth is not unique to Queensland; rather, the sheer volume of global demand for the commercial activities associated with space is going to benefit any region with a competitively positioned space industry. The question for Queensland is how fast the local space industry can expand to meet this demand.

Today, Queensland has a highly specialised, but highly competitive, space economy. The organisations, research institutions and individuals that comprise the ‘core’ space industries have world leading expertise and are already experiencing rapid growth.

However, the small scale of the Queensland industry means that there is not currently sufficient critical mass in many upstream and downstream industries in the local supply chain to ensure that the space economy in Queensland works as a co- ordinated local market. For the Queensland space economy to rapidly scale up to meet global demand, greater depth and key anchor points are required in the supply chain. Queensland needs to support growth in existing capabilities, build out capacity in adjacent areas to current strengths, improve connections within the existing supply chain, leverage untapped local demand from other industries(e.g. agriculture) and continue to invest in the early stages of research and develop-ment. These could be enhanced by space infrastructure which could reduce business and anchor the supply chain by generating demand for products and services.

In saying that, the global nature of the space economy means that it does not make sense for Queensland to be actively pursuing all growth opportunities; rather, Queensland is, and will likely always be, a small, niche, player in the global space economy and this means we need to decide where we fit in the national and global supply chains.

The resultant growth will take time. This is not an industry that can be built through short term investments. The space economy is built from decades of investment in research, equipment and, most importantly, people. The competitive advantages of Queensland’s space economy in 2030, 2050 and beyond, will be the result of decisions made today. Government plays an important role in shaping the future growth path of this industry.

What the analysis in this report demonstrates is that investments in the space economy do have wider benefits for Queensland. From space education in schools, to the realisation of economic value from the commercialisation of space activities, there are economic dividends to be had across the spectrum of space sub- sectors.

Deloitte Access Economics

9

Building Queensland's space economy

1 Introduction

Building Queensland's space economy

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1.1 OverviewSpacehasalwaysignitedhumancuriosity–fromtheAncientMayan’sastronomy;toGalileo;NASAlandingonthemoon;andnowthelikesofSpaceXandanewwave of private sector investment in spacecapability.Thecontinuousgrowthinknowledgeandtechnicalcapabilityhaspropelled our collective understanding of space,andwhatitcanbeusedfor.

Withtherestrictionofspacediscoveryand exploration no longer limited to government, globally space is becoming acompetitiveandhigh-growthprivatesector.Thissectorispartofaglobalspaceeconomywhichismuchmorethanjustlaunchingrockets.Theglobalspace economy involves all resources andundertakingsthatprovidevaluetohumanbeingsinthecourseofdiscovering,understanding and utilising space.

Daily,theglobalspaceeconomyprovidesessentialdataandinformationforeachandeveryoneofus.Fromtheinternetandpersonalbanking,tothenavigationsystemweuseinourcarsoronourphones.Spaceisalsoresponsibleforthenecessaryinformationthatenablesweathermonitoring, emergency planning and management;andservesasthefoundationforgenerationsofresearchers,scientistsandmathematiciansthathaveinnovatedeconomiesandsocietiestohigherlivingstandardsandtechnologicalprogress.

Thepotentialforspilloversfromspacetechnologyandresearchendeavoursare broadening in scope, and becoming richerintheirapplication.ForQueensland,thestate’snatural,competitiveandcomparativeeconomicadvantageshavethepotentialtopositiontheeconomy tocapitaliseonthegrowthpotentialinspace.Butthequestionremains– how can Queensland compete not only nationally, but globally?

Tobegintoanswerthisquestion,anunderstanding of Queensland’s existing space industry capability is required.

1.2 This projectTheQueenslandGovernmentreleasedtheQueensland Aerospace 10-Year Roadmap and Action Plan in June 2018, setting out avisionforthefutureofQueensland’saerospaceindustry.Thedevelopmentofspacetechnologiesandabroaderspaceindustryisakeypartofthisplan.

TheDepartmentofStateDevelopment,Manufacturing, Infrastructure and Planning (DSDMIP)istheQueenslandGovernment’sleadagencyonmattersrelatedtothespace industry.

DeloitteAccessEconomicshasbeenengaged by DSDMIP to perform a capability review of Queensland’s current space industry, and develop an understanding of thepotentialforgrowthinthissector.

Aspartofthisreview,DeloitteAccessEconomicshasalsoundertakeneconomicmodellingtoestimatethecurrentsizeofthesector,aswellasbuildanunderstandingofhighergrowthscenarios.

1.2.1 ApproachTheapproachtoundertakingthecapability review and economic modelling wasdevelopedtoreflecttheuniqueand developing nature of Queensland’s space industry and its relatively small sizecomparedtootherestablishedQueensland sectors.

TobothcomplementandsupplementliteratureandexistingresearchontheAustralian and global space industry, severalprimaryresearchmethodswereemployedtodocumenttheQueenslandspace industry.

Table1.1describestheprimaryresearchandanalyticalapproachadopted.

Table 1.1 Primaryanalysisconductedduringthisproject

Source: Deloitte Access Economics

Analysis Description Sample size

Industry directory and snapshot survey (survey 1)

Thesurveywasdesignedtocreate an industry capability directoryanddevelopasnapshotof Queensland’s current space sector.Thequestionsaskedforkey information about business andservices,andthescopeofactivities currently contributing to Queensland’s space ecosystem.

59

Notingthatmultipleresponsesfromthesameorganisationweremerged.

Industry capability survey (survey 2)

ThesurveywasdesignedtounderstandindetailtheQueensland space ecosystem andsupplychain–aswellasthecapabilityoftheecosystemandaspirationsforgrowth.

18

Industry consultation

Industry consultation occurred acrossseveralchannelstocapture a diversity of views and capabilities.Thisconsultationwasfacilitated by DSDMIP.

• Queensland Government reference group

• Industry focus group

• Sitevisitstoselectresearchinstitutions and businesses

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1.1 OverviewSpacehasalwaysignitedhumancuriosity–fromtheAncientMayan’sastronomy;toGalileo;NASAlandingonthemoon;andnowthelikesofSpaceXandanewwave of private sector investment in spacecapability.Thecontinuousgrowthinknowledgeandtechnicalcapabilityhaspropelled our collective understanding of space,andwhatitcanbeusedfor.

Withtherestrictionofspacediscoveryand exploration no longer limited to government, globally space is becoming acompetitiveandhigh-growthprivatesector.Thissectorispartofaglobalspaceeconomywhichismuchmorethanjustlaunchingrockets.Theglobalspace economy involves all resources andundertakingsthatprovidevaluetohumanbeingsinthecourseofdiscovering,understanding and utilising space.

Daily,theglobalspaceeconomyprovidesessentialdataandinformationforeachandeveryoneofus.Fromtheinternetandpersonalbanking,tothenavigationsystemweuseinourcarsoronourphones.Spaceisalsoresponsibleforthenecessaryinformationthatenablesweathermonitoring, emergency planning and management;andservesasthefoundationforgenerationsofresearchers,scientistsandmathematiciansthathaveinnovatedeconomiesandsocietiestohigherlivingstandardsandtechnologicalprogress.

Thepotentialforspilloversfromspacetechnologyandresearchendeavoursare broadening in scope, and becoming richerintheirapplication.ForQueensland,thestate’snatural,competitiveandcomparativeeconomicadvantageshavethepotentialtopositiontheeconomy tocapitaliseonthegrowthpotentialinspace.Butthequestionremains– how can Queensland compete not only nationally, but globally?

Tobegintoanswerthisquestion,anunderstanding of Queensland’s existing space industry capability is required.

1.2 This projectTheQueenslandGovernmentreleasedtheQueensland Aerospace 10-Year Roadmap and Action Plan in June 2018, setting out avisionforthefutureofQueensland’saerospaceindustry.Thedevelopmentofspacetechnologiesandabroaderspaceindustryisakeypartofthisplan.

TheDepartmentofStateDevelopment,Manufacturing, Infrastructure and Planning (DSDMIP)istheQueenslandGovernment’sleadagencyonmattersrelatedtothespace industry.

DeloitteAccessEconomicshasbeenengaged by DSDMIP to perform a capability review of Queensland’s current space industry, and develop an understanding of thepotentialforgrowthinthissector.

Aspartofthisreview,DeloitteAccessEconomicshasalsoundertakeneconomicmodellingtoestimatethecurrentsizeofthesector,aswellasbuildanunderstandingofhighergrowthscenarios.

1.2.1 ApproachTheapproachtoundertakingthecapability review and economic modelling wasdevelopedtoreflecttheuniqueand developing nature of Queensland’s space industry and its relatively small sizecomparedtootherestablishedQueensland sectors.

TobothcomplementandsupplementliteratureandexistingresearchontheAustralian and global space industry, severalprimaryresearchmethodswereemployedtodocumenttheQueenslandspace industry.

Table1.1describestheprimaryresearchandanalyticalapproachadopted.

Table 1.1 Primaryanalysisconductedduringthisproject

Source: Deloitte Access Economics

Analysis Description Sample size

Industry directory and snapshot survey (survey 1)

Thesurveywasdesignedtocreate an industry capability directoryanddevelopasnapshotof Queensland’s current space sector.Thequestionsaskedforkey information about business andservices,andthescopeofactivities currently contributing to Queensland’s space ecosystem.

59

Notingthatmultipleresponsesfromthesameorganisationweremerged.

Industry capability survey (survey 2)

ThesurveywasdesignedtounderstandindetailtheQueensland space ecosystem andsupplychain–aswellasthecapabilityoftheecosystemandaspirationsforgrowth.

18

Industry consultation

Industry consultation occurred acrossseveralchannelstocapture a diversity of views and capabilities.Thisconsultationwasfacilitated by DSDMIP.

• Queensland Government reference group

• Industry focus group

• Sitevisitstoselectresearchinstitutions and businesses

11

Building Queensland's space economy

1.3 Structure of this reportOPENING • Chapter2providesthedefinitionofthespaceeconomyandpresentsaneconomicperspectiveofthespacesupplychain.

• Chapter3providesanoverviewoftheglobalandnationalcontext,discussingtrendsinthespaceeconomyandthecurrentstate of play.

PART ONE | BOTTOM UP ANALYSIS • Chapter4providesadetailedlookatthecurrentcompositionofQueensland’sspaceeconomyandisbasedonthefindingsoftheQueenslandSpaceEconomyCapabilityDirectory.Itincludesanoverviewofspaceeconomysub-sectors,turnoverranges,employeeranges,exportingactivitiesandcompositionoforganisationswherespaceistheprimaryindustryversusnot.

• Chapter5providesanoverviewofthecomparativeadvantagesofQueensland’sspaceeconomy,drawingoninsightsgainedfromindustryconsultationandtheindustrycapabilitysurvey.Theassessmentofcomparativeadvantagesisbasedonacapability matrix.

• Chapter6providesasummaryofthekeyareasforgrowthinQueensland’sspaceeconomy–connecting,strengthening,experimenting, leveraging and adopting.

PART TWO | TOP DOWN ANALYSIS• Chapter7providestheestimateofthebaselineprofileofQueensland’sspaceeconomyoverthenext20years,including

employment and industry value added.

• Chapter8providesthreepotentialfuturescenariostoexplorehowQueensland’sspaceeconomycouldlookif1)spaceenabledservicesareadoptedacrossQueensland’seconomyand2)spaceinfrastructureinthelaunchactivitiesandgroundsystemssub-sectorsoftheindustrywhereestablishedinQueensland.

PART THREE | REFLECTIONS • Chapter9providesthekeyreflectionsonthecapabilityoftheQueenslandspaceeconomyandthefuturepathoftheindustry,includingtheroleforgovernment.

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2 Definingthespaceeconomy

Sky is not the limit

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2 Definingthespaceeconomy

Sky is not the limit

13

Building Queensland's space economy

2.1 OverviewFromtheaspirationalgoaloflandinga manonthemoon,totheexplorationof oursolarsystemwithsatellitetechnology,thesearchforhabitableplanetsandasteroidmining;thespaceindustryhasdevelopedrapidlyoverthelast60years.Countriestheworldoverhaveexhibitedanenduringcommitmenttospaceexploration,whichhaspushedrelatedfieldsofexpertisebeyondtheirlimits.Adequatelyacknowledgingthevast array of upstream and downstream activities related to space is necessary tounderstandthewaytheresearch,technologyandskillsofthespaceindustrydriveimprovementsacrosstheeconomy.

After decades of centralised control ofeconomicactivityinspace,thescope ofactivitiesconsidered‘spacerelated’, hasgraduallybroadenedasimprovementsintechnologydrivenbythetraditionalspacesector,haveextendedtothe wider economy. However, it is recognised thatinordertousefullyevaluatethecapabilityoftheQueenslandspaceeconomy,notallorganisationsshouldbeconsideredashavingcapabilitiesinspace.

Forexample,whileUberreliesheavilyondata provided by Global Navigation Satellite Systems, it would not be appropriate to considerthefirmashavingspacecapability.

Assuch,thischaptercommencesbydefiningthespaceeconomy–wherearetheboundariesofthespaceeconomyandwhatarethesub-sectorsthatcomprisethespace economy?

Importantlyforthisreport,aneconomicperspectiveofthespaceeconomyisalsopresented.Thisframeworkpresentsthespaceeconomyintermsofitssupplychain,introducingtwocomponentsofthespaceeconomyasthosethat‘sendintospace’andthosethat‘receivefromspace’.

2.2 Defining the space economyTheOrganisationofEconomicCo-operationandDevelopment(OECD)definitionofthe‘spaceeconomy’reflectsthetraditionalactivitiesofthespaceindustry,andextendsthisconcepttothebroaderusesofspacederivedtechnologiesandapplications. Forthepurposesofthisreview,referencemadetothe‘spaceeconomy’willrefertothe followingOECDdefinition:

"The full range of activities and the use of resources that create and provide value and benefits to human beings in the course of exploring, understanding, managing and utilising space. Hence, it includes all public and private actors involved in developing, providing and using space-related products and services, ranging from research and development, the manufacture and use of space infrastructure (ground stations, launch vehicles and satellites) to space-enabled applications (navigation equipment, satellite phones, meteorological services, etc.) and the scientific knowledge generated by such activities. It follows that the Space Economy goes well beyond the space sector itself, since it also comprises the increasingly pervasive and continually changing impacts (both quantitative and qualitative of space-derived products, services and knowledge on economy and society.” 2

Thesub-sectorsofthespaceeconomy arefurtherdefinedinFigure2.1.

Figure 2.1 Definingsub-sectorsinthespaceeconomy(countofbusinesses)

Source: Deloitte Access Economics

Space systems

Launch activities

Ground systems

Space enabled services

Ancillary services

Research & development

Education & training

Other

16 6 6 8 4 2 125

Space systems Designing, building, manufacturing and operating components and systems based in space

Designing, building, manufacturing and operating ground systemsGround systems

Designing, building, manufacturing and operating equipment, services or applications that require data or other services from space-based systems or components Space enabled services

Professional services to support space-based actvitiesAncillary services

Space related research & developmentResearch & development

Space education and trainingEducation & training

Designing, building, manufacturing and operating equipment and services related to the launch of space systemsLaunch activities

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Theconceptofthespaceeconomyisareflectionoftheindustry’stransitionto‘NewSpace’;amodelofthespaceindustrythathasanewstructure(increasedprivateactors)anddifferentgoalsincludingagility,responsiveness, acceptance of risk and (significantly)lowercosts.3

Theevolutionof‘NewSpace’alsoreflectstheuseandapplicationoftechnologieswhichwereoriginallydesignedandusedforspaceexplorationbuthavesincebeenrepurposedforalternativeuses.Theuseoftheterm‘spaceindustry’willthereforerefertothecoreoftraditionalspaceactivitiessuchastheresearch,design,manufactureand construction of infrastructure and technologythatisdestinedforspace,ortomonitor activities in space.

2.3 An economic perspective of the space economyForthepurposesofthisanalysis,aneconomicperspectiveofthespaceeconomyhasbeendeveloped.Basedonthesupplychaininteractionsacrossthespaceeconomy,thisperspectiveshowshowthe‘core’componentsofthespaceeconomyinteractwiththebroaderupstream and downstream supply chains.ThisanalyticalframeworkprovesparticularlyusefulwhenconsideringthefuturegrowthscenariosofQueensland’sspaceeconomyinChapter8.

Thefigureoverleafdepictsthetwo distinct, but interlinked, components ofthespaceeconomy:

• First,thereisthepartofthespaceeconomythatsends objects into space.IntheQueenslandcontext,thisparticularlyreferstorocketlaunch,butmay also include satellites.

– Thiscoreisextremelynicheandrequireshighlyskilledworkersand,typically, sizeable capital investments. Duetothenatureofthegoodsandservicesproduced,thiscomponentisrelativelylocation-specific,meaningthatoncethiscoreisestablishedinQueensland(throughcapital,know-howandtechnologicalinvestments),itismorelikelytobefixedinlocationovertheshorttomediumterm.

– ThesupplychainimpactsforthispartofthespaceeconomyinQueenslandarecurrentlyfocusedontheupstreamindustries–thatis,thesuppliersofinputsintothecore,suchasadvancedmanufacturing.

– Theresearchinthispartofthespace economy focuses on areas suchasmaterialsandcomposites,mathematics,andaeronauticalengineering.

• Theupstreamsupplychainforthepartoftheeconomythatsendsobjectsintospaceisthepartofthespaceeconomythatreceivesfromspace,wherelaunchcapabilityandgroundsystemsarethelinkbetweenthetwo.

• Second,thereisthepartofthespaceeconomythatreceives from space. In theQueenslandcontext,thisparticularlyrefers to Global Navigation Satellite Systems(GNSS),EarthObservation (EO) and Position, Navigation and Timing (PNT).

– Thiscoreisalsohighlyniche,withspecialist skills in data, imagery and signalsanalysis.Theoutputsofthiscorecanbesuppliedfromanywhereintheworldwithadatacable.

– ThesupplychainimpactsforthispartofthespaceeconomyinQueenslandareinthedownstreamindustriesthatpurchasetheoutputsofthecore,suchas agriculture and mining.

– Theresearchinthispartofthesupplychainfocusesonareassuchasastrophysicsandastronomy.

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Theconceptofthespaceeconomyisareflectionoftheindustry’stransitionto‘NewSpace’;amodelofthespaceindustrythathasanewstructure(increasedprivateactors)anddifferentgoalsincludingagility,responsiveness, acceptance of risk and (significantly)lowercosts.3

Theevolutionof‘NewSpace’alsoreflectstheuseandapplicationoftechnologieswhichwereoriginallydesignedandusedforspaceexplorationbuthavesincebeenrepurposedforalternativeuses.Theuseoftheterm‘spaceindustry’willthereforerefertothecoreoftraditionalspaceactivitiessuchastheresearch,design,manufactureand construction of infrastructure and technologythatisdestinedforspace,ortomonitor activities in space.

2.3 An economic perspective of the space economyForthepurposesofthisanalysis,aneconomicperspectiveofthespaceeconomyhasbeendeveloped.Basedonthesupplychaininteractionsacrossthespaceeconomy,thisperspectiveshowshowthe‘core’componentsofthespaceeconomyinteractwiththebroaderupstream and downstream supply chains.ThisanalyticalframeworkprovesparticularlyusefulwhenconsideringthefuturegrowthscenariosofQueensland’sspaceeconomyinChapter8.

Thefigureoverleafdepictsthetwo distinct, but interlinked, components ofthespaceeconomy:

• First,thereisthepartofthespaceeconomythatsends objects into space.IntheQueenslandcontext,thisparticularlyreferstorocketlaunch,butmay also include satellites.

– Thiscoreisextremelynicheandrequireshighlyskilledworkersand,typically, sizeable capital investments. Duetothenatureofthegoodsandservicesproduced,thiscomponentisrelativelylocation-specific,meaningthatoncethiscoreisestablishedinQueensland(throughcapital,know-howandtechnologicalinvestments),itismorelikelytobefixedinlocationovertheshorttomediumterm.

– ThesupplychainimpactsforthispartofthespaceeconomyinQueenslandarecurrentlyfocusedontheupstreamindustries–thatis,thesuppliersofinputsintothecore,suchasadvancedmanufacturing.

– Theresearchinthispartofthespace economy focuses on areas suchasmaterialsandcomposites,mathematics,andaeronauticalengineering.

• Theupstreamsupplychainforthepartoftheeconomythatsendsobjectsintospaceisthepartofthespaceeconomythatreceivesfromspace,wherelaunchcapabilityandgroundsystemsarethelinkbetweenthetwo.

• Second,thereisthepartofthespaceeconomythatreceives from space. In theQueenslandcontext,thisparticularlyrefers to Global Navigation Satellite Systems(GNSS),EarthObservation (EO) and Position, Navigation and Timing (PNT).

– Thiscoreisalsohighlyniche,withspecialist skills in data, imagery and signalsanalysis.Theoutputsofthiscorecanbesuppliedfromanywhereintheworldwithadatacable.

– ThesupplychainimpactsforthispartofthespaceeconomyinQueenslandareinthedownstreamindustriesthatpurchasetheoutputsofthecore,suchas agriculture and mining.

– Theresearchinthispartofthesupplychainfocusesonareassuchasastrophysicsandastronomy.

15

Building Queensland's space economy

Figure 2.2 Economicperspectiveofthespaceeconomy

Source: Deloitte Access Economics

Send into space Receive into space

Supplier relationships Purchaser relationships

CORE

NicheHighly skilled

Typically a large human capital and/or infrastructure/

technology investmentTypically location-specific

Includes:

manufacturing of rockets, ground systems

Advanced manufacturing

Nutrition

Defence and aerospace

Business services

Engineering Transport and logistics

Construction

Otherancillary services

CORE

Niche

Highly skilled

Focus on data/imagery/signals received from space

Typically location-agnostic

Includes:

GNSS, earth observation, PNT

Agriculture

Mining and resources

Defence

Aerospace

Government Transport and logistics

Telecommunications

Natural resource management

Research relationships Research relationships

E.g.Materials,composites,otherengineering,mathematics,health,design

E.g.Astronomy,astrophysics,datascience,industry, earthscience,agronomy

Launch capability

Ground capability

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3 Global and national context

Sky is not the limit

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3 Global and national context

Sky is not the limit

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Building Queensland's space economy

3.1 OverviewThischaptercommenceswithanoverviewoftheglobalspaceeconomy,includingtrendsinbothpublicandprivatesectorinvestment,aswellastrendsinthesectormorebroadly.Theglobalspaceeconomytodayischaracterisedbyanincreasingnumber of private organisations and investors,butthishasn’talwaysbeenthecase–thedecentralisationoffinancing anddeliveringofspaceprogramshasevolved from being almost entirely public in nature, to today’s substantially more commercial focus (albeit still dominated by national governments).

Thisevolutioningovernmentinvolvementhas,ironically,increasedtheinterestofmanynationalgovernmentsinthespaceeconomy,includingAustralia.Withthesignificantincreaseincommercialopportunitieshascomeawaveofinterestinhowexistingspacecapabilitiescanbe supported in order to capitalise on thegrowthintheglobalspaceeconomy.IntheAustraliancontext,thishasbeenspearheadedbytheestablishmentoftheAustralianSpaceAgencyinSouthAustraliaandthedevelopmentofrobustgrowthtargetsforthedomesticspaceeconomy.

Thespeedofchangeintheglobalandnational context is critical to understanding whyitistimeforQueenslandtoconsideritscurrentandfutureroleinthespaceeconomy.WheredoesQueenslandfitintheglobalspacesupplychain?

3.2 Global space economyHistorically,spacehastypicallybeenanindustryled,financedandmanagedbygovernment. International space agencies havedominatedtheagendaanddrivenstrategyandgoalsettinginternally.Thehighentrycostsandrisksassociatedwiththespaceindustryofoldnecessitatedgovernmentinvolvement.Accordingly,thespace industry’s market structure usually involvedgovernmentpurchasesfromasmall number of prominent aerospace firmssuchasBoeing,NorthrupGrummanorLockheedMartin.4

Inadditiontothegovernment’sroleas leader in space exploration and development, symmetries between space technologyandthedefence/aerospaceindustriesledtothegovernmentbeing acustomerofspaceinnovations.Thespaceindustry;asFigure3.1demonstrates,driven by a combination of reduced public sectorinvolvement,high-techinnovationand substantial private investment, hasevolvedfromthishistoricalmarketstructuretothe‘NewSpace’thatweobserve today.

Thelargestdisruptionofthelast60yearsintheglobalspaceeconomyhasbeenthedecentralisationofactivityfromgovernmentintotheprivatesector.SparkedbytheendofAmerica’sSpaceShuttleprogrambyPresidentObamain2010,decentralisationmeantthatformanyprivateorganisations,whichhadlongsupported international space agencies, thepotentialforsignificantcommercialrevenues became a reality.

The global space economy today is characterised by an increasing number of private organisations and investors, working alongside space agencies to achieve aspirational goals. Rapid improvementsinscienceandtechnology,coupledwithincreasedinvestment,hasledtoaglobalspaceeconomythatwasvaluedatUS$345billionin2016.5Furthermore,OECDestimatesputtheglobalspaceeconomy’semploymentatmorethan900,000 persons in 2013.6

“[It]maymarkthefinalflightoftheSpaceShuttle,butitpropelsusintothenext era of our never-ending adventure to pushtheveryfrontiersofexploration and discovery in space.”President Barack Obama, 2010

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3.2.1 Increased public and private sector investmentDespitethedecentralisationoforganisationssuchastheNationalAeronautics and Space Administration (NASA),publicactorshavenotdisappeared–quitetheoppositeinfact.Thespacesectorhasdistinguishingfeaturesthattypically require public actors including thedevelopmentandapplicationofcuttingedgetechnologiesandlongerleadtimesforbothprojectdevelopmentand return on investments.7 More and more countries are investing in sovereign spaceeconomies,drivenbytheneedforapresenceinspacethatcanbeassociatedwithsecurityinterestsaswellassocial,economic and environmental factors.

Internationalinterestintheglobalspaceeconomy is substantial, as demonstrated byFigure3.2,withnearly50countriesmaintaining space budgets. One quarter oftheglobalspaceeconomyismadeupofgovernment budgets.

However,thedisseminationofknowledgeandtechnologyfromtraditionalareasofthespaceindustrytotheglobalmarkethasintroducedtheopportunityforsignificantprivatesectorreturns.Theglobalspaceeconomyhasexperiencedrapidgrowthin private investment. Today, space is characterisedbyavibrantcommercialsector,asdemonstratedbyFigure3.3,withgrowing numbers of entrepreneurs and investors.Morethan60%ofspace-relatedeconomic activity comes from commercial goods and services.8

Despitethegrowingimportanceofthecommercialspacesector,defenceandaerospacecontinuetodrivetheuseofspacerelatedtechnologyandinfrastructure.

Drivers:

• Diffusionoftechnology

• International security concerns

• Decreased costs

• Increased private investment

• Commercial organisations are driven bytheopportunitytomakeaprofit

Improvementsintechnologyhaveledtoprofitmakingopportunities.Governmentsasacustomer,rather thansoleproviderandinvestor. Space activities are used to solve international problems.

New space

Figure 3.1 Evolution of government in space exploration

Source: Deloitte Access Economics

Cold-war era

Post WWII, space exploration featured as anotherdramaticarenaofcompetition betweentheUnitedStatesandSovietRussia.

Drivers:

• Vision is clear, direct and necessary

• Sole purpose is to demonstrate superiority in advancing space technologies

• Governmentisthestrategist,financierand operator

Drivers:

• Increasescientificknowledgethroughexploration activities

• Develop useful civil applications of spacetechnology

• Internationalcooperationandsharingof cost and risk

• HighinvestmentcostsstillrequiresGovernment'swithdeeppockets

A period of exploration and international cooperation. Missions are driven by a research agenda. TheinternationalSpaceStation,isthepinnacleofinternational collaboration.

Post cold-war

Decentralisation

Humans looking out to spaceandtheunknown

Humans looking back to earthfromspace

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18

3.2.1 Increased public and private sector investmentDespitethedecentralisationoforganisationssuchastheNationalAeronautics and Space Administration (NASA),publicactorshavenotdisappeared–quitetheoppositeinfact.Thespacesectorhasdistinguishingfeaturesthattypically require public actors including thedevelopmentandapplicationofcuttingedgetechnologiesandlongerleadtimesforbothprojectdevelopmentand return on investments.7 More and more countries are investing in sovereign spaceeconomies,drivenbytheneedforapresenceinspacethatcanbeassociatedwithsecurityinterestsaswellassocial,economic and environmental factors.

Internationalinterestintheglobalspaceeconomy is substantial, as demonstrated byFigure3.2,withnearly50countriesmaintaining space budgets. One quarter oftheglobalspaceeconomyismadeupofgovernment budgets.

However,thedisseminationofknowledgeandtechnologyfromtraditionalareasofthespaceindustrytotheglobalmarkethasintroducedtheopportunityforsignificantprivatesectorreturns.Theglobalspaceeconomyhasexperiencedrapidgrowthin private investment. Today, space is characterisedbyavibrantcommercialsector,asdemonstratedbyFigure3.3,withgrowing numbers of entrepreneurs and investors.Morethan60%ofspace-relatedeconomic activity comes from commercial goods and services.8

Despitethegrowingimportanceofthecommercialspacesector,defenceandaerospacecontinuetodrivetheuseofspacerelatedtechnologyandinfrastructure.

Drivers:

• Diffusionoftechnology

• International security concerns

• Decreased costs

• Increased private investment

• Commercial organisations are driven bytheopportunitytomakeaprofit

Improvementsintechnologyhaveledtoprofitmakingopportunities.Governmentsasacustomer,rather thansoleproviderandinvestor. Space activities are used to solve international problems.

New space

Figure 3.1 Evolution of government in space exploration

Source: Deloitte Access Economics

Cold-war era

Post WWII, space exploration featured as anotherdramaticarenaofcompetition betweentheUnitedStatesandSovietRussia.

Drivers:

• Vision is clear, direct and necessary

• Sole purpose is to demonstrate superiority in advancing space technologies

• Governmentisthestrategist,financierand operator

Drivers:

• Increasescientificknowledgethroughexploration activities

• Develop useful civil applications of spacetechnology

• Internationalcooperationandsharingof cost and risk

• HighinvestmentcostsstillrequiresGovernment'swithdeeppockets

A period of exploration and international cooperation. Missions are driven by a research agenda. TheinternationalSpaceStation,isthepinnacleofinternational collaboration.

Post cold-war

Decentralisation

Humans looking out to spaceandtheunknown

Humans looking back to earthfromspace

19

Building Queensland's space economy

Figure 3.2 International Space Agency Budgets

Figure 3.3 Investmentinthespaceindustry2009topresent

Canada $400M

Europe $7B

India $4.3B

USA $48B

Russia $3.6B

Japan $3.5B

Australia $28.2M

China $11B

Source: OECD, 2014

Source: Space Angels, 2019

France $2.4B

Germany $1.6B

Italy $1.2B

UK $500M

South Korea $318M

UAE $150M

Indonesia $140M

Norway $134M

Malaysia $120M

Turkey $100M

Israel $90M

Singapore $26M

1969Apollo landed onthemoon

Governmental space age

Enterprenerial space age

2009SpaceXfirstsuccessful launchof

commercial payload

2015SpaceX

lands orbital booster, ushersin

resuability

2017SpaceX

Falcon Heavy unlocks

commercial deep space operations

2010SpaceX publishes

launchprices;introduces

market transparency

2012SpaceX Dragon

becomesfirstcommercial spacevehicletoberthwith

ISS

2014NanoRocks launches

commercial deployment

via ISS

$18BCumulative non-government investment in Space since 1983

412Number of companies receiving investment

SATELLITES

250 Companies$8.3B

INDUSTRIES

11 Companies$154M

MEDIA & EDUCATION

35 Companies$15M

PLANETARY MARKETS

8 Companies$244M

LAUNCH

77 Companies$8.6B

INFORMATION & RESEARCH

8 Companies$77M

BIOSPHERE

23 Companies$515M

LOGISTICS

10 Companies$147M

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3.2.2 Growth and trends in the global space economyGrowthinthespaceeconomyisunlikelytoslowdown;MorganStanleyestimatesthattheUS$345billionGlobalSpaceIndustrywillgrowintoaUS$1.1trillionGlobalSpaceEconomy by 2040.

Theuseofspaceenabledservices,reductionincosts,andtheinsatiablehumanfascinationwithspaceandtheunknown, is expected to foster strong growthinthespaceeconomy.Thisgrowthwillresultintheincreasedoutputandvalueaddofthesector.Specifically,innovationssuchasreusablerocketsbySpaceXhavedrasticallychangedthespaceeconomy.

Reusable rocketshavecontributedtothereductioninsatellitelaunchcostsfromUS$200milliontoUS$60million,withthepotentialtodropaslowasUS$5million.10 Moreover,themoveawayfromlargesatellites(characterisedbylonglifeandhighreliability)towardssmaller,verylowcostcubesattechnology,ischangingthestructureofthesatelliteindustry.Satellitemassproductioncoulddecreasethatcostfrom$500millionpersatelliteto$500,000.11

Figure 3.4 Growthinthevalueoftheglobalspaceeconomy

Source: Morgan Stanley

“Ifonecanfigureouthowtoeffectivelyreuserocketsjustlikeaeroplanes,thecost of access to space will bereducedbyasmuchasafactorofahundred…thatreallyisthefundamentalbreakthroughneededtorevolutionise access to space.” 9

Elon Musk, 2015

Theuse of space systems and data derived from space or space enabled services generates 70% of economic activities worldwide (based on 2015 estimates).12Thedualuseofspacetechnologieswillalsodrivegrowth,asorganisationsspecialisingintheapplicationofEO,PNTandGNSStechnologiesreachindustriessuchasagriculture,miningandtransport.Afurthersummaryofthesetrends is provided in Figure 3.5.

Evidenceofthese‘NewSpace’organisationsisemerging;in2016,114investors(themajorityofwhicharebasedintheUnitedStatesofAmerica[USA])invested$2.8billioninto43start-upspaceventures across 49 deals worldwide.13 Analysisrevealsthatthesizeoftheseinvestments (across all types) continues to grow;theaveragesizeofthedealincreasedfrom$38milliontoabout$57milliononthepreviousyear.14

2016

2040

5%CAGR

Global space economy

US $345 billion

US $1.1 trillion

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3.2.2 Growth and trends in the global space economyGrowthinthespaceeconomyisunlikelytoslowdown;MorganStanleyestimatesthattheUS$345billionGlobalSpaceIndustrywillgrowintoaUS$1.1trillionGlobalSpaceEconomy by 2040.

Theuseofspaceenabledservices,reductionincosts,andtheinsatiablehumanfascinationwithspaceandtheunknown, is expected to foster strong growthinthespaceeconomy.Thisgrowthwillresultintheincreasedoutputandvalueaddofthesector.Specifically,innovationssuchasreusablerocketsbySpaceXhavedrasticallychangedthespaceeconomy.

Reusable rocketshavecontributedtothereductioninsatellitelaunchcostsfromUS$200milliontoUS$60million,withthepotentialtodropaslowasUS$5million.10 Moreover,themoveawayfromlargesatellites(characterisedbylonglifeandhighreliability)towardssmaller,verylowcostcubesattechnology,ischangingthestructureofthesatelliteindustry.Satellitemassproductioncoulddecreasethatcostfrom$500millionpersatelliteto$500,000.11

Figure 3.4 Growthinthevalueoftheglobalspaceeconomy

Source: Morgan Stanley

“Ifonecanfigureouthowtoeffectivelyreuserocketsjustlikeaeroplanes,thecost of access to space will bereducedbyasmuchasafactorofahundred…thatreallyisthefundamentalbreakthroughneededtorevolutionise access to space.” 9

Elon Musk, 2015

Theuse of space systems and data derived from space or space enabled services generates 70% of economic activities worldwide (based on 2015 estimates).12Thedualuseofspacetechnologieswillalsodrivegrowth,asorganisationsspecialisingintheapplicationofEO,PNTandGNSStechnologiesreachindustriessuchasagriculture,miningandtransport.Afurthersummaryofthesetrends is provided in Figure 3.5.

Evidenceofthese‘NewSpace’organisationsisemerging;in2016,114investors(themajorityofwhicharebasedintheUnitedStatesofAmerica[USA])invested$2.8billioninto43start-upspaceventures across 49 deals worldwide.13 Analysisrevealsthatthesizeoftheseinvestments (across all types) continues to grow;theaveragesizeofthedealincreasedfrom$38milliontoabout$57milliononthepreviousyear.14

2016

2040

5%CAGR

Global space economy

US $345 billion

US $1.1 trillion

21

Building Queensland's space economy

Figure 3.5 Fivetrendsintheglobalspaceeconomy

Source:BryceSpaceandTechnology,2017

Remote Asset ManagementRemote asset management uses information, continuously collected via mobile, wired or wireless monitoring instruments, to createatwo-waycommunicationchannelbetweenassetsandcentralmonitoringapplications.The‘real-time’datacapturedbythisprocessallowsformoreeffectivemaintenanceschedulingandpreventativemaintenancestrategydevelopment.Asaresult,assetmanagementprocessesareincreasinglycost-effective,efficientandconvenientwhencomparedtotraditionalmanagementpracticessuchason-siteevaluations.

Thepracticehasapplicationacrossavarietyofindustriesincludingtransportation,foodandbeverage,oilandgas,metalsandmining,healthcareandwastemanagement.Oneparticularexampleiswithinthemanufacturingsectorwhereremotemonitoringprocedures are used to capture critical asset parameters and track abnormality to avoid failures.

Source: Shoker,2018;Infosys,2018;Prescient&StrategicIntelligence,n.d.

1Technologicaladvancescreating expectations ofmorecost-effective(andthereforelucrative)space activities

3A global economy thatisincreasingly data dependent

5Military/strategic developments around space as a crowded and valuablehighground

2Increased private investment by investors whoarenewtospace

4Increasingly widely-sharedvisionof space as transformative forhumanity

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2002FedSat Launched- Australian scientificresearchsatellite launched from Japan

2013Australia's satellite utilisation policy released - policy specificallyexcluded launchservices, humanspaceflightand planetary exploration

Source:BryceSpaceandTechnology,2017

3.3 Australian space economyHistorically,Australiahashadapassionate,yetinconsistent,approachtonationalspaceactivities. Australian involvement in space activitiescommencedwithparticipationintheInternationalGeophysicalYear,aglobalscientificresearchprogramfocusedonunderstandingtheEarth’srelationshipto its surrounding space environment.15 TheestablishmentoftheWoomeraRocketRange in 1947 was originally used to develop long-rangemissilesduringWWIIandthecoldwarinEurope;thiscapabilityledtoWoomerabeingusedatestingfacilityfortheBlueStreakrocket,whichbecamethefirststageoftheEuroparocketunderELDO.16

Despiteparticipatinginresearch,development and testing related to space,Australiahasnotmanagedto sustain a scaled or vibrant space ecosystem to make it a recognised world leader in thespaceeconomy.Forthosewhowishto pursue a career in space, aspiring enthusiaststypicallyseektofurthertheirspace related education overseas.17

However,whattheAustralianspaceindustrylacks in size, it makes up for in substance. TheAustralianspaceeconomytodayboasts several industry leaders across allsub-sectorsinthespaceeconomy,withmostindividualsandorganisationsengaging in a wide variety of collaborations withinternationalspaceagenciesandorganisations.

