Promoting Space Commerce through Public -Private Risk Sharing

In developing space commerce initiatives, industry faces technical, mar ket, financial, and legal -regulatory risks . Similarly, space agencies face the risk that programs will not be affordable, without commercial sources of supply to reduce the cost of, and increase access to, key products and services . Consequently, commercia l risk reduction is in the interest of both industry and government, and mutual interest is a basis for cooperation . Key issues to address in setting up public -private partnerships include: mission, objectives, outputs, