The New Space Economy and New Business Models

The recent change of paradigm in the space sector, due to the advent of the new space economy and to the entry of several private actors and investors in a sector, historically mainly funded through institutional investments, has led to a different approach to financing activities. In particular, the spin-off effect (the use of technologies from space to nonspace areas) has allowed spreading economic impacts also to nonspace sectors, creating new business opportunities and pushing a new investment wave from nonspace actors willing to invest on space applications and start-ups. Public sector plays a key role in creating the right conditions for the development of the space economy and in accompanying the business community in the innovation path (from the invention to the market product, application or service). Indeed, the approach to funding research activities is changing. Also, an institution like the European Union is adopting new models, an example is given by Horizon Europe, which, according to recent discussions at the European level, will foresee private funds among the different investments' instruments. The Italian model is at the forefront in Europe for space economy and financial initiatives, as it encompasses business angels, venture capitalists, corporates, and public private partnerships. The article includes a description of activities, which maximize the space impacts on society, including tools such as new partnership approaches, development of innovation ecosystems, and leverage of investments from the private capital market. The authors provide a focus on the Italian model and a comparison with the larger European context.</p>