3.3.1 Australian Space AgencyTheAustralianSpaceAgencyaimsto“transform and grow a globally respected Australianspaceindustrythatliftsthebroadereconomy,inspiresandimprovesthelives of Australians – underpinned by strong international and national engagement.”18

TheestablishmentoftheAustralian SpaceAgency(theAgency)in2018 bytheAustralianGovernment,asadedicated,ongoingandwhole-of-government statutory agency,19 signalled theintentoftheAustralianGovernmenttogrowtheAustralianspaceeconomyandsetthetonefortheAustralianspacesectormoving forward.

EstablishingtheAgencyhasrespondedtotheneed–asidentifiedbystakeholdersaspartoftheExpertReferenceGroup’sInquiry – for a single point of contact for domesticandinternationalpartnerships,greater national coordination and strategic direction, government support toparticipateinglobalsupplychains,andawhole-of-governmentapproachtothespace sector.20

BasedinSouthAustralia,theAgencyhasbeengiventheresponsibilityforcivil strategic policy direction setting, international representation, coordination of national civilian activities, and strategies tofacilitatethegrowthoftheAustralianspace industry sector as set out under theAgencyCharter.The2018-19BudgetallocatedtheAgencyabudgetof$41million($26millionoverfouryears-$5.7millionin2018/19,$9.8millionin2019/20,$11.8millionin2020/21and$13.7millionin2021/22),ofwhich$15millionistosupportinternational space engagement.21

Figure 3.6 Australia’s space timeline

1957Australian space activities commence

1970LaunchofAustralia-OSCAR 5 (an Australian amateur radio satellite)

1984CSIROOfficeofSpace Science and Applications (COSSA) established-Australia develops expertise in remote sensing instrumentation and data analysis

1975Australian sounding rocket program ends

1964FirstELDOlaunchat Woomera (ELDO istheEuropeanLauncherDevelopmentOrganisation)

1967WRESATLaunch-WRESAT satellite launchfromWoomera by Britain and Australia's WeaponsResearchEstablishment(WRE)

1970Last ELDO launch at Woomera

1981Local space industry interest starts - Aussat domestic satellite system approved

2018Australian Space Agency Established

2009Australian SpaceResearchProgram Proposed established-$40mtosupportnichespace capability development and space education programs

1998Space activities Act enacted - world's firstlegislationcovering commercial space operations (it was intended to support commercial spaceport proposals

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2002FedSat Launched- Australian scientificresearchsatellite launched from Japan

2013Australia's satellite utilisation policy released - policy specificallyexcluded launchservices, humanspaceflightand planetary exploration

Source:BryceSpaceandTechnology,2017

3.3 Australian space economyHistorically,Australiahashadapassionate,yetinconsistent,approachtonationalspaceactivities. Australian involvement in space activitiescommencedwithparticipationintheInternationalGeophysicalYear,aglobalscientificresearchprogramfocusedonunderstandingtheEarth’srelationshipto its surrounding space environment.15 TheestablishmentoftheWoomeraRocketRange in 1947 was originally used to develop long-rangemissilesduringWWIIandthecoldwarinEurope;thiscapabilityledtoWoomerabeingusedatestingfacilityfortheBlueStreakrocket,whichbecamethefirststageoftheEuroparocketunderELDO.16

Despiteparticipatinginresearch,development and testing related to space,Australiahasnotmanagedto sustain a scaled or vibrant space ecosystem to make it a recognised world leader in thespaceeconomy.Forthosewhowishto pursue a career in space, aspiring enthusiaststypicallyseektofurthertheirspace related education overseas.17

However,whattheAustralianspaceindustrylacks in size, it makes up for in substance. TheAustralianspaceeconomytodayboasts several industry leaders across allsub-sectorsinthespaceeconomy,withmostindividualsandorganisationsengaging in a wide variety of collaborations withinternationalspaceagenciesandorganisations.

3.3.1 Australian Space AgencyTheAustralianSpaceAgencyaimsto“transform and grow a globally respected Australianspaceindustrythatliftsthebroadereconomy,inspiresandimprovesthelives of Australians – underpinned by strong international and national engagement.”18

TheestablishmentoftheAustralian SpaceAgency(theAgency)in2018 bytheAustralianGovernment,asadedicated,ongoingandwhole-of-government statutory agency,19 signalled theintentoftheAustralianGovernmenttogrowtheAustralianspaceeconomyandsetthetonefortheAustralianspacesectormoving forward.

EstablishingtheAgencyhasrespondedtotheneed–asidentifiedbystakeholdersaspartoftheExpertReferenceGroup’sInquiry – for a single point of contact for domesticandinternationalpartnerships,greater national coordination and strategic direction, government support toparticipateinglobalsupplychains,andawhole-of-governmentapproachtothespace sector.20

BasedinSouthAustralia,theAgencyhasbeengiventheresponsibilityforcivil strategic policy direction setting, international representation, coordination of national civilian activities, and strategies tofacilitatethegrowthoftheAustralianspace industry sector as set out under theAgencyCharter.The2018-19BudgetallocatedtheAgencyabudgetof$41million($26millionoverfouryears-$5.7millionin2018/19,$9.8millionin2019/20,$11.8millionin2020/21and$13.7millionin2021/22),ofwhich$15millionistosupportinternational space engagement.21

Figure 3.6 Australia’s space timeline

1957Australian space activities commence

1970LaunchofAustralia-OSCAR 5 (an Australian amateur radio satellite)

1984CSIROOfficeofSpace Science and Applications (COSSA) established-Australia develops expertise in remote sensing instrumentation and data analysis

1975Australian sounding rocket program ends

1964FirstELDOlaunchat Woomera (ELDO istheEuropeanLauncherDevelopmentOrganisation)

1967WRESATLaunch-WRESAT satellite launchfromWoomera by Britain and Australia's WeaponsResearchEstablishment(WRE)

1970Last ELDO launch at Woomera

1981Local space industry interest starts - Aussat domestic satellite system approved

2018Australian Space Agency Established

2009Australian SpaceResearchProgram Proposed established-$40mtosupportnichespace capability development and space education programs

1998Space activities Act enacted - world's firstlegislationcovering commercial space operations (it was intended to support commercial spaceport proposals

23

Building Queensland's space economy

3.3.2 Value, growth and capabilityTheAustralianGovernment’sreviewofAustralia’s space industry capability to enable Australiatocapitaliseontheincreasingopportunitieswithintheglobalspaceindustrysector(theReview)estimated the market size of the Australian space economy in the 2015-16 financial year to be $3.94 billion, as seen in Figure 3.7.22

TheExpertReferenceGroupsetanambitiousandexcitinggoalfortheAustralianspacecommunitytotriplethesizeoftheAustralianspaceeconomyfromthe2015-16estimateof$3.94billion,to$10-$12billionby2030;representingacompoundannualgrowthofapproximately8%.23Thiswillcreateanindustrythatisroughlyone-thirdthesizeofAustralia’scurrentagriculturaloutputofAU$36.7billionforthe2015–2016financialyear.24

FurtherstudiesintothefutureoftheAustralianspaceeconomyhaverevealedseveraldevelopingmarketsforwhichAustralianindustrieshaveexistingcapability. As seen in Figure 3.8, Bryce SpaceandTechnologyhighlightedwhereAustralian businesses would be able to leverageexistingstrengthstocompeteintheglobalspaceeconomy.

Figure 3.7 MarketsizeoftheAustralianspaceeconomy,2015-16

Source: Australian Government Department of Industry, Innovation and Science, 2018

Commercial $3.6B

Non-Defence Government Agencies $126M

University $44M

Defence-related $175M

$3.94B

Figure 3.8 Markets for Australia’s space economy to consider

Source:BryceSpaceandTechnology,2017

Consumer broadband

Earth observation- driven data

analytics

Managed services

Navigation devices and applications

Space mining

Smallsat manufacturing

Possible benefits from launch facility

Satellite radio

Commercial space situational

awareness

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Source: Deloitte Access Economics

Figure 3.9 Overview of space capability – rest of Australia

Space capability across other Australian jurisdictions

• Establishedenergy&resource sectors

• Astronomy&groundstations

• Proactive government

• Defence capability

• Historical participation in space

• Proximity to Federal Government

• Historical participation in space

• Forestry sector

• Ground station infrastructure and expertise

• Proactive government

• Geographiclocation

• Skilled labour

• Investment in technology

• InvestmentinR&D

• Education&Defencesectors

• Skilled labour

• State Government investmentinR&D

Western Australia

Northern Territory

South Australia

New South Wales

Victoria

Tasmania

ACT

Previous reviews of Australian space capabilityhavedeterminedthatAustraliahascapabilitiesalongmostofthespaceindustrysupplychain.However,thestrongest areas identified were where Australia has experience in integrating space sourced data into communications, Earth Observations from Space (EOS) and GNSS.25Thisislikely due to a combination of Australia’s geographicadvantage,whichhasledtoa natural cluster of capabilities in areas suchassatellitecommunications,aswellasthetwowayflowbetweentechnicalandcommercial capabilities between space relatedapplicationsandotherindustries.26

Alongotherareasofthesupplychainsuchas space systems, ground systems and launchactivities,previousevaluationshaverevealedAustraliaashavinglimitedoremergingcapability–withonlyafew organisations operating. However, Australia’s location and access to satellites, strongeducationsystem,technicalexpertise,andinternationalpartnershipsandagreementsmeansthereexistspotentialforincreasedparticipationintheinternationalspaceindustrysupplychain.27 AnoverviewofthecompetitiveadvantagesacrosstheAustralianspaceeconomyaresummarised in Figure 3.9.

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Source: Deloitte Access Economics

Figure 3.9 Overview of space capability – rest of Australia

Space capability across other Australian jurisdictions

• Establishedenergy&resource sectors

• Astronomy&groundstations

• Proactive government

• Defence capability

• Historical participation in space

• Proximity to Federal Government

• Historical participation in space

• Forestry sector

• Ground station infrastructure and expertise

• Proactive government

• Geographiclocation

• Skilled labour

• Investment in technology

• InvestmentinR&D

• Education&Defencesectors

• Skilled labour

• State Government investmentinR&D

Western Australia

Northern Territory

South Australia

New South Wales

Victoria

Tasmania

ACT

Previous reviews of Australian space capabilityhavedeterminedthatAustraliahascapabilitiesalongmostofthespaceindustrysupplychain.However,thestrongest areas identified were where Australia has experience in integrating space sourced data into communications, Earth Observations from Space (EOS) and GNSS.25Thisislikely due to a combination of Australia’s geographicadvantage,whichhasledtoa natural cluster of capabilities in areas suchassatellitecommunications,aswellasthetwowayflowbetweentechnicalandcommercial capabilities between space relatedapplicationsandotherindustries.26

Alongotherareasofthesupplychainsuchas space systems, ground systems and launchactivities,previousevaluationshaverevealedAustraliaashavinglimitedoremergingcapability–withonlyafew organisations operating. However, Australia’s location and access to satellites, strongeducationsystem,technicalexpertise,andinternationalpartnershipsandagreementsmeansthereexistspotentialforincreasedparticipationintheinternationalspaceindustrysupplychain.27 AnoverviewofthecompetitiveadvantagesacrosstheAustralianspaceeconomyaresummarised in Figure 3.9.

25

Building Queensland's space economy

PART ONE | BOTTOM UP ANALYSISThe following chapters present a bottom up view of Queensland’s space economy

Building Queensland's space economy

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4 Queensland’s space economy

Sky is not the limit

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4 Queensland’s space economy

Sky is not the limit

27

Building Queensland's space economy

4.1 OverviewWhatgetsmeasuredgetsmanaged,orsothesayinggoes.InordertodevelopaplanforthefutureofQueensland’sspaceeconomy,itisimportanttofirstunderstand its current size and scope. However,thenichecapabilitiesofplayersin Queensland’s space economy, coupled withtheblurredboundariesbetweenothersectorssuchasaerospace,defenceandadvancedmanufacturing,havemeantthat,to date, measurement of Queensland’s spaceeconomyhasbeenlimited.

AsexplainedinChapter1,DeloitteAccessEconomicsfieldedanindustrydirectoryandsnapshotsurveytocreateanindustrycapabilitydirectoryanddevelopasnapshotof Queensland’s current space sector. Thequestionsaskedforkeyinformationaboutbusinessesandservices,andthescope of activities currently contributing to Queensland’s space ecosystem. The resultant Queensland Space Economy Capability Directory is the basis of all results presented in this chapter.

4.2 Overview of the space economy directoryTheQueenslandSpaceEconomyCapabilityDirectoryisthefirsttimeinformationonQueensland’sspaceeconomyhasbeencapturedand,asitisinitsinfancy,theresultsshouldbeinterpretedwithcaution.Theresultsarelimitedbycompletionofthecapabilitysurveyandthesummarypresentedhereprovidesapoint-in-timesnapshotofQueensland’sspaceeconomy.

Thecapabilitydirectorydepictsthecross-section of organisation type and primary areaofcapability;theorganisationsrepresentedself-identifiedtheirprimaryareaofcapabilityinthespaceeconomy.

Source: Deloitte Access Economics

Figure 4.1 Location of Queensland’s space economy

A data validation exercise was undertaken toensurethatorganisationswhorespondedtothesurveywereappropriateforanalysis;fromwhich51uniqueorganisationshavebeenincluded.Ofthe51,41areheadquarteredinQueensland,predominantlyinthewiderBrisbanearea.ReflectingtheearlystagesofdevelopmentinQueensland’sspaceeconomy,32ofthe41 organisations do not consider space tobetheirprimaryindustryofoperation.AsdemonstratedbyFigure4.1,themajority of organisations in Queensland’s spaceeconomyarebasedinSouthEastQueensland.

Gold Coast

Sunshine Coast South East

Queensland

Other

33

913

5

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Asummaryofthedirectory,bythespaceeconomysub-sectors(rows)andthetypeoforganisations(columns),ispresentedbelow in Table 4.1. A full directory can be found in Appendix A.

Table 4.1 SummaryoftheQueenslandspaceeconomydirectory

Private company

University/Research

Organisation

Government Industrial Organisation

Space systems

Component and Material Supply 13

Satellite Owner/Operator

SpaceQualifiedTestingandFacilities

Space Subsystem Supply 1

Specialisation on nano and micro satellites (<50kg)

SystemEngineeringandTechnicalSupport 2

Launch activities

Component and Subsystem Management 1

LaunchServices 4

LaunchSupportServices

LaunchVehicleManufacturingandAssembly 1

Ground systems

Antenna/Ground Station Component or Material Supplier 1

Ground Segment Prime/System Integration

GroundSegmentSubsystem&EquipmentSupplier

Prime/System Integration 1

SystemEngineeringandTechnicalSupportServices 2

Tracking,Telemetry&CommandOperations 1

Space enabled services

EarthObservationServices&Applications 3

Satellite Communications Service Providers

SatelliteNavigationService&Applications

TechnicalSupportServices

User Equipment Manufacturer 3

User Equipment Suppliers

Support services

Consultancy Services (e.g. IT, analytics, professional services) 5

Financial Services

Legal Services

Ancillary Services 3

Research and development

R&D 4

Education and Training

Education and Training 2

Other

Other 1 1

Transport, logistics and construction 1

General component, material, engineering supply 9

Source: Deloitte Access Economics

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Asummaryofthedirectory,bythespaceeconomysub-sectors(rows)andthetypeoforganisations(columns),ispresentedbelow in Table 4.1. A full directory can be found in Appendix A.

Table 4.1 SummaryoftheQueenslandspaceeconomydirectory

Private company

University/Research

Organisation

Government Industrial Organisation

Space systems

Component and Material Supply 13

Satellite Owner/Operator

SpaceQualifiedTestingandFacilities

Space Subsystem Supply 1

Specialisation on nano and micro satellites (<50kg)

SystemEngineeringandTechnicalSupport 2

Launch activities

Component and Subsystem Management 1

LaunchServices 4

LaunchSupportServices

LaunchVehicleManufacturingandAssembly 1

Ground systems

Antenna/Ground Station Component or Material Supplier 1

Ground Segment Prime/System Integration

GroundSegmentSubsystem&EquipmentSupplier

Prime/System Integration 1

SystemEngineeringandTechnicalSupportServices 2

Tracking,Telemetry&CommandOperations 1

Space enabled services

EarthObservationServices&Applications 3

Satellite Communications Service Providers

SatelliteNavigationService&Applications

TechnicalSupportServices

User Equipment Manufacturer 3

User Equipment Suppliers

Support services

Consultancy Services (e.g. IT, analytics, professional services) 5

Financial Services

Legal Services

Ancillary Services 3

Research and development

R&D 4

Education and Training

Education and Training 2

Other

Other 1 1

Transport, logistics and construction 1

General component, material, engineering supply 9

Source: Deloitte Access Economics

29

Building Queensland's space economy

4.3 Key findingsThe Queensland space economy is dominated by small-medium enterprises (SMEs) and large multinational organisations. Queensland has a developing space ecosystem that has fostered a large number of highly specialised organisations, participating in areas of the space economy which do not require critical mass to operate. At the same time, these SMEs are supporting the operations of large multinational organisations participating in areas of the supply chain that are characterised by high capital and investment costs, and experienced personnel with specific capability to plan, operate and deliver large-scale projects.

Organisations with the highest turnover ranges in Queensland are typically large multinationals with extensive capability across the space supply chain. The size and turnover range of these organisations is frequently driven by their strengths in other sectors, such as Defence and Aerospace, which have symmetries with the requirements of the space economy.

Organisations in Queensland’s space economy operate in both the upstream and downstream components of the supply chain, despite concentration in select sub-sector specialities. There are a large number of organisations clustered in the Space Systems and Other sub-sectors. This likely reflects the size and depth of the Queensland space economy.

At present, the maturity of the space economy means that there is insufficient demand to wholly support most organisations operating in the space economy. This is reflected in the high proportion of organisations that operate primarily in other sectors.

The following pages provide a more detailed breakdown of a selection of key components of the Queensland Space Economy Capability Directory:

• Exporting activities

• Turnover ranges

• Employee ranges

• Space as the primary industry versus space not as the primary industry

• Sub-sectors of the space economy.

Building Queensland's space economy

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Chart 4.1 Exporting activities in Queensland’s space economy

Exporting activitiesRespondents were asked to select whether they had exported goods or services overseas in the past 12 months. (n=59)

Summary of key findings

• Themajorityoforganisations(36)exportedgoodsintheprevious12months

• Thistrendwasthesameacrossallturnoverranges,withtheexceptionoforganisationslessthan$200,000

• Themajorityoforganisationsthatdonotconsiderspacetheirprimaryindustryofoperation(44)exportedtheirproducts/services (27).

• Oftheorganisationsthatdoconsiderspacetheirprimaryindustryofoperation(15),themajorityexportedtheirproducts/services (9)

• Thesub-sectorwiththemostexporterswasSpaceSystems(10)followedbyGroundSystems(5)

Chart 4.1 Exporting activities in Queensland’s space economy

0

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25

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35

40

No Not applicable (research institution etc.)

Yes

Num

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3

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Chart 4.1 Exporting activities in Queensland’s space economy

Exporting activitiesRespondents were asked to select whether they had exported goods or services overseas in the past 12 months. (n=59)

Summary of key findings

• Themajorityoforganisations(36)exportedgoodsintheprevious12months

• Thistrendwasthesameacrossallturnoverranges,withtheexceptionoforganisationslessthan$200,000

• Themajorityoforganisationsthatdonotconsiderspacetheirprimaryindustryofoperation(44)exportedtheirproducts/services (27).

• Oftheorganisationsthatdoconsiderspacetheirprimaryindustryofoperation(15),themajorityexportedtheirproducts/services (9)

• Thesub-sectorwiththemostexporterswasSpaceSystems(10)followedbyGroundSystems(5)

Chart 4.1 Exporting activities in Queensland’s space economy

0

5

10

15

20

25

30

35

40

No Not applicable (research institution etc.)

Yes

Num

ber

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20

3

36

31

Building Queensland's space economy

Chart 4.1 Exporting activities in Queensland’s space economy

Turnover rangesRespondents were asked to select which ANZSIC turnover range was most appropriate for FY18. (n=59)

Summary of key findings

• AlmosthalfoftheorganisationsinQueenslandhadturnoverrangeinFY18thatwasgreaterthan$2million

• Onethirdoforganisationsreportedturnoverinexcessof$10million;ofthese,organisationsaretypicallylocatedintheSpaceSystems, Ground Systems and Space Enabled Services

• ThehighestturnoverrangesweretypicallyreportedbytheGroundSystemssegment(mostarelargemultinationalorganisationswithcapabilityacrossthesupplychain)

• MostoftheSMEsreportedturnoverintheranges$200,000–lessthan$2million(13)and$2–5million(8)

• Ofthe13organisationsintherangeupto$2million,mostarebasedinAncillaryServices,whilstSMEsearning$2-$5millionaretypicallylocatedintheSpaceSystemssub-sector

Chart 4.2 Turnover ranges in Queensland’s space economy

0

5

10

15

20

Num

ber

of o

rgan

isat

ions

3 3

14

10

6

19

4

Zero to less than $50,000

$50,000 to less than $200,000

$200,000 to less than $2 million

$2 million to less than $5 million

$5 million to less than

$10 million

$10 million or more

$10 million or more

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Chart 4.1 Exporting activities in Queensland’s space economy

Employee rangesRespondents were asked to select the most appropriate employee range for FY18. (n=59)

Summary of key findings

• TheQueenslandspaceeconomyisdominatedbySMEs – SMEstypicallysitintheSpaceSystems(9)sectorandtheAncillaryServices(5)

• Organisationsemployingbetween20-199(18)areprimarilylocatedintheSpaceSystems(6)andGroundSystems(6) sub-sectors – 10organisationsinQueenslandselectedthe200+range

• Thisreflectsboththeuniversitiesthatareengagedinspacerelatedactivitiesaswellasthelargemultinationalsthathaveoperations in Queensland

• ThemajorityoforganisationsthatconsiderspacetheirprimaryareaofoperationsareSMEs

Chart 4.3 Employee ranges in Queensland’s space economy

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Num

ber

of o

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1-19 Employees

200+ Employees

20-199 Employees

Non Employing (i.e. having no employees)

Not applicable (research

institution etc.)

24

10

18

3 4

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Chart 4.1 Exporting activities in Queensland’s space economy

Employee rangesRespondents were asked to select the most appropriate employee range for FY18. (n=59)

Summary of key findings

• TheQueenslandspaceeconomyisdominatedbySMEs – SMEstypicallysitintheSpaceSystems(9)sectorandtheAncillaryServices(5)

• Organisationsemployingbetween20-199(18)areprimarilylocatedintheSpaceSystems(6)andGroundSystems(6) sub-sectors – 10organisationsinQueenslandselectedthe200+range

• Thisreflectsboththeuniversitiesthatareengagedinspacerelatedactivitiesaswellasthelargemultinationalsthathaveoperations in Queensland

• ThemajorityoforganisationsthatconsiderspacetheirprimaryareaofoperationsareSMEs

Chart 4.3 Employee ranges in Queensland’s space economy

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Num

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of o

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200+ Employees

20-199 Employees

Non Employing (i.e. having no employees)

Not applicable (research

institution etc.)

24

10

18

3 4

33

Building Queensland's space economy

Chart 4.1 Exporting activities in Queensland’s space economy

Spaceastheprimaryindustry?Respondents were asked to select whether they consider the space industry as their primary industry of operation. (N=15 for primary industry and n=44 for not the primary industry)

Space is primary

• 15organisationsconsiderspacetheirprimaryindustry of operation

• RespondentswerespreadacrossLaunchActivities(4),Ground Systems (3), Space Enabled Services (3), AncillaryServices(3),R&D(1)andOther(1)

• Themajority(10)oforganisationshadturnoverupto $2million;oftheorganisationsthatearnedmorethan$10million(3),theirprimarycapabilitieslayintheGroundSystems and Space Enabled Services sub-sectors

• TheLaunchActivitiessub-sector(4)wastypicallylowemployingandhadturnoverlessthan$2millioninFY18

• Themajority(9)oforganisationsexportedtheirproducts/servicesinFY18;themajoritywereintheGroundSystemssub-sector

Figure 4.2 Comparisonbetweenorganisationswithspaceastheprimaryindustryofoperationandnotastheprimaryindustry

Space is not primary

• Themajorityoforganisations(16),areengagedintheSpaceSystems sub-sector, followed by General, component, material, engineering supply (9) and Ancillary Services (5)

• Space Systems – OrganisationsareprimaryengagedintheDefenceandManufacturing and Transport sectors more broadly

• General component, material, engineering supply – Organisationsinthissub-sectortypicallyoperateintheManufacturing and Defence sectors

• OrganisationswithtransferrableskillsthathavebeenengagedbythespacesectorincludeMining,Professional,ScientificandTechnicalServices,ConstructionandEducationand Training

0

2

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6

8

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12

Construction Defence Education and

training

Manufacturing Mining Other Professional, scientific and

technical services

Transport

1

9

3

11

3

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10

6

Number of organisations, by primary industry

Space is primary

15

Space is not primary

44

Number of organisations Number of organisations, by age of organisations

Ancillary Services

Others

Space Enabled Services

Ground systems

Launch activities

Space is primary industry0-

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year

s

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1

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Sub-sectors Respondents were asked to classify their business according to their primary area of capability. These have been aggregated across sub-sectors of the space economy. (n=59)

Chart 4.4 Sub-sectors in Queensland’s space economy

Summary of key findings

• Space Systems – Themajorityoforganisationsinthesub-sectorreportturnoverinexcessof$2million

– Thesub-sectorisdominatedbysmall-mediumenterprises(SMEs),withseveral(6)organisationswithemployeesinthe20-199 range

– ThemajorityoforganisationsexportedtheirproductsinFY18 – Themajorityoforganisationsinthesub-sectorhavebeeninoperation in excess of 10 years

• LaunchActivities – Thesub-sectorisevenlysplitintheexportofproducts/services in FY18

– Oftheorganisationsinlaunch,2areSMEswhilsttherestemploy upwards of 20-199 personnel

– OrganisationsreportedturnoverineachoftherangesinFY18

– LaunchActivitiesisaveryyoungsub-sector,withthemajorityoforganisationsinoperationforlessthan5years

• Ground Systems – Themajority(4)oforganisationsinthesub-sectorreportedturnoverinexcessof$10million

– Thesub-sectorischaracterisedbyhigh-earning,high-employing organisations

– Themajorityoforganisationsinthesub-sectorhavebeeninoperation in excess of 10 years

• Space Enabled Services – TheSMEsinthesub-sectorreportedturnoverofupto$5million,whilstthelargeorganisationsearnedinexcessof$10million in FY18

– Thesub-sectorhasabroadspectrumofdurationofoperationlength,withorganisationsinthelessthan5yearscategoryaswellasseveralorganisationsintheexcessof10years category

• R&D – 1researchorganisationexportedtheirproducts/servicesinFY18

– Asmostorganisationsinthissub-sectorareuniversities,theyhavelongerdurationofoperations

• Other – Otherincludesthefollowingcategories:1)transport,logisticsand construction, 2) general component, material and engineeringsupplyand3)other.Theseorganisationstypicallyprovidegeneralinputstotheidentifiedsub-sectorsandassuch,areengagedinthespaceeconomy(andtherebybenefitfromitsgrowth)whilstnotbeingdirectlyinvolvedinspacerelatedactivity.Often,theseorganisationswillfacilitatetheactivityofspaceorganisations.

Num

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of o

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ions

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8

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12

14

16

18

Space Systems

Launch Activities

Ground Systems

Space Enabled Services

Ancillary Services

R&D Education and

Training

Other Transport, logistics

and construction

General component,

material, engineering

supply

16

65

6

8

4

2 21

9

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Sub-sectors Respondents were asked to classify their business according to their primary area of capability. These have been aggregated across sub-sectors of the space economy. (n=59)

Chart 4.4 Sub-sectors in Queensland’s space economy

Summary of key findings

• Space Systems – Themajorityoforganisationsinthesub-sectorreportturnoverinexcessof$2million

– Thesub-sectorisdominatedbysmall-mediumenterprises(SMEs),withseveral(6)organisationswithemployeesinthe20-199 range

– ThemajorityoforganisationsexportedtheirproductsinFY18 – Themajorityoforganisationsinthesub-sectorhavebeeninoperation in excess of 10 years

• LaunchActivities – Thesub-sectorisevenlysplitintheexportofproducts/services in FY18

– Oftheorganisationsinlaunch,2areSMEswhilsttherestemploy upwards of 20-199 personnel

– OrganisationsreportedturnoverineachoftherangesinFY18

– LaunchActivitiesisaveryyoungsub-sector,withthemajorityoforganisationsinoperationforlessthan5years

• Ground Systems – Themajority(4)oforganisationsinthesub-sectorreportedturnoverinexcessof$10million

– Thesub-sectorischaracterisedbyhigh-earning,high-employing organisations

– Themajorityoforganisationsinthesub-sectorhavebeeninoperation in excess of 10 years

• Space Enabled Services – TheSMEsinthesub-sectorreportedturnoverofupto$5million,whilstthelargeorganisationsearnedinexcessof$10million in FY18

– Thesub-sectorhasabroadspectrumofdurationofoperationlength,withorganisationsinthelessthan5yearscategoryaswellasseveralorganisationsintheexcessof10years category

• R&D – 1researchorganisationexportedtheirproducts/servicesinFY18

– Asmostorganisationsinthissub-sectorareuniversities,theyhavelongerdurationofoperations

• Other – Otherincludesthefollowingcategories:1)transport,logisticsand construction, 2) general component, material and engineeringsupplyand3)other.Theseorganisationstypicallyprovidegeneralinputstotheidentifiedsub-sectorsandassuch,areengagedinthespaceeconomy(andtherebybenefitfromitsgrowth)whilstnotbeingdirectlyinvolvedinspacerelatedactivity.Often,theseorganisationswillfacilitatetheactivityofspaceorganisations.

Num

ber

of o

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isat

ions

0

2

4

6

8

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12

14

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18

Space Systems

Launch Activities

Ground Systems

Space Enabled Services

Ancillary Services

R&D Education and

Training

Other Transport, logistics

and construction

General component,

material, engineering

supply

16

65

6

8

4

2 21

9

35

Building Queensland's space economy

5 Queensland’s competitive advantages

Building Queensland's space economy

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5.1 Overview ThepreviouschapterpresentedanoverviewofthecurrentsizeandscopeofQueensland’sspaceeconomy,highlightingthenicheareasinwhichQueenslandcurrentlychoosestooperate.Wherewecurrentlyspecialise,andwheretheopportunitiesforgrowthlie,areafunctionof our competitive advantages. We do not havethescaletocompeteinallareasoftheglobalspaceeconomy,sowheredowehavethenatural,physicalandhumanadvantagesthatensurethatwhenwedochoosetoinvest,wewillbecompetitive?

Thischapterintroducesthecapabilitymatrixusedtoidentifytheseareasofcompetitiveadvantage.Thematrixassessesnatural/geographical,physicalandhumancapitalcharacteristicsofeachofthespaceeconomysub-sectors,aswellasthepresenceofdeepmarkets.Theevidencebaseunderlyingtheassessmenthasbeenderived from industry consultations and theindustrycapabilitysurvey.

5.2 Capability matrixAnextensiveassessmentoftheQueensland space economy and its capabilitiesacrossthesupplychainhasnotpreviouslybeenundertaken.Assuch,thedevelopmentofacapabilitymatrixand corresponding criteria was required to assesstheQueenslandspaceeconomyasit stands today.

OrganisationsacrossthespacesupplychaininQueensland,notwithstandinga few exceptions, are typically small in numberandsize.However,theyexhibitindustry-leadingexpertiseintheoftennicheareasinwhichtheyoperate.

Acrossallsub-sectorsinthespaceeconomy, organisations are engaged in commercial and/or collaborative relationshipswithlargeinternationalcompaniesorspaceagencies.Thisreflectsa vibrant ecosystem of well-connected organisationsparticipatinginhighlyspecialisedareasthatoftendemandhighentryandinvestmentcosts,andhavelonginvestment cycles.

Thecapabilitymatrixhasbeendevelopedand assessed using supporting evidence and analysis from a variety of sources including:theindustrycapabilitydirectorysurvey (survey 1) and industry capability survey (survey 2), focus groups, discussions withtheQueenslandSpaceIndustryReference Group, site visits, desktop researchandsourcesfromtheQueenslandParliamentary Inquiry.

5.2.1 Development of criteria for assessmentTheextentofcapabilityacrosstheQueenslandsupplychainlargelyreflectsboththesizeoftheQueenslandsector,andthedevelopingnationalspaceeconomy.

Despite some expert capability areas intheQueenslandspaceeconomy,theredoesnotexistthesamehistoryofoperationsthatdevelopscriticalmassandwhichwouldpermitameaningfulassessment of Queensland’s capabilities relativetootherspaceeconomies.Forinstance,thedecadesofinvestmentin,anddevelopmentof,thespacesectorintheUnitedStatesandthecapabilityofNASAisnotcomparabletothelevelofinvestmentand development in Australia’s national sector, or Queensland’s.

To appropriately gauge capability across thesupplychain,sub-sectorsintheQueenslandspaceindustryhavebeenassessedrelativetothelevelofmaturityoftheQueenslandandnationalspaceeconomy.Thecriteriaandassessmentapproachalsoaccountsfortherecognisedmarketcriteriathatarenecessaryconditionstotheoperationandgrowthofthespaceeconomy.

Thisapproachreflectstheperformanceofeachsub-sectorandtakesintoconsiderationthefactthatQueensland’sspaceeconomyhassignificantgrowthpotentialwhich,forthemostpart,hasnotyetbeenrealised.Theapproachalsoreflectstheinputsandoutputsofthespaceeconomy,andhighlightswhereQueenslandmayhaveacompetitiveadvantage,oranexistingcapabilitythathassymmetrieswiththeglobalspaceeconomy.

Thecriteriaforthecapabilitymatrixareassessed as strong, moderate or limited and include:

• Natural/Geography – Queensland’s geographiclocationprovidesauniqueorcompetitiveadvantageforthesub-sector.

• Physical infrastructure – availability ofnecessaryphysicalinfrastructureinQueenslandforthesub-sectortooperatee.g. satellites.

• Human capital – availability/appropriateness of Queensland knowledgeandexpertisethatiscriticaltodevelopment.

• Demand –stateofthecurrentdemandforthesub-sectorsproductsand/orservicesinboththenationalandinternational market.

• Supply –readinessofsupplyfortheproductsand/orservicesrequiredbythesub-sector.

Table5.1detailstheassessmentcriteriaforthecapabilitymatrixandthedefinitionofthedifferingscalesofmaturity–betweenstrong, moderate and limited capability.

5.3 Assessment of Queensland’s space industry capability AsummaryoftheapplicationofthecapabilitymatrixacrosseachofQueensland’s space industry sub-sectors is provided in Table 5.2. ThesummaryprovidesanoverviewofwherecapabilityexistsintheQueenslandspaceindustry,andhighlightsareaswithstrongcapabilityintheQueenslandecosystem.Overall,theQueenslandspaceindustryischaracterisedbyscattered,butmoderatecapabilityinhighlyspecialisedareas.

Furtherdetailconcerningeachelementofthecapabilitymatrix,andthecorrespondingassessmentacrossthesub-sectorsoftheindustry,isprovidedinthefollowingsectionsofthischapteraswellasin Appendix B.

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5.1 Overview ThepreviouschapterpresentedanoverviewofthecurrentsizeandscopeofQueensland’sspaceeconomy,highlightingthenicheareasinwhichQueenslandcurrentlychoosestooperate.Wherewecurrentlyspecialise,andwheretheopportunitiesforgrowthlie,areafunctionof our competitive advantages. We do not havethescaletocompeteinallareasoftheglobalspaceeconomy,sowheredowehavethenatural,physicalandhumanadvantagesthatensurethatwhenwedochoosetoinvest,wewillbecompetitive?

Thischapterintroducesthecapabilitymatrixusedtoidentifytheseareasofcompetitiveadvantage.Thematrixassessesnatural/geographical,physicalandhumancapitalcharacteristicsofeachofthespaceeconomysub-sectors,aswellasthepresenceofdeepmarkets.Theevidencebaseunderlyingtheassessmenthasbeenderived from industry consultations and theindustrycapabilitysurvey.

5.2 Capability matrixAnextensiveassessmentoftheQueensland space economy and its capabilitiesacrossthesupplychainhasnotpreviouslybeenundertaken.Assuch,thedevelopmentofacapabilitymatrixand corresponding criteria was required to assesstheQueenslandspaceeconomyasit stands today.

OrganisationsacrossthespacesupplychaininQueensland,notwithstandinga few exceptions, are typically small in numberandsize.However,theyexhibitindustry-leadingexpertiseintheoftennicheareasinwhichtheyoperate.

Acrossallsub-sectorsinthespaceeconomy, organisations are engaged in commercial and/or collaborative relationshipswithlargeinternationalcompaniesorspaceagencies.Thisreflectsa vibrant ecosystem of well-connected organisationsparticipatinginhighlyspecialisedareasthatoftendemandhighentryandinvestmentcosts,andhavelonginvestment cycles.

Thecapabilitymatrixhasbeendevelopedand assessed using supporting evidence and analysis from a variety of sources including:theindustrycapabilitydirectorysurvey (survey 1) and industry capability survey (survey 2), focus groups, discussions withtheQueenslandSpaceIndustryReference Group, site visits, desktop researchandsourcesfromtheQueenslandParliamentary Inquiry.

5.2.1 Development of criteria for assessmentTheextentofcapabilityacrosstheQueenslandsupplychainlargelyreflectsboththesizeoftheQueenslandsector,andthedevelopingnationalspaceeconomy.

