OECD Global Forum on Space Economics

10 (e): The Space Sector and International Trade – An OECD/SG/AU reportPierre-Alain Schieb, Claire Jolly

Joint 8th International Trade Statistics (ITS) and Trade in Services (TIS) Session

Session 10 - Paris, 8 September 2007

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Advisory Unit to the Secretary-General (SGE/AU) International Futures Programme (IFP)

Multidisciplinary team, created in 1990, reporting directly to the Secretary-General of the OECD

Mission = Identify and explore emerging policy issues (management of new emerging risks, the security economy, the bio-economy…)

Participation / Project Funding = Involvement of governmental bodies and private actors in each (self-financed) project

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OECD and the Space Sector 2 year IFP Futures Project “The Commercialisation of

Space and the Development of Space Infrastructure: The Role of Public and Private Actors” (2002-2004)

Results = 2 OECD publications and recommendations to policy-makers for a sustainable space infrastructure

2004 2005

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New Mandate (2006-2008) Demand from governments for further OECD work on

space statistics and indicators

9 organisations (key space agencies, other institutions…) joining in the OECD Global Space Forum

Objective = collect and evaluate existing data and socio-economic indicators, to provide evidence-based analysis and assist agencies/governments in shaping policies to contribute to ensuring that the potential of space is more fully realised

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Defining the Space EconomyThe space economy embraces: The space economy embraces:

““All public and private actors involved in providing space-enabled products All public and private actors involved in providing space-enabled products and servicesand services. It comprises a long value-added chain, starting with the . It comprises a long value-added chain, starting with the manufacturers of space hardware (e.g. launch vehicles, satellites, ground stations) manufacturers of space hardware (e.g. launch vehicles, satellites, ground stations) and ending with the providers of space-enabled products (e.g. navigation equipment, and ending with the providers of space-enabled products (e.g. navigation equipment, satellite phones) and services (e.g. satellite-based meteorological services or direct-satellite phones) and services (e.g. satellite-based meteorological services or direct-to-home video services) to final users.”to-home video services) to final users.”

SPACE ACTORS(R&D, INDUSTRY & SERVICES PROVIDERS)

NON-SPACE ACTORS

OPERATORS CONTENTS PROVIDERS

EARTH OBSERVATIONDATA PROVIDERS

DIGITAL BROADCASTINGPROVIDERS

RETAIL DELIVERY

INFORMATION SERVICESPROVIDERS

VALUE ADDERS /INTEGRATORS

NAVIGATION EQUIPMENT

LABS

SATELLITES TELECOM SERVICES

MANUFACTURERS

R&DCENTRES

LAUNCHERS

GROUNDEQUIPMENT

Source: OECD (2007), The Space Economy at A Glance, OECD, Paris

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“The Space Economy at a Glance” First OECD publication to look at the space sector to be

released in Oct. 2007 Statistics and Indicators on the Space Economy

Examine multiple aspects of the Space Economy e.g. Goods, Services, Budgets, R&D, Human Capital, Patents…

Diverse Data Sources: Both Official and Unofficial Official: OECD and Governments (e.g. NSOs and space agencies) Unofficial: Industry Associations (e.g. GIFAS, AIA) and Private

Consultants

Coverage: OECD: include all major OECD players non-OECD: include Russia, China, India, others

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A significant and expanding high-tech sector

Relatively few countries are producers of space-related goods, but many are customers/users (e.g. meteorology)

Economic estimates on the sector vary widely (lack of internationally comparable data)

Worldwide institutional budgets of around USD 45 billion in 2005 for OECD countries alone (probably more with unpublished defence-related programmes)

Commercial revenues from space-derived products and services around USD 110-120 billion in 2006 worldwide (“small” upstream activities, i.e. rocket manufacturing vs. “large” downstream activities, telecom, navigation)

Underlying trend in the space economy is one of growth

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Chart 5.4a: UK Space Industry Upstream and Downstream Real Turnover, 1999-2005

Billions of Pounds

Source: BNSC report "Size and Health of Space Industry 2006"

£0.0

£0.5

£1.0

£1.5

£2.0

£2.5

£3.0

£3.5

£4.0

£4.5

£5.0

1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Bil

lio

ns

of

Po

un

ds

Real Downstream Real Upstream

Downstream space activities (applications) often much larger than upstream segment (manufacturing), e.g. UK

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Globalisation of Trade in Space Products and Services Focus: OECD countries International Trade in Commodity Statistics (ITCS)

database Two Harmonized System (HS) codes employed

which indicate “space-related” elements (but not only): (1) HS880260 (“Spacecraft, including satellites, and

suborbital and spacecraft launch vehicles”); and (2) HS880390 (“Parts of balloons, dirigibles, and

spacecraft not elsewhere specified”).

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Figure 1. Amount and share of OECD space products exports, 2004 (Exports in millions of current US dollars and as a percentage of OECD total )

Source: OECD (2007), The Space Economy at A Glance, OECD, ParisNote: Data derived from the OECD/UN International Trade in Commodity Statistics (ITCS) database, April 2007

Exports in 2004: USD 3.74 billion(total for the two HS codes)

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Figure 2. OECD Exports of Space Products 1996-2004 (Exports in billions of current US dollars)

Source: OECD (2007), The Space Economy at A Glance, OECD, ParisNote: Data derived from the OECD/UN International Trade in Commodity Statistics (ITCS) database, April 2007

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Trade: two codes, one of the two includes non-space and space, not available in all countries

Dual use activities: some space-related products are considered sensitive and are not traded / or may be exported under strict technology transfers regimes (i.e. Wassenaar Arrangement)

High level of data aggregation: aerospace vs. space; manufacturing versus services

Confidentiality: One / few companies for country Non-OECD countries: Obtaining trade-related data difficult

Challenges to overcome in data collection

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Towards a list of space-related indicators comparable internationally… Choice of Space Forum Steering Group members Contacts with NSOs, industry associations

Need to drill down on TRADE in downstream space-related services (telecom industry, GPS industry…)

Next steps for space-related statistics & indicators

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What can be done at OECD level? We have a pilot group of interested parties within OECD Forum on

Space Economics with assistance from NS0s on a voluntary basis

Current developments at ISIC level (Revision 4) with satellite communications activities better represented (i.e. new Class 6130)

Probably some interesting experience in terms of trade in ICT sector? Lessons learned from ICT sector?

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Problematic of Pinpointing to Specific Application e.g. GPS devicesHS Codes:

90.14 Direction finding compasses; other navigational instruments and appliances. 9014.10 - Direction finding compasses 9014.20 - Instruments and appliances for aeronautical or space

navigation (other than compasses) 9014.80 - Other instruments and appliances (incl. Instruments and

apparatus of 9014.80, used solely or principally with an automatic data processing machine of a kind used on sea-going vessels)

9014.90 - Parts and accessories

We are interested in possible experiences from delegates (e.g. ICT sector…)

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Thank you.

Pierre-Alain SchiebCounsellor, Head Futures Projects

pierre-alain.schieb@oecd.org

Claire JollyPolicy Analyst

claire.jolly@oecd.org

More information: www.oecd.org/futures