The European space-industrial complex: New myths, old realities

Abstract

This article is an economic analysis of the main factors affecting the evolution of the European space industry. The critical role of the government is analyzed with regard to both military alliances and civilian intergovernmental collaboration. The analysis explores how moving from a pure public goods paradigm in collaborative projects toward a commercially-oriented, competitiveness-enhancing paradigm leads to duplication of effort and rivalries within the space agencies and other organizations. Drawing on the example of defense alliances such as NATO, the article illustrates cooperation challenges faced both at European and transatlantic levels as competition and rivalry result from inter-alliance specialization and the difficulties involved in the allocation of benefits.