Despite some expert capability areas intheQueenslandspaceeconomy,theredoesnotexistthesamehistoryofoperationsthatdevelopscriticalmassandwhichwouldpermitameaningfulassessment of Queensland’s capabilities relativetootherspaceeconomies.Forinstance,thedecadesofinvestmentin,anddevelopmentof,thespacesectorintheUnitedStatesandthecapabilityofNASAisnotcomparabletothelevelofinvestmentand development in Australia’s national sector, or Queensland’s.

To appropriately gauge capability across thesupplychain,sub-sectorsintheQueenslandspaceindustryhavebeenassessedrelativetothelevelofmaturityoftheQueenslandandnationalspaceeconomy.Thecriteriaandassessmentapproachalsoaccountsfortherecognisedmarketcriteriathatarenecessaryconditionstotheoperationandgrowthofthespaceeconomy.

Thisapproachreflectstheperformanceofeachsub-sectorandtakesintoconsiderationthefactthatQueensland’sspaceeconomyhassignificantgrowthpotentialwhich,forthemostpart,hasnotyetbeenrealised.Theapproachalsoreflectstheinputsandoutputsofthespaceeconomy,andhighlightswhereQueenslandmayhaveacompetitiveadvantage,oranexistingcapabilitythathassymmetrieswiththeglobalspaceeconomy.

Thecriteriaforthecapabilitymatrixareassessed as strong, moderate or limited and include:

• Natural/Geography – Queensland’s geographiclocationprovidesauniqueorcompetitiveadvantageforthesub-sector.

• Physical infrastructure – availability ofnecessaryphysicalinfrastructureinQueenslandforthesub-sectortooperatee.g. satellites.

• Human capital – availability/appropriateness of Queensland knowledgeandexpertisethatiscriticaltodevelopment.

• Demand –stateofthecurrentdemandforthesub-sectorsproductsand/orservicesinboththenationalandinternational market.

• Supply –readinessofsupplyfortheproductsand/orservicesrequiredbythesub-sector.

Table5.1detailstheassessmentcriteriaforthecapabilitymatrixandthedefinitionofthedifferingscalesofmaturity–betweenstrong, moderate and limited capability.

5.3 Assessment of Queensland’s space industry capability AsummaryoftheapplicationofthecapabilitymatrixacrosseachofQueensland’s space industry sub-sectors is provided in Table 5.2. ThesummaryprovidesanoverviewofwherecapabilityexistsintheQueenslandspaceindustry,andhighlightsareaswithstrongcapabilityintheQueenslandecosystem.Overall,theQueenslandspaceindustryischaracterisedbyscattered,butmoderatecapabilityinhighlyspecialisedareas.

Furtherdetailconcerningeachelementofthecapabilitymatrix,andthecorrespondingassessmentacrossthesub-sectorsoftheindustry,isprovidedinthefollowingsectionsofthischapteraswellasin Appendix B.

37

Building Queensland's space economy

Table 5.1 Assessment criteria for capability matrix

Natural/Geography Physical Human Capital Demand Supply

Strong

Queensland’s natural environment/geographyprovidesa unique competitive advantage,whichthesub-sectorcanleverageoff.

Queensland’s space economy hasthephysicalinfrastructure requiredforthesub-sector, is well establishedand/or can operate independently.

Queensland’s workforce is able to sustainthemajorityofthehumancapitalrequirements of thesub-sector,withonly a small number of specialist skills imported.

Thereisamaturedomestic and international market demand for products/services thesub-sectorproduces.

Thereisamaturedomestic and international market supply for products/services required by thesub-sector.

Moderate

Queensland’s natural environment/geographyisadvantageous but notcriticaltothedevelopmentofthesub-sector.

Queensland’s space economy hassomephysicalinfrastructure requiredbythesub-sector but relies on otherjurisdictionstooperate.

Thehumancapitalrequiredbythesub-sector is not adequate to sustain development and/orgrowthwithoutskills being imported. Thesub-sectorfrequently relies on otherjurisdictionsforexpertise.

Thereisamatureinternational market demand and developing national market demand for products/services thesub-sectorproduces.

Thereisamatureinternational market supply and developing national market supply for products/services requiredbythe sub-sector.

Limited

Queensland’s natural environment/geographydoesnot provide any additionalbenefittothesub-sector.

Queensland’s space economy doesnothavetherelevantphysicalinfrastructure to developthesub-sector.

Thereisnoavailableexpertiseforthesub-sector.Allhumancapital is imported.

Thereisdemandintheinternationalmarket(eithermature or developing)onwhichthesub-sectorreliesentirelyasthereisno national market demand.

Theinternationalmarket(eithermature or developing)istheprimary supplier astherearenosuppliersinthenational market.

Source: Criteria developed by Deloitte Access Economics

Table 5.2 Queensland Capability Matrix

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

Space Systems N/A

Launch Activities

Ground Systems

Space Enabled Services

N/A

Ancillary Services N/A N/A

R&D

Education N/A

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5.3.2 Space Systems

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

Space Systems N/A Moderate Limited Moderate Limited

Thespacesystemssub-sectorcontributestothesupply,manufactureandoperationofinfrastructureandtechnologyusedinspace.Organisationsinthesub-sectorarespreadacrossthreekeycapabilityareas– Component and Material Supply, Space Subsystem Supply, and System Engineering andTechnicalSupport.

InQueensland,themajorityoforganisationsinthesub-sectordonotidentifyspaceastheirprimaryactivityofoperations.Thereissome,butspecific,physicalinfrastructureavailabletothesub-sector.Thisratingfurtherreflectsthesizeofthesub-sector,ratherthantheindividualcapabilityoforganisations;whilephysicalinfrastructureexists,thereisnotcriticalmassintheindustry.

Themajorityoforganisationshaveexportedtheirproducts/servicesinthepreviousfinancialyear,reflectinginternationaldemandfortheproductsand/orservicesofferedbythesub-sector.However, as most organisations do not considerspacetheirprimaryindustryofactivity,theseexportsareunlikelytobeentirelyspacerelated.Thissuggeststhatwhilethereiscapabilityinthesub-sector,whichislikelytosupporttheexistingdemandoftheemergingindustryinQueenslandandAustralia,thereisscarcedomesticdemandfortheproducts/servicesofthesub-sector.Thismaylimittheabilityofthesub-sectortodevelopdomestically.

Itwasidentifiedthatgrowthinthesub-sector would be well supported by existing strengthsacrossindustriessuchasDefence, Aerospace, Manufacturing and MiningintheQueenslandeconomy.

Milspec Solutions

In operation for over 40 years, Milspec designs and manufactures brushless alternators and portable power systems for defence forces across the world. Milspec is an Australian organisation that provides subsystems for defence and other industry applications.

“With the new worldwide rule change of what goes into space must come back on its own power, we have the equipment to assist with this. There is also equipment that no one else manufacturers for the space program.”

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5.3.2 Space Systems

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

Space Systems N/A Moderate Limited Moderate Limited

Thespacesystemssub-sectorcontributestothesupply,manufactureandoperationofinfrastructureandtechnologyusedinspace.Organisationsinthesub-sectorarespreadacrossthreekeycapabilityareas– Component and Material Supply, Space Subsystem Supply, and System Engineering andTechnicalSupport.

InQueensland,themajorityoforganisationsinthesub-sectordonotidentifyspaceastheirprimaryactivityofoperations.Thereissome,butspecific,physicalinfrastructureavailabletothesub-sector.Thisratingfurtherreflectsthesizeofthesub-sector,ratherthantheindividualcapabilityoforganisations;whilephysicalinfrastructureexists,thereisnotcriticalmassintheindustry.

Themajorityoforganisationshaveexportedtheirproducts/servicesinthepreviousfinancialyear,reflectinginternationaldemandfortheproductsand/orservicesofferedbythesub-sector.However, as most organisations do not considerspacetheirprimaryindustryofactivity,theseexportsareunlikelytobeentirelyspacerelated.Thissuggeststhatwhilethereiscapabilityinthesub-sector,whichislikelytosupporttheexistingdemandoftheemergingindustryinQueenslandandAustralia,thereisscarcedomesticdemandfortheproducts/servicesofthesub-sector.Thismaylimittheabilityofthesub-sectortodevelopdomestically.

Itwasidentifiedthatgrowthinthesub-sector would be well supported by existing strengthsacrossindustriessuchasDefence, Aerospace, Manufacturing and MiningintheQueenslandeconomy.

Milspec Solutions

In operation for over 40 years, Milspec designs and manufactures brushless alternators and portable power systems for defence forces across the world. Milspec is an Australian organisation that provides subsystems for defence and other industry applications.

“With the new worldwide rule change of what goes into space must come back on its own power, we have the equipment to assist with this. There is also equipment that no one else manufacturers for the space program.”

39

Building Queensland's space economy

5.3.3 Launch Activities

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

Launch Activities Strong Limited Limited Moderate Limited

Capabilityinthelaunchsub-sectorisspread across Component and Subsystem ManagementandLaunchServices.

TheQueenslandlaunchactivitiessub-sectorhasastrongcompetitiveadvantageduetotheQueensland’sgeographyandproximitytotheequator.Thisenableslaunchintobothpolarandequatorialorbits, as well as access to large areas of unused land and airspace.

QueenslandishometotwoofthemostactiverocketlaunchproponentsinAustralia.Bothhighlyspecialisedorganisationshaveaccesstointerimlaunchfacilitiesbutnotafullyoperationallaunchsite capable of supporting commercial launches.Changesinmarketstructureoftheglobalspaceeconomyhaveledtoglobalgrowthinlaunchactivitythatexiststosupportthelaunchofcommercialpayloadsintospace.Thesepayloadsaredrivenbygrowthinthesatelliteindustry;whichisdrivenbydemandfortheformationofmega-constellations.InQueensland,thelaunchactivitiessub-sectordoesnothaveavailabletoitthephysicalinfrastructurethatisrequiredintocompeteinthegloballaunchmarket.

Whilesomeorganisationsinlaunchexperienceddifferingdegreesofsuccesslocatingindividualswiththenecessaryknowledgeandskills,thesub-sectorhastofrequently rely on skills and expertise outside ofQueenslandtoconducttheiroperations.Thesub-sectorexpressedconcernsabouttheavailabilityofhumancapitalwiththeappropriateskillsrequiredtosustaingrowthanddevelopmentinthesub-sector.

Analysisofthelaunchactivitiessub-sectorsuggeststhereisdevelopingdemandforlaunchservicesinAustraliawhichiscurrentlyunmet.Thisunmetdemandisinpartexplainedbythesub-sectorpresentlybeing limited by regulation and lack of commerciallaunchfacilities.

Thesize,turnoverandlackofexportcapabilityoforganisationsinthelaunchsectorfurthersuggeststheremaybeademand/supplyissue.Despitethis,itisimportanttonoteorganisationshavebeenable to rely on Queensland industry for materials and manufacturing capability for manyofthenecessaryinputs;theredohoweverremainsomeinputswhichthesub-sector cannot source in Queensland. For example, propulsion activities require hydrogenperoxidethatorganisationsmustimport from international suppliers.

Accordingly,thelimitedratinggiventothesupplycriteriainthissub-sectorreflects1)thesizeofthesub-sectorinQueenslandand2)keylimitationswhichmakeitnecessaryfororganisationstopurchaseinputsoutsideofQueenslandandwhichprohibitthesub-sector from growing domestically.

Black Sky Aerospace

The Queensland company behind the sub-orbital launch, Black Sky Aerospace (BSA) is one of Australia’s leading space launch proponents. BSA was responsible for Australia’s first commercial rocket launch west of Goondiwindi in outback Queensland in 2018. Three commercial payloads were tested on the sub-orbital flight:

1. Space rated sensors for the Australian Centre for Space Engineering Research (ACSER).

2. A carbon ceramic panel for hypersonic flight, with embedded sensors, onboard for the University of Queensland’s Composites and launch start-up Hypersonix.

3. A wrist device for skydivers which provides data on altitude, speed and GPS tracking, manufactured by Dekunu Technologies. The launch also paved the way for more BSA rocket flights in Queensland, including this re-usable rocket which landed 1.8 kilometres away from the launch site

Gilmour Space Technologies

Founded in 2012, the Queensland based hybrid propulsion company plans to launch its first commercial hybrid rocket to space in 2020. The company plans to launch Eris-100 in 2020, a three-stage commercial vehicle capable of launch 100 kilograms to Low-Earth Orbit; followed by Eris-400 in 2021, a clustered-engine vehicle for payloads of up to 400 kilograms.

“The small satellite revolution is gaining momentum globally, with thousands of small satellites slated to launch into low-Earth orbits (LEO) over the next five years”

"Our end goal is to provide low-cost access to space, and to enable human spaceflight and exploration."– Adam Gilmour, CEO & Founder, Gilmour Space Technologies

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5.3.4 Ground Systems

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

Space Systems Strong Limited Limited Moderate Limited

OrganisationshaveidentifiedcapabilityinAntenna/Ground Station Component or Material Supplier, Prime/System Integration and Ground Segment/System Integration.

Similartothelaunchsub-sector,groundsystemsbenefitfromacompetitiveadvantageingeographiclocation.Groundsystemshavegeographicrequirementsinordertoachieveoperational(e.g.areasoflow interference) and strategic (e.g. limited groundstationcapabilityinsouthernhemisphere)objectives.Queenslandiswellpositionedtoleveragetheseobjectivesandsupportsatellitelaunchserviceswithlargeopenspaces,significantuninhabitedlandmassclosetotheequatorandflightpathsovertheocean.

Thesub-sectorhaslimitedcapabilitywithrespecttothephysicalinfrastructurerequiredtofacilitateactivities.Whilecapability exists in operating and facilitating theuseofgroundsystemsinfrastructureandtechnology,alimitationofthesub-sectoristhelackoflargeinfrastructure,ownershipofwhichwoulddriveexpansionandgrowth.Anabsenceofgroundstationinfrastructurelimitsnotonlythegrowthofthesub-sectoritself,butalsothatofothersub-sectorsincludingSpaceEnabledServicesthatcouldbenefitfrominfrastructureflowoneffects.

Ground systems organisations are primarilysuppliers,technicalsupport,oroperationalassistance,limitingthegrowthpotential in downstream applications associatedwiththesub-sector.Australia’slonghistoricalinvolvementinthissectormeansthereissignificanthumancapitalcapabilityacrossthenation.However,Queensland-basedorganisationsidentifiedthelackofindividualsparticipatinginthesub-sectortosupportfurtherlongtermgrowth.InQueensland,severaloftheground segment organisations are large multinationals,whichenablesthemtodrawfromtheirinternationalnetworkstofillskills gaps.

Allorganisationsinthegroundsystemssegmentexporttheirproducts/services,whichlikelyreflectsacombinationoffactorsatplayinthesub-sector.Severaloftheorganisationsarelargemultinationalswithsignificantcapabilityacrossnotonlythespacesupplychain,butotherindustriessuchasDefenceandAerospace(whichhavesimilarproduct/servicerequirements).Significantdemandfortheseproductsandservicesexistsin international markets. Consequently, growthinthesub-sectoratpresentis not driven by developing national demandbutratherthedemandofinternational markets.

EM Solutions

Based in Yeronga, EM Solutions is a broadband satellite communications equipment manufacturer, with extensive R&D and engineering capabilities related to microwave and RF subsystems, electromagnetics, antenna design, mechanical pedestals, and stabilised platforms.

EM Solutions design and manufacture differentiated microwave and RF products and systems for satellite and broadband communications. Exporting globally, EM Solutions supply next generation high speed communications products that assist in the delivery of real-time voice, data and multimedia anywhere in the world.

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5.3.4 Ground Systems

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

Space Systems Strong Limited Limited Moderate Limited

OrganisationshaveidentifiedcapabilityinAntenna/Ground Station Component or Material Supplier, Prime/System Integration and Ground Segment/System Integration.

Similartothelaunchsub-sector,groundsystemsbenefitfromacompetitiveadvantageingeographiclocation.Groundsystemshavegeographicrequirementsinordertoachieveoperational(e.g.areasoflow interference) and strategic (e.g. limited groundstationcapabilityinsouthernhemisphere)objectives.Queenslandiswellpositionedtoleveragetheseobjectivesandsupportsatellitelaunchserviceswithlargeopenspaces,significantuninhabitedlandmassclosetotheequatorandflightpathsovertheocean.

Thesub-sectorhaslimitedcapabilitywithrespecttothephysicalinfrastructurerequiredtofacilitateactivities.Whilecapability exists in operating and facilitating theuseofgroundsystemsinfrastructureandtechnology,alimitationofthesub-sectoristhelackoflargeinfrastructure,ownershipofwhichwoulddriveexpansionandgrowth.Anabsenceofgroundstationinfrastructurelimitsnotonlythegrowthofthesub-sectoritself,butalsothatofothersub-sectorsincludingSpaceEnabledServicesthatcouldbenefitfrominfrastructureflowoneffects.

Ground systems organisations are primarilysuppliers,technicalsupport,oroperationalassistance,limitingthegrowthpotential in downstream applications associatedwiththesub-sector.Australia’slonghistoricalinvolvementinthissectormeansthereissignificanthumancapitalcapabilityacrossthenation.However,Queensland-basedorganisationsidentifiedthelackofindividualsparticipatinginthesub-sectortosupportfurtherlongtermgrowth.InQueensland,severaloftheground segment organisations are large multinationals,whichenablesthemtodrawfromtheirinternationalnetworkstofillskills gaps.

Allorganisationsinthegroundsystemssegmentexporttheirproducts/services,whichlikelyreflectsacombinationoffactorsatplayinthesub-sector.Severaloftheorganisationsarelargemultinationalswithsignificantcapabilityacrossnotonlythespacesupplychain,butotherindustriessuchasDefenceandAerospace(whichhavesimilarproduct/servicerequirements).Significantdemandfortheseproductsandservicesexistsin international markets. Consequently, growthinthesub-sectoratpresentis not driven by developing national demandbutratherthedemandofinternational markets.

EM Solutions

Based in Yeronga, EM Solutions is a broadband satellite communications equipment manufacturer, with extensive R&D and engineering capabilities related to microwave and RF subsystems, electromagnetics, antenna design, mechanical pedestals, and stabilised platforms.

EM Solutions design and manufacture differentiated microwave and RF products and systems for satellite and broadband communications. Exporting globally, EM Solutions supply next generation high speed communications products that assist in the delivery of real-time voice, data and multimedia anywhere in the world.

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Building Queensland's space economy

5.3.5 Space Enabled Services

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

Space Enabled Services

N/A Moderate Moderate Moderate Moderate

Thesub-sectorhasaccesstothenecessaryoperating infrastructure including satellites, ground stations and telescopes. However, capabilitygrowthinQueenslandislimitedbythelackofownershipofkeyphysicalinfrastructureassetsthatsupportthesub-sector.

Constraintstogrowthinthesub-sectorarealsodrivenbythehighlyspecialisednatureofthefieldsinwhichorganisationsoperate.Theserequirehumancapitalwithspecificqualificationsandexperience.Allorganisationsinthesub-sectoridentifiedthedifficultyinhiringaworkforcewithskillsintherequisitefields.

Growthpotentialexistsinthesub-sectorand is driven by EO, PNT and GNSS technology,andtheirapplicationacrossnon-traditionalareasintheeconomy. Thisgrowthwillsupportthedevelopmentofthesector.

Developing demand in Australia for products/servicesofthesub-sectorisaconstrainttogrowth.Organisationsexpresseddifficultygainingaccesstointernational markets due, in some cases,totraderelations.Despitethis,themajorityoforganisationsexporttheirproducts/services.Whilepredominantlylocation agnostic, exposure to industries withpotentialtousethesub-sector’sproducts/services is a key advantage for organisationsbasedinQueensland.Thisadvantageissomewhatlimitedhoweverbyalackofgroundsysteminfrastructurethatwouldprovidesignificantflowoneffectstoorganisationsinthesub-sector.

Thesub-sectorhasmoderatesupplycapabilitywhichreflectsorganisations’import requirements and strong capabilityatthenational,butnotstate,level.Inputsforthesectorwhicharenotable to be sourced from Queensland include satellite imagery, software and advancedcloudcomputing.Thisdoesnothoweverrestricttheoperationalabilityoforganisationsinthesector.SpaceenabledservicesrelyheavilyoninputssourcedfromtheInformation,MediaandTelecommunicationssectorforwhichthebroaderAustralianeconomyhas significantcapability.However,the majorityofexpertiseinthesectoris not based in Queensland.

Ozius

In a country as dry as Australia, the ability to find water under the earth’s surface using data from space is a game changer. And that is precisely what Queensland Earth Observation analytics company Ozius did; finding springs in the Great Artesian Basin no-one knew existed. By combining EO data with time-series historical information and real-time ground observation, Ozius is changing the space-based data analytics game.

Ozius relies on this unique combination of existing and emergent technologies; their bespoke combination of EO data analytics, machine learning, historical data and planning, environmental science and remote sensing expertise have lead the company to work with blue- chip energy and resource companies.

“Ozius is a commercial, remote sensing analytics company, which utilises space-based data from satellites” Ben Starkey, business manager of Ozius.

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5.3.6 Ancillary Services

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

Ancillary Services N/A N/A Limited Limited Limited

Limitedcapabilityexistsinthesub-sectoratpresent.Thebreadthofskillsrequiredtoprovideservicestothesub-sectorislimitedbytheexistingsizeanddemandfor services of organisations operating primarilyinthespaceeconomy.

Despitethis,someuniquecapabilitiesdoexist in Queensland’s space economy. OrganisationswithskillsandexperienceinindustriessuchasDefenceandAerospacehavebeenabletoprovideservicestosomeorganisationsinthespaceeconomyintheabsence of specialised products/services. Demand for products/services provided bythesub-sectorisdependentonthesizeofQueensland’sspaceeconomy.Withoutbroadergrowthinthespaceeconomydomestically,therewillbelimitedcapabilityinthesub-sector.

International Aerospace Law & Policy Group

Bringing together expertise in international aviation, space, drone and defence law is how IALPG works - we have diverse expertise to bring about constructive and commercial solutions to time-sensitive legal problems even where they are politically-sensitive or part of regionally important aviation projects.

IALPG’s Space Law & Strategy expert, Duncan Blake “is keen to facilitate a stronger Australian space industry, as well as finding ways for all sectors of the global space industry to collaborate in the development of global space governance for a more stable and better connected world.”

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5.3.6 Ancillary Services

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

Ancillary Services N/A N/A Limited Limited Limited

Limitedcapabilityexistsinthesub-sectoratpresent.Thebreadthofskillsrequiredtoprovideservicestothesub-sectorislimitedbytheexistingsizeanddemandfor services of organisations operating primarilyinthespaceeconomy.

Despitethis,someuniquecapabilitiesdoexist in Queensland’s space economy. OrganisationswithskillsandexperienceinindustriessuchasDefenceandAerospacehavebeenabletoprovideservicestosomeorganisationsinthespaceeconomyintheabsence of specialised products/services. Demand for products/services provided bythesub-sectorisdependentonthesizeofQueensland’sspaceeconomy.Withoutbroadergrowthinthespaceeconomydomestically,therewillbelimitedcapabilityinthesub-sector.

International Aerospace Law & Policy Group

Bringing together expertise in international aviation, space, drone and defence law is how IALPG works - we have diverse expertise to bring about constructive and commercial solutions to time-sensitive legal problems even where they are politically-sensitive or part of regionally important aviation projects.

IALPG’s Space Law & Strategy expert, Duncan Blake “is keen to facilitate a stronger Australian space industry, as well as finding ways for all sectors of the global space industry to collaborate in the development of global space governance for a more stable and better connected world.”

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Building Queensland's space economy

5.3.7 Research and Development

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

R&D Moderate Moderate Moderate Moderate Limited

Organisationsinthissub-sectoraretypically university or Government affiliationswithindustryleadingexpertiseinnicheareasofthespaceeconomy.

R&DinQueenslandhasformedsomenatural clusters of expertise, partially duetogeographicadvantages.Proximity totheequator,clearnightskiesandalternativetime-zoneshaveencouragedcapabilityinareassuchasobservation,tracking and testing.

Thesub-sectorrequireshigh-costinfrastructuretosupportoperations;insome areas, Queensland organisations haveworld-leadingcapabilityinsmallpocketsofexpertise.Thishasencouragedthegrowthofclusters,attractionofinvestmentandfurtheringofknowledge.Thelimitedphysicalinfrastructureisareflectionofthehighinvestmentcostsassociatedwithspecifictechnologies.

Most of Queensland’s major universities havecapabilityinuniqueareasofspace.Widespread expertise across organisations isnotobservedastheQueenslandspaceeconomyisnotsufficienttosustainlargeamountsofhumancapital.Organisationsexperiencevaryingdegreesofdifficultyinhiringduetotheextremelyspecialisedareasofinterest.ThemoderateratingreflectsthatwherethereexistshumancapitalR&DcapabilityinQueensland,individuals are industry leaders. However, a large scale workforce does not exist.

Thesub-sectorcollaborateswidelyacrosstheglobalspaceeconomyintheabsenceof local and national demand for expertise. However,thishasalsocontributedtothedepthofspecialisationwhichhasoccurredinthesub-sectorasindividuals/organisationsaretypicallywellconnectedandattheforefrontofinnovationsintheirchosenfields.Limitedsupplyofinputsrequiredforthesub-sectorsproducts/servicesisoftenmetbytheinternationalmarket.

University of Southern Queensland (USQ)

USQ is an R&D institution with focus and capability across a number of space sub-sectors, exemplified by its different research centres/groups.

The Centre for Future Materials (CFM), home to USQ’s Advanced Composites Manufacturing research programme team, provides “novel design, manufacture and testing for aerospace, space and defence advanced composite structures.” Through partnerships with public and private, domestic and international entities, the centre is developing one-of-a-kind R&D capabilities.

USQ’s Centre for Astrophysics (CA) specialises in R&D capabilities relevant to optical tracking, scientific imaging, spectroscopy, spectropolarimetry, photonics, celestial mechanics, space resources and space weather. The centre extensively collaborates with international institutions including the NASA Exoplanet Science Institute (Caltech) and the Harvard-Smithsonian Centre for Astrophysics on a range of R&D projects, some of which are facilitated by USQ’s Mount Kent Observatory.

The Hypersonics Group (HG) delivers aerospace research outcomes in conjunction with national and international partners including the ESA and NASA. It has undertaken, and continues to be involved in, various R&D projects. An example is the ‘Spacecraft re-entry break-up’ initiative, an Australian-German exchange program with the Institute of Space Systems, at the University of Stuttgart, to develop dispersion models used to manage end-of-life deorbit of spacecraft.

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5.3.8 Education and Training

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

Education N/A Moderate Moderate Limited Limited

Capabilityinthesub-sectorislimitedinitsprovisionofspacespecificcoursesandopportunities.However,thereexistsindustry-leading educational opportunities andcapabilitiesinseveralareaswithsymmetriestothespaceeconomy.

Queensland educational institutions arewellplacedtoleverageoffexistingcapabilityshouldgrowthinthespaceeconomydriveactivityintheeducationsector.Severaloftheeducationinstitutionshavespecialisedresearchunits dedicated to space activities as well as industry-leading expertise. However, theydonotpresentlyprovideeducationalopportunitiesspecificallydesignedforthespace sector.

Limited demand for, and supply of, educationandtrainingspecifictospacerelatedactivitiesisareflectionofthesizeofthecurrentlocalmarket.Therehasnotpreviouslybeensufficientdemandforeducationspecifictothespacesector;individualsseekingtofurtherpursuespaceeducation and gain industry experience will oftendosooverseas.Thisisoftenreferredtobyspaceorganisationsas‘braindrain’andissightedasaprimaryconstrainttogrowth.Thisphenomenafurtherexacerbatestheproblemastheexistingindustry is required to import expertise, reducing demand for space-related educationoverthelong-term.

Educating the next generation

Australian Space Design Competitions provide industry-simulation events for high-school students in Australia. Competitions provide interactive, high-tempo, and dynamic environments for students to further their Science, Technology, Engineering, and Mathematics (STEM) skills. Since 2002, ASDC have partnered with a number of organisations and schools across Australia to nourish and prepare the next generation of innovative young minds.

The champion team from the ASDC Finals represents Australia at the International Space Settlement Design Competition (ISSDC), held annually the following July (due to Northern Hemisphere school years) at the Kennedy Space Centre (Florida, USA). Held at the University of Queensland, this year, the winning team comprised of representatives from two Queensland high schools; who will now go on to represent Australia.

The Aerospace Gateway to Industry Schools program was established to support the growth and development of an effective workforce for the aviation industry sector. This program provides opportunities for young people to undertake structured workplace learning, school-based apprenticeships and traineeships, full-time employment, and further study through industry-school partnerships. It has proven essential in meeting the Queensland Government’s aim of transitioning young people from school to work while completing school and gaining formal qualifications.

The program currently involves a total of 18* Queensland secondary schools (government and non-government), with 300 students throughout Queensland studying Aerospace studies. There are over 30 industry partners and supporters engaged including local aerospace entities, training institutions and universities. These partners all contribute to creating pathways for students into Queensland’s aerospace industry.

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5.3.8 Education and Training

Space industry sub-sector

Natural/Geography

Physical Human Capital Demand Supply

Education N/A Moderate Moderate Limited Limited

Capabilityinthesub-sectorislimitedinitsprovisionofspacespecificcoursesandopportunities.However,thereexistsindustry-leading educational opportunities andcapabilitiesinseveralareaswithsymmetriestothespaceeconomy.

Queensland educational institutions arewellplacedtoleverageoffexistingcapabilityshouldgrowthinthespaceeconomydriveactivityintheeducationsector.Severaloftheeducationinstitutionshavespecialisedresearchunits dedicated to space activities as well as industry-leading expertise. However, theydonotpresentlyprovideeducationalopportunitiesspecificallydesignedforthespace sector.

Limited demand for, and supply of, educationandtrainingspecifictospacerelatedactivitiesisareflectionofthesizeofthecurrentlocalmarket.Therehasnotpreviouslybeensufficientdemandforeducationspecifictothespacesector;individualsseekingtofurtherpursuespaceeducation and gain industry experience will oftendosooverseas.Thisisoftenreferredtobyspaceorganisationsas‘braindrain’andissightedasaprimaryconstrainttogrowth.Thisphenomenafurtherexacerbatestheproblemastheexistingindustry is required to import expertise, reducing demand for space-related educationoverthelong-term.

Educating the next generation

Australian Space Design Competitions provide industry-simulation events for high-school students in Australia. Competitions provide interactive, high-tempo, and dynamic environments for students to further their Science, Technology, Engineering, and Mathematics (STEM) skills. Since 2002, ASDC have partnered with a number of organisations and schools across Australia to nourish and prepare the next generation of innovative young minds.

The champion team from the ASDC Finals represents Australia at the International Space Settlement Design Competition (ISSDC), held annually the following July (due to Northern Hemisphere school years) at the Kennedy Space Centre (Florida, USA). Held at the University of Queensland, this year, the winning team comprised of representatives from two Queensland high schools; who will now go on to represent Australia.

The Aerospace Gateway to Industry Schools program was established to support the growth and development of an effective workforce for the aviation industry sector. This program provides opportunities for young people to undertake structured workplace learning, school-based apprenticeships and traineeships, full-time employment, and further study through industry-school partnerships. It has proven essential in meeting the Queensland Government’s aim of transitioning young people from school to work while completing school and gaining formal qualifications.

The program currently involves a total of 18* Queensland secondary schools (government and non-government), with 300 students throughout Queensland studying Aerospace studies. There are over 30 industry partners and supporters engaged including local aerospace entities, training institutions and universities. These partners all contribute to creating pathways for students into Queensland’s aerospace industry.

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Building Queensland's space economy

6 Areas for future growthinQueensland’sspace economy

Building Queensland's space economy

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6.1 OverviewGrowthopportunitiesforQueensland’sspaceeconomylieatthenexusofcompetitive advantages, existing capabilitiesandglobaltrends.However,thespaceeconomyisnotsomethingthatcanbegrownovernight;rather,deepexpertise,fostered by decades of public and private investment,isnecessarytocompeteinthehighlycompetitiveglobalsupplychain.

ThischapterpresentsthekeyareasforgrowthinQueensland’sspaceeconomy.

ConsultationswiththeindustryrevealedfourrecurringthemesaboutareasforfuturegrowthinQueensland’scorespaceeconomy (Figure 6.1):

• Connectingintotheglobalspaceeconomy,whichissetforsustainedgrowth

• Strengthening our existing capability toensurethatourcurrentareasofnicheexpertiseareworldclassandarepositionedforgrowth

• Experimentingthroughacontinuedfocusonourdeep–albeitniche–expertiseinresearchanddevelopment

• Leveraging current space economy strengths,andbroaderstrengthssuchas advanced manufacturing, to move into newareasofthespaceeconomy.

Figure 6.1. AreasforfuturegrowthinQueensland’sspaceeconomy

0102

ConnectingFostering international networks to seize growth opportunities

AdoptingRealising the application of space technology

across the Queensland economy

StrenghtheningBuilding on our existing space capability

0304

ExperimentingContinuing to invest in R&D

LeveragingDrawing on our broader economic strengths to grow space related capability

Moreover,the adoption of space enabled servicesbyotherQueenslandindustrieswas also revealed as an area for – potentiallylarge–growth.

Eachofthesearedescribedinmoredetailthroughoutthechapter,withevidenceprovidedbytheindustryconsultationprocess and capability survey.

6.2 ConnectingSpaceistheartofmakingtheimpossiblepossible.Itrequiressignificantcoordinationandallowsforthesharingofchallenges,risks and opportunities. It takes a village to dream, design, manufacture, test and executeallthingsspace.Pushingtheboundaries of almost every industry, spaceisnotsomethingagenciesandorganisations typically do alone. The interdependence of space activities presents an opportunity for a developing ecosystem in Queensland. Deep networks in international markets create opportunities for organisations to positionthemselvessoastocapitaliseon trends in global markets. Strong international demand already exists for Queensland organisations in areas for whichtheyhavenichecapabilityandexpertisehowever,growthrequiresastronginternationalpresenceandtherightconnectionsintotheglobalsupplychain.

TheestablishmentoftheAustralianSpaceAgencysignalledtotheinternationalspacecommunity Australia’s intention to invest and grow its capability. As international space markets become increasingly decentralised, space agencies and organisationsareforcedtofillcapabilitygapswiththeexpertiseofcommercialactors. The pivot towards industry has created unprecedented commercial opportunities and significant investment, with the opportunity for Queensland organisations and researchers to capitalise. Advances inspacetechnology,ledbycommercialorganisationswithambitiousgoals,havereduced costs and barriers to entry fornicheplayerssuchasthoseintheQueensland space economy.

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6.1 OverviewGrowthopportunitiesforQueensland’sspaceeconomylieatthenexusofcompetitive advantages, existing capabilitiesandglobaltrends.However,thespaceeconomyisnotsomethingthatcanbegrownovernight;rather,deepexpertise,fostered by decades of public and private investment,isnecessarytocompeteinthehighlycompetitiveglobalsupplychain.

ThischapterpresentsthekeyareasforgrowthinQueensland’sspaceeconomy.

ConsultationswiththeindustryrevealedfourrecurringthemesaboutareasforfuturegrowthinQueensland’scorespaceeconomy (Figure 6.1):

• Connectingintotheglobalspaceeconomy,whichissetforsustainedgrowth

• Strengthening our existing capability toensurethatourcurrentareasofnicheexpertiseareworldclassandarepositionedforgrowth

• Experimentingthroughacontinuedfocusonourdeep–albeitniche–expertiseinresearchanddevelopment

• Leveraging current space economy strengths,andbroaderstrengthssuchas advanced manufacturing, to move into newareasofthespaceeconomy.

Figure 6.1. AreasforfuturegrowthinQueensland’sspaceeconomy

0102

ConnectingFostering international networks to seize growth opportunities

AdoptingRealising the application of space technology

across the Queensland economy

StrenghtheningBuilding on our existing space capability

0304

ExperimentingContinuing to invest in R&D

LeveragingDrawing on our broader economic strengths to grow space related capability

Moreover,the adoption of space enabled servicesbyotherQueenslandindustrieswas also revealed as an area for – potentiallylarge–growth.

Eachofthesearedescribedinmoredetailthroughoutthechapter,withevidenceprovidedbytheindustryconsultationprocess and capability survey.

6.2 ConnectingSpaceistheartofmakingtheimpossiblepossible.Itrequiressignificantcoordinationandallowsforthesharingofchallenges,risks and opportunities. It takes a village to dream, design, manufacture, test and executeallthingsspace.Pushingtheboundaries of almost every industry, spaceisnotsomethingagenciesandorganisations typically do alone. The interdependence of space activities presents an opportunity for a developing ecosystem in Queensland. Deep networks in international markets create opportunities for organisations to positionthemselvessoastocapitaliseon trends in global markets. Strong international demand already exists for Queensland organisations in areas for whichtheyhavenichecapabilityandexpertisehowever,growthrequiresastronginternationalpresenceandtherightconnectionsintotheglobalsupplychain.

TheestablishmentoftheAustralianSpaceAgencysignalledtotheinternationalspacecommunity Australia’s intention to invest and grow its capability. As international space markets become increasingly decentralised, space agencies and organisationsareforcedtofillcapabilitygapswiththeexpertiseofcommercialactors. The pivot towards industry has created unprecedented commercial opportunities and significant investment, with the opportunity for Queensland organisations and researchers to capitalise. Advances inspacetechnology,ledbycommercialorganisationswithambitiousgoals,havereduced costs and barriers to entry fornicheplayerssuchasthoseintheQueensland space economy.

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Building Queensland's space economy

Key to the success of several Queensland organisations, in the absence of a mature national market, has been their ability to foster relationships with international space agencies and organisations. Queensland’sspaceeconomyishighlycollaborative,withprivateorganisationsandresearchinstitutionsregularlyworkingtogethertosolveproblems.Queenslandspacecompanieshaveworkedalongsideseveral international space agencies includingNASA,theEuropeanSpaceAgency(ESA),theJapanAerospaceExplorationAgency( JAXA),andtheChinaNationalSpaceAdministration(CNSA).Theglobalspaceeconomyischaracterisedbyawillingnesstoshareexperiencesandlearnfromotherswhilstremaininghighlycompetitive.Thevalueofdeepnetworksand international connectedness to strengthencapabilityandexpertiseishigh.

6.3 StrengtheningTheQueenslandspaceeconomyhascapabilityinseveralnicheareasacrossthesupplychain.However,there exists capacity for growth in both the upstream and downstream segments of the supply chain where there are exponential growth opportunities to be realised.Evaluationoftheglobal launchindustrybySpaceAngelsrevealedthat2018sawtherealisationofcommercialSmallLaunchvehicles,with$1.6billioninvestedintheLaunchindustry.28 Queensland’slaunchcapabilitiesareintheirinfancy,insofarasthereexistveryfeworganisationsoperatinginthisarea.However,wheretheredoesexist capability, organisations are well recognisedandhavebeenabletodraw on local industry for support.

Looking downstream, Queensland alsohasanadvantageinanareawhichhasexperiencedsignificantgrowthintheglobalmarket–theglobalsatelliteindustry(inclusiveofPNT,EOandGNSS;as explained by Figure 6.2) recorded $2.4billioninventurecapitalinvestmentin 2018.29 Importantly for Queensland, EObenefitedfromalmost40%ofthisinvestment.Characterisedbylowercapitalcostsandshorterinvestmentcycles,EO and other Space Enabled Services represent a key global growth area for which Queensland space economy has existing capabilities.

Source: Australian Government Space Coordination Committee, 2018

Figure 6.2 DefiningDownstreamSpaceActivities

Space Situational AwarenessContributestounderstandingofthespaceenvironment,andincludesdetecting,trackingandidentifyingobjectsinspace,andunderstandingtheeffectsofadversespaceweatherandspacedebris.

Satellite Communication

Continues to provide a number of specialised functions, including supporting Australia’sdefencecommitmentsaroundtheworld,andprovidingbroadcast,broadbandinternetandtelephonyservices.Importantly,communicationsatelliteswillhelpbridgeAustralia’sdigitaldivide,providingservicestoregionalandremoteareasthatpreviouslyhadpoorornon-existent terrestrial based internet services.

Position,Navigation&TimingEnablesefficientlogisticsformobiletransportfleetsonourroads,air,andsea.PNTservicesalsoprovidetime-stampingforfinancialtransactions,andprecision measurements for civil engineering, agriculture, and personal location based services.

EarthObservationDeliverscrucialdatathatenablesnationalcapabilities,suchasweatherandwarningservices,disastermitigationandmonitoringourchangingclimate.EOSalsohelpsprotectandmanageournaturalandbuiltenvironmentsforsustainable development.

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6.4 ExperimentingOne of the greatest areas of expertise and capability for the Queensland space economy is Research and Development. Significantinvestmentover long periods of time by several of Queensland’suniversitieshasfosteredseveralpocketsofnichecapability.Home-grown expertise and passion have driven further investment and growth in research and development in the local space economy, whilst also positioning Queensland as a viable location for international researchers to further their expertise. Several of theorganisationsinotherareasofthesupplychainareengagedwithmorethanoneresearchinstitutiontobridgeknowledgegapsintheiroperations.Collaborativeresearchandmemorandumsof understanding between organisations and universities based in Queensland are aregularfeatureofthespaceeconomy,anddeveloptheexpertiseofbothparties.GrowthinQueensland’sResearchandDevelopment capability contributes to thebuildingincapabilityoforganisationsacrossallareasofthesupplychain.Sustained investment and coordination across Queensland’s diverse set of researchanddevelopmentcapabilitywillassistthedevelopingspaceeconomyinQueensland to bridge gaps in capability.

6.5 LeveragingQueensland has mature capability in several industries where alignment exists to space related activities, suchasadvancedmanufacturingandaerospace more broadly. Encouraging organisationswithinindustriestoexpandtheircapabilitiesoutsidethecoreoftheirexistingoperationsandtodevelopspace related capabilities will grow supply sidecompetenciesintheQueenslandspace economy. Appropriately upskilling individuals and educating organisations abouttheopportunitiesandpotentialsymmetries in markets will encourage organisations in traditional industries to consider space as a viable opportunity to diversifytheiroperations.

There also exists the opportunity for industries to apply their capability to developing areas of the space economy. Growthareassuchasasteroidmining,spacedebristracking and deep space exploration alignwithindustriesthatQueenslandhasexpertcapabilityinandpresentauniquecompetitiveadvantageshouldorganisationsleveragetheirstrengths.

6.6 AdoptingQueensland has at its fingertips a ready-made downstream market for the application of space enabled services. Thechallengeliesinimproving end-user understanding of thefullextentofpossibilitiesthatspaceenabledservices(suchasEO,PNT,GNSSand associated analytics) can provide for industry. Engagement of new industrial end users in the development of decision-ready data and analytics could derive productivity gains across the Queensland economy. Connecting potentialdemandwithexistingcapability in supply is a catalyst to growing advanced capability in Queensland downstream organisations.

Industriessuchasagriculture,miningand manufacturing drive Queensland’s economy.Therearemorethan30,000businesses carrying out agricultural activity in Queensland.30 Like many industriesacrossQueensland,thehighcostsofproductionarerisingandfinancialsustainability is a major concern to many in theagribusinesssupplychain.Theindustryalso faces a range of increasing resource andenvironmentalconstraintsthatneedto be managed, including water scarcity, pestsanddisease,climatechangeimpactsandlanddegradation.Theuseofdataanalytics derived from space to provide keyQueenslandindustrieswithsolutionstotheirbiggestproblemsisasignificantopportunity. Tailored products that reflect the direct needs of industry could deliver serious economic benefits for Queensland businesses. Necessity breeds innovation andthereinliesthepotentialvalueofamutuallybeneficialrelationshipbetween a growing Queensland space economy and industry.

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6.4 ExperimentingOne of the greatest areas of expertise and capability for the Queensland space economy is Research and Development. Significantinvestmentover long periods of time by several of Queensland’suniversitieshasfosteredseveralpocketsofnichecapability.Home-grown expertise and passion have driven further investment and growth in research and development in the local space economy, whilst also positioning Queensland as a viable location for international researchers to further their expertise. Several of theorganisationsinotherareasofthesupplychainareengagedwithmorethanoneresearchinstitutiontobridgeknowledgegapsintheiroperations.Collaborativeresearchandmemorandumsof understanding between organisations and universities based in Queensland are aregularfeatureofthespaceeconomy,anddeveloptheexpertiseofbothparties.GrowthinQueensland’sResearchandDevelopment capability contributes to thebuildingincapabilityoforganisationsacrossallareasofthesupplychain.Sustained investment and coordination across Queensland’s diverse set of researchanddevelopmentcapabilitywillassistthedevelopingspaceeconomyinQueensland to bridge gaps in capability.

6.5 LeveragingQueensland has mature capability in several industries where alignment exists to space related activities, suchasadvancedmanufacturingandaerospace more broadly. Encouraging organisationswithinindustriestoexpandtheircapabilitiesoutsidethecoreoftheirexistingoperationsandtodevelopspace related capabilities will grow supply sidecompetenciesintheQueenslandspace economy. Appropriately upskilling individuals and educating organisations abouttheopportunitiesandpotentialsymmetries in markets will encourage organisations in traditional industries to consider space as a viable opportunity to diversifytheiroperations.

There also exists the opportunity for industries to apply their capability to developing areas of the space economy. Growthareassuchasasteroidmining,spacedebristracking and deep space exploration alignwithindustriesthatQueenslandhasexpertcapabilityinandpresentauniquecompetitiveadvantageshouldorganisationsleveragetheirstrengths.

6.6 AdoptingQueensland has at its fingertips a ready-made downstream market for the application of space enabled services. Thechallengeliesinimproving end-user understanding of thefullextentofpossibilitiesthatspaceenabledservices(suchasEO,PNT,GNSSand associated analytics) can provide for industry. Engagement of new industrial end users in the development of decision-ready data and analytics could derive productivity gains across the Queensland economy. Connecting potentialdemandwithexistingcapability in supply is a catalyst to growing advanced capability in Queensland downstream organisations.

Industriessuchasagriculture,miningand manufacturing drive Queensland’s economy.Therearemorethan30,000businesses carrying out agricultural activity in Queensland.30 Like many industriesacrossQueensland,thehighcostsofproductionarerisingandfinancialsustainability is a major concern to many in theagribusinesssupplychain.Theindustryalso faces a range of increasing resource andenvironmentalconstraintsthatneedto be managed, including water scarcity, pestsanddisease,climatechangeimpactsandlanddegradation.Theuseofdataanalytics derived from space to provide keyQueenslandindustrieswithsolutionstotheirbiggestproblemsisasignificantopportunity. Tailored products that reflect the direct needs of industry could deliver serious economic benefits for Queensland businesses. Necessity breeds innovation andthereinliesthepotentialvalueofamutuallybeneficialrelationshipbetween a growing Queensland space economy and industry.

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Building Queensland's space economy

Source: Deloitte Access Economics

Figure 6.3 Adopting - Application of Space Enabled Services

Space Enabled Services

Agriculture & FarmingMonitoringofdamagecausedbywildanimals;improvingtheefficiency,profitability&sustainabilityofdailyactivities;irrigationscheduling;variableratefertilization;cropgrowthmonitoring;yieldestimation;optimizationofgrazingmanagement;cropwater&nutrientstatus;long-termweatherpredictionstoassistwithplanningandcropselection;spatialsoilandplantconditiondata;landvaluation

Disaster/Environmental Management Extremeweathermonitoring;mappingofdisasterdamage;spatialandtemporalmonitoring of natural environments

IndustryObstacledetectionsystems;networkmonitoring;routeoptimization;highprecisionnavigation;identificationofmineraldeposits;siterehabilitationandland-usechange;remotemonitoringofoil,gas&biofuelpipelines

EarthObservation

Position, Navigation&

Timing

Global Navigation Satellite Systems

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PART TWO | TOP DOWN ANALYSISThe following chapters present a top down view of Queensland’s space economy and are based on economic modelling (CGE) of the industry.

Sky is not the limit

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PART TWO | TOP DOWN ANALYSISThe following chapters present a top down view of Queensland’s space economy and are based on economic modelling (CGE) of the industry.

Sky is not the limit

51

Building Queensland's space economy

7 Baselineprofile of Queensland’s space economy

Building Queensland's space economy

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Sky is not the limit

Current Queensland space economy

$760 million revenue

2,000 FTEs

$500 million value added

Sub-industry breakdown

% of revenue

22%Satellite

communications

12%Earth observation

and ground station infrastructure

23%Direct to home TV

10%Other

33%Space technology

manufacturing

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Sky is not the limit

Current Queensland space economy

$760 million revenue

2,000 FTEs

$500 million value added

Sub-industry breakdown

% of revenue

22%Satellite

communications

12%Earth observation

and ground station infrastructure

23%Direct to home TV

10%Other

33%Space technology

manufacturing

53

Building Queensland's space economy

Due to the nature of the CGE model used in this chapter (and the next), the space sub-sectors discussed here are not directly comparable to those used in Part One’s analysis. CGE models have pre-defined databases with a specific sectoral structure, and while this analysis has tried to align with the sub-sectors of the space economy as closely as possible, there are some differences remaining.

7.1 OverviewWherePartOneofthisreportpresentedabottom up analysis of Queensland’s space economy based on information provided by organisations, Part Two provides a top downanalysisbasedonawell-establishedmethodologyfor‘carvingout’thespaceeconomyfromthebroaderQueenslandeconomy.Thisapproachprovidesanestimateoftheeconomiccontributionofthespace economy today, and an estimate of thepotentialfutureeconomicimpactofthespaceeconomyoverthenexttwodecades.

Thischapterbeginswithabriefoverviewofthemethodologyusedtoconstructthiseconomicbaseline–theinterestedreaderisinvitedtoexplorethemethodologyinmore detail in Appendix C.

Fromhere,thecurrenteconomiccontribution and future potential economic impact–bothintermsofemployment,revenue and value added is presented (referFigure7.1).Revenueisthesalesandservices income earned by businesses throughsalesofproductsandservicestocustomers.Valueaddedmeasuresthevalueaddedbybusinessesthroughtheuse of labour and capital. Importantly, value added is a measure of economic contribution and summed across all industries aggregates to gross domestic product(nationallevel)oratthestatelevelto gross state product. Value added is also anetmeasureasitremovesthecostsofgoods of services used up by businesses to produce output.

Figure 7.1 Queensland’s space industry at a glance

2019

2036

Intheproductionofspacerelatedgoodsandservices,theindustrydirectly:

Employs approximately 2,000 FTEs

Generates $760 million in revenue

Generates $500 million in value added(thedirecteconomiccontribution).

Intheproductionofspacerelatedgoodsandservices,theindustrydirectly:

Employs approximately 4,000 FTEs

Generates $1.7 billion in revenue

Generates $1.1 billion in value added

Employs approximately 5,000 FTEs

Generates $2.0 billion in revenue

Generates $1.3 billion in value added

Employs approximately 6,000 FTEs

Generates $2.7 billion in revenue

Generates $1.7 billion in value added

Conservative growth Medium growth (base case) High growth

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7.2 Estimating the economic contribution in 2019ThebaselineestimatesofthesizeofQueensland’sspaceindustryhasbeenestimated using primary data sources andintegratedintotheDeloitteAccessEconomics’ CGE model using assumptions onfutureprojectedgrowthoftheindustry.ThismodelprovidesarepresentationofQueensland’seconomy–householdsandfirmsandthetradelinkagesbetweenthem–aswellasthewiderAustralianandglobaleconomies.Theestimatesofthesizeandscopeofthespaceindustryhavebeenconstructedby‘carvingout’thisindustryfromtheexistingindustrieswithintheCGEmodel–forexample,themanufacturing,aerospace, defence sectors.

Themainsegmentsoftheproductionofgoods,servicesandtechnologiesinthespace industry include:

• Satellitecommunications;

• Direct-to-homeTV;

• Earthobservationandgroundstationinfrastructureoperation;

• Spacetechnologymanufacturing;and

• Otheractivities.

Figure 7.2 Sub-sectorsofthespaceindustryforeconomicmodellingpurposes

Satellite communications encompass mobile satellite communications, satellite internet systems, satellite data, satellite imaging and allothernon-televisionsatellite broadcasting.

Direct-to-home TV includesthesatellitebroadcast of pay TV and free-to-air TV

Space technology manufacturing sub-sector includes themanufactureofhigh-technologymaterials, nanosatellites, nanosatellite components, satellite subsystems;andotherspace-relatedcomponents and products.

Earth observation and ground station infrastructure operation comprises base stations, ground stations, observatories, radarsaswellasotherinfrastructure required to uplink, operate and track satellite systems

Other space-related services includespaceresearch,spacelaunchingfacilitiesandotherancillary space services thatsupportactivity.

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7.2 Estimating the economic contribution in 2019ThebaselineestimatesofthesizeofQueensland’sspaceindustryhasbeenestimated using primary data sources andintegratedintotheDeloitteAccessEconomics’ CGE model using assumptions onfutureprojectedgrowthoftheindustry.ThismodelprovidesarepresentationofQueensland’seconomy–householdsandfirmsandthetradelinkagesbetweenthem–aswellasthewiderAustralianandglobaleconomies.Theestimatesofthesizeandscopeofthespaceindustryhavebeenconstructedby‘carvingout’thisindustryfromtheexistingindustrieswithintheCGEmodel–forexample,themanufacturing,aerospace, defence sectors.

Themainsegmentsoftheproductionofgoods,servicesandtechnologiesinthespace industry include:

• Satellitecommunications;

• Direct-to-homeTV;

• Earthobservationandgroundstationinfrastructureoperation;

• Spacetechnologymanufacturing;and

• Otheractivities.

Figure 7.2 Sub-sectorsofthespaceindustryforeconomicmodellingpurposes

Satellite communications encompass mobile satellite communications, satellite internet systems, satellite data, satellite imaging and allothernon-televisionsatellite broadcasting.

Direct-to-home TV includesthesatellitebroadcast of pay TV and free-to-air TV

Space technology manufacturing sub-sector includes themanufactureofhigh-technologymaterials, nanosatellites, nanosatellite components, satellite subsystems;andotherspace-relatedcomponents and products.

Earth observation and ground station infrastructure operation comprises base stations, ground stations, observatories, radarsaswellasotherinfrastructure required to uplink, operate and track satellite systems

Other space-related services includespaceresearch,spacelaunchingfacilitiesandotherancillary space services thatsupportactivity.

55

Building Queensland's space economy

7.2.1 Economic contribution of global and national space industryToconstructtheQueenslandbaseline,itisfirstnecessarytounderstandtheeconomiccontributionoftheglobalandnational space industries.

Asdiscussedinchapter3,theglobalspaceindustrywasestimatedtobeworthintheorderofUS$340-$US350billionin2016.31UsingtheCGEmodellingspacesub-sectors:

• Thelargestcomponentofthespace industry based on current globalestimatesisthesatellite communications sub-sector.Theglobalsatellitesub-sectordoubledinthe10years to 2016.32

• Thedirect-to-home TV sub-sector was valuedatUS$100billion.

• Theglobal navigation satellite systems (GNSS)market(withinearthobservation),includingchipsetsandlocationservices,wasvaluedatUS$85billion.

• Thesatellite ground equipment market (withinspacetechnologymanufacturing),whichismostlyconsumerequipment,wasvaluedatUS$60.8billion.

Therevenue of the national space industry is estimated to be in the range of $4 billion to $5 billion – for example, IBISWorldhasarevenueestimateof$5.1billionin2018-19whileACILAllenhasanestimateof$4billionin2015.33 Nationally,thecompositionofthespaceindustryfollowsglobaltrends,withthemain sub-sectors currently being satellite communicationanddirect-to-homeTV–collectivelycontributingaround60%oftotal revenue.

7.2.2 Approach to estimating the economic contribution of Queensland’s space industryThesizeofQueensland’sspaceindustrywas estimated based on IBIS World, industry intelligence and Australian BureauofStatisticsdatausinga‘topdown’method.ThisapproachcutsdownQueenslandrevenuebasedontherevenuegeneratedbyeachsegmentofthenationalspace industry in 2018-19.

Theactivitieslistedineachsegmentof thespaceindustry(referredtoinFigure7.2)arealignedtotheAustralianNewZealandStandardIndustryClassification(ANZSIC)2006,wherepracticaltodoso.Sharesto allocate national industry revenue are based on Queensland employment data by industry and place of work - 2016 Census of Population and Housing. Queensland’s shareofnationalearthobservationandground station infrastructure operations revenueisbasedonresearchconductedbyIBISWorld.Theshareofrevenuefrom‘otheractivities’isanaverageofotherindustrysegmentsgiventheproductsandservicesproducedbythissegment(e.g.spacerelatedresearch).

ThesesharesareusedtoestimateQueenslandrevenueforeachsegment ofthenationalspaceindustry. Value added and employment are derived using Queensland industry revenue and nationalbenchmarksbasedonIBISWorldresearch(2018).

7.3 Queensland’s space economy todayRevenueBased on Deloitte Access Economics’ calculations,theQueenslandspaceindustry’srevenueisapproximately$760million in 2018-19, representing around 15%ofthenationalspaceindustry.Adetailed analysis of industry revenue is showninChart7.1(overleaf).

Value addedBased on Deloitte Access Economics’ calculations,theQueenslandspaceindustry’s value added is approximately $500 million in 2018-19.

EmploymentBased on Deloitte Access Economics’ calculations,theQueenslandspaceindustry employed approximately 2,000 in 2018-19.

Analysis of key space sub-sectors highlights that Queensland currently has comparative strength and cluster of activity in space technology manufacturing which is driven by Queensland being home to a strong cluster of aerospace businesses as well as defence (including Boeing with around one third of national employment in aircraft manufacturing and repair services in Queensland based on the latest ABS census).

This is in line with the findings from Queensland Space Economy Capability Directory, which found that Queensland has strong capability in the space systems sub-sector, which includes activities such as high technology materials, space systems manufacturing and other related goods and services.

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Chart 7.1 Space industry revenue by sub-sector

Source: Deloitte Access Economics estimates

7.4 Queensland’s space economy over the next two decadesThissectionexploresthefutureeconomicpotentialoftheQueenslandspaceindustry.Aswiththeestimateofthecurrenteconomiccontributionoftheindustry,estimates are provided for revenue, value added and employment.

Theprojectionsoffutureeconomicpotential are based on a number of data and information sources relating toforecastsofthefutureofthespaceindustry,bothgloballyandnationally.AssumptionshavethenbeenmadeabouttheimplicationsoftheseforecastsfortheQueenslandspaceindustry,givenitscurrentcapabilitiesandareasforgrowth.

7.4.1 Assumptions underpinning the growth forecastsTheglobalspaceindustryhasastrongeconomic outlook and economic forecastershighlightthattheindustryisinthegrowthstageofitslifecycleandiscurrentlygrowingfasterthantheeconomyasawhole.

Overthenextfiveyears,theglobalandnational space industry is forecast to growataround7%to8%perannum(onaverage).

• MorganStanleyprojectsglobalgrowthtoaveragearound8%between2018-19and2023-24.34

• IBISWorldprojectsrevenuegrowthoftheAustralianspaceindustrytoaverage7.1%overthesamefiveyearperiod.35

Lookingfurther,MorganStanleyforecaststhe growth of the global space sector to range from 3.5% (conservative growth), 5% (medium growth) and to 7% (high growth) over 2023-24 to 2035-36.36

In this study of Queensland's space economy, it has been assumed that the space industry will grow at around 7% over the next five years to 2023-24. From here, the Morgan Stanley growth profile has been adopted for 2023-24 to 2035-36. WhileQueenslandcurrentlyhasahighlyspecialisedspaceindustry,ithasthecapabilityandpotentialtoexploittheopportunitiesonofferandcaptureitsshareofthenationalandglobalindustry.

Theinitialeconomicoutlookisexpectedtobedrivenbytheaccelerationofinvestmentandactivitiesinthespacesectorbothatthegovernmentandbusinesslevel.Beyondthisinitial5years,growthisprojectedtorangefrom3.5%to7%perannumonaverageoverconservativegrowth,mediumgrowthandhighgrowthscenarios.

0%

5%

10%

15%

20%

25%

30%

35%

40%

$0

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

$2,000

$million

Satellite communications

Earth observation and ground union

infrastructure operation

Space technology manufacturing

OtherDirect-to-home TV

Australia Queensland Queensland share (%)

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Chart 7.1 Space industry revenue by sub-sector

Source: Deloitte Access Economics estimates

7.4 Queensland’s space economy over the next two decadesThissectionexploresthefutureeconomicpotentialoftheQueenslandspaceindustry.Aswiththeestimateofthecurrenteconomiccontributionoftheindustry,estimates are provided for revenue, value added and employment.

Theprojectionsoffutureeconomicpotential are based on a number of data and information sources relating toforecastsofthefutureofthespaceindustry,bothgloballyandnationally.AssumptionshavethenbeenmadeabouttheimplicationsoftheseforecastsfortheQueenslandspaceindustry,givenitscurrentcapabilitiesandareasforgrowth.

7.4.1 Assumptions underpinning the growth forecastsTheglobalspaceindustryhasastrongeconomic outlook and economic forecastershighlightthattheindustryisinthegrowthstageofitslifecycleandiscurrentlygrowingfasterthantheeconomyasawhole.

Overthenextfiveyears,theglobalandnational space industry is forecast to growataround7%to8%perannum(onaverage).

• MorganStanleyprojectsglobalgrowthtoaveragearound8%between2018-19and2023-24.34

• IBISWorldprojectsrevenuegrowthoftheAustralianspaceindustrytoaverage7.1%overthesamefiveyearperiod.35

Lookingfurther,MorganStanleyforecaststhe growth of the global space sector to range from 3.5% (conservative growth), 5% (medium growth) and to 7% (high growth) over 2023-24 to 2035-36.36

In this study of Queensland's space economy, it has been assumed that the space industry will grow at around 7% over the next five years to 2023-24. From here, the Morgan Stanley growth profile has been adopted for 2023-24 to 2035-36. WhileQueenslandcurrentlyhasahighlyspecialisedspaceindustry,ithasthecapabilityandpotentialtoexploittheopportunitiesonofferandcaptureitsshareofthenationalandglobalindustry.

Theinitialeconomicoutlookisexpectedtobedrivenbytheaccelerationofinvestmentandactivitiesinthespacesectorbothatthegovernmentandbusinesslevel.Beyondthisinitial5years,growthisprojectedtorangefrom3.5%to7%perannumonaverageoverconservativegrowth,mediumgrowthandhighgrowthscenarios.

0%

5%

10%

15%

20%

25%

30%

35%

40%

$0

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

$2,000

$million

Satellite communications

Earth observation and ground union

infrastructure operation

Space technology manufacturing

OtherDirect-to-home TV

Australia Queensland Queensland share (%)

57

Building Queensland's space economy

7.4.2 Projected growth in Queensland’s space industry Queensland’sspaceindustryisexpectedtosurpasstheonebilliondollarmarkby2036.

Direct value added of $750 millionEmployment of 2,800 (or an increase of 800 from today)

Direct value added – ranging from $900 million to $1.1 billionEmployment – ranging from 3,300 persons to 3,900 persons (or an increase of between 1,300 and 1,900 from today)

Direct value added – ranging from $1.1 billion to $1.7 billionEmployment – ranging from 4,000 persons to 6,000 persons (or an increase of between 2,000 and 4,000 from today)

Figure 7.3 SummaryofpotentialgrowthinvalueaddedandemploymentintheQueenslandspaceindustry

Source: Deloitte Access Economics estimates

2024

2029

2036

RevenueEconomicanalysisofQueensland’sspaceindustryindicatesthatrevenuecouldincreaseto$1.7billionby2036undertheconservativegrowthcase,andupto$2.7billionoverthesameperiodunderthehighgrowthcase.Thisrepresentsadoublinginthesizeoftherevenueofthespacesectoroverthelongterm(theeconomicoutlookofthestudy),relativetotheestimatedrevenueofthespacesectortodayofcirca$760million.Underthehighgrowthscenario,theindustryisprojectedtobemorethantriplethesizeofitsestimatedturnoverin2018-19of$760millionto$2.7billion.

Chart 7.2 Revenue projections for Queensland’s space industry

Source: Deloitte Access Economics estimates

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000$m

2019 2021 2023 2025 2027 2029 2031 2033 2035

High growthConservative growth Medium growth

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Value addedGrowthinvalueaddedfortheQueenslandspaceindustryisestimatedtoincreaseto$1.1billionby2036undertheconservativegrowthcase,andreachupto$1.7billionoverthesameperiodunderthehighgrowthcase.

EmploymentEmploymentisexpectedtogrowinlinewiththeexpansionoftheindustry,reaching4,000by2036undertheconservativegrowthcase,andcloseto6,000underthehighgrowthcase.

Chart 7.3 Value added projections for Queensland’s space industry

Chart 7.4 Employment projections for Queensland’s space industry

Source: Deloitte Access Economics estimates

Source: Deloitte Access Economics estimates

0

1,000

4,000

3,000

2,000

5,000

6,000

7,000Persons

2019 2021 2023 2025 2027 2029 2031 2033 2035

High growthConservative growth Medium growth

$500

$1,000

$1,500

$2,000

$m

2019 2021 2023 2025 2027 2029 2031 2033 2035

High growthConservative growth Medium growth

$0

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Value addedGrowthinvalueaddedfortheQueenslandspaceindustryisestimatedtoincreaseto$1.1billionby2036undertheconservativegrowthcase,andreachupto$1.7billionoverthesameperiodunderthehighgrowthcase.

EmploymentEmploymentisexpectedtogrowinlinewiththeexpansionoftheindustry,reaching4,000by2036undertheconservativegrowthcase,andcloseto6,000underthehighgrowthcase.

Chart 7.3 Value added projections for Queensland’s space industry

Chart 7.4 Employment projections for Queensland’s space industry

Source: Deloitte Access Economics estimates

Source: Deloitte Access Economics estimates

0

1,000

4,000

3,000

2,000

5,000

6,000

7,000Persons

2019 2021 2023 2025 2027 2029 2031 2033 2035

High growthConservative growth Medium growth

$500

$1,000

$1,500

$2,000

$m

2019 2021 2023 2025 2027 2029 2031 2033 2035

High growthConservative growth Medium growth

$0

59

Building Queensland's space economy

8 Future scenarios for Queensland’s space economy

Building Queensland's space economy

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Growth Scenarios infographic

Sky is not the limit

Growth scenarios for Queensland's space economy

Scen

ario

1: H

igh

prod

uctiv

itySc

enar

io 2:

Mod

erat

e pro

ductiv

ity

Scenario

3: Eco

nomic im

pact of s

pace in

frastr

ucture

Current Size$500 million GVA

2,000 FTEs $760 million in revenue

Future size in 2036

$6B

$3.5B $82 million in NPV over project life

1,800 FTEs

24 FTEs annually on average

over project life

2,700 FTEs

INPUTS

Capital costs: $235 million (over the 5 year construction phase)

Operational costs: $23.5 million annually (or 10% of total capital costs)

Refer to Table 8.3 and Table 8.4 for full results.

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Growth Scenarios infographic

Sky is not the limit

Growth scenarios for Queensland's space economy

Scen

ario

1: H

igh

prod

uctiv

itySc

enar

io 2:

Mod

erat

e pro

ductiv

ity

Scenario

3: Eco

nomic im

pact of s

pace in

frastr

ucture

Current Size$500 million GVA

2,000 FTEs $760 million in revenue

Future size in 2036

$6B

$3.5B $82 million in NPV over project life

1,800 FTEs

24 FTEs annually on average

over project life

2,700 FTEs

INPUTS

Capital costs: $235 million (over the 5 year construction phase)

Operational costs: $23.5 million annually (or 10% of total capital costs)

Refer to Table 8.3 and Table 8.4 for full results.

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Building Queensland's space economy

Future sizein 2036

The adoption of space enabled services – Scenarios 1 and 2TheexpansionoftheQueenslandspaceindustryhassignificantdownstreamimpactstoawiderangeofindustriesthatcan exploit space enabled goods, servicesandtechnologiestoachieveefficiencies.Key industries include:

Agriculture

Mining

Telecommunications

Transport and logistics

Construction

Utilities

Thespecificproductivitybenefitsfor eachindustryaredescribedindetailinAppendixC;thesearebrieflyexplainedbelow and summarised in Table 8.1 (overleaf).

Productivity benefits for broadacre cropping: TheuseofGNSSbyindustrybenefitsboththeuseofinputs(suchasfuel, labour and materials) and agriculture yields in broadacre cropping. Using an uptakerateofGNSStechnologythatincreasesfrom40%in2024to65%in2036(over and above business as usual) leads toadirectbenefitrangingfrom$80millionto$110millionperannumovertheperiod2019 to 2036 (net of adoption costs).

Productivity benefits for mining:TheapplicationofGNSStechnologyintheminingindustrygeneratesbenefitsintheuseofinputssuchaslabour,fuel(throughautomationofprocesses)andtechniquessuchasprecisionmining(whichtargetshigherqualityproductgiveyieldimprovements).Theadoptionprofileis25%in2024andincreasesupto60%by2036(overandabovebusinessasusual).Thisleadstoanannualbenefitrangingfrom$300to$425millionperannumovertheperiod 2019 to 2036 (net of adoption costs).

8.1 OverviewChapter7providedprojectionsforQueensland’sspaceeconomythatwerebasedongrowthassumptionsforthe‘core’componentsofthespaceeconomy–whilefuturegrowthisexpectedtobestrong,thisismostlyacontinuationofthecurrentgrowthpath.Thischapter,incontrast,useshypothetical‘whatif’scenariostodemonstratehow,asupstream and downstream components ofthespaceeconomydevelop,theindustryinQueenslandcoulddeliversignificanteconomicbenefits.

Inessence,thesescenariospaintapictureaboutwhat’spossibleforQueensland’sspace economy.

Thesescenarioshavebeenconstructedbasedonassumptionswhicharerealisticinnatureand,assuch,arenotbeyondthegrasp of Queensland.

Forthefirsttwoscenariostocometofruition,majorchangesarerequiredintheunderstandingofthevalueofspaceenabled services in industries outside ofthe‘core’spaceindustry,andforthethirdscenariotocometodevelopmentofspaceinfrastructurewouldberequired.Thesearedescribed below.

8.2 The scenariosScenarioanalysisprovidesthemechanismforexploring‘whatif’questionsabouttheeconomicfutureofthespaceindustry.How does employment in the industry change when existing capability is leveraged and opportunities are capitalised on? How sensitive is the industry’s growth path to changes in demand from other industries in Queensland? How does the development of space infrastructure change the industry in Queensland?

Bytheirverynature,scenariosaregeneralised and do not precisely captureallaspectsofthehypothesisedfutureeconomicstate.Theyaresimplypossibilities.Noneofthescenariospresentedinthischapterareinevitable,butatthesametimetheyarenotunrealisticandprovideuswithameaningfulplacetostartdiscussionsaboutsupportinggrowthin Queensland’s space economy.

8.2.1 Introducing the scenariosScenariosaretypicallythoughtofintermsofhigh,mediumandlow.Whatdoeshighgrowthlooklikeintheindustryversuslowgrowth?However,forthepurposesofthisanalysis,thescenariosaredefinedbytheirinitial‘triggers’ratherthantheirgrowthpath.

• Scenario 1 istriggeredbyastep-changeincrease in the adoption of space enabled services by industries in Queensland that can significantly benefit from the earth observation and positioning capabilities of the space industry (e.g.agriculture).Thesepurchasersofspaceenabledservicesarestillwithinthespaceeconomy(asexplained in Figure 2.2), but resideoutsideofthe‘core’spaceindustrythatwasmappedoutinchapter7.

• Scenario 2, like scenario 1, is triggered byastep-changeincrease in the adoption of space enabled services, albeit under more conservative assumptions. Thepurposeofthisscenarioistoprovidea sensitivity analysis for scenario 1toprovidean‘orderofmagnitude’assessmentofthepotentialbenefitsoftheadoptionofspaceenabledservices(andexploretheimpactofassumptionsontheendresults).

• Scenario 3 istriggeredbythedevelopment of space infrastructure.

8.2.2 Constructing the scenariosThescenariosaremodelledusingDeloitteAccessEconomics’CGEmodel.Eachofthethreescenariosisconstructedaround‘shocks’–withscenarios1and2reflectingproductivityshockswhilescenario3reflectsacapitalshockthroughthedevelopmentofinfrastructure.

TheresultantimpactsontherestoftheQueensland economy are determined endogenouslywithinthemodel.

The productivity benefits to downstream industries (e.g. agriculture, mining, etc.) are assumed to be additional to those that would have implicitly occurred in the base case.

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Productivity benefits for telecommunications: Whenappliedtothecommunicationssector,GNSStechnologiessignificantlyopensupopportunitiesfor new products over time. As well as improvingthequalityandefficiencyofservicesdeliveredbythesectortoendusers.Theprofileofadoptionincreasesfrom60%in2024upto80%by2036(overandabovebusinessasusual).Thebenefit(netofthecostofadoptioncosts)rangesfrom$50to$70millionperannumovertheperiod 2019 to 2036.

Productivity benefits for transport and logistics: SustainedimprovementsintheuseandapplicationofGNSStechnologiesinthetransportandlogisticssectorswillcontinuebenefitbothindustriesinthefuture.Theuptakerateisassumedtoincreasefrom25%in2024upto60%by2036.Thebenefits(netofthecostofadoption from 2020 to 2024) range from $90to$185millionperannumovertheperiod 2019 to 2036.

Productivity benefits for construction: ThebenefitsofGNSStechnologytotheconstruction sector are demonstrated inthisstudythroughtheuseofmachineguidanceandconstructionsurveying.Theprofileoftechnologicaluptakeincreasesto25%in2024andagainincreasesupto60%by2036.Thebenefits(netofthecostof adoption from 2020 to 2024) range from $115to$180millionperannumovertheperiod 2019 to 2036.

Productivity benefits for utilities:ThebenefitsofGNSStechnologyinutilitieshasbeendemonstratedacrossarangeofapplicationstodateandinparticulartheprecisionmappingofassets.Thebenefitsforutilitiesisupto2.5%ofoutput.Theuptakeofthetechnologyis50%in2024andincreasesupto80%by2036.Thebenefits(netofthecostofadoptionfrom2020to2024)rangefrom$35to$60millionperannumovertheperiod2019to2036.

Inaddition,themodellingassumesthatthereisadditionalspendonresearchanddevelopmentbytheCommonwealthGovernmentof$25millionperannum.

ThisisbasedonQueenslandcapturinganincreasedshareoftheestimated$10billionresearchanddevelopmentexpenditureoverthenext20years(or$500millionannually).37 Morespecifically,itisassumedthatQueenslandcapturesaround20%ofthisexpenditureinlinewithitspopulationshare(ratherthanjustitsshareofthenationalspaceindustry,whichisestimatedataround15%).Thisadditional5%isassumedtobeachievedthroughQueenslandleveragingoffexistingcapabilitiesinitsspacemanufacturingandaerospacecluster.ThisexpenditureisalsoassumedtobefinancedbytheCommonwealthGovernment.

Theuptakeratesforeachoftheindustriesrepresenttheestimatedrangeofincrementaloradditionaluptakeforeachspacegrowthscenario(i.e.relativetothebusinessasusualprojectionoftheQueenslandeconomy).Inthebusinessasusualscenario,ithasbeenestimatedthattherewillbeanannualuptakerate ofaround20%acrosstheindustriesthathavethepotentialtobenefitthemost fromspaceenabledservicesintheQueensland economy.

Table 8.1 Summaryofproductivitybenefitsbyadoptingindustry,Scenarios1and2

Industry sector

Productivity benefit (per annum average over 2019 to 2036) Uptake rate

of technologyScenario1:Highproductivitygrowth

Scenario 2: Moderate productivitygrowth

Agriculture (Broadacre cropping)

Controlledtrafficfarming,inter-rowsowing and variable rate fertiliser

$110million $80million 65%by2036

Mining

Autonomoushaultrucksandsavings associatedwithGNSStechnologies

$425million $300million 60%by2036

Telecommunications

Asset management and network planning$70million $50million 80%by2036

Transport and logistics

Fleet management and port container management $185million $90million 60%by2036

Construction

Constructionsurveyingandmachineguidance$180million $115million 60%by2036

Utilities

Asset mapping$60million $35million 80%by2036

Source: Deloitte Access Economics calculationsNotes: Implementedinthemodellingastotalfactorproductivityshocks.Theproductivitybenefitsanduptakeratesoftechnologyareincrementaltothebusinessasusualcase.

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Productivity benefits for telecommunications: Whenappliedtothecommunicationssector,GNSStechnologiessignificantlyopensupopportunitiesfor new products over time. As well as improvingthequalityandefficiencyofservicesdeliveredbythesectortoendusers.Theprofileofadoptionincreasesfrom60%in2024upto80%by2036(overandabovebusinessasusual).Thebenefit(netofthecostofadoptioncosts)rangesfrom$50to$70millionperannumovertheperiod 2019 to 2036.

Productivity benefits for transport and logistics: SustainedimprovementsintheuseandapplicationofGNSStechnologiesinthetransportandlogisticssectorswillcontinuebenefitbothindustriesinthefuture.Theuptakerateisassumedtoincreasefrom25%in2024upto60%by2036.Thebenefits(netofthecostofadoption from 2020 to 2024) range from $90to$185millionperannumovertheperiod 2019 to 2036.

Productivity benefits for construction: ThebenefitsofGNSStechnologytotheconstruction sector are demonstrated inthisstudythroughtheuseofmachineguidanceandconstructionsurveying.Theprofileoftechnologicaluptakeincreasesto25%in2024andagainincreasesupto60%by2036.Thebenefits(netofthecostof adoption from 2020 to 2024) range from $115to$180millionperannumovertheperiod 2019 to 2036.

Productivity benefits for utilities:ThebenefitsofGNSStechnologyinutilitieshasbeendemonstratedacrossarangeofapplicationstodateandinparticulartheprecisionmappingofassets.Thebenefitsforutilitiesisupto2.5%ofoutput.Theuptakeofthetechnologyis50%in2024andincreasesupto80%by2036.Thebenefits(netofthecostofadoptionfrom2020to2024)rangefrom$35to$60millionperannumovertheperiod2019to2036.

Inaddition,themodellingassumesthatthereisadditionalspendonresearchanddevelopmentbytheCommonwealthGovernmentof$25millionperannum.

ThisisbasedonQueenslandcapturinganincreasedshareoftheestimated$10billionresearchanddevelopmentexpenditureoverthenext20years(or$500millionannually).37 Morespecifically,itisassumedthatQueenslandcapturesaround20%ofthisexpenditureinlinewithitspopulationshare(ratherthanjustitsshareofthenationalspaceindustry,whichisestimatedataround15%).Thisadditional5%isassumedtobeachievedthroughQueenslandleveragingoffexistingcapabilitiesinitsspacemanufacturingandaerospacecluster.ThisexpenditureisalsoassumedtobefinancedbytheCommonwealthGovernment.

Theuptakeratesforeachoftheindustriesrepresenttheestimatedrangeofincrementaloradditionaluptakeforeachspacegrowthscenario(i.e.relativetothebusinessasusualprojectionoftheQueenslandeconomy).Inthebusinessasusualscenario,ithasbeenestimatedthattherewillbeanannualuptakerate ofaround20%acrosstheindustriesthathavethepotentialtobenefitthemost fromspaceenabledservicesintheQueensland economy.

Table 8.1 Summaryofproductivitybenefitsbyadoptingindustry,Scenarios1and2

Industry sector

Productivity benefit (per annum average over 2019 to 2036) Uptake rate

of technologyScenario1:Highproductivitygrowth

Scenario 2: Moderate productivitygrowth

Agriculture (Broadacre cropping)

Controlledtrafficfarming,inter-rowsowing and variable rate fertiliser

$110million $80million 65%by2036

Mining

Autonomoushaultrucksandsavings associatedwithGNSStechnologies

$425million $300million 60%by2036

Telecommunications

Asset management and network planning$70million $50million 80%by2036

Transport and logistics

Fleet management and port container management $185million $90million 60%by2036

Construction

Constructionsurveyingandmachineguidance$180million $115million 60%by2036

Utilities

Asset mapping$60million $35million 80%by2036

Source: Deloitte Access Economics calculationsNotes: Implementedinthemodellingastotalfactorproductivityshocks.Theproductivitybenefitsanduptakeratesoftechnologyareincrementaltothebusinessasusualcase.

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Building Queensland's space economy

Development of space infrastructure – Scenario 3Scenario3considersthepotentialeconomic impact of thedevelopmentofspace infrastructureinthelaunchactivitiesandgroundsystems sub-sectors of Queensland’s spaceeconomy.Suchasarocketlaunchfacility or a major satellite communications park(notingtheestablishmentofalaunchfacility in Australia would require national coordination).LaunchandgroundsystemcapabilitieswereidentifiedbytheindustryaskeycatalystsforfuturegrowthinQueensland’sspaceeconomy.ThesecapabilitieswillsupportQueensland'sspaceindustrytoactivelyparticipateintheglobalsupplychain.

AsthereisnotcurrentlyacommerciallaunchfacilityinAustralia,thereisnotareadilyavailablebenchmarkforthecapital and operational expenditure requiredtoestablishsuchafacility.ThebestavailableinformationsourceisthecurrentproposalfortheArnhemSpaceStation,locatedintheNorthernTerritory–theproposalistoconstructandoperatemultiplelaunchsitesprovidingsub-orbitalandorbitalaccessforcommercial,researchand government organisations.TheestablishmentofalaunchfacilityinAustraliawouldrequirecoordinationbytheAustralianSpaceAgency.

Thespaceinfrastructurehasanestimatedcostof$235million.Itisassumedthattheongoingoperationalexpenditurewillbeintheorderof10%ofcostsofdevelopment.AsummaryofthedirectshocksforScenario3ispresented in Table 8.2.

Table 8.2 Summary of capital and operational costs, Scenario 3

Industry sector 2019–23 2024–36

Capital costs

$235million(overthe5yearconstructionphase)

Operational costs $23.5millionannually(or10%of total capital costs) or total ofover$300millionincreasein space sector output

Source: DeloitteAccessEconomicscalculations;Manicaros,2017

The Queensland space industry has experienced strong growth and this is expected to continue going forward. In this study, it has been assumed that the medium growth scenario presented in Chapter 7 represents the base case (or business as usual). The results for each of the three scenarios represent the incremental impacts above and beyond the base case.

8.3 Scenarios 1 and 2 | Adoption of space enabled servicesThetwoadoptionscenariosarereportedjointlytodemonstratetherangeofpotentialeconomicbenefitsderivedfromincreasingtheadoptionofspaceenabledservicesbykeyindustriesinQueensland.Thelargerimpactsaretheresultoftheassumptionsunderpinningthehighproductivityscenario(Scenario1),whilethemoremoderateimpactsaretheresultoftheassumptionsunderpinningthemoderateproductivityscenario (Scenario 2).

The modelling indicates that the Queensland economy could increase (above the base case) by between $3.5 billion and $6 billion in present value (PV) terms using a 7% real discount rate over the period 2019 to 2036. By 2036, gross state product (GSP) could grow in theorderofbetween$650millionto$1.15billionabovethebasecase(seeChart8.1).

Theseresultshighlightthecriticalrolespace enabled services can play in Queensland’s economy. These results also highlight that even under moderate productivity assumptions, the adoption of space enabled services by other industries will deliver economic dividends for Queensland.

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ThepercentagedeviationsinrealGSPputtheimpactsintocontextcomparedtothesizeoftheQueensland’seconomy(Chart8.2).Theimpacts(followinghigheradoptionin2024)range from around 0.13% to around 0.23% of real GSP in Queensland.

Chart 8.1 Impacts on Queensland Gross State Product, Scenarios 1 and 2

Source: Deloitte Access Economics estimates

200

600

400

1,000

1,200

800

1,400$m

2019 2020

Scenario 2: Moderate productivity

Scenario 1: High productivity

2018 2021 2022 2023 2024 2025 2026 2028 2030 2032 20342027 2029 2031 2033 2035 20360

Chart 8.2 ImpactonQueenslandGrossStateProduct,%changeinrealGSP,Scenarios1and2

Source: Deloitte Access Economics estimates

0.05

0.15

0.20

0.10

0.25Employment

2019 2020

Scenario 2: Moderate productivity

Scenario 1: High productivity

2018 2021 2022 2023 2024 2025 2026 2028 2030 2032 20342027 2029 2031 2033 2035 20360

Gross State ProductThepathofrealgrossstateproduct(GSP)showsthesebenefitsdotaketimetotranslateintomaterialeconomicbenefits(i.e.thereisalag)asindustriesgraduallybegintoadoptthesetechnologiesatahigherrate.Furthermore,inthefirstfiveyearsthereisadirectcosttoadoptingindustriesofimplementingspaceenabledservices,andthisdampenstheGSPimpacts.HigherGSPimpactsareevidencedbeyondthisperiodthroughtheflow-oneffectsstemmingfromdirectproductivityimprovements.

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ThepercentagedeviationsinrealGSPputtheimpactsintocontextcomparedtothesizeoftheQueensland’seconomy(Chart8.2).Theimpacts(followinghigheradoptionin2024)range from around 0.13% to around 0.23% of real GSP in Queensland.

Chart 8.1 Impacts on Queensland Gross State Product, Scenarios 1 and 2

Source: Deloitte Access Economics estimates

200

600

400

1,000

1,200

800

1,400$m

2019 2020

Scenario 2: Moderate productivity

Scenario 1: High productivity

2018 2021 2022 2023 2024 2025 2026 2028 2030 2032 20342027 2029 2031 2033 2035 20360

Chart 8.2 ImpactonQueenslandGrossStateProduct,%changeinrealGSP,Scenarios1and2

Source: Deloitte Access Economics estimates

0.05

0.15

0.20

0.10

0.25Employment

2019 2020

Scenario 2: Moderate productivity

Scenario 1: High productivity

2018 2021 2022 2023 2024 2025 2026 2028 2030 2032 20342027 2029 2031 2033 2035 20360

Gross State ProductThepathofrealgrossstateproduct(GSP)showsthesebenefitsdotaketimetotranslateintomaterialeconomicbenefits(i.e.thereisalag)asindustriesgraduallybegintoadoptthesetechnologiesatahigherrate.Furthermore,inthefirstfiveyearsthereisadirectcosttoadoptingindustriesofimplementingspaceenabledservices,andthisdampenstheGSPimpacts.HigherGSPimpactsareevidencedbeyondthisperiodthroughtheflow-oneffectsstemmingfromdirectproductivityimprovements.

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Building Queensland's space economy

Chart 8.3 Impact on Queensland Full Time Equivalent (FTE) employment, Scenarios 1 and 2

Source: Deloitte Access Economics estimates

EmploymentThepotential employment generated by the activity is estimated to range from 1,800 to 2,700 full time equivalent (FTE) jobs (in average annual terms) over theperiod2019to2036.By2036,FTEemployment could increase in cumulative terms by between 3,300 and 4,900 FTE jobsabovethebasecase(seeChart8.3).

Theemploymentimpactsaredrivenbytheincreasedproductivity(scaleeffect)achievedinanumberofindustriesacrosstheQueenslandeconomyandasimilarprofileisobservedforemployment(asforgrossstateproduct)wheretheimpactsstart to ramp up from 2024 and beyond as theproductivitybenefitsarerealisedtoagreater extent.

Thepercentagedeviationinrealaggregateemploymenthighlightsthatemploymentincreasesby0.05%in2024,andupto0.16%in2036underthehighproductivityscenario.TheincreaseinemploymentgrowthislowerthantheincreaseinrealGSPgrowth,whichispartiallyduetotheimpacts of productivity.

2000

1000

4000

5000

3000

6000Employment

2019 2020

Scenario 2: Moderate productivity

Scenario 1: High productivity

2018 2021 2022 2023 2024 2025 2026 2028 2030 2032 20342027 2029 2031 2033 2035 20360

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IndustriesThereisanincreaseinactivityacross anumberofindustriesintheQueenslandeconomy;particularlythosethatutilise space enabled services (see Chart8.4).Theseindustriesincludebroadacre cropping, mining, utilities, construction, transport and logistics andcommunications.Inadditiontotheindustriesthatbenefitdirectly,therearealsopositivespillovereffectstootherrelatedindustriesincludingtrade,communicationsandotherservices(includesfinance,professionalandbusiness services). In addition, activity inthespaceindustryisstimulated,asdownstreamusersinducefurther demand for space enabled services.

Whiletherearesomepositivespilloverimpactsoutsidetheadoptingindustries,someotherQueenslandindustriesexperience crowding out – including rest of manufacturing, rest of agriculture and thenon-spacecomponentofadvancedmanufacturing and aerospace and defence.

Thisresultlargelyreflectsthefact thattheseindustriesarenotdirectlytargetedinthescenarioandthereforearerelativelylessefficientcomparedtothekeyindustries exploiting space enabled services.

Inaddition,asthekeyindustriesbecomemoreefficient,theymayrequirefewerinputs–suchaspurchasesfromotherindustries–whichcouldpotentiallyreducethedemandforsomeupstreamindustries.Thenegativedeviationshownforsomeindustries does not necessarily imply thattheindustryisprojectedtocontract.Rather,itindicatesthat,relativetothebasecase, it is simply not growing as fast.

Though there are decreases in output across some industries, the additional activity due to the adoption of space enabled services has positive impact in aggregate for the Queensland economy.

Chart 8.4 NPV of impact on Queensland industry output, 2019 to 2036, Scenarios 1 and 2

Source: Deloitte Access Economics estimates

-2000 -1000 0 1000 2000 3000 4000

Broadacre cropping

Rest of agriculture

Mining

Aerospace and defence (non-space)

Advanced manufacturing (non-space)

Rest of manufacturing

Utilites

Construction

Trade

Transport

Finance, professional & business services

Space

Communications

All other services

$m

Scenario 2: Moderate productivity

Scenario 1: High productivity

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IndustriesThereisanincreaseinactivityacross anumberofindustriesintheQueenslandeconomy;particularlythosethatutilise space enabled services (see Chart8.4).Theseindustriesincludebroadacre cropping, mining, utilities, construction, transport and logistics andcommunications.Inadditiontotheindustriesthatbenefitdirectly,therearealsopositivespillovereffectstootherrelatedindustriesincludingtrade,communicationsandotherservices(includesfinance,professionalandbusiness services). In addition, activity inthespaceindustryisstimulated,asdownstreamusersinducefurther demand for space enabled services.

Whiletherearesomepositivespilloverimpactsoutsidetheadoptingindustries,someotherQueenslandindustriesexperience crowding out – including rest of manufacturing, rest of agriculture and thenon-spacecomponentofadvancedmanufacturing and aerospace and defence.

Thisresultlargelyreflectsthefact thattheseindustriesarenotdirectlytargetedinthescenarioandthereforearerelativelylessefficientcomparedtothekeyindustries exploiting space enabled services.

Inaddition,asthekeyindustriesbecomemoreefficient,theymayrequirefewerinputs–suchaspurchasesfromotherindustries–whichcouldpotentiallyreducethedemandforsomeupstreamindustries.Thenegativedeviationshownforsomeindustries does not necessarily imply thattheindustryisprojectedtocontract.Rather,itindicatesthat,relativetothebasecase, it is simply not growing as fast.

Though there are decreases in output across some industries, the additional activity due to the adoption of space enabled services has positive impact in aggregate for the Queensland economy.

Chart 8.4 NPV of impact on Queensland industry output, 2019 to 2036, Scenarios 1 and 2

Source: Deloitte Access Economics estimates

-2000 -1000 0 1000 2000 3000 4000

Broadacre cropping

Rest of agriculture

Mining

Aerospace and defence (non-space)

Advanced manufacturing (non-space)

Rest of manufacturing

Utilites

Construction

Trade

Transport

Finance, professional & business services

Space

Communications

All other services

$m

Scenario 2: Moderate productivity

Scenario 1: High productivity

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Building Queensland's space economy

SummaryAsummaryoftheeconomy-wideimpactsofthesetwoscenarioshighlightthesignificantpotentialeconomicimpactsoffuturegrowthanddevelopmentofthespaceindustrytotheQueenslandeconomy(referTable8.3).

Source: Deloitte Access EconomicsNotes: GrossstateproductandindustryoutputarepresentedinNPVtermsusingarealdiscountrateof7%overtheperiod2019to2036andFTEemploymentispresentedinaverageannualtermsoverthesameperiod.

Table 8.3 Summaryofeconomy-wideimpactsforScenarios1and2(incrementaltothebasecase)

Scenario 1: High productivity Scenario 2: Moderate productivity

Gross state product $6billion $3.5billion

FTE employment 2700 FTE jobs 1800 FTE jobs

Industry output

Space $400million $270million

Broadacre cropping $1.2billion $680million

Mining $3.6billion $2.6billion

Telecommunications $660million $460million

Transport and Logistics $1.7billion $810million

Construction $1.4billion $1billion

Utilities $550million $340million

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8.4 Scenario 3 | Space infrastructureThisscenarioconsidersthe“orderofmagnitude”economy-wideimpactofthedevelopment of space infrastructure –ofasimilarmagnitudetotheproposedArnhemSpaceCentreintheNorthernTerritory–totheQueenslandeconomy.

ThemodellingestimatesshowthatsuchaprojecthasthepotentialtogrowQueensland’sGSPbyaround$82millionovertheperiod2019to2036(seeTable8.4.Overtheconstructionphase,GSPincreasesbyaround$9millioninannualaveragetermsoverthe5yearsfrom2019to2023.Theseimpactswouldalsobesupportedovertheoperationsphasebyassociatedoperatingexpenditureinthespaceindustry–$7millionannually,onaverage,overtheperiod2024to2036.

Theprojectwouldalsopotentiallyresultinan additional 24 FTEs annually on average acrosstheQueenslandeconomyovertheentireproject(Table8.4.Overthe5yearconstructionphase,theannualaveragenumberofFTEscreatedis57.Astheconstructionphaseslowsdown,ongoingoperations would support an annual average of 12 FTEs.

Thespaceinfrastructurescenario generates a relatively modest impactcomparedtothebroaderproductivitybenefitsfromtheapplicationofspacerelatedtechnologiestotheQueensland economy.

Thekeyindustriesstimulatedbysuchaprojectindirecttermsincludetheconstructionindustry,aswellasthespacesectorthroughtheaccumulatedcapitalstock and operational expenditure to support ongoing operations. Direct value addedintheconstructionandspacesectors are estimated to grow by $60millionand$70millionrespectivelyinNPVtermsovertheperiod2019-36.Therearealsosomesmallflowonimpactstootherrelatedindustries,however,theseareminimalgiventherelativelysmalldirectshocksinthisscenario.

TheQueenslandspace infrastructure scenario (scenario 3)onlycapturesthedirectindicativeexpenditureandassociatedsupplychainimpacts(intheformofacapitalshock).Itdoesnotcapturethedynamiceffectsofdownstreamproductivitygains,suchasthoseexperiencedbyagriculture,miningetc.(theindicativeimpactsoftheseproductivityshocksareexploredseparatelyinscenarios1 and 2).

8.5 Summary of the economic modellingInsummary,thiseconomicmodellingstudy:

• EstimatesthecurrentandfuturedirectsizeofthespaceindustryinQueensland,withafocusonkeyeconomicmetricssuchasindustryvalueaddedandemployment and also a breakdownacrossthekeysubsectorsthatcomprisethespaceindustryinQueensland.

• Identifiestherangeofproductivitybenefitsbyindustryfromincreasedadoption of space enabled services overthemediumtolongterminQueensland.

• Highlightstherangeofeconomicimpactsformediumandhighexpansionscenarioswhicharelinkedtodifferentfuture potential adoption rates of spaceenabledservicesacrosstheeconomyandmeasured relative to a business as usualprojectionfortheQueenslandeconomy.

The broader economic value of launch and ground system capabilities in Queensland

The broader economic value of launch and ground capability in Queensland or elsewhere in Australia, is not derived from the construction and operation of space-related infrastructure alone.

When combined with Queensland’s existing competitive advantages, the broader economic value of both launch and ground system capability is the potential for Queensland to develop world class launch supply chains – i.e. the dynamic effects generated by deepening scale and broadeningthe scope of the sub-sectors. This would enhance the development of an advanced manufacturing supply chain, with productivity spill over effects into the state’s other major industries (e.g. agriculture, mining).

The potential benefits of developing space infrastructure whether in Queensland or elsewhere in Australia, should be weighed against the costs and risks, including customer and market demand, which are beyond the scope of this report. Who leads and pays for the infrastructure is also beyond this report’s scope.

The Queensland launch and ground systems infrastructure scenario (scenario 3) captures the direct indicative expenditure and associated supply chain impacts (in the form of a capital shock). However, it does not capture the downstream productivity gains, such as those experienced by agriculture, mining etc., as these productivity shocks are explored separately in scenarios 1 and 2.

Source: Deloitte Access EconomicsNotes: Gross state product and industry output are presented in NPV terms using a real discountrateof7%overtheperiod2019to2036andFTEemploymentispresentedinaverageannualtermsoverthesameperiod.

Table 8.4 Summaryofeconomy-wideimpactsforScenario3(incrementaltothebasecase)

Total project (2019-36)

Construction phase (2019-23)

Operations phase (2024-36)

Gross state product

$82million(inNPVtermsoverthetotal project)

$9m(annuallyon average over theconstructionphase)

$7m(annuallyonaverageovertheoperationsphase)

FTE employment

24 FTEs (annually on average over thetotalproject)

57 FTEs (annually on average over theconstructionphase)

12 FTEs (annually on average over theoperationsphase)

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8.4 Scenario 3 | Space infrastructureThisscenarioconsidersthe“orderofmagnitude”economy-wideimpactofthedevelopment of space infrastructure –ofasimilarmagnitudetotheproposedArnhemSpaceCentreintheNorthernTerritory–totheQueenslandeconomy.

ThemodellingestimatesshowthatsuchaprojecthasthepotentialtogrowQueensland’sGSPbyaround$82millionovertheperiod2019to2036(seeTable8.4.Overtheconstructionphase,GSPincreasesbyaround$9millioninannualaveragetermsoverthe5yearsfrom2019to2023.Theseimpactswouldalsobesupportedovertheoperationsphasebyassociatedoperatingexpenditureinthespaceindustry–$7millionannually,onaverage,overtheperiod2024to2036.

Theprojectwouldalsopotentiallyresultinan additional 24 FTEs annually on average acrosstheQueenslandeconomyovertheentireproject(Table8.4.Overthe5yearconstructionphase,theannualaveragenumberofFTEscreatedis57.Astheconstructionphaseslowsdown,ongoingoperations would support an annual average of 12 FTEs.

Thespaceinfrastructurescenario generates a relatively modest impactcomparedtothebroaderproductivitybenefitsfromtheapplicationofspacerelatedtechnologiestotheQueensland economy.

Thekeyindustriesstimulatedbysuchaprojectindirecttermsincludetheconstructionindustry,aswellasthespacesectorthroughtheaccumulatedcapitalstock and operational expenditure to support ongoing operations. Direct value addedintheconstructionandspacesectors are estimated to grow by $60millionand$70millionrespectivelyinNPVtermsovertheperiod2019-36.Therearealsosomesmallflowonimpactstootherrelatedindustries,however,theseareminimalgiventherelativelysmalldirectshocksinthisscenario.

TheQueenslandspace infrastructure scenario (scenario 3)onlycapturesthedirectindicativeexpenditureandassociatedsupplychainimpacts(intheformofacapitalshock).Itdoesnotcapturethedynamiceffectsofdownstreamproductivitygains,suchasthoseexperiencedbyagriculture,miningetc.(theindicativeimpactsoftheseproductivityshocksareexploredseparatelyinscenarios1 and 2).

8.5 Summary of the economic modellingInsummary,thiseconomicmodellingstudy:

• EstimatesthecurrentandfuturedirectsizeofthespaceindustryinQueensland,withafocusonkeyeconomicmetricssuchasindustryvalueaddedandemployment and also a breakdownacrossthekeysubsectorsthatcomprisethespaceindustryinQueensland.

• Identifiestherangeofproductivitybenefitsbyindustryfromincreasedadoption of space enabled services overthemediumtolongterminQueensland.

• Highlightstherangeofeconomicimpactsformediumandhighexpansionscenarioswhicharelinkedtodifferentfuture potential adoption rates of spaceenabledservicesacrosstheeconomyandmeasured relative to a business as usualprojectionfortheQueenslandeconomy.

The broader economic value of launch and ground system capabilities in Queensland

The broader economic value of launch and ground capability in Queensland or elsewhere in Australia, is not derived from the construction and operation of space-related infrastructure alone.

When combined with Queensland’s existing competitive advantages, the broader economic value of both launch and ground system capability is the potential for Queensland to develop world class launch supply chains – i.e. the dynamic effects generated by deepening scale and broadeningthe scope of the sub-sectors. This would enhance the development of an advanced manufacturing supply chain, with productivity spill over effects into the state’s other major industries (e.g. agriculture, mining).

The potential benefits of developing space infrastructure whether in Queensland or elsewhere in Australia, should be weighed against the costs and risks, including customer and market demand, which are beyond the scope of this report. Who leads and pays for the infrastructure is also beyond this report’s scope.

The Queensland launch and ground systems infrastructure scenario (scenario 3) captures the direct indicative expenditure and associated supply chain impacts (in the form of a capital shock). However, it does not capture the downstream productivity gains, such as those experienced by agriculture, mining etc., as these productivity shocks are explored separately in scenarios 1 and 2.

Source: Deloitte Access EconomicsNotes: Gross state product and industry output are presented in NPV terms using a real discountrateof7%overtheperiod2019to2036andFTEemploymentispresentedinaverageannualtermsoverthesameperiod.

Table 8.4 Summaryofeconomy-wideimpactsforScenario3(incrementaltothebasecase)

Total project (2019-36)

Construction phase (2019-23)

Operations phase (2024-36)

Gross state product

$82million(inNPVtermsoverthetotal project)

$9m(annuallyon average over theconstructionphase)

$7m(annuallyonaverageovertheoperationsphase)

FTE employment

24 FTEs (annually on average over thetotalproject)

57 FTEs (annually on average over theconstructionphase)

12 FTEs (annually on average over theoperationsphase)

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Building Queensland's space economy

PART THREE | REFLECTIONSThe following chapter presents the key reflections on the capability of the Queensland space economy and the future path of the industry.

Building Queensland's space economy

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9 Reflections

Sky is not the limit

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9 Reflections

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Building Queensland's space economy

9.1 OverviewInreviewingthecapabilityofQueensland’sspaceeconomy,itisapparentthatthefuture of Queensland’s space industry is strongbutalsofragile.Thisisanindustrywhereconnectionsmatter,wherereputationsmatterandwhereentrenchedcompetitiveadvantagesariseastheresultof decades of investment in specialised capability–thisisnotanindustrythathasbeen,orcanbe,builtovernight.

Queenslandisfortunatethatdecisionsmadedecadesagohavefosteredtheconditions to develop an industry ripe forgrowth.

Yet,therearesignificantcompetitivepressureswhichcanlureanotinsignificantpartoftheindustryawayfromQueensland.

Thequestionremains;whatisneededtodaytoensurethattheopportunitiesandambitionsforthespaceeconomy are realised?

Where to next?TheQueenslandspaceeconomyhasambitions – ambitions to growandambitionstobegloballyrecognised.Theseambitionsarecredible,butarealsogroundedintherealitythatQueensland is a small player in a large globalsupplychain.Theopportunitiesarise,however,notincompetingwiththeentrenchedagglomerationsinthelikesoftheUS,ChinaandEurope;butinsteadincontinuingtodevelopniche,globallycompetitive,highvalueaddedgoodsandservicesthatcanbetradedwiththeworld.

Inthisregard,thesmallsizeoftheQueensland’sindustrytodayisastrength–organisations across Queensland’sspace economy are actively collaboratingwitheachother,buildingspecialisedresearchcapabilitytosupportcommercialorganisations and building commercialorganisationsoutofspecialisedresearchcapability. But more can be done toenhancecollaborationanddeveloptheindustry strategically.

Niche, but globally competitive DevelopmentoftheQueenslandspaceeconomyhasbeendrivenbyselectindustryleaderswhoseexpertiseandspacerelatedactivitieshaveledtotheclustering of globally competitive space capabilities.Theseorganisationshavedriventhegrowthofdispersedcapabilityacrossthespacesupplychain:researchanddevelopment,launchactivities,spacesystems and space enabled services.

A unique opportunity is presented for Queensland to develop a more maturespaceecosystem,whereupstreamanddownstreamplayershaveaco-ordinatedapproachtocompetingintheglobalsupplychain.Notingthatwhileorganisations in Queensland’s space economyarehighlycollaborative,growthwill require increased representation of Queensland’s capabilities and competitive advantages on an international platform toremainrelevantinthecommerciallydriven global space economy.

It takes timeThesignificantopportunitiesforgrowthinthespaceeconomy,givenQueensland’scurrent capabilities, is well documented. Itisimportanttonote,however,thatthedevelopment of any space industry takes time, patience and meaningful investments inhumanandphysicalcapital.Inthisregard,thedevelopmentofQueensland’sspaceeconomywillalsotaketimeandtherightstrategicinvestments.Thekeytothedevelopmentofthesectoristheneedtodevelopthesupplychain,anchorbusinessestoQueenslandandgeneratedemandforthespaceindustrysupplychain.

“Theexplorationofspacewillgoahead,whetherwejoininitornot…”– John F. Kennedy

Key takeaways

• Queensland’s economy can benefitfrom growth in the space economy

• Today, Queensland has a niche butglobally competitive industry, withstrong research partners, and thisis likely to remain the situation intothe future.

• There are significant opportunitiesfor future growth in the spaceeconomy given Queensland’scurrent capabilities.

• Development of the space industrytakes time, patience and meaningfulinvestments in human and physicalcapital.

• The (increased) adoption of spaceenabled services by Queensland’straditional strengths can supportgrowth in the space economy.

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Key gaps

• Highly mobile workforce,in reference to the availabilityof human capital associated withthe highly specialised nature ofthe industry.

• Absence of physical infrastructureto enhance key sub-sectorswhich anchor the space economysupply chain.

Strong fundamentals StrengthspresentthemselvesatbothendsofQueensland’sspacesupplychain.Queensland’s strong fundamentals of manufacturing, mining and engineering capabilities are well-positioned to supportupstreamindustries.Yet,withcompetitive pressures across Australia and globally, space focussed organisations in Queensland can easily be lured away withoutstrongeconomicandcommercialreasons to remain in Queensland.

Furtherdownstream,Queensland’sagriculture, mining and logistics industries, tonameafew,arethesectorssettobenefitfromgrowthinsub-sectorssuchasspace enabled services.

Queensland’sgeographiclocationpresentsauniquecompetitiveadvantagethatcouldbeleveragedestablishsupportinginfrastructureforthelaunchactivityandground systems sub-sectors.

Growing the pie, and sharing the benefitsThepotentialspilloversfromspacetechnologyandresearchendeavoursarebroadening in scope and application across theeconomy.Theeconomicmodellinghighlightsthatthishasanimportantcontribution to make to Queensland’s economy.Inparticular,theadoptionofspace enabled services by Queensland industriessittingoutsidethecorespaceindustryhasshownitselfasanareafor–potentiallylarge–growth,withtheeconomicdividendssharedacrossQueensland’s economy.

Fight for talentThehighlyspecialisednatureofthespaceindustrymakesitdifficulttoattractseniorandexperiencedtalent–anddifficulttoretain junior talent in Queensland. Given theglobalscaleandscopeoftheindustry,working visas play an important role in addressingchallengesaroundfindingappropriatetalentintheindustry.

ItisclearthatthepassionforspacestartsyoungbutrequiressignificantskillsandexperiencetoflourishandcontributetothespaceindustryinQueensland.TherearesoundeducationandresearchplatformsinQueensland,whichresultintheskillingup of Queenslanders – noting junior talent leave to gain overseas experience. A strong space industry in Queensland will see someofthesepeoplereturnandattractothersfromoverseasseekingexperienceinAustralia.Thisflowofexpertiseislikelytobeadefiningfeatureofthespaceindustryin Australia.

Building spaceWhilelocationagnosticindustriesoftenfinditdifficulttocreatethenaturalclusterofactivityrequiredtogrowanindustry;thespaceeconomyischaracterisedbyhighcapitalinfrastructureinvestment,highlyspecialised expertise and long lead times. Thephysicalinfrastructurerequiredbyorganisationsoperatingwithinthespaceeconomycouldenhancethegrowthof a space ecosystem.

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Key gaps

• Highly mobile workforce,in reference to the availabilityof human capital associated withthe highly specialised nature ofthe industry.

• Absence of physical infrastructureto enhance key sub-sectorswhich anchor the space economysupply chain.

Strong fundamentals StrengthspresentthemselvesatbothendsofQueensland’sspacesupplychain.Queensland’s strong fundamentals of manufacturing, mining and engineering capabilities are well-positioned to supportupstreamindustries.Yet,withcompetitive pressures across Australia and globally, space focussed organisations in Queensland can easily be lured away withoutstrongeconomicandcommercialreasons to remain in Queensland.

Furtherdownstream,Queensland’sagriculture, mining and logistics industries, tonameafew,arethesectorssettobenefitfromgrowthinsub-sectorssuchasspace enabled services.

Queensland’sgeographiclocationpresentsauniquecompetitiveadvantagethatcouldbeleveragedestablishsupportinginfrastructureforthelaunchactivityandground systems sub-sectors.

Growing the pie, and sharing the benefitsThepotentialspilloversfromspacetechnologyandresearchendeavoursarebroadening in scope and application across theeconomy.Theeconomicmodellinghighlightsthatthishasanimportantcontribution to make to Queensland’s economy.Inparticular,theadoptionofspace enabled services by Queensland industriessittingoutsidethecorespaceindustryhasshownitselfasanareafor–potentiallylarge–growth,withtheeconomicdividendssharedacrossQueensland’s economy.

Fight for talentThehighlyspecialisednatureofthespaceindustrymakesitdifficulttoattractseniorandexperiencedtalent–anddifficulttoretain junior talent in Queensland. Given theglobalscaleandscopeoftheindustry,working visas play an important role in addressingchallengesaroundfindingappropriatetalentintheindustry.

ItisclearthatthepassionforspacestartsyoungbutrequiressignificantskillsandexperiencetoflourishandcontributetothespaceindustryinQueensland.TherearesoundeducationandresearchplatformsinQueensland,whichresultintheskillingup of Queenslanders – noting junior talent leave to gain overseas experience. A strong space industry in Queensland will see someofthesepeoplereturnandattractothersfromoverseasseekingexperienceinAustralia.Thisflowofexpertiseislikelytobeadefiningfeatureofthespaceindustryin Australia.

Building spaceWhilelocationagnosticindustriesoftenfinditdifficulttocreatethenaturalclusterofactivityrequiredtogrowanindustry;thespaceeconomyischaracterisedbyhighcapitalinfrastructureinvestment,highlyspecialised expertise and long lead times. Thephysicalinfrastructurerequiredbyorganisationsoperatingwithinthespaceeconomycouldenhancethegrowthof a space ecosystem.

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Building Queensland's space economy

Role of GovernmentAustralia, and its states and territories, havenothadthesamehistoryoflong-termgovernmentinvestmentinspaceasotherinternational jurisdictions.

Thehistoryofdevelopmentintheglobalspaceindustryhasbeenfinancedandmanaged by government. International spaceagencieshavedominatedtheagendaanddrivenstrategy–withthehighentrycostsandrisksassociatedwiththespaceindustrydictatingconsiderablegovernment involvement.

Thisisknowntobechanging–andfast.Thetrendtowardsdecentralisationofactivityoutofgovernmentandintotheprivatesectorhasspurredgrowthinthecommercialcomponentsofthesupplychain.Theglobalspaceeconomytoday ischaracterisedbyanincreasingnumberof private organisations and investors – and so too will Queensland’s growing space industry.

Thechangingnatureofspaceactivitiesandthegrowthofnon-traditionalspaceactors requires consideration be given to theappropriateroleofgovernmentsinemerging space economies.

InQueensland,thisraisesconsiderationof several points:

Regulatory responsibility • Theroleofregulationandlegislationremainsfirmlyinthepurview,andcontrol,ofGovernment.Thiscontrolmaynotnecessarilysitwithastategovernment–suchasvisarequirementsorimportrestrictionsforchemicalcomponents – but understandingregulatory barriers and constraintsimpactingtheQueenslandspaceindustry’s development, will be importantfor Queensland.

• Theregulationassociatedwithapprovalprocessesforlaunchactivitiescan be an important element inenhancingordetractingfromthecompetitive position of Queensland intheglobalspacemarket.

Facilitation rather than funding • Spaceactivityishighlyinterdependent;meaningrelationshipsarecriticaltosuccess.Anidentifiedroleforgovernment is in facilitating, andmatching,suchrelationships–bothdomestically and globally.

• GrowthinthecapabilityacrossQueensland’ssupplychainwillalsorelyontheabilityoftheorganisationsoperatinginthecorespaceindustrytoreachouttoindustrieswithtransferrableskills. How government can assist spaceorganisations to navigate Queensland’swellestablishedindustriestolocatecritical expertise is an opportunity.

• Ensuringtheoptimisationofskillsdevelopment in Queensland willprovide an important platform forthespaceindustryanditsdevelopmentin Queensland.

• Governmentfacilitationofhigheradoption rates of space relatedtechnologiesinothersectors(viaanalignmentoftheQueenslandGovernment’s priority industry sectors)willenhancethebenefitsfortheQueensland.

Physical infrastructure • Theclusteringofphysicalinfrastructureandknow-how(people)canenhancethedevelopmentofthespacesector.Suchclustering can lower transaction costsandenhancecollaborationthroughjointventures,accesstoresearch,andsharedplatforms.

• Physicalinfrastructurecan,insomeinstances,actasthecatalystforspace activity to grow at a rapid rate.

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Department of State Development, Manufacturing, Infrastructure and Planning

Appendices

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Department of State Development, Manufacturing, Infrastructure and Planning

Appendices

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Building Queensland's space economy

Appendix ACapability directory

Building Queensland's space economy

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Sky is not the limit

ThisAppendixprovidesthefulldirectorythatissummarisedinchapter4.

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Honeywell Ltd                                       ü                    

Hypersonix Pty Ltd             ü                                              

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Sky is not the limit

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Black Sky Aerospace             ü                                              

Boeing                           ü                                

CG Composites Australia Pty Ltd ü                                                          

Coastal Aviation Pty Ltd ü                                                          

CSE           ü                                                

Datellite Pty Ltd                                           ü                

DigitalGlobe                               ü                            

DNA Anodising                                                           ü

EM Solutions Pty Ltd                   ü                                        

Fluid Seals Pty Limited ü                                                          

Frequentis Australasia         ü                                                  

Gasket Solutions Pty Ltd ü                                                          

Geospatial Intelligence Pty Ltd                               ü                            

GilmourSpaceTechnologies             ü                                              

GoonhillyEarthStation                             ü                              

GPA Engineering                                           ü                

Hillier Engineering Services                                                           ü

Honeywell Ltd                                       ü                    

Hypersonix Pty Ltd             ü                                              

IDS Australasia         ü                                                  

Integrated Training And Documentation                                                 ü          

InternationalAerospaceLaw&PolicyGroup(Australia'sAir&Space Lawyers)

                                              ü           

KeysightTechnologiesAustraliaPty Ltd                                       ü                    

Laser Central Pty Ltd                                                           ü

Madison Sport Pty Ltd ü                                                          

MastercutTechnologiesPtyLtd ü                                                          

Metromatics Pty Ltd ü                                                          

Milspec Services Pty Ltd ü                                                          

Miniature Bearings Australia ü                                                          

Moody Space Centre             ü                                              

NationalPlastics&RubberPty Ltd                                                           ü

NorthropGrumman                         ü                                  

NorthropGrummanAustralia                     ü                                      

Nova Group                           ü                                

Ozius                               ü                            

Peoplesafe Consulting                                           ü                

77

Building Queensland's space economy

  Com

pone

nt a

nd M

ater

ial

Supp

ly

Sat

ellit

e O

wne

r/O

pera

tor

Spa

ce Q

ualifi

ed T

esti

ng

and

Faci

litie

s

Spac

e Su

bsys

tem

Sup

ply

Syst

em E

ngin

eeri

ng a

nd

Tech

nica

l Sup

port

Com

pone

nt a

nd

Subs

yste

m M

anag

emen

t

Laun

ch S

ervi

ces

Laun

ch S

uppo

rt S

ervi

ces

Laun

ch V

ehic

le

Man

ufac

turi

ng a

nd

Asse

mbl

y

Ante

nna/

Gro

und

Stat

ion

Com

pone

nt o

r M

ater

ial

Supp

lier

Gro

und

Segm

ent P

rim

e/Sy

stem

Inte

grat

ion

Gro

und

Segm

ent

Subs

yste

m &

Equ

ipm

ent

Supp

lier

Prim

e/Sy

stem

In

tegr

atio

n

Syst

em E

ngin

eeri

ng

and

Tech

nica

l Sup

port

Se

rvic

es

Trac

king

, Tel

emet

ry &

Co

mm

and

Ope

rati

ons

Eart

h O

bser

vati

on

Serv

ices

& A

pplic

atio

ns

Sat

ellit

e Co

mm

unic

atio

ns S

ervi

ce

Prov

ider

s

Sat

ellit

e N

avig

atio

n Se

rvic

e &

App

licat

ions

Tech

nica

l Sup

port

Se

rvic

es

Use

r Eq

uipm

ent

Man

ufac

ture

r

Use

r Eq

uipm

ent

Supp

liers

Cons

ulta

ncy

Serv

ices

(e

.g. I

T, a

naly

tics

, pr

ofes

sion

al s

ervi

ces)

Fin

anci

al S

ervi

ces

Lega

l Ser

vice

s

Anci

llary

Ser

vice

s

R&D

Educ

atio

n an

d Tr

aini

ng

Oth

er

Tran

spor

t, lo

gist

ics

and

cons

truc

tion

Gen

eral

com

pone

nt,

mat

eria

l, en

gine

erin

g su

pply

Private CompanyAbsolute Data Group Pty Ltd                                           ü                

Active Electronics Plc. ü                                                          

AECOM                                           ü                

BDGT Precision Engineering                                                           ü

BeaudesertandBoonahCranes                                                         ü  

Black Sky Aerospace             ü                                              

Boeing                           ü                                

CG Composites Australia Pty Ltd ü                                                          

Coastal Aviation Pty Ltd ü                                                          

CSE           ü                                                

Datellite Pty Ltd                                           ü                

DigitalGlobe                               ü                            

DNA Anodising                                                           ü

EM Solutions Pty Ltd                   ü                                        

Fluid Seals Pty Limited ü                                                          

Frequentis Australasia         ü                                                  

Gasket Solutions Pty Ltd ü                                                          

Geospatial Intelligence Pty Ltd                               ü                            

GilmourSpaceTechnologies             ü                                              

GoonhillyEarthStation                             ü                              

GPA Engineering                                           ü                

Hillier Engineering Services                                                           ü

Honeywell Ltd                                       ü                    

Hypersonix Pty Ltd             ü                                              

IDS Australasia         ü                                                  

Integrated Training And Documentation                                                 ü          

InternationalAerospaceLaw&PolicyGroup(Australia'sAir&Space Lawyers)

                                              ü           

KeysightTechnologiesAustraliaPty Ltd                                       ü                    

Laser Central Pty Ltd                                                           ü

Madison Sport Pty Ltd ü                                                          

MastercutTechnologiesPtyLtd ü                                                          

Metromatics Pty Ltd ü                                                          

Milspec Services Pty Ltd ü                                                          

Miniature Bearings Australia ü                                                          

Moody Space Centre             ü                                              

NationalPlastics&RubberPty Ltd                                                           ü

NorthropGrumman                         ü                                  

NorthropGrummanAustralia                     ü                                      

Nova Group                           ü                                

Ozius                               ü                            

Peoplesafe Consulting                                           ü                

Page 82: Sky is not the limit Building Queensland's space economy · Sky is not the limit 3 Building Queensland's space economy Sky is not the limit Space has always ignited human curiosity

78

  Com

pone

nt a

nd M

ater

ial

Supp

ly

Sat

ellit

e O

wne

r/O

pera

tor

Spa

ce Q

ualifi

ed T

esti

ng

and

Faci

litie

s

Spac

e Su

bsys

tem

Sup

ply

Syst

em E

ngin

eeri

ng a

nd

Tech

nica

l Sup

port

Com

pone

nt a

nd

Subs

yste

m M

anag

emen

t

Laun

ch S

ervi

ces

Laun

ch S

uppo

rt S

ervi

ces

Laun

ch V

ehic

le

Man

ufac

turi

ng a

nd

Asse

mbl

y

Ante

nna/

Gro

und

Stat

ion

Com

pone

nt o

r M

ater

ial

Supp

lier

Gro

und

Segm

ent P

rim

e/Sy

stem

Inte

grat

ion

Gro

und

Segm

ent

Subs

yste

m &

Equ

ipm

ent

Supp

lier

Prim

e/Sy

stem

In

tegr

atio

n

Syst

em E

ngin

eeri

ng

and

Tech

nica

l Sup

port

Se

rvic

es

Trac

king

, Tel

emet

ry &

Co

mm

and

Ope

rati

ons

Eart

h O

bser

vati

on

Serv

ices

& A

pplic

atio

ns

Sat

ellit

e Co

mm

unic

atio

ns S

ervi

ce

Prov

ider

s

Sat

ellit

e N

avig

atio

n Se

rvic

e &

App

licat

ions

Tech

nica

l Sup

port

Se

rvic

es

Use

r Eq

uipm

ent

Man

ufac

ture

r

Use

r Eq

uipm

ent

Supp

liers

Cons

ulta

ncy

Serv

ices

(e

.g. I

T, a

naly

tics

, pr

ofes

sion

al s

ervi

ces)

Fin

anci

al S

ervi

ces

Lega

l Ser

vice

s

Anci

llary

Ser

vice

s

R&D

Educ

atio

n an

d Tr

aini

ng

Oth

er

Tran

spor

t, lo

gist

ics

and

cons

truc

tion

Gen

eral

com

pone

nt,

mat

eria

l, en

gine

erin

g su

pply

PFi (Products for Industry)                                       ü                    

R.F.TechnologiesAustPtyLtd                                                           ü

ShapecutPtyLtd                                                           ü

Solvay Interox Pty Ltd                 ü                                          

SpaceTechInternational                                                 ü          

Studio Kite                                                           ü

Swagelok Eastern Australia ü                                                          

Syndetic       ü                                                    

Teakle Composites ü                                                          

Temperature Controls ü                                                          

VoestalpineHighPerformanceMetals                                                           ü

University/Research OrganisationBond University                                                     ü      

Centre for Agricultural Engineering, University ofSouthernQueensland

                                                  ü        

CSIRO                                                   ü        

CommonwealthScientificandIndustrialResearchOrganisation (CSIRO)

                                                  ü        

EarthObservationAustraliaandRemoteSensingResearchCentre, University of Queensland

                              ü                            

GriffithUniversity                                                     ü      

Juxi Leitner (Individual)                                                   ü        

Queensland University of Technology                                                   ü        

UniversityofSouthernQueensland - Institute for Advanced Engineering and Space Sciences

                                                  ü        

UniversityofSouthernQueensland - Centre for Astrophysics

                                                  ü        

UniversityofSouthernQueensland-SchoolofCivilEngineering&Surveying

                                                  ü        

USQ                           ü                                

Government

OfficeofEconomicDevelopment,IpswichCityCouncil

                                                     

Enabler to provide support to SMEs

developing innovative products

   

Industrial Organisation

SIAA                                                      Advocacy and development oftheindustry

in Australia   

OtherElectrotraders                                         ü                  

James Dickson                                                         ü  

Page 83: Sky is not the limit Building Queensland's space economy · Sky is not the limit 3 Building Queensland's space economy Sky is not the limit Space has always ignited human curiosity

78

  Com

pone

nt a

nd M

ater

ial

Supp

ly

Sat

ellit

e O

wne

r/O

pera

tor

Spa

ce Q

ualifi

ed T

esti

ng

and

Faci

litie

s

Spac

e Su

bsys

tem

Sup

ply

Syst

em E

ngin

eeri

ng a

nd

Tech

nica

l Sup

port

Com

pone

nt a

nd

Subs

yste

m M

anag

emen

t

Laun

ch S

ervi

ces

Laun

ch S

uppo

rt S

ervi

ces

Laun

ch V

ehic

le

Man

ufac

turi

ng a

nd

Asse

mbl

y

Ante

nna/

Gro

und

Stat

ion

Com

pone

nt o

r M

ater

ial

Supp

lier

Gro

und

Segm

ent P

rim

e/Sy

stem

Inte

grat

ion

Gro

und

Segm

ent

Subs

yste

m &

Equ

ipm

ent

Supp

lier

Prim

e/Sy

stem

In

tegr

atio

n

Syst

em E

ngin

eeri

ng

and

Tech

nica

l Sup

port

Se

rvic

es

Trac

king

, Tel

emet

ry &

Co

mm

and

Ope

rati

ons

Eart

h O

bser

vati

on

Serv

ices

& A

pplic

atio

ns

Sat

ellit

e Co

mm

unic

atio

ns S

ervi

ce

Prov

ider

s

Sat

ellit

e N

avig

atio

n Se

rvic

e &

App

licat

ions

Tech

nica

l Sup

port

Se

rvic

es

Use

r Eq

uipm

ent

Man

ufac

ture

r

Use

r Eq

uipm

ent

Supp

liers

Cons

ulta

ncy

Serv

ices

(e

.g. I

T, a

naly

tics

, pr

ofes

sion

al s

ervi

ces)

Fin

anci

al S

ervi

ces

Lega

l Ser

vice

s

Anci

llary

Ser

vice

s

R&D

Educ

atio

n an

d Tr

aini

ng

Oth

er

Tran

spor

t, lo

gist

ics

and

cons

truc

tion

Gen

eral

com

pone

nt,

mat

eria

l, en

gine

erin

g su

pply

PFi (Products for Industry)                                       ü                    

R.F.TechnologiesAustPtyLtd                                                           ü

ShapecutPtyLtd                                                           ü

Solvay Interox Pty Ltd                 ü                                          

SpaceTechInternational                                                 ü          

Studio Kite                                                           ü

Swagelok Eastern Australia ü                                                          

Syndetic       ü                                                    

Teakle Composites ü                                                          

Temperature Controls ü                                                          

VoestalpineHighPerformanceMetals                                                           ü

University/Research OrganisationBond University                                                     ü      

Centre for Agricultural Engineering, University ofSouthernQueensland

                                                  ü        

CSIRO                                                   ü        

CommonwealthScientificandIndustrialResearchOrganisation (CSIRO)

                                                  ü        

EarthObservationAustraliaandRemoteSensingResearchCentre, University of Queensland

                              ü                            

GriffithUniversity                                                     ü      

Juxi Leitner (Individual)                                                   ü        

Queensland University of Technology                                                   ü        

UniversityofSouthernQueensland - Institute for Advanced Engineering and Space Sciences

                                                  ü        

UniversityofSouthernQueensland - Centre for Astrophysics

                                                  ü        

UniversityofSouthernQueensland-SchoolofCivilEngineering&Surveying

                                                  ü        

USQ                           ü                                

Government

OfficeofEconomicDevelopment,IpswichCityCouncil

                                                     

Enabler to provide support to SMEs

developing innovative products

   

Industrial Organisation

SIAA                                                      Advocacy and development oftheindustry

in Australia   

OtherElectrotraders                                         ü                  

James Dickson                                                         ü  

79

Building Queensland's space economy

  Com

pone

nt a

nd M

ater

ial

Supp

ly

Sat

ellit

e O

wne

r/O

pera

tor

Spa

ce Q

ualifi

ed T

esti

ng

and

Faci

litie

s

Spac

e Su

bsys

tem

Sup

ply

Syst

em E

ngin

eeri

ng a

nd

Tech

nica

l Sup

port

Com

pone

nt a

nd

Subs

yste

m M

anag

emen

t

Laun

ch S

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Temperature Controls ü                                                          

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developing innovative products

   

Industrial Organisation

SIAA                                                      Advocacy and development oftheindustry

in Australia   

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James Dickson                                                         ü  

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Appendix BCapability assessment matrix – detail

Sky is not the limit

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Appendix BCapability assessment matrix – detail

Sky is not the limit

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Building Queensland's space economy

FurthertoChapter4,thefollowingdetailstheindividualcapabilityassessmentsforthespaceeconomy.Queensland’scapabilitywasassessedforthefollowingsub-sectors:

• Space Systems

• LaunchActivities

• Ground Systems

• Space Enabled Services

• Ancillary Services

• ResearchandDevelopment

• Education and Training

Space systems

Natural/Geography

Physical Human Capital Demand Supply DAE Commentary

N/A Moderate Limited Moderate Limited

N/A • Largestidentifiedsub-sector by organisationsintheshortsurvey(16)suggeststhereisadequatephysicalinfrastructure availableforthesub-sector to participate in bothnationaland international markets

• Organisations were spreadacrossthreekey capabilities – Component and material supply (13)

– Space subsystem supply (1)

– System Engineering and TechnicalSupport(2)

• Ofthe13component and material supply organisations,themajority (6) earned inthe$2-5Mrangeandthemajority(8)alsoexportedtheirproducts/services internationally

• Organisations typically employ 1-19 employees, however6oftheorganisations employed 20-199 employees,whichsuggeststhereisa strong market in Queensland for labourfromwhichthesub-sectorisable to draw upon

• Therearealarge number of organisationswhohavemanagedtofindthenecessarylabour to sustain theiractivities–growthdoesnotappear to be limited bytheavailabilityofexpertise

• 10ofthe16organisations exportedtheirproductsinthelast12months.Thisreflectsstronginternational demand for products and moderate/limited national demand

• Noneoftheorganisations in thesub-sectorconsiderspacetheirprimary industry of operation. Therefore,organisations are unlikelytohavedifficultysourcingtheappropriateinputsfortheiroperations.

• However,theratingreflectsthelimitedsupply of products/serviceswhicharedirectly related to space.

• Theorganisationsthatrespondedtothesurveyinthespacesystemssub-sector do not considerspacetheirprimary industry of operation. Organisations typicallyhavecapabilities in Defence and Aerospace and as,suchhavenecessary inputs and expertise toenablethemtoprovidetheirproducts/services as required. However,thesizeofthespaceeconomyin Queensland meanstheyprovidetheirproducts/servicestodifferentindustries and international markets.Growthinthelocalspaceindustry would encouragegrowthinthissector.

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Launch activities

Natural/Geography

Physical Human Capital Demand Supply DAE Commentary

Strong Limited Limited Moderate Limited

• Queensland’s proximity to theequator(27degrees)

• Available land close totheequator

• Unused airspace closetotheequator

• Abilitytodobothpolar and equatorial orbits

• Notest/launchfacilities in Queensland

• Queenslandhas2highlyspecialisedorganisationswithprivatelaunchfacilities – Includingtheonlycivilian sub-orbital launchsiteinAustralia

• 5 organisations participatinginthelaunchsub-sector – Component and Subsystem management (1)

– LaunchServices(2)

• Difficultyhiringdueto inappropriate skills – organisation responded‘No’&‘Yes’

• Organisations reflectedabroadrange of employees – including 1-19, 20-199and200+

• Thesub-sectordrawsheavilyfromtheProfessional,ScientificandTechnicalServicessectorintheeconomy for inputs

• Developing national market as evidenced by theabilitytofindappropriate Human Capital to operate. However, sub-sector is limited by regulatory issues andlackoflaunchfacilities.

• Size, turnover and lack of export suggeststhereisunmet demand at present

• Gilmourhavebuiltalmostalloftheirsuborbital rocket in Queensland

• SomechemicalsBlackSkyhadtoget in

• Propulsion creates issues – companies need to source hydrogenperoxideinternationally

• Currently also restricted by regulatory burdens

• Thesub-sectordrawsheavilyfromtheManufacturingsectorintheeconomy for inputs

• Thesub-sectorcannot source ‘particularrocketmotorchemicals’from Queensland (theysourcethisfromtheUSA/China)

• Themainreasonstheypurchasefrom outside of Queensland is becausetheyhavehighlyspecialised product/servicesthatarenot available in Queensland (and are better quality elsewhere)

• Whilstwedonothaveasignificantnumber of organisations in thissub-sector,theorganisationsthatdoparticipatehaveindustry leading capability

• Sources include survey 1, survey 2 and Queensland Parliamentary Inquiry transcripts

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Launch activities

Natural/Geography

Physical Human Capital Demand Supply DAE Commentary

Strong Limited Limited Moderate Limited

• Queensland’s proximity to theequator(27degrees)

• Available land close totheequator

• Unused airspace closetotheequator

• Abilitytodobothpolar and equatorial orbits

• Notest/launchfacilities in Queensland

• Queenslandhas2highlyspecialisedorganisationswithprivatelaunchfacilities – Includingtheonlycivilian sub-orbital launchsiteinAustralia

• 5 organisations participatinginthelaunchsub-sector – Component and Subsystem management (1)

– LaunchServices(2)

• Difficultyhiringdueto inappropriate skills – organisation responded‘No’&‘Yes’

• Organisations reflectedabroadrange of employees – including 1-19, 20-199and200+

• Thesub-sectordrawsheavilyfromtheProfessional,ScientificandTechnicalServicessectorintheeconomy for inputs

• Developing national market as evidenced by theabilitytofindappropriate Human Capital to operate. However, sub-sector is limited by regulatory issues andlackoflaunchfacilities.

• Size, turnover and lack of export suggeststhereisunmet demand at present

• Gilmourhavebuiltalmostalloftheirsuborbital rocket in Queensland

• SomechemicalsBlackSkyhadtoget in

• Propulsion creates issues – companies need to source hydrogenperoxideinternationally

• Currently also restricted by regulatory burdens

• Thesub-sectordrawsheavilyfromtheManufacturingsectorintheeconomy for inputs

• Thesub-sectorcannot source ‘particularrocketmotorchemicals’from Queensland (theysourcethisfromtheUSA/China)

• Themainreasonstheypurchasefrom outside of Queensland is becausetheyhavehighlyspecialised product/servicesthatarenot available in Queensland (and are better quality elsewhere)

• Whilstwedonothaveasignificantnumber of organisations in thissub-sector,theorganisationsthatdoparticipatehaveindustry leading capability

• Sources include survey 1, survey 2 and Queensland Parliamentary Inquiry transcripts

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Building Queensland's space economy

Ground Systems

Natural/Geography

Physical Human Capital Demand Supply DAE Commentary

Strong Limited Limited Moderate Limited

• Queensland’s exposure to equatorial orbits, and ability to track spacecraft travelling overtheIndianandPacificOceans

• Well positioned to support satellite launchservicesaslarge open spaces withsignificantuninhabitedlandmass close to theequatorandflightpathsovertheocean

• Organisationshavecapability in: – Antenna/Ground Station Component or Material Supplier

– Prime/System Integration

– Ground Segment Prime/System Integration

• Whilstorganisationsinthesub-sectorhavecapabilityin operating and usingtechnologyassociatedwithground systems, thereexistslittleownership;thesub-sector is reliant on transferrable skills/expertise from themanufacturingsector

• Organisations are primarily suppliers, technicalsupportor operational whichlimitsgrowthpotentialin downstream applications

• As several ground segment organisations are large multinationals, theyhavehighemployee ranges –themajorityselected200+employees

• Difficultyhiringdueto inappropriate skills – organisations responded‘No’

• Boeingintheinquiry indicated thattherewerenotenoughindividualsaroundthatwouldallowforthenecessarygrowthintheindustrytooccur

• Australia’s long historyinthesectoralsomeansthereissignificantcapabilityacrossthenation(whilstsomeofthismightnotbebasedin Queensland)

• All organisations exporttheirproducts/services

• Thereisastronginternational market whichisdrivingtheexportsofthesub-sector

• Somedifficultyfillinginthissub-sectorasincomplete survey fillingoutfromorganisationsinthesub-sector

• Several of theentitiesinQueensland’s ground systems sub-sector are large multinational organisationsthathavesignificantpresence in Queensland, Australia and internationally.Theyalsotypicallyhavepresence across severalareasofthespace economy, andinteractwithseveralresearchinstitutions.

• Organisations are primarily contributing to inputsandtechnicalservices/support requiredbythesub-sectorratherthangrowthbeingdrivenfromthepresenceofphysicalinfrastructure.

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Space Enabled Services

Natural/Geography

Physical Human Capital Demand Supply DAE Commentary

N/A Moderate Moderate Moderate Moderate

N/A • Thesub-sectorhasaccesstosatellites, ground stations, telescopes, supercomputers, cloudstoragethatare required to operate

• Constraints to growthrecognisedthelackofaskilledworkforceintherequiredfields.All organisations reflectedthattheyhaddifficultyhiringduetoinappropriate skills

• Constraints to growthreflectthelack of an Australian marketfortheproducts/services thesub-sectorprovides

• Organisations also recognisedthattherearechallengesaccessing international markets due to ‘internationalgeopolitical trade relations’

• For organisations whoparticipateinthesub-sector,itisprimarilythe‘coreofbusinessoperations’

• Themajorityoforganisations exporttheirproducts/services

• Some organisations haveturnoverrangegreaterthan$10M

• Significantgrowthpotential exists for applications across many industries thatrelyondatadriven intelligence

• Thesub-sectorreliesheavilyontheInformation,Media and Telecommunications sectorsintheAustralian economy

• Organisations reflectedthatmajorpurchaseswere made from countriessuchastheUK,EUandtheUS–whichwere relevant to satellite imagery and software and advanced cloud computing

• Primary reason organisations purchaseproducts/services from outside of Queensland isbecausetheproduct/service theyrequireisnot available in Queensland and is highlyspecialisedinnature

• Mature capability exists,howeverthisisnotbeingexploited to its full extent nor by a large number of organisations

• Thereexistsa‘readymade downstream market’ for space enabled services in Queensland.Therepresence of mature capabilityintheAgriculture, Mining, Manufacturing and Professional, ScientificandTechnicalServicesfirms

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Space Enabled Services

Natural/Geography

Physical Human Capital Demand Supply DAE Commentary

N/A Moderate Moderate Moderate Moderate

N/A • Thesub-sectorhasaccesstosatellites, ground stations, telescopes, supercomputers, cloudstoragethatare required to operate

• Constraints to growthrecognisedthelackofaskilledworkforceintherequiredfields.All organisations reflectedthattheyhaddifficultyhiringduetoinappropriate skills

• Constraints to growthreflectthelack of an Australian marketfortheproducts/services thesub-sectorprovides

• Organisations also recognisedthattherearechallengesaccessing international markets due to ‘internationalgeopolitical trade relations’

• For organisations whoparticipateinthesub-sector,itisprimarilythe‘coreofbusinessoperations’

• Themajorityoforganisations exporttheirproducts/services

• Some organisations haveturnoverrangegreaterthan$10M

• Significantgrowthpotential exists for applications across many industries thatrelyondatadriven intelligence

• Thesub-sectorreliesheavilyontheInformation,Media and Telecommunications sectorsintheAustralian economy

• Organisations reflectedthatmajorpurchaseswere made from countriessuchastheUK,EUandtheUS–whichwere relevant to satellite imagery and software and advanced cloud computing

• Primary reason organisations purchaseproducts/services from outside of Queensland isbecausetheproduct/service theyrequireisnot available in Queensland and is highlyspecialisedinnature

• Mature capability exists,howeverthisisnotbeingexploited to its full extent nor by a large number of organisations

• Thereexistsa‘readymade downstream market’ for space enabled services in Queensland.Therepresence of mature capabilityintheAgriculture, Mining, Manufacturing and Professional, ScientificandTechnicalServicesfirms

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Building Queensland's space economy

Ancillary Services

Natural/Geography

Physical Human Capital Demand Supply DAE Commentary

N/A N/A Limited Limited Limited

N/A N/A • Breadthofskillrequired across Ancillary Services islimitedbythesizeofthespaceeconomyforwhichtheywouldsupplyservices

• However,theredoes exist unique capabilitiesthatareengagedintheexisting activities of thespaceeconomy

• Asthespaceeconomy in Queensland is still developing–thereis limited, but growing demand for specialised Ancillary Services

• It is anticipated thatasthespaceeconomy grows, so toowillthedemandfortherelevantsupporting services, suchaslegaladvice

• Therearehoweverafewkeyorganisationswhoare experienced insectorsoftheeconomywithsymmetries(suchas Defence and Mining)whichearnlarge returns for theirexpertise

• Asthesub-sectoris entirely reliant onthegrowthandsizeofthespaceeconomy,thesub-sector relies on othersectorsforitsprimary operations (suchasMiningand Professional, ScientificandTechnicalServices)

• Theredoexistafew select bespoke space legal/consulting services. However,thislargelyreflectsthematurityofthebroaderspace economy

• Thereisstrongpotential for growthinlinewithgrowthinthespaceeconomy

• Symmetries exist withsectorssuchas Defence, Mining and Professional, ScientificandTechnicalServiceswhichwillenableskills to be transferred to satisfy demand as it may arise

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Research and Development

Natural/Geography

Physical Human Capital Demand Supply DAE Commentary

Moderate Moderate Moderate Moderate Limited

• Geographicadvantagessuchas proximity to equator,clearnightskies and alternative time-zoneshaveencouragedR&Dcapabilities in areas suchasobservationand testing. However,thesearenotcriticaltothedevelopmentofthesector and do not puttheQueenslandspace economy at a distinct advantage.

• Significanthigh-cost infrastructure is required to support industry leadingR&D–forwhichQueenslandexhibitssomenichecapability

• Limitedphysicalinfrastructure reflectsthesizeofthespaceeconomyin Queensland and highinvestmentcosts associated withspecifictechnologies

• Itisnotedhoweverthattheredoesexist world-leading capability in small pockets of expertise whichengagein international collaboration

• ThereexistsuniquecapabilitywithintheQueenslandR&Dsub-sectorwhichreflectsthesizeoftheQueenslandspace economy

• MostofthemajorUniversities in Queensland engage indifferingareasofthespaceeconomy;and attract industry leading expertise – often collaborating on an international levelwithleadingspace agencies

• Respondents experienced varying degreesofdifficultyhiringduelackofskillset–thisagainlargelyreflectstheoftennicheandhighlyspecialisednature of many of theareasofinterest

• Thesub-sectorcollaborates widely acrosstheglobalspace economy, as thereisinsufficientnational demand forthesectortomeet.However,thishascontributedtotheexpertiseofthesub-sector.Individuals/organisations are typically well-connected and at theforefrontofinnovationintheirchosenfields

• Itisanticipatedthatthesub-sectorwillbe able to support growthintheQueensland space economy;andwillcontinue to grow in linewiththerestoftheindustry

• Whilsttheredoesexist industry leading expertise in thesub-sector–themajority of supply of expertise is met bytheinternationalmarket

• Thesectorischaracterisedbyhighbarrierstoentryandhighinvestment costs. Inthedevelopingspace economies of Australia and Queensland,thismeanswhereinvestmenthasbeen driven by individualswithnichecapabilityand expertise. SmallR&Decosystemswithspecificcapabilityhavedevelopedasaresult.Thesepockets of expertise are well connected totheglobalspaceeconomy and are not limited by theirgeographiclocation.Theyoftencollaborate widely acrossthesupplychainandhaverelationshipswithlarge multinationals and international space agencies.

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Research and Development

Natural/Geography

Physical Human Capital Demand Supply DAE Commentary

Moderate Moderate Moderate Moderate Limited

• Geographicadvantagessuchas proximity to equator,clearnightskies and alternative time-zoneshaveencouragedR&Dcapabilities in areas suchasobservationand testing. However,thesearenotcriticaltothedevelopmentofthesector and do not puttheQueenslandspace economy at a distinct advantage.

• Significanthigh-cost infrastructure is required to support industry leadingR&D–forwhichQueenslandexhibitssomenichecapability

• Limitedphysicalinfrastructure reflectsthesizeofthespaceeconomyin Queensland and highinvestmentcosts associated withspecifictechnologies

• Itisnotedhoweverthattheredoesexist world-leading capability in small pockets of expertise whichengagein international collaboration

• ThereexistsuniquecapabilitywithintheQueenslandR&Dsub-sectorwhichreflectsthesizeoftheQueenslandspace economy

• MostofthemajorUniversities in Queensland engage indifferingareasofthespaceeconomy;and attract industry leading expertise – often collaborating on an international levelwithleadingspace agencies

• Respondents experienced varying degreesofdifficultyhiringduelackofskillset–thisagainlargelyreflectstheoftennicheandhighlyspecialisednature of many of theareasofinterest

• Thesub-sectorcollaborates widely acrosstheglobalspace economy, as thereisinsufficientnational demand forthesectortomeet.However,thishascontributedtotheexpertiseofthesub-sector.Individuals/organisations are typically well-connected and at theforefrontofinnovationintheirchosenfields

• Itisanticipatedthatthesub-sectorwillbe able to support growthintheQueensland space economy;andwillcontinue to grow in linewiththerestoftheindustry

• Whilsttheredoesexist industry leading expertise in thesub-sector–themajority of supply of expertise is met bytheinternationalmarket

• Thesectorischaracterisedbyhighbarrierstoentryandhighinvestment costs. Inthedevelopingspace economies of Australia and Queensland,thismeanswhereinvestmenthasbeen driven by individualswithnichecapabilityand expertise. SmallR&Decosystemswithspecificcapabilityhavedevelopedasaresult.Thesepockets of expertise are well connected totheglobalspaceeconomy and are not limited by theirgeographiclocation.Theyoftencollaborate widely acrossthesupplychainandhaverelationshipswithlarge multinationals and international space agencies.

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Building Queensland's space economy

Education and Training

Natural/Geography

Physical Human Capital Demand Supply DAE Commentary

N/A Moderate Moderate Limited Limited

N/A • Queenslandhasseveral large, world class education facilities,withseveralthathavespecialisedresearchunits dedicated to space activities

• Queensland’s education providers do not specialise in space education or provide space specificprograms.However,theydoprovide degrees withleadingcapability in industrieswithsymmetry to space

• Queenslandhasseveral large, world class education professionals

• However, Queensland does nothavecriticalmass in educators for providing educationspecifictothespaceeconomy

• Theexistenceof individuals working at several Queensland universitieswithindustry-leading expertise is a strengthforthesub-sector

• Demand for Education&Training is required in order to provide thespaceeconomywiththeappropriateskillsrequired;however,thereexists a vicious cycle in education and job opportunity. Astherehasnotpreviously been enoughgrowthintheindustrytoencourage sector specificeducation.Aphenomenaknownas‘braindrain’ occurs and doesnotenabletheindustrytofindthenecessary labour to grow and sustain operations

• Thereislimitedsupply of Education &Trainingspecifictothespaceeconomyin Queensland – individuals whorequirethenecessaryeducation will often pursuetheirstudiesinternationally

• Education and Trainingthatisspecificallydirectedat space activities is limited. However, Queenslandhasstrong education and training opportunities in industrieswhichrequire similar expertise and experience.

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Department of State Development, Manufacturing, Infrastructure and Planning

Appendix CCGE modelling assumptions

Sky is not the limit

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Department of State Development, Manufacturing, Infrastructure and Planning

Appendix CCGE modelling assumptions

Sky is not the limit

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Building Queensland's space economy

Industriesthatbenefitfromthefutureadoption of space enabled services

TheexpansionoftheQueenslandindustryhassignificantdownstreamimpactstoawiderangeofindustriesthatcanexploitspace enabled goods, services and technologiestoachieveefficiencies.Keyindustries include:

Agriculture

Mining

Telecommunications

Transport and logistics

Construction

Utilities

Researchanddevelopment.

ThisAppendixprovidesadditionaldetailinsupportoftheeconomicmodellinginchapters7and8.Specifically,thisappendixcovers:

• Theapproachtotheeconomicmodelling;

• Furtherdetailsontheindustrybenefitsofspaceenabledservices;and

• ThetechnicalspecificationofDeloitteAccess Economics’ Computational General Equilibrium model.

Economic impact analysis methodologyTheeconomicimpactanalysismethodologyusedinthisstudyhasthreekey components.

First:measuringthecurrentandfuturesizeofthespacesectorinQueensland,includingspacerelatedsegmentswhichincludethespaceactivitiesoftheaerospace,defenceand advanced manufacturing sectors. However,thisisonlyonekeypartofthestoryoftheeconomicpotentialofthespaceindustry in Queensland.

Second:whatdoesthefutureuptakeofspaceenabledservicesandtechnologiesmeanfortheQueenslandeconomyasawhole?Thisrequiresexploringplausiblefuturescenariosfortheincreaseindiffusion,uptakeandspilloverimpactswithafocusonthosesectorsinQueenslandthatpotentiallystandtogainthemostbasedontheinformationonthegrowthand application of space enabled services knowntoday.Asaresultofthisfutureuncertainty, a range of plausible scenarios are presented.

Finally,thegrowthtrajectoriesofthespace sector itself as well as productivity implications for broader industries is modelledwithinacomputablegeneralequilibriumframeworktomeasuretheshort,mediumandlongtermfutureeconomicimpactsofthespacesector asawholeinQueensland.

Figure C.1 Economicmodellingmethodology

Estimate the current and future direct economic contribution of the space sector in Queensland in terms of key economic metrics including value added and employment

Current and future size of the space sector Productivity potential and sectoral implications from space enabled services and uptake scenarios

Economy wide impacts over the short, medium and long term

Investigate the industries that are expected to benefit from the productivity potential of space enabled services/technologies including increased uptake and incremental productivity benefits

Economic modelling to estimate future impacts for a range of “plausible future uptake and growth scenarios”

Analysis of key space segments

Estimate current size of Qld space sector including

key segments

Economic contribution

Assess global and national

economic outlook

Measure future size of Qld space sector including

medium and long term

Future growth

Desktop assessment and literature scan

Identify sectoral implications of uptake of space goods/services

Industry assessment

Measure benefits of increased

uptake by sector in Queensland

This includes sectoral cost savings and productivity,

R&D etc.

Sectoral impacts

Develop customised

version of in-house Deloitte

CGE model for the space sector

Short, medium and long term

economic impacts including GSP

and jobs

Economic scenarios

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Agriculture (broad acre cropping)TechniquessuchasprecisionfarminghavebeenemployedbypartsoftheagriculturalindustryinAustralia.Thecroppingindustry(includingwheat,barleyandrice)hashistoricallybeenthelargestuserofGNSStechnology.Thesetechniquesarealsobeingusedbythecotton,sugarandhorticultureindustriestoalesserextent.Select applications of precision farming techniquesincludecontrolledtrafficfarming, inter-row sowing and variable rate (VR) fertiliser.

Controlledtrafficfarmingreferstothecasewheretractorsfollowsetpathsguidedby GNSS and automated steering. By restrictingmovementtoasetpath,thismethodreducestheamountoflandthatisaffectedbyheavymachinery.Thisimprovesthesoilstructureandwaterholdingcapacityofnon-traffickedland,whichleadstohighercropyields.39 In addition to increasedyields,therearebenefits,whichincludelabour,fuelandsavingonotherinputssuchasherbicidesandinsecticides.

Inter-rowsowing,involvesthepreciseplacementofseedsbetweentherowsofthepreviousyear’scropsandthiscanflowthroughtoyieldincreases.VRfertiliserapplication is centred on coordinate based fertilisationofleadingtomoreefficientuseof fertilisers.40Theconsequentbenefitsinclude a reduction in fertiliser used, freightandfuelcosts,timespentrefillingamachines’fertiliserspreader,chemicalleachingandweedvigour.41

Internationally,theapplicationsofspacetechnologiestoagriculturehavebeenhighlightedbytheCanadianSpaceAgency.Farmers use satellite data in a range of waysincludingidentificationofsoilandcropcharacteristics;monitoringshootgrowth;betterforecastingprecipitationand estimating total output.42

Thecroppingsectoristheleaderinprecisionagriculture,withpotentialtoreach85%by2025.43Therearesomechallengesnotedinrelationtohigheruptake in precision agriculture more generally,includinghighupfrontcosts,limitednetworkcoverage,theneedfornewmanagerialskillsandtheperceivedcomplexity.ThecostsofadoptionofGNSStechnologyalsorangesfrom$30,000witha capability of 10cm accuracy and increases to$50,000forahigheraccuracyof2cm.44

Productivity benefits for broadacre cropping

The use of GNSS benefits both the use of inputs (such as fuel, labour and materials) and agriculture yields in broadacre cropping. Using an uptake rate of GNSS technology increasing from 40% in 2024 to 65% in 2036 (over and above business as usual) leads to a direct benefit ranging from $80 million to $110 million per annum over the period 2019 to 2036 (net of adoption costs).

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Agriculture (broad acre cropping)TechniquessuchasprecisionfarminghavebeenemployedbypartsoftheagriculturalindustryinAustralia.Thecroppingindustry(includingwheat,barleyandrice)hashistoricallybeenthelargestuserofGNSStechnology.Thesetechniquesarealsobeingusedbythecotton,sugarandhorticultureindustriestoalesserextent.Select applications of precision farming techniquesincludecontrolledtrafficfarming, inter-row sowing and variable rate (VR) fertiliser.

Controlledtrafficfarmingreferstothecasewheretractorsfollowsetpathsguidedby GNSS and automated steering. By restrictingmovementtoasetpath,thismethodreducestheamountoflandthatisaffectedbyheavymachinery.Thisimprovesthesoilstructureandwaterholdingcapacityofnon-traffickedland,whichleadstohighercropyields.39 In addition to increasedyields,therearebenefits,whichincludelabour,fuelandsavingonotherinputssuchasherbicidesandinsecticides.

Inter-rowsowing,involvesthepreciseplacementofseedsbetweentherowsofthepreviousyear’scropsandthiscanflowthroughtoyieldincreases.VRfertiliserapplication is centred on coordinate based fertilisationofleadingtomoreefficientuseof fertilisers.40Theconsequentbenefitsinclude a reduction in fertiliser used, freightandfuelcosts,timespentrefillingamachines’fertiliserspreader,chemicalleachingandweedvigour.41

Internationally,theapplicationsofspacetechnologiestoagriculturehavebeenhighlightedbytheCanadianSpaceAgency.Farmers use satellite data in a range of waysincludingidentificationofsoilandcropcharacteristics;monitoringshootgrowth;betterforecastingprecipitationand estimating total output.42

Thecroppingsectoristheleaderinprecisionagriculture,withpotentialtoreach85%by2025.43Therearesomechallengesnotedinrelationtohigheruptake in precision agriculture more generally,includinghighupfrontcosts,limitednetworkcoverage,theneedfornewmanagerialskillsandtheperceivedcomplexity.ThecostsofadoptionofGNSStechnologyalsorangesfrom$30,000witha capability of 10cm accuracy and increases to$50,000forahigheraccuracyof2cm.44

Productivity benefits for broadacre cropping

The use of GNSS benefits both the use of inputs (such as fuel, labour and materials) and agriculture yields in broadacre cropping. Using an uptake rate of GNSS technology increasing from 40% in 2024 to 65% in 2036 (over and above business as usual) leads to a direct benefit ranging from $80 million to $110 million per annum over the period 2019 to 2036 (net of adoption costs).

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MiningTheminingindustryhasahistoryofusingGNSStechnologyfornearlythreedecades.Thereareanumberofapplicationsincludingvehicletrackinganddispatch,materialtracking,drillguidance,haulroad grading and maintenance, geological mapping,controlofbenchheight,minesite surveying, accurate selective mining andautonomoushaultrucks.45Thelattertwowereidentifiedbytheliteratureaskeyapplicationshavingstrongpotentialtodriveproductivityintheminingindustry.AccurateselectiveminingreferstothepracticeofattachingGNSStoexcavatorstoguideoperatorsonwherespecificallytomine.Thismethodallowsoperatorstoextractoresmoreefficiently;thatis,it allows a larger amount of ore to be extractedwithfewerwaste,subsequentlyincreasingyields.Thiswasestimatedtoincreasethelevelofproductionofthemining of zinc mine.46Thissimilarlyhasapplications to black coal mining and non-ferrous mining open-cut mining operations in Queensland.

AnotherareawhereGNSStechnologyis already being used in mining is autonomoushaultrucks.AnexampleofthisisRioTinto’soperationsinWesternAustralia,andinQueenslandwherethisapproachisalsobeingadopted47throughthetriallingofautomatedtrucksinsomeminesites.AutonomoushaultrucksremovestheneedforhumandriversbyusingGNSStofullyoperatethetruck.48

Themainbenefitofthisisintheformoflaboursavings,butotherbenefitsincludereducedaccidents,reducedhaultrucktravel cycle times and lower maintenance costs.49In2008,just15%ofmineswere using accurate selective mining technology.50Inthesamestudy,thiswasestimatedtoincreasetobetween65%and80%by2030.Thecorrespondingnumbersforautonomoushaultrucksare50%and60%arelinewithatrendtohigherlevelsofautomationinthefuture.

AchallengerelatingtouptakeincludestheincompatibilityofGNSStechnologyusedatdifferentminingsites.Thedevelopmentof a nation GNSS network was noted asapotentialwaytoovercomethischallenge.Thiswouldalsoallowsuppliersoftechnologiestodesignstandardisedproducts for market.51Anotherstudynotestheimportanceofcompatibilityoftechnologiesandthatuptakewillalsobeinfluencedbyeconomicconditionsandtheneed for companies to gain competitive advantagesthroughinvestment.52Thesemethodsalsocurrentlyapplyonlytoopencut mines.

Direct benefits

The application of GNSS technology in the use of mining leads to benefits in the use of inputs to mining such as labour and other inputs including fuel through automation and techniques such as precision mining, that targets higher quality product give yield improvements. The adoption profile is 25% in 2024 and increases up to 60% by 2036 (over and above business as usual). This leads to an annual benefit ranging from $300 to $425 million per annum over the period 2019 to 2036 (net of adoption costs).

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TelecommunicationsGNSStechnologyisintegraltotelecommunications infrastructure and supportsfixed-linetelecommunications(including internet), cellular telecommunications, digital video broadcast, digital audio broadcast, terrestrial truncated radio and internet data centres.53 Its importance stems from GNSS’ ability to deliver precision timingsynchronizationandpositioninformationwhichenablesthecontinuoustransmissionofinformationwithlowerrorrate and noise.54Theconsequentreducedinfrastructure costs and capital investment outlayshaveasignificanteconomicimpactas demonstrated by London Economics’ 2017reportwhichnotestheimprovementingrossvalueaddedtotheUKeconomyduetoGNSSuseinthecommunicationssector(andtheimpactofdisruptiontotheseservices).55Thereislimitedinformationconcerningtheadoptionrate of GNSS, presumably given its broad applicationacrossthetelecommunicationsindustryaswhole.

In addition to GNSS, satellite communicationstechnologyunderliesanumber of specialised telecommunications services including broadcasting (TV, radio), broadbandandinternetofthings(IoT).56 Importantly, satellite communications provides increased connectivity (and communication speeds) to remote areas previously reliant on terrestrial based internetservicestherebyimprovingequity of access to information and services.57ThishelpsbridgeAustralia’s‘digitaldivide’betweenurbanandregionalareas and consequently can facilitate important productivity gains.58Giventhecentralroleof,andsignificantrelianceontelecommunicationsinothersectorsintheeconomy;numericestimatesoftheeconomicimpactofsatellitecommunications are not widely available.

Direct benefits

GNSS technology has significant applications to communications sectors opening up opportunities for new products over time and improving the quality and efficiency of services delivered by the sector to end users. The profile of adoption increases from 60% in 2024 up to 80% by 2036 (over and above business as usual). The benefits (net of the cost of adoption costs) ranges from $50 to $70 million per annum over the period 2019 to 2036.

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TelecommunicationsGNSStechnologyisintegraltotelecommunications infrastructure and supportsfixed-linetelecommunications(including internet), cellular telecommunications, digital video broadcast, digital audio broadcast, terrestrial truncated radio and internet data centres.53 Its importance stems from GNSS’ ability to deliver precision timingsynchronizationandpositioninformationwhichenablesthecontinuoustransmissionofinformationwithlowerrorrate and noise.54Theconsequentreducedinfrastructure costs and capital investment outlayshaveasignificanteconomicimpactas demonstrated by London Economics’ 2017reportwhichnotestheimprovementingrossvalueaddedtotheUKeconomyduetoGNSSuseinthecommunicationssector(andtheimpactofdisruptiontotheseservices).55Thereislimitedinformationconcerningtheadoptionrate of GNSS, presumably given its broad applicationacrossthetelecommunicationsindustryaswhole.

In addition to GNSS, satellite communicationstechnologyunderliesanumber of specialised telecommunications services including broadcasting (TV, radio), broadbandandinternetofthings(IoT).56 Importantly, satellite communications provides increased connectivity (and communication speeds) to remote areas previously reliant on terrestrial based internetservicestherebyimprovingequity of access to information and services.57ThishelpsbridgeAustralia’s‘digitaldivide’betweenurbanandregionalareas and consequently can facilitate important productivity gains.58Giventhecentralroleof,andsignificantrelianceontelecommunicationsinothersectorsintheeconomy;numericestimatesoftheeconomicimpactofsatellitecommunications are not widely available.

Direct benefits

GNSS technology has significant applications to communications sectors opening up opportunities for new products over time and improving the quality and efficiency of services delivered by the sector to end users. The profile of adoption increases from 60% in 2024 up to 80% by 2036 (over and above business as usual). The benefits (net of the cost of adoption costs) ranges from $50 to $70 million per annum over the period 2019 to 2036.

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Transport and logisticsPrecisepositioningviaGNSStechnologyhasmanyapplicationsthroughoutthetransport (including road, rail, aviation and maritime) and logistics sectors. A non-exhaustivelistofexamplesincludes:

• Logisticsandfleetmanagement–monitoringtheprecisepositionoffleetvehiclestohelpmanageandoptimiseroute selection, driver fatigue, fuel efficiencyandtiming59

• Roadmaintenance–gatheringofinformation and data for assessment of road corridors, geometry, conditions and asset management60

• Cooperative intelligent transport systems (C-ITS)–connectionandexchangeofreal-time information concerning features of theroadenvironmente.g.roadandtrafficconditions so as to better connect road userstotheirroadenvironment61

• Rail track surveying and location of infrastructure62

• Automated Train Management Systems (ATMS)63

• General maritime navigation and navigationthroughrestrictedwaters64

• Aid to aircraft navigation65

Thesector’searlyadoptionofGNSStechnology,particularlyformonitoring,trackingandfleetmanagementapplicationswithintheroadtransportandlogisticssub-sectors,hasbeenimportantto addressing issues of congestion, accessibility, road safety and rising fuel prices.66Asaresult,thesubsectors,particularly road transport and logistics, haveexperiencedproductivityincreasesduetoincreasedtransportefficiencyfromlower fuel costs, lower congestion and improved road maintenance.67Hencethecombined output from Australia’s road transportandlogisticssectorhasbenefitedasaresultoftheapplicationofGNSStechnology.

Improvements in precise positioning accuracy, reliability, integrity and interoperability, as well as increased technologyadoptionacrossthesector,isimportanttoachievingfurtherefficiencieswithinexistingapplicationsaswellascreatingnewoneswithintheroadtransport and logistics subsectors.68 Cooperative intelligent transport systems havethepotentialtofacilitateproductivityimprovementsthroughreductionsintraveltime, congestion and fuel consumption.69 TheuseofGNSStechnologyhasbeenappliedatcontainerportsandhasresultedinbenefitsthroughimprovedcontainermanagementandhandlinggivenaccuracyrequirement to be 2cm compared to 10cm accuracy for general transport logistics.

Direct benefits

The transport and logistics sectors have the potential to benefit in the future from the use of GNSS technology. The uptake rate is assumed to increase from 25% in 2024 and up to 60% by 2036. The benefits (net of the cost of adoption from 2020 to 2024) range from $90 to $185 million per annum over the period 2019 to 2036.

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ConstructionPrecise positioning utilising GNSS technologiesisagrowingtrendwithintheconstructionsector.Thisincludesconstruction and engineering surveying andmachineguidance.

Construction and engineering surveying is assistedthroughaccesstospaceenabledservices.PriortotheadoptionofGNSStechnology,surveyorshadtoundertakethetimeconsumingtaskofprovidingandverifying extensive control networks and using optical instruments for surveying.70 WithGNSS,thisallowsthecriticalcoordinatestobeidentifiedfasterandwithahigherlevelofaccuracy.Thisresultsinsignificantbenefits,includingtimesavings,better accuracy, reduced labour costs, safety improvements and infrastructure improvements.

Machineguidanceisusedamongstearthmovingmachinesincludingexcavators, bulldozers and grading machines.Traditionalearthmovingoften requires a large degree of rework and on site surveyors. However, GNSS technologiesmakesitpossibletoreducetheamountofreworkandsignificantlyreducetheneedforsurveyors.Thekeybenefitsresultingfromthismethodincludes time savings, capital savings, labour savings, improved safety and improved quality of work.

Thesetechniqueshavebeenwidelyadoptedbytheindustry,particularlyforsurveying. Adoption rates for construction andengineeringsurveyingandmachineguidancewerearound60%and15%,respectively,adecadeago.Giventhebenefitsofthetechnologythesenumbersarelikelytoincreaseinthefuturetouptonumberscouldincreaseupto90%and60%respectively.Howeverthiswillalsodependontheavailabilityofnetworkinfrastructureacrossdifferentlocationstosupportadoptionratesofthislevel.

Direct benefits

The benefits of GNSS technology to the construction sector are demonstrated in this study through the use of machine guidance and construction surveying. The profile of technological uptake increases from 25% in 2024 and up to 60% by 2036. The benefits (net of the cost of adoption from 2020 to 2024) range from $115 to $180 million per annum over the period 2019 to 2036.

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ConstructionPrecise positioning utilising GNSS technologiesisagrowingtrendwithintheconstructionsector.Thisincludesconstruction and engineering surveying andmachineguidance.

Construction and engineering surveying is assistedthroughaccesstospaceenabledservices.PriortotheadoptionofGNSStechnology,surveyorshadtoundertakethetimeconsumingtaskofprovidingandverifying extensive control networks and using optical instruments for surveying.70 WithGNSS,thisallowsthecriticalcoordinatestobeidentifiedfasterandwithahigherlevelofaccuracy.Thisresultsinsignificantbenefits,includingtimesavings,better accuracy, reduced labour costs, safety improvements and infrastructure improvements.

Machineguidanceisusedamongstearthmovingmachinesincludingexcavators, bulldozers and grading machines.Traditionalearthmovingoften requires a large degree of rework and on site surveyors. However, GNSS technologiesmakesitpossibletoreducetheamountofreworkandsignificantlyreducetheneedforsurveyors.Thekeybenefitsresultingfromthismethodincludes time savings, capital savings, labour savings, improved safety and improved quality of work.

Thesetechniqueshavebeenwidelyadoptedbytheindustry,particularlyforsurveying. Adoption rates for construction andengineeringsurveyingandmachineguidancewerearound60%and15%,respectively,adecadeago.Giventhebenefitsofthetechnologythesenumbersarelikelytoincreaseinthefuturetouptonumberscouldincreaseupto90%and60%respectively.Howeverthiswillalsodependontheavailabilityofnetworkinfrastructureacrossdifferentlocationstosupportadoptionratesofthislevel.

Direct benefits

The benefits of GNSS technology to the construction sector are demonstrated in this study through the use of machine guidance and construction surveying. The profile of technological uptake increases from 25% in 2024 and up to 60% by 2036. The benefits (net of the cost of adoption from 2020 to 2024) range from $115 to $180 million per annum over the period 2019 to 2036.

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UtilitiesTheutilitiessectorincludeselectricity,gasand water. GNSS is an important feature in thedesign,constructionandmanagementoftheselargeinfrastructureassets.Inthedesignandconstructionphase,GNSSisabletoaccuratelyrecordthelocationofassets(capturedintheconstructionsector).AnotherkeyareawhereGNSScanhelptoachieveefficienciesisinassetmanagement,wherethistechnologycanuse precise positioning to monitor and controlthesystem,identifyanyfaultsandmanagemaintenance.Thisisabletoprovideoperatingbenefitsintermsofassetmapping.Thisisalsoobservedbyanotherstudy,citingthattheuseofthetechnologycouldresultincostsavings(operating and maintenance) of up to 20%.Thecostsavingsvaryacrossthesector,withthebiggestpotentialsavingsin electricity distribution and underground services.71StudieshaveshownthattheadoptionofGNSStechnologyhasbeenfarmore prominent for above ground assets andcouldbeupto95%by2020.72

Direct benefits

The benefits of GNSS technology in utilities has been demonstrated across a range of applications to date and in particular precision mapping of assets. The benefits for utilities is up to 2.5% of output. The uptake of the technology is 50% in 2024 and increases up to 80% by 2036. The benefits (net of the cost of adoption from 2020 to 2024) range from $35 to $60 million per annum over the period 2019 to 2036

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Research and development in the space sectorTheCommonwealthgovernmentisplanningtospend$10billionintoresearchanddevelopment(R&D)inthespacesectoroverthenext20years(or$500millionperannum).IfQueenslandattainsitscurrentnationalshareofR&DsimilartoQueensland’sshareofthenationalspaceindustrythisequatesto$75millionperannumofR&DspendinQueensland.Throughleveragingofcompetitiveadvantagessuchasadvancedmanufacturingandaerospace(thatareinterrelatedwithspace)Queenslandcanincreaseitsharetoreflectitspopulationshare.ThisimpliesR&Dspendof$100millionperannumandthisequatesto25millionincrementallyor$500million(undiscounted) over a period of 20 years. ThehigherR&DattainedbyQueenslandismodelledthroughincreasedoutputinthespace sector.

Incremental impact measurement

In this modelling, the uptake rates for each of the sectors represent the estimated range of incremental uptake for each space growth scenario (i.e. relative to the business as usual projection of the Queensland economy). In the business as usual scenario, it has been estimated that there will be an average annual uptake rate of around 20% across the sectors that potential stand to benefit most from space enabled goods, services and technologies in the Queensland economy.

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Research and development in the space sectorTheCommonwealthgovernmentisplanningtospend$10billionintoresearchanddevelopment(R&D)inthespacesectoroverthenext20years(or$500millionperannum).IfQueenslandattainsitscurrentnationalshareofR&DsimilartoQueensland’sshareofthenationalspaceindustrythisequatesto$75millionperannumofR&DspendinQueensland.Throughleveragingofcompetitiveadvantagessuchasadvancedmanufacturingandaerospace(thatareinterrelatedwithspace)Queenslandcanincreaseitsharetoreflectitspopulationshare.ThisimpliesR&Dspendof$100millionperannumandthisequatesto25millionincrementallyor$500million(undiscounted) over a period of 20 years. ThehigherR&DattainedbyQueenslandismodelledthroughincreasedoutputinthespace sector.

Incremental impact measurement

In this modelling, the uptake rates for each of the sectors represent the estimated range of incremental uptake for each space growth scenario (i.e. relative to the business as usual projection of the Queensland economy). In the business as usual scenario, it has been estimated that there will be an average annual uptake rate of around 20% across the sectors that potential stand to benefit most from space enabled goods, services and technologies in the Queensland economy.

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Approach to estimating the direct contribution of the space industry Estimation of the direct economic contribution of the space industry in QueenslandA‘topdown’approachhasbeenused toestimatethesizeoftheQueenslandspaceindustry.Thestartingpointisthenationalindustrythatgeneratedrevenue of$5.1billionin2018-19basedonIBISWorld(2018).Thistranslatedtovalueaddedof$3.4billionandindustryemploymentof13,700persons.Thesizeoftheindustryisconsistentwithearlierworkthatvaluedspaceindustryrevenuenationallyat$3.94billionin2015.73

Amappingwasconductedtoaligntheindustry segments in IBIS World to specificindustryactivitiesasdefinedintheAustraliaNewZealandStandardIndustryClassification(ANZSIC)wherepracticaltobestreflecttheactivitiesofthespacesectorinQueensland.Sharesto allocate some Queensland revenue by segment were estimated using Queensland employment data by industry and place of workfromthe2016CensusofPopulationand Housing, as seen in Table 9.1. Queensland’sshareofearthobservationand ground station infrastructure operationsisbasedonresearchconductedbyIBISWorld(2018).Queensland’sshareof‘otheractivities’isanaverageofallotherindustrysegmentsgiventheproducts/servicesproducedbythissegment(e.g.spacerelatedresearch).

RevenueforeachsegmentisderivedusingQueensland’sshareofthesegmentand national revenue. Value added and employment are estimated using national benchmarksbasedonIBISWorldresearch(2018).

Table 9.1 MappingQueenslandshareofthenationalspaceindustrybysegment

IBIS World Segments of the space industry

Activity as defined in ANZSIC classification or best proxy Queensland share of national industry

Satellite communicationsOthertelecommunicationsnetworkoperation

10.2%

DirecttohomeTVFree-to-air television broadcasting

Cableandothersubscriptionbroadcasting12.4%

Earthobservationandgroundstationinfrastructure operation

UsingIBISWorldresearchonsatellitecommunications and astronautics in Australia

10.1

Spacetechnologymanufacturing Aircraft manufacturing and repair services 33.1%

OtheractivitiesSpacerelatedservicessuchasspaceresearch,spacelaunchingfacilitiesandotherancillaryservices

16.5%

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Constructing the baseline forecast in DAE RGEMBaseline projection Theprojectedeconomicgrowthratesimposed in DAE-RGEM model for real gross state product, real investment, labour supply and population are based onunderlyingtrendgrowthrates.Othermacroeconomic variables (for instance, employment, exports, imports and consumption expenditure) are determined bythemodel.Thisisbasedonlongtermmacro-economic forecasts developed in theDeloitteAccessEconomicsBusinessOutlookandwithreferencetoBudgetforecastsdevelopedbytheQueenslandGovernmentinthe2018-19StateBudgetand Mid-Year Economic and Fiscal outlook.

Inthebaselinethespaceindustryisassumedtogrowat7%overthenextfiveyearsto2023-24.Beyondtheshorttomediumtermthespaceindustryisassumedtogrowthatperannumoutto2036basedonaprofiledevelopedbyMorganStanleyonfuturegrowthprospectsfortheindustry.TheunderlyinggrowthintheQueenslandeconomyisbased on long term macro-economic forecasts developed by Deloitte, around 2-3%overthelongterm.TheunderlyinggrowthintheQueenslandpopulationandlabourforceisconsistentwiththesemacro-economic assumptions.

Customised database for space AspartofthisprojectitwasnecessarytosplitoutthespaceindustryoutfromotherindustriesintheQueenslandeconomy(ortherelevantpartsofthemfromotherindustrysectors)inourmasterdatabaseastheyarenotalwaysexplicitly represented as a separate industry sector. It was necessary to initially and uniquely identify aerospace, defence, advanced manufacturing, rest ofmanufacturing,communicationsinthedatabaseandsubsequentlysplitoutthespacecomponentsofthesesectorssoonlythenon-spacecomponentremained.Correspondingly,thespacesectorwascarvedoutbyaggregatingtherelevantproportionoftheseindustrysectors.

Inordertodothis,superiordatawasusedandappliedthemappingdevelopedforthespaceindustrytosplitouttherelevantpartofthesectorfromtheparentindustryinthedatabase.ThisprocessusedthesplitcomprogramdevelopedbytheCentreofPolicyStudies,VictoriaUniversity.Thisprogramallowstheusertoinputdataonsales/costweightstosplitoutanexistingindustry (i.e. parent industry) into two components.Onepartrepresentsthenewindustryofinterest(i.e.splitfromtheparentindustry).Theotherpartrepresentstheremainderoftheparentindustry.Thisisdoneinsuchinsuchamannertokeepthewholedatabasebalancedandtoensurevalidcostandsalesstructures.TheweightsusedforsplitcomweredevelopedwithreferencetoeconomicdatasetsfromtheABS(includingtheAustralianIndustryPublication and ABS National input output tables and Census data) and IBIS World industry reports.

Theory of DAE RGEMModel theoryTheDeloitteAccessEconomicsregionalgeneral equilibrium model (DAE-RGEM) is a large scale, dynamic, multi-region, multi-commodity computable general equilibriummodeloftheworldeconomywithbottomupmodellingofAustralianregions.Themodelallowspolicyanalysisin a single, robust, integrated economic framework.ThismodelprojectschangesinmacroeconomicaggregatessuchasGDP,employment, export volumes, investment andprivateconsumption.Atthesectorallevel,detailedresultssuchasoutput,exports, imports and employment are also produced.

Themodelisbaseduponasetofkeyunderlyingrelationshipsbetweenthevariouscomponentsofthemodel,eachwhichrepresentadifferentgroupofagentsintheeconomy.Theserelationshipsaresolvedsimultaneously,andsothereisnological start or end point for describing howthemodelactuallyworks.However,theycanbeviewedasasystemofinterconnectedmarketswithappropriatespecificationsofdemand,supplyandthemarketclearingconditionsthatdeterminetheequilibriumpricesandquantityproduced, consumed and traded.

DAE-RGEM is based on a substantial body ofacceptedmicroeconomictheory.Keyassumptionsunderpinningthemodelare:

• Themodelcontainsa‘regionalconsumer’thatreceivesallincomefromfactorpayments (labour, capital, land and natural resources), taxes and net foreign income from borrowing (lending).

• Incomeisallocatedacrosshouseholdconsumption, government consumption and savings so as to maximise a Cobb-Douglas (C-D) utility function.

• Householdconsumptionforcompositegoods is determined by minimising expenditureviaaConstantDifferencesofElasticities (CDE) () expenditure function. Formostregions,householdscansource consumption goods only from domesticandimportedsources.IntheAustralianregions,householdscanalsosource goods from interstate. In all cases, thechoiceofcommoditiesbysourceis determined by a Constant Ratios of ElasticitiesSubstitution,Homothetic(CRESH) utility function.

• Government consumption for composite goods,andgoodsfromdifferentsources(domestic, imported and interstate), is determined by maximising utility via a C-D utility function.

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Constructing the baseline forecast in DAE RGEMBaseline projection Theprojectedeconomicgrowthratesimposed in DAE-RGEM model for real gross state product, real investment, labour supply and population are based onunderlyingtrendgrowthrates.Othermacroeconomic variables (for instance, employment, exports, imports and consumption expenditure) are determined bythemodel.Thisisbasedonlongtermmacro-economic forecasts developed in theDeloitteAccessEconomicsBusinessOutlookandwithreferencetoBudgetforecastsdevelopedbytheQueenslandGovernmentinthe2018-19StateBudgetand Mid-Year Economic and Fiscal outlook.

Inthebaselinethespaceindustryisassumedtogrowat7%overthenextfiveyearsto2023-24.Beyondtheshorttomediumtermthespaceindustryisassumedtogrowthatperannumoutto2036basedonaprofiledevelopedbyMorganStanleyonfuturegrowthprospectsfortheindustry.TheunderlyinggrowthintheQueenslandeconomyisbased on long term macro-economic forecasts developed by Deloitte, around 2-3%overthelongterm.TheunderlyinggrowthintheQueenslandpopulationandlabourforceisconsistentwiththesemacro-economic assumptions.

Customised database for space AspartofthisprojectitwasnecessarytosplitoutthespaceindustryoutfromotherindustriesintheQueenslandeconomy(ortherelevantpartsofthemfromotherindustrysectors)inourmasterdatabaseastheyarenotalwaysexplicitly represented as a separate industry sector. It was necessary to initially and uniquely identify aerospace, defence, advanced manufacturing, rest ofmanufacturing,communicationsinthedatabaseandsubsequentlysplitoutthespacecomponentsofthesesectorssoonlythenon-spacecomponentremained.Correspondingly,thespacesectorwascarvedoutbyaggregatingtherelevantproportionoftheseindustrysectors.

Inordertodothis,superiordatawasusedandappliedthemappingdevelopedforthespaceindustrytosplitouttherelevantpartofthesectorfromtheparentindustryinthedatabase.ThisprocessusedthesplitcomprogramdevelopedbytheCentreofPolicyStudies,VictoriaUniversity.Thisprogramallowstheusertoinputdataonsales/costweightstosplitoutanexistingindustry (i.e. parent industry) into two components.Onepartrepresentsthenewindustryofinterest(i.e.splitfromtheparentindustry).Theotherpartrepresentstheremainderoftheparentindustry.Thisisdoneinsuchinsuchamannertokeepthewholedatabasebalancedandtoensurevalidcostandsalesstructures.TheweightsusedforsplitcomweredevelopedwithreferencetoeconomicdatasetsfromtheABS(includingtheAustralianIndustryPublication and ABS National input output tables and Census data) and IBIS World industry reports.

Theory of DAE RGEMModel theoryTheDeloitteAccessEconomicsregionalgeneral equilibrium model (DAE-RGEM) is a large scale, dynamic, multi-region, multi-commodity computable general equilibriummodeloftheworldeconomywithbottomupmodellingofAustralianregions.Themodelallowspolicyanalysisin a single, robust, integrated economic framework.ThismodelprojectschangesinmacroeconomicaggregatessuchasGDP,employment, export volumes, investment andprivateconsumption.Atthesectorallevel,detailedresultssuchasoutput,exports, imports and employment are also produced.

Themodelisbaseduponasetofkeyunderlyingrelationshipsbetweenthevariouscomponentsofthemodel,eachwhichrepresentadifferentgroupofagentsintheeconomy.Theserelationshipsaresolvedsimultaneously,andsothereisnological start or end point for describing howthemodelactuallyworks.However,theycanbeviewedasasystemofinterconnectedmarketswithappropriatespecificationsofdemand,supplyandthemarketclearingconditionsthatdeterminetheequilibriumpricesandquantityproduced, consumed and traded.

DAE-RGEM is based on a substantial body ofacceptedmicroeconomictheory.Keyassumptionsunderpinningthemodelare:

• Themodelcontainsa‘regionalconsumer’thatreceivesallincomefromfactorpayments (labour, capital, land and natural resources), taxes and net foreign income from borrowing (lending).

• Incomeisallocatedacrosshouseholdconsumption, government consumption and savings so as to maximise a Cobb-Douglas (C-D) utility function.

• Householdconsumptionforcompositegoods is determined by minimising expenditureviaaConstantDifferencesofElasticities (CDE) () expenditure function. Formostregions,householdscansource consumption goods only from domesticandimportedsources.IntheAustralianregions,householdscanalsosource goods from interstate. In all cases, thechoiceofcommoditiesbysourceis determined by a Constant Ratios of ElasticitiesSubstitution,Homothetic(CRESH) utility function.

• Government consumption for composite goods,andgoodsfromdifferentsources(domestic, imported and interstate), is determined by maximising utility via a C-D utility function.

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• Allsavingsgeneratedineachregionareusedtopurchasebondswhosepricemovementsreflectmovementsintheprice of creating capital.

• Producers supply goods by combining aggregate intermediate inputs and primaryfactorsinfixedproportions(theLeontiefassumption).Compositeintermediate inputs are also combined infixedproportions,whereasindividualprimary factors are combined using a CES production function.

• Producers are cost minimisers, and in doingso,choosebetweendomestic,imported and interstate intermediate inputs via a CRESH production function.

• Thesupplyoflabourispositivelyinfluencedbymovementsintherealwage rate governed by an elasticity of supply.

• Investment takes place in a global marketandallowsfordifferentregionstohavedifferentratesofreturnthatreflectdifferentriskprofilesandpolicyimpediments to investment. A global investor ranks countries as investment destinations based on two factors: global investment and rates of return in a given regioncomparedwithglobalratesofreturn.OncetheaggregateinvestmenthasbeendeterminedforAustralia,aggregateinvestmentineachAustraliansub-region is determined by an Australian investor based on: Australian investment and rates of return in a given sub-regioncomparedwiththenationalrate of return.

• Once aggregate investment is determinedineachregion,theregionalinvestor constructs capital goods by combining composite investment goods infixedproportions,andminimisescostsbychoosingbetweendomestic,importedandinterstatesourcesforthesegoodsvia a CRESH production function.

• Prices are determined via market-clearing conditionsthatrequiresectoraloutput(supply)toequaltheamountsold(demand)tofinalusers(householdsandgovernment),intermediateusers(firmsand investors), foreigners (international exports),andotherAustralianregions(interstate exports).

• For internationally-traded goods (imports andexports),theArmingtonassumptionisappliedwherebythesamegoodsproducedindifferentcountriesaretreated as imperfect substitutes. But, in relative terms, imported goods from differentregionsaretreatedasclosersubstitutesthandomestically-producedgoods and imported composites. Goods tradedinterstatewithintheAustralianregions are assumed to be closer substitutes again.

• Themodelaccountsforgreenhouse gas emissions from fossil fuel combustion. Taxes can be applied to emissions,whichareconvertedtogood-specificsalestaxesthatimpacton demand. Emission quotas can be set byregionandthesecanbetraded,atavalueequaltothecarbontaxavoided,wherearegion’semissionsfallbeloworexceedtheirquota.

Belowisadescriptionofeachcomponentofthemodelandkeylinkagesbetweencomponents.

HouseholdsEachregioninthemodelhasaso-calledrepresentativehouseholdthatreceivesandspendsallincome.Therepresentativehouseholdallocatesincomeacrossthreedifferentexpenditureareas:privatehouseholdconsumption;governmentconsumption;andsavings.

Therepresentativehouseholdinteractswithproducersintwoways.First,inallocatingexpenditureacrosshouseholdandgovernmentconsumption,thissustains demand for production. Second, therepresentativehouseholdownsandreceives all income from factor payments (labour, capital, land and natural resources) as well as net taxes. Factors of production are used by producers as inputs into productionalongwithintermediateinputs.Thelevelofproduction,aswellassupplyoffactors,determinestheamountofincomegeneratedineachregion.

Therepresentativehousehold’srelationshipwithinvestorsisthroughthesupplyofinvestablefunds–savings.Therelationshipbetweentherepresentativehouseholdandtheinternationalsectoristwofold.First,importerscompetewithdomestic producers in consumption markets.Second,otherregionsinthemodel can lend (borrow) money from eachother.

• Therepresentativehouseholdallocatesincomeacrossthreedifferentexpenditureareas–privatehouseholdconsumption;governmentconsumption;and savings – to maximise a Cobb-Douglas utility function.

• Privatehouseholdconsumptiononcomposite goods is determined by minimising a CDE expenditure function. Privatehouseholdconsumptiononcompositegoodsfromdifferentsourcesis determined is determined by a utility function.

• Government consumption on composite goods, and composite goods from differentsources,isdeterminedbymaximising a Cobb-Douglas utility function.

• Allsavingsgeneratedineachregionisusedtopurchasebondswhosepricemovementsreflectmovementsintheprice of generating capital.

ProducersApart from selling goods and services to householdsandgovernment,producerssellproductstoeachother(intermediateusage) and to investors. Intermediate usageiswhereoneproducersuppliesinputstoanother’sproduction.Forexample, coal producers supply inputs to theelectricitysector.

Capital is an input into production. Investors reacttotheconditionsfacingproducersinaregiontodeterminetheamountof investment. Generally, increases in production are accompanied by increased investment.Inaddition,theproductionofmachinery,constructionofbuildingsandthelikethatformsthebasisofaregion’scapital stock, is undertaken by producers. Inotherwords,investmentdemandaddstohouseholdandgovernmentexpenditurefromtherepresentativehousehold,todeterminethedemandforgoodsandservices in a region.

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Producersinteractwithinternationalmarketsintwomainways.First,theycompetewithproducersinoverseasregions for export markets, as well as in theirownregion.Second,theyuseinputsfromoverseasintheirproduction.

• Sectoraloutputequalstheamountdemandedbyconsumers(householdsand government) and intermediate users (firmsandinvestors)aswellasexports.

• Intermediate inputs are assumed to be combinedinfixedproportionsatthecomposite level. As mentioned above, theexceptiontothisistheelectricitysectorthatisabletosubstitutedifferenttechnologies(browncoal,blackcoal,oil,gas,hydropowerandotherrenewables)usingthe‘technologybundle’approachdeveloped by ABARE (1996).

• To minimise costs, producers substitute between domestic and imported intermediate inputs is governed by theArmingtonassumptionaswellasbetween primary factors of production (throughaCESaggregator).Substitutionbetween skilled and unskilled labour is also allowed (again via a CES function).

• Thesupplyoflabourispositivelyinfluencedbymovementsinthewagerate governed by an elasticity of supply is(assumedtobe0.2).Thisimpliesthatchangesinfluencingthedemandfor labour, positively or negatively, will impactboththelevelofemploymentandthewagerate.ThisisatypicallabourmarketspecificationforadynamicmodelsuchasDAE-RGEM.Thereareotherlabourmarket‘settings’thatcanbeused.First,thelabourmarketcouldtakeonlong-runcharacteristicswithaggregateemploymentbeingfixedandanychangestolabourdemandchangesbeingabsorbedthroughmovementsinthewagerate.Second,thelabourmarketcouldtakeonshort-runcharacteristicswithfixedwagesandflexibleemploymentlevels.

InvestorsInvestment takes place in a global market andallowsfordifferentregionstohavedifferentratesofreturnthatreflectdifferentriskprofilesandpolicyimpedimentstoinvestment.Theglobalinvestorrankscountries as investment destination based ontwofactors:currenteconomicgrowthand rates of return in a given region comparedwithglobalratesofreturn.

• Once aggregate investment is determinedineachregion,theregionalinvestor constructs capital goods by combining composite investment goods infixedproportions,andminimisescostsbychoosingbetweendomestic,importedandinterstatesourcesforthesegoodsvia a CRESH production function.

International Eachofthecomponentsoutlinedaboveoperate,simultaneously,ineachregionofthemodel.Thatis,foranysimulationthemodelforecastschangestotradeandinvestmentflowswithin,andbetween,regionssubjecttooptimisingbehaviourbyproducers, consumers and investors. Of course,thisimpliessomeglobalconditionsthatmustbemet,suchasglobalexportsandglobalimports,arethesameandthatglobal debt repayment equals global debt receiptseachyear.

MethodologyCGEmodellingistheframeworkthatisbestsuitedtomodellingtheimpactoflargeprojectsorpoliciesontheeconomy.Inthisframework,itispossibletoaccountfor resourcing constraints and opportunity costs,andtomodelchangesinpricesandthebehaviourofeconomicagentsinresponsetochangesintheeconomy.ThisprojecthasusedtheDAE-RGEM.ThisisamodeloftheAustralianandworldeconomy,andrepresentstheinteractionofhouseholdsandfirmswithfactormarkets and goods markets over time. DAE-RGEM represents all economic activity intheeconomy,includingproduction,consumption, employment, taxation and trade.

ThecircularflowofincomeandspendingthatoccursinDAE-RGEMiscapturedin a stylised form in Figure C.2. To meet demandforproducts,firmspurchaseinputsfromotherproducersandhirefactorsofproduction (labour and capital). Producers paywagesandrent(factorincome)whichaccruetohouseholds.Householdsspendtheirincomeongoodsandservices,paytaxes and put some away for savings.

Forthisproject,themodelhasbeencustomisedtorepresenttheQueenslandeconomyandcapturethespaceindustry,alongwithrelevantupstreamanddownstream industries.

Table C.2 Stylised diagram of DAE-RGEM

Source: Deloitte Access Economics

Households

Firms

Factor markets

Labour Capital Resources Land

Goods markets

Local Interstate Overseas

Income

Supply

Supply

Purchase

Purchase

Purchase

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Producersinteractwithinternationalmarketsintwomainways.First,theycompetewithproducersinoverseasregions for export markets, as well as in theirownregion.Second,theyuseinputsfromoverseasintheirproduction.

• Sectoraloutputequalstheamountdemandedbyconsumers(householdsand government) and intermediate users (firmsandinvestors)aswellasexports.

• Intermediate inputs are assumed to be combinedinfixedproportionsatthecomposite level. As mentioned above, theexceptiontothisistheelectricitysectorthatisabletosubstitutedifferenttechnologies(browncoal,blackcoal,oil,gas,hydropowerandotherrenewables)usingthe‘technologybundle’approachdeveloped by ABARE (1996).

• To minimise costs, producers substitute between domestic and imported intermediate inputs is governed by theArmingtonassumptionaswellasbetween primary factors of production (throughaCESaggregator).Substitutionbetween skilled and unskilled labour is also allowed (again via a CES function).

• Thesupplyoflabourispositivelyinfluencedbymovementsinthewagerate governed by an elasticity of supply is(assumedtobe0.2).Thisimpliesthatchangesinfluencingthedemandfor labour, positively or negatively, will impactboththelevelofemploymentandthewagerate.ThisisatypicallabourmarketspecificationforadynamicmodelsuchasDAE-RGEM.Thereareotherlabourmarket‘settings’thatcanbeused.First,thelabourmarketcouldtakeonlong-runcharacteristicswithaggregateemploymentbeingfixedandanychangestolabourdemandchangesbeingabsorbedthroughmovementsinthewagerate.Second,thelabourmarketcouldtakeonshort-runcharacteristicswithfixedwagesandflexibleemploymentlevels.

InvestorsInvestment takes place in a global market andallowsfordifferentregionstohavedifferentratesofreturnthatreflectdifferentriskprofilesandpolicyimpedimentstoinvestment.Theglobalinvestorrankscountries as investment destination based ontwofactors:currenteconomicgrowthand rates of return in a given region comparedwithglobalratesofreturn.

• Once aggregate investment is determinedineachregion,theregionalinvestor constructs capital goods by combining composite investment goods infixedproportions,andminimisescostsbychoosingbetweendomestic,importedandinterstatesourcesforthesegoodsvia a CRESH production function.

International Eachofthecomponentsoutlinedaboveoperate,simultaneously,ineachregionofthemodel.Thatis,foranysimulationthemodelforecastschangestotradeandinvestmentflowswithin,andbetween,regionssubjecttooptimisingbehaviourbyproducers, consumers and investors. Of course,thisimpliessomeglobalconditionsthatmustbemet,suchasglobalexportsandglobalimports,arethesameandthatglobal debt repayment equals global debt receiptseachyear.

MethodologyCGEmodellingistheframeworkthatisbestsuitedtomodellingtheimpactoflargeprojectsorpoliciesontheeconomy.Inthisframework,itispossibletoaccountfor resourcing constraints and opportunity costs,andtomodelchangesinpricesandthebehaviourofeconomicagentsinresponsetochangesintheeconomy.ThisprojecthasusedtheDAE-RGEM.ThisisamodeloftheAustralianandworldeconomy,andrepresentstheinteractionofhouseholdsandfirmswithfactormarkets and goods markets over time. DAE-RGEM represents all economic activity intheeconomy,includingproduction,consumption, employment, taxation and trade.

ThecircularflowofincomeandspendingthatoccursinDAE-RGEMiscapturedin a stylised form in Figure C.2. To meet demandforproducts,firmspurchaseinputsfromotherproducersandhirefactorsofproduction (labour and capital). Producers paywagesandrent(factorincome)whichaccruetohouseholds.Householdsspendtheirincomeongoodsandservices,paytaxes and put some away for savings.

Forthisproject,themodelhasbeencustomisedtorepresenttheQueenslandeconomyandcapturethespaceindustry,alongwithrelevantupstreamanddownstream industries.

Table C.2 Stylised diagram of DAE-RGEM

Source: Deloitte Access Economics

Households

Firms

Factor markets

Labour Capital Resources Land

Goods markets

Local Interstate Overseas

Income

Supply

Supply

Purchase

Purchase

Purchase

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Appendix DShort form data capture and capability survey

Building Queensland's space economy

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Thefollowingsectionpresentsthefullresultsoftheshortsurvey(survey1).

Itisimportanttonoteresultsmaynotaddto100%duetorounding.

Is your organisation headquartered in Queensland?

Yes 69%

No 31%

Is your organisation a…?

Government Department 2%

Industrial Association 2%

Private Company 86%

University/Research/Educational Organisation 10%

What was your turnover range in FY18?

Zero to less than $50,000 5%

$50,000 to less than $200,000 5%

$200,000 to less than $2 million 24%

$2 million to less than $5 million 17%

$5 million to less than $10 million 10%

$10 million or more 32%

Not applicable (research institution etc.) 7%

How many employees do you have in FY18?

Non Employing (i.e. having no employees) 5%

1-19 Employees 41%

20-199 Employees 31%

200+ Employees 17%

Not applicable (research institution etc.) 7%

Have you exported your goods and/or services overseas in the past 12 months?

Yes 61%

No 34%

Not applicable (research institution etc.) 5%

Have you exported your goods and/or services overseas in the past 12 months?

0-4 years 12%

5-10 years 12%

11-20 years 22%

21-40 years 32%

>40 years 22%

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Thefollowingsectionpresentsthefullresultsoftheshortsurvey(survey1).

Itisimportanttonoteresultsmaynotaddto100%duetorounding.

Is your organisation headquartered in Queensland?

Yes 69%

No 31%

Is your organisation a…?

Government Department 2%

Industrial Association 2%

Private Company 86%

University/Research/Educational Organisation 10%

What was your turnover range in FY18?

Zero to less than $50,000 5%

$50,000 to less than $200,000 5%

$200,000 to less than $2 million 24%

$2 million to less than $5 million 17%

$5 million to less than $10 million 10%

$10 million or more 32%

Not applicable (research institution etc.) 7%

How many employees do you have in FY18?

Non Employing (i.e. having no employees) 5%

1-19 Employees 41%

20-199 Employees 31%

200+ Employees 17%

Not applicable (research institution etc.) 7%

Have you exported your goods and/or services overseas in the past 12 months?

Yes 61%

No 34%

Not applicable (research institution etc.) 5%

Have you exported your goods and/or services overseas in the past 12 months?

0-4 years 12%

5-10 years 12%

11-20 years 22%

21-40 years 32%

>40 years 22%

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Do you consider the ‘space industry’ as your primary industry of operation?

Yes 25%

No 75%

What capability area does your organisation primarily operate in?

Space Systems 27%

Launch Activities 10%

Ground Systems 8%

Space Enabled Services 10%

Ancillary Services 14%

R&D 7%

Education and Training 3%

Other 3%

Transport, logistics and construction 2%

General component, material, engineering supply 15%

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Thefollowingisalistofquestionsfromtheextendedcapabilitysurvey.Duetoconfidentialityissues,participantanswershavenotbeenincluded.

Is your organisation a…?

1 Industrial Association

2 Private Company

3 Private Consultancy

4 University/Research/EducationalOrganisation

5 Government Department

6 Other,pleasespecify[Freetext]

Please select which statement best represents your organisation’s current level of engagement and/or activity in the space economy?

1Thespaceeconomyisthecoreofmybusinessoperations

2Thespaceeconomyisasecondaryareaofoperation for my business

3My organisation (or as an individual) occasionally operatesinthespaceeconomy

4Myorganisation(orasanindividual)hasrecentlyenteredthespaceeconomy

5My organisation (or as an individual) is not currently activeinthespaceeconomy

What percentage of your annual turnover range would you classify as primarily related to space economy activities in FY18?

1 None

2 <1-20%

3 21-40%

4 41-60%

5 >60%

What features of other Australian jurisdictions’ (e.g. SA, WA, ACT) space sectors could Queensland learn from?

What are the key competitive advantages of Queensland’s space economy and how does your organisation benefit from them?

Have you collaborated with … in either a research or commercial capacity, in the past 5 years? Select all that apply.

1 Queensland business/es

2 Australian business/es

3 Queenslandresearchinstitution/s

4 Australianresearchinstitution/s

5 An international space agency [please specify]

6 Noneoftheabove

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Thefollowingisalistofquestionsfromtheextendedcapabilitysurvey.Duetoconfidentialityissues,participantanswershavenotbeenincluded.

Is your organisation a…?

1 Industrial Association

2 Private Company

3 Private Consultancy

4 University/Research/EducationalOrganisation

5 Government Department

6 Other,pleasespecify[Freetext]

Please select which statement best represents your organisation’s current level of engagement and/or activity in the space economy?

1Thespaceeconomyisthecoreofmybusinessoperations

2Thespaceeconomyisasecondaryareaofoperation for my business

3My organisation (or as an individual) occasionally operatesinthespaceeconomy

4Myorganisation(orasanindividual)hasrecentlyenteredthespaceeconomy

5My organisation (or as an individual) is not currently activeinthespaceeconomy

What percentage of your annual turnover range would you classify as primarily related to space economy activities in FY18?

1 None

2 <1-20%

3 21-40%

4 41-60%

5 >60%

What features of other Australian jurisdictions’ (e.g. SA, WA, ACT) space sectors could Queensland learn from?

What are the key competitive advantages of Queensland’s space economy and how does your organisation benefit from them?

Have you collaborated with … in either a research or commercial capacity, in the past 5 years? Select all that apply.

1 Queensland business/es

2 Australian business/es

3 Queenslandresearchinstitution/s

4 Australianresearchinstitution/s

5 An international space agency [please specify]

6 Noneoftheabove

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1 Industrial Association

2 Private Company

3 Private Consultancy

4 University/Research/EducationalOrganisation

5 Government Department

6 Other,pleasespecify[Freetext]

7 Ground Segment Prime/System Integration

8 GroundSegmentSubsystem&EquipmentSupplier

9 LaunchServices

10 LaunchSupportServices

11 LaunchVehicleManufacturingandAssembly

12 Legal Services

13 Other,pleasespecify[Fixedatbottom]

14 Prime/System Integration

15 R&D

16 Satellite Communications Service Providers

17 SatelliteNavigationService&Applications

18 Satellite Owner/Operator

19 SpaceQualifiedTestingandFacilities

20 Space Subsystem Supply

21 Specialisation on nano and micro satellites (<50kg)

22 SystemEngineeringandTechnicalSupport

23 SystemEngineeringandTechnicalSupportServices

24 TechnicalSupportServices

25 Tracking,Telemetry&CommandOperations

26 User Equipment Manufacturer

27 User Equipment Suppliers

Please identify what area of capability in the supply chain of the space economy best describes the main activity of your organisation:

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Have you supplied/provided goods/services to a government project in the past 5 years?

1 Yes

2 No

Have you received any of the following government support in the past 5 years?

1 Funding

2 Facilitation (e.g. networking)

3 Other(pleasespecify)

4 No support

Considering your organisations supply chain, are there any significant purchases (that relate to your core business) that your organisation can’t source within Queensland?

Product/ServiceLocation (City, Country)

1 [Free text 20 words] [Free text 5 words]

2 [Free text 20 words] [Free text 5 words]

3 [Free text 20 words] [Free text 5 words]

4 Not applicable N/A

Considering your organisation’s supply chain, select the top 3 industry sectors your organisation currently purchases products/services from?

1 Agriculture,ForestryandFishing

2 Construction

3 Defence

4 Education and Training

5 Finance, Insurance and Business Services

6 Information Media and Telecommunications

7 Manufacturing

8 Mining

9 OtherServices

10 Professional,ScientificandTechnicalServices

11 Trade

12 Transport

13 Utilities

14 Other,pleasespecify[Fixedatbottom]

15 Don’t know [Fixed at bottom]

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Have you supplied/provided goods/services to a government project in the past 5 years?

1 Yes

2 No

Have you received any of the following government support in the past 5 years?

1 Funding

2 Facilitation (e.g. networking)

3 Other(pleasespecify)

4 No support

Considering your organisations supply chain, are there any significant purchases (that relate to your core business) that your organisation can’t source within Queensland?

Product/ServiceLocation (City, Country)

1 [Free text 20 words] [Free text 5 words]

2 [Free text 20 words] [Free text 5 words]

3 [Free text 20 words] [Free text 5 words]

4 Not applicable N/A

Considering your organisation’s supply chain, select the top 3 industry sectors your organisation currently purchases products/services from?

1 Agriculture,ForestryandFishing

2 Construction

3 Defence

4 Education and Training

5 Finance, Insurance and Business Services

6 Information Media and Telecommunications

7 Manufacturing

8 Mining

9 OtherServices

10 Professional,ScientificandTechnicalServices

11 Trade

12 Transport

13 Utilities

14 Other,pleasespecify[Fixedatbottom]

15 Don’t know [Fixed at bottom]

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What are the top 3 reasons you purchase products/services for your organisation from outside of Queensland?

1Better quality product/service outside of Queensland

2 More expertise outside of Queensland

3 Not applicable

4 Other,pleasespecify[Fixedatbottom]

5 Priceofproduct/serviceinQueenslandistoohigh

6 Product/serviceishighlyspecialisedinnature

7 Product/service not available in Queensland

Considering your organisation’s supply chain, select the top 3 industry sectors your organisation currently sells products/services to?

1 Agriculture,ForestryandFishing

2 Construction

3 Defence

4 Education and Training

5 Finance, Insurance and Business Services

6 Information Media and Telecommunications

7 Manufacturing

8 Mining

9 OtherServices

10 Professional,ScientificandTechnicalServices

11 Trade

12 Transport

13 Utilities

14 Other,pleasespecify[Fixedatbottom]

15 Don’t know [Fixed at bottom]

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What are the top 3 industry sectors that you see could potentially use the products/services of your organisation (or individual)?

1 Agriculture,ForestryandFishing

2 Construction

3 Defence

4 Education and Training

5 Finance, Insurance and Business Services

6 Information Media and Telecommunications

7 Manufacturing

8 Mining

9 OtherServices

10 Professional,ScientificandTechnicalServices

11 Trade

12 Transport

13 Utilities

14 Other,pleasespecify[Fixedatbottom]

15 Don’t know [Fixed at bottom]

Are you part of the supply chain of a large multinational?

1 Yes

2 No

3 Notapplicable(researchinstitutionetc.)

Have you had difficulty hiring employees with the necessary skills for the space industry?

1 Yes

2 No

3 Not applicable

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What are the top 3 industry sectors that you see could potentially use the products/services of your organisation (or individual)?

1 Agriculture,ForestryandFishing

2 Construction

3 Defence

4 Education and Training

5 Finance, Insurance and Business Services

6 Information Media and Telecommunications

7 Manufacturing

8 Mining

9 OtherServices

10 Professional,ScientificandTechnicalServices

11 Trade

12 Transport

13 Utilities

14 Other,pleasespecify[Fixedatbottom]

15 Don’t know [Fixed at bottom]

Are you part of the supply chain of a large multinational?

1 Yes

2 No

3 Notapplicable(researchinstitutionetc.)

Have you had difficulty hiring employees with the necessary skills for the space industry?

1 Yes

2 No

3 Not applicable

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Building Queensland's space economy

1Antenna/Ground Station Component or Material Supplier

2 Component and Material Supply

3 Component and Subsystem Management

4Consultancy Services (e.g. IT, analytics, professional services)

5 EarthObservationServices&Applications

6 Financial Services

7 Ground Segment Prime/System Integration

8 GroundSegmentSubsystem&EquipmentSupplier

9 LaunchServices

10 LaunchSupportServices

11 LaunchVehicleManufacturingandAssembly

12 Legal Services

13 None

14 Other,pleasespecify[Fixedatbottom]

15 Prime/System Integration

16 R&D

17 Satellite Communications Service Providers

18 SatelliteNavigationService&Applications

19 Satellite Owner/Operator

20 SpaceQualifiedTestingandFacilities

21 Space Subsystem Supply

22 Specialisation on nano and micro satellites (<50kg)

23 SystemEngineeringandTechnicalSupport

24 SystemEngineeringandTechnicalSupportServices

25 TechnicalSupportServices

26 Tracking,Telemetry&CommandOperations

27 User Equipment Manufacturer

28 User Equipment Suppliers

What area/s of the Queensland space economy do you purchase products/services from?

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1 Long investment cycles

2 Australian market does not exist for services/goods

3Complex access structures (to large organisations/government)

4 Data privacy/cyber risk

5 Difficultyaccessingappropriatefinancing

6 Expensivecertification/licensing

7 Highentrycost

8 Highinvestmentcost

9 Inappropriate/insufficientlaunchfacilities

10 Insurance

11Long lead times to acquire necessary inputs/services for your product/service

12 Market saturation

13 No access to markets (for export)

14 Noskilledworkforceintherequiredfield

15 No suppliers

16 Other,pleasespecify[Fixedatbottom]

17 Poor collaboration across industry

18 Poor knowledge of opportunities/markets

19 Procurementprograms-lengthy

20 Procurement programs – unclear

21 Technologicalrisk

22 Unabletoobtaincertification/licensing/permits

23Regulation/legislative frameworks in place do not supportgrowth

In the context of your organisation (or as an individual), please select the top 5 constraints to growth:

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1 Long investment cycles

2 Australian market does not exist for services/goods

3Complex access structures (to large organisations/government)

4 Data privacy/cyber risk

5 Difficultyaccessingappropriatefinancing

6 Expensivecertification/licensing

7 Highentrycost

8 Highinvestmentcost

9 Inappropriate/insufficientlaunchfacilities

10 Insurance

11Long lead times to acquire necessary inputs/services for your product/service

12 Market saturation

13 No access to markets (for export)

14 Noskilledworkforceintherequiredfield

15 No suppliers

16 Other,pleasespecify[Fixedatbottom]

17 Poor collaboration across industry

18 Poor knowledge of opportunities/markets

19 Procurementprograms-lengthy

20 Procurement programs – unclear

21 Technologicalrisk

22 Unabletoobtaincertification/licensing/permits

23Regulation/legislative frameworks in place do not supportgrowth

In the context of your organisation (or as an individual), please select the top 5 constraints to growth:

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Building Queensland's space economy

What do you see as the greatest risk/challenge to the growth of the Queensland space economy in the short/medium/long term?

Short (1-5 years) [Free text 20 words]

Medium (5-10 years) [Free text 20 words]

Long (10+ years) [Free text 20 words]

Have you had difficulty hiring employees with the necessary skills for the space industry?

1 Yes

2 No

3 Not applicable

What are the emerging frontiers in the space economy in Queensland?

[Free text]

What has been the primary enabler of growth for your organisation?

[Free text]

What does your organisation need to scale-up activity?

[Free text]

The recently established Australian Space Agency is encouraging a ‘Team Australia’ approach to the development of the Australian space industry, suggesting the jurisdictions pursue their relative competitive advantages. Please indicate your view on the competitive advantages of the following space economies:

South Australia [Free text]

Australian Capital Territory [Free text]

New South Wales [Free text]

Victoria [Free text]

Northern Territory [Free text]

Western Australia [Free text]

Tasmania [Free text]

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112

References

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ACILAllen2013,Precisepositioningservicesintheaviationsector:AnestimateoftheeconomicandsocialbenefitsoftheuseofaugmentedGNSSintheaviationsector,fortheDepartmentofIndustry,Innovation,ClimateChange,Science,ResearchandTertiaryEducation http://www.ignss.org/LinkClick.aspx?fileticket=1G4YG%2BEQyhE%3D&tabid=56,accessed2019.

ACILAllen2013,Precisepositioningservicesintheconstructionsector:AnestimateoftheeconomicandsocialbenefitsoftheuseofaugmentedGNSSservicesintheconstructionsector,fortheDepartmentofIndustry,ClimateChange,Innovation,ResearchandTertiaryEducation, http://www.ignss.org/LinkClick.aspx?fileticket=ntyClJz4fh8%3D&tabid=56,accessed2019.

ACILAllen2013,Precisepositioningservicesinthemaritimesector:Anestimateoftheeconomicandsocialbenefitsoftheuseofaugmentedpositioningservicesinthemaritimesector,fortheDepartmentofIndustry,Innovation,ClimateChange,Science,ResearchandTertiary Education, http://www.ignss.org/LinkClick.aspx?fileticket=b%2F3x6KEaFS4%3D&tabid=56,accessed2019.

ACILAllen2013,Precisepositioningservicesintherailsector:Anestimateoftheeconomicandsocialbenefitsofaugmentedpositioningservicesintherailsector,fortheDepartmentofIndustry,ClimateChange,Innovation,ResearchandTertiaryEducation, http://www.ignss.org/LinkClick.aspx?fileticket=rpl6BIao%2F54%3D&tabid=56,accessed2019.

ACILAllen2013,PrecisepositioningservicesintheUtilitiesSector,fortheDepartmentofIndustry,Innovation,ClimateChange,Science,ResearchandTertiaryEducation, http://www.ignss.org/LinkClick.aspx?fileticket=h5iRKR7fdUo%3D&tabid=56,accessed2019.

ACILAllen2013,TheValueofAugmentedGNSSinAustralia:AnoverviewoftheeconomicandsocialbenefitsoftheuseofaugmentedGNSSservicesinAustralia,fortheDepartmentofIndustry,Innovation,ClimateChange,Science,ResearchandTertiaryEducation, http://www.ignss.org/LinkClick.aspx?fileticket=dKQ6MsXGBAw%3D&tabid=56,accessed2019.

ACILAllen2015,TheValueofEarthObservationsfromSpacetoAustralia,fortheCooperativeResearchCentreforSpatialInformation, http://www.crcsi.com.au/assets/Program-2/The-Value-of-Earth-Observations-from-Space-to-Australia-ACIL-Allen-FINAL-20151207.pdf,accessed 2019.

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ANZLIC2017,RealisingtheBenefitsofPrecisePositioning:RoadTransport, https://link.fsdf.org.au/usecase-requirement/realising-benefits-precise-positioning-road-transport,accessed2019.

AustralianAcademyofScience2017.AvisionforspacescienceandtechnologyinAustralia:SecuringandadvancingAustralia’sintereststhroughspaceresearch, https://www.science.org.au/files/userfiles/support/documents/vision-space-science-technology-2017.pdf,accessed2019.

Australian Bureau of Statistics, Count of Australian Businesses, including Entries and Exists, June 2012 to June 2016, cat. no. 8165.0 (6 June 2017).

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References

ACILAllen2013,Precisepositioningintheroadtransportsector:AnestimateoftheeconomicandsocialbenefitsoftheuseofaugmentedGNSSintheroadtransportsector,fortheDepartmentofIndustry,ClimateChange,Innovation,ResearchandTertiaryEducation, http://www.ignss.org/LinkClick.aspx?fileticket=afaFsLr%2Brmc%3D&tabid=56,accessed2019.

ACILAllen2013,Precisepositioningservicesintheaviationsector:AnestimateoftheeconomicandsocialbenefitsoftheuseofaugmentedGNSSintheaviationsector,fortheDepartmentofIndustry,Innovation,ClimateChange,Science,ResearchandTertiaryEducation http://www.ignss.org/LinkClick.aspx?fileticket=1G4YG%2BEQyhE%3D&tabid=56,accessed2019.

ACILAllen2013,Precisepositioningservicesintheconstructionsector:AnestimateoftheeconomicandsocialbenefitsoftheuseofaugmentedGNSSservicesintheconstructionsector,fortheDepartmentofIndustry,ClimateChange,Innovation,ResearchandTertiaryEducation, http://www.ignss.org/LinkClick.aspx?fileticket=ntyClJz4fh8%3D&tabid=56,accessed2019.

ACILAllen2013,Precisepositioningservicesinthemaritimesector:Anestimateoftheeconomicandsocialbenefitsoftheuseofaugmentedpositioningservicesinthemaritimesector,fortheDepartmentofIndustry,Innovation,ClimateChange,Science,ResearchandTertiary Education, http://www.ignss.org/LinkClick.aspx?fileticket=b%2F3x6KEaFS4%3D&tabid=56,accessed2019.

ACILAllen2013,Precisepositioningservicesintherailsector:Anestimateoftheeconomicandsocialbenefitsofaugmentedpositioningservicesintherailsector,fortheDepartmentofIndustry,ClimateChange,Innovation,ResearchandTertiaryEducation, http://www.ignss.org/LinkClick.aspx?fileticket=rpl6BIao%2F54%3D&tabid=56,accessed2019.

ACILAllen2013,PrecisepositioningservicesintheUtilitiesSector,fortheDepartmentofIndustry,Innovation,ClimateChange,Science,ResearchandTertiaryEducation, http://www.ignss.org/LinkClick.aspx?fileticket=h5iRKR7fdUo%3D&tabid=56,accessed2019.

ACILAllen2013,TheValueofAugmentedGNSSinAustralia:AnoverviewoftheeconomicandsocialbenefitsoftheuseofaugmentedGNSSservicesinAustralia,fortheDepartmentofIndustry,Innovation,ClimateChange,Science,ResearchandTertiaryEducation, http://www.ignss.org/LinkClick.aspx?fileticket=dKQ6MsXGBAw%3D&tabid=56,accessed2019.

ACILAllen2015,TheValueofEarthObservationsfromSpacetoAustralia,fortheCooperativeResearchCentreforSpatialInformation, http://www.crcsi.com.au/assets/Program-2/The-Value-of-Earth-Observations-from-Space-to-Australia-ACIL-Allen-FINAL-20151207.pdf,accessed 2019.

ACILAllen2017,AustralianSpaceIndustryCapability:AReview,fortheDepartmentofIndustry,InnovationandScience, https://www.industry.gov.au/sites/g/files/net3906/f/June%202018/document/extra/australian_space_industry_capability_-_a_review.pdf,accessed 2019.

ACIL Allen 2017, Economic Value of Spatial Information in NSW: Estimated for 2017 and 2022, http://www.crcsi.com.au/assets/Consultancy-Reports-and-Case-Studies/Value-of-NSW-Spatial-Information-final.pdf,accessed2019.

ANZLIC2017,RealisingtheBenefitsofPrecisePositioning:RoadTransport, https://link.fsdf.org.au/usecase-requirement/realising-benefits-precise-positioning-road-transport,accessed2019.

AustralianAcademyofScience2017.AvisionforspacescienceandtechnologyinAustralia:SecuringandadvancingAustralia’sintereststhroughspaceresearch, https://www.science.org.au/files/userfiles/support/documents/vision-space-science-technology-2017.pdf,accessed2019.

Australian Bureau of Statistics, Count of Australian Businesses, including Entries and Exists, June 2012 to June 2016, cat. no. 8165.0 (6 June 2017).

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Australian Government Department of Industry, Innovation and Science 2018, Review of Australia's Space Industry Capability: Report from theExpertReferenceGroupfortheReview, https://www.industry.gov.au/sites/g/files/net3906/f/June%202018/document/pdf/review_of_australias_space_industry_capability_-_report_from_the_expert_reference_group.pdf,accessed2019.

Australian Government Space Coordination Committee 2018, 2017 State of Space Report, https://www.industry.gov.au/sites/g/files/net3906/f/June%202018/document/pdf/state_of_space_report_2017.pdf,accessed2019.

AustralianSpaceAgency2018,WelcometotheAustralianSpaceAgency, https://www.industry.gov.au/sites/g/files/net3906/f/welcome-to-the-australian-space-agency.pdf,accessed2019.

BryceSpaceandTechnology2018,Start-UpSpace:UpdateonInvestmentinCommercialSpaceVentures, https://www.brycetech.com/downloads/Bryce_Start_Up_Space_2018.pdf,accessed2019.

BryceSpaceandTechnologyn.d.,GlobalSpaceIndustryDynamics, https://www.industry.gov.au/sites/g/files/net3906/f/June%202018/document/extra/global_space_industry_dynamics_-_research_paper.pdf, accessed 2019.

CanadianSpaceAgency2018,Agricultureinthesatelliteage, http://www.asc-csa.gc.ca/eng/satellites/everyday-lives/agriculture-in-the-satellite-age.asp,accessed2019.

CommonwealthofAustralia2013,Australia’sSatelliteUtilisationPolicy, https://www.industry.gov.au/sites/g/files/net3906/f/May%202018/document/pdf/australias_satellite_utilisation_policy.pdf,accessed2019.

CommonwealthofAustralia2016,AustralianIndustryReport2016, https://publications.industry.gov.au/publications/australianindustryreport2016/assets/Australian-Industry-Report-2016.pdf,accessed2019.

CommonwealthofAustralia2018,BudgetPaperNo.2., https://www.budget.gov.au/2018-19/content/bp2/index.html,accessed2019.

Creagh,B2018,Hitachi’sautomationplanwithWhitehavenCoalandbeyond, https://www.australianmining.com.au/features/hitachi-collaborates-whitehaven-coal-automation-maules-creek/,accessed2019.

CSIROFutures2018,Space:ARoadmapforunlockingfuturegrowthopportunitiesforAustralia, https://www.csiro.au/en/Do-business/Futures/Reports/Space-Roadmap,accessed2019.

Dougherty,K2017,Lostinspace:Australiadwindledfromspaceleadertoalso-ranin50years, https://theconversation.com/lost-in-space-australia-dwindled-from-space-leader-to-also-ran-in-50-years-83310,accessed2019.

IBISWorld2018,SatelliteCommunicationsandAstronautics:AustraliaMarketResearchReport, https://www.ibisworld.com.au/industry-trends/specialised-market-research-reports/technology/satellite-communications-astronautics.html,accessed2019.

Infosys2018,AssetMonitoring&AdvancedMaintenance, https://www.infosys.com/industries/aerospace-defense/industry-offerings/Documents/asset-monitoring.pdfaccessed2019.

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Kornhauser,AL2006,GlobalNavigationSatelliteSystem(GNSS), https://www.princeton.edu/~alaink/Orf467F07/GNSS.pdf,accessed2019.

Manicaros,A2017.‘$235mplantolaunchspaceindustryinNT’,TheNothernStar,24July, https://www.northernstar.com.au/news/235m-plan-launch-space-industry-nt/3203973/,accessed2019.

McGarry,D,Tullberg,JN&Yule,DF2003,'Ontrack'tosustainablecroppingsystemsinAustralia, http://www.micromanage.com.au/actfa1/further_reading/On_track_ISTRO_Knote.pdf,accessed2019.

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MorganStanley2017,Space:InvestmentImplicationsoftheFinalFrontier, https://fa.morganstanley.com/griffithwheelwrightgroup/mediahandler/media/106686/Space_%20Investment%20Implications%20of%20the%20Final%20Frontier.pdf,accessed2019.

MorganStanley2018,Space:InvestingintheFinalFrontier, https://www.morganstanley.com/ideas/investing-in-space,accessed2019.

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Prescient&StrategicIntelligencen.d.,RemoteAssetManagementMarketSize,Share,Development,GrowthandDemandForecastto2023 https://www.psmarketresearch.com/market-analysis/remote-asset-management-market,accessed2019.

Sadlier,G,Flytkjær,R,Sabri,F&Herr,D2017,TheeconomicimpactontheUKofadisruptiontoGNSS, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/619544/17.3254_Economic_impact_to_UK_of_a_disruption_to_GNSS_-_Full_Report.pdf,accessed2019.

Schuman,AW&Hostler,HK2008,Variableratefertilization—gettingstarted, https://crec.ifas.ufl.edu/extension/trade_journals/2008/2008%20Jan%20variable%20rate%20fertilization.pdf,accessed2019.

Shoker,I2018,RemoteMonitoringforImprovedAssetManagement, https://www.arcweb.com/blog/remote-monitoring-improved-asset-management,accessed2019.

Smart,M2016,OldvsNew:thenextgenerationofthespaceindustry, https://theconversation.com/old-vs-new-the-next-generation-of-the-space-industry-64793,accessed2019.

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SpaceExplorationTechnologiesCorp.2017,Reusability, https://www.spacex.com/reusability-key-making-human-life-multi-planetary,accessed2019.

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Prescient&StrategicIntelligencen.d.,RemoteAssetManagementMarketSize,Share,Development,GrowthandDemandForecastto2023 https://www.psmarketresearch.com/market-analysis/remote-asset-management-market,accessed2019.

Sadlier,G,Flytkjær,R,Sabri,F&Herr,D2017,TheeconomicimpactontheUKofadisruptiontoGNSS, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/619544/17.3254_Economic_impact_to_UK_of_a_disruption_to_GNSS_-_Full_Report.pdf,accessed2019.

Schuman,AW&Hostler,HK2008,Variableratefertilization—gettingstarted, https://crec.ifas.ufl.edu/extension/trade_journals/2008/2008%20Jan%20variable%20rate%20fertilization.pdf,accessed2019.

Shoker,I2018,RemoteMonitoringforImprovedAssetManagement, https://www.arcweb.com/blog/remote-monitoring-improved-asset-management,accessed2019.

Smart,M2016,OldvsNew:thenextgenerationofthespaceindustry, https://theconversation.com/old-vs-new-the-next-generation-of-the-space-industry-64793,accessed2019.

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End notes

1. Inthiscontext,thespaceindustryismoretightlydefinedthanthespaceeconomy,wheretheformerfocusesonthesub-sectorsconsideredtobeinthe‘core’ofthespaceindustrywhilethelatterincludesthebroaderupstreamanddownstreamindustriesthat selltoandbuyfromthe‘core’spaceindustry(e.g.advancedmanufacturing).

2. OECD, 2014

3. Smart, 2016

4. Weinzierl, 2018

5. BryceSpaceandTechnology,n.d.

6. OECD, 2014

7. Space Safety Magazine, 2014

8. Ibid

9. SpaceExplorationTechnologiesCorp.,2017

10. Morgan Stanley, 2017

11. Ibid

12. Ibid

13. BryceSpaceandTechnology,GlobalSpaceIndustryDynamics,2017

14. BryceSpaceandTechnology,Start-upSpace,2017

15. Dougherty,2017

16. SouthAustralianSpaceIndustryCentre,2017

17. Australian Academy of Science, 2017

18. Australian Space Agency, 2018

19. Australian Government Department of Industry, Innovation and Science, 2018

20. Ibid

21. CommonwealthofAustralia,2018

22. Australian Government Department of Industry, Innovation and Science, 2018

23. Ibid

24. CommonwealthofAustralia,2016

25. ACIL Allen, 2017

26. ACIL Allen, 2017

27. ACIL Allen, 2017

28. Space Angels, 2019

29. Ibid

30. Australian Bureau of Statistics, 2017

31. Morgan Stanley, 2018

32. Australian Government Department of Industry, Innovation and Science, 2018

33. IBISWorld,2018;ACILAllen,2015

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116

34. Morgan Stanley, 2018

35. IBIS World, 2018

36. Morgan Stanley, 2018

37. IBIS World, 2018

38. Manicaros, 2017

39. Tullbergetal,2003;Schofieldetal,2007asseeninTheAllenConsultingGroup,2008

40. InternationalEfficientAgricultureSolutionsandStandardsAssociation,2016

41. SchumanandHostler,2008

42. Canadian Space Agency, 2018

43. ACIL Allen, 2017

44. JonesandO’Halloran,2006asseeninTheAllenConsultingGroup,2008

45. JarozandFinlayson,2002asseeninTheAllenConsultingGroup,2008

46. Seymour,2005asseeninTheAllenConsultingGroup,2008

47. Creagh,2018

48. Hughes,2002asseeninTheAllenConsultingGroup,2008

49. TheAllenConsultingGroup,2008;Hughes,2002asseeninTheAllenConsultingGroup,2008

50. Seymour,2008asseeninTheAllenConsultingGroup,2008

51. TheAllenConsultingGroup,2008

52. McNab and Garcia-Vasquez, 2012 as seen in ACIL Allen, 2013

53. Sadlier et al, 2017

54. Kornhauser,2006

55. Sadlier et al, 2017

56. CSIRO Futures, 2018

57. CommonwealthofAustralia,2013

58. Australian Government Space Coordination Committee, 2018

59. ACIL Allen, 2013

60. Ibid

61. Ibid

62. Ibid

63. Ibid

64. Ibid

65. Ibid

66. ANZLIC, 2017

67. ACIL Allen, 2013

68. Ibid

69. Ibid

70. ACILAllen,2013;TheAllenConsultingGroup,2008

71. ACIL Allen, 2013

72. Ibid

73. ACIL Allen 2015

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116

34. Morgan Stanley, 2018

35. IBIS World, 2018

36. Morgan Stanley, 2018

37. IBIS World, 2018

38. Manicaros, 2017

39. Tullbergetal,2003;Schofieldetal,2007asseeninTheAllenConsultingGroup,2008

40. InternationalEfficientAgricultureSolutionsandStandardsAssociation,2016

41. SchumanandHostler,2008

42. Canadian Space Agency, 2018

43. ACIL Allen, 2017

44. JonesandO’Halloran,2006asseeninTheAllenConsultingGroup,2008

45. JarozandFinlayson,2002asseeninTheAllenConsultingGroup,2008

46. Seymour,2005asseeninTheAllenConsultingGroup,2008

47. Creagh,2018

48. Hughes,2002asseeninTheAllenConsultingGroup,2008

49. TheAllenConsultingGroup,2008;Hughes,2002asseeninTheAllenConsultingGroup,2008

50. Seymour,2008asseeninTheAllenConsultingGroup,2008

51. TheAllenConsultingGroup,2008

52. McNab and Garcia-Vasquez, 2012 as seen in ACIL Allen, 2013

53. Sadlier et al, 2017

54. Kornhauser,2006

55. Sadlier et al, 2017

56. CSIRO Futures, 2018

57. CommonwealthofAustralia,2013

58. Australian Government Space Coordination Committee, 2018

59. ACIL Allen, 2013

60. Ibid

61. Ibid

62. Ibid

63. Ibid

64. Ibid

65. Ibid

66. ANZLIC, 2017

67. ACIL Allen, 2013

68. Ibid

69. Ibid

70. ACILAllen,2013;TheAllenConsultingGroup,2008

71. ACIL Allen, 2013

72. Ibid

73. ACIL Allen 2015

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Contact us

Dr Pradeep PhillipPartnerE:[email protected]:+61733087224

Liesda Marsdon Senior Economist

Nathan BrierleyEconomist

Kelly HeatonAssociate Director

Mathew ThomasAssociate Director

Corey JamesDirector

Claire AtkinsonManager

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Limitation of our work

General use restrictionThisreportispreparedsolelyfortheinternaluseoftheDepartmentofStateDevelopment,Manufacturing,InfrastructureandPlanning.Thisreportisnotintendedtoandshouldnotbeusedorrelieduponbyanyoneelseandweacceptnodutyofcaretoanyotherpersonorentity.ThereporthasbeenpreparedforthepurposeofdevelopingacapabilityauditofQueensland’sspaceeconomyandconductinganeconomicimpactanalysis.Youshouldnotrefertooruseournameortheadviceforanyotherpurpose.

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118

Limitation of our work

General use restrictionThisreportispreparedsolelyfortheinternaluseoftheDepartmentofStateDevelopment,Manufacturing,InfrastructureandPlanning.Thisreportisnotintendedtoandshouldnotbeusedorrelieduponbyanyoneelseandweacceptnodutyofcaretoanyotherpersonorentity.ThereporthasbeenpreparedforthepurposeofdevelopingacapabilityauditofQueensland’sspaceeconomyandconductinganeconomicimpactanalysis.Youshouldnotrefertooruseournameortheadviceforanyotherpurpose.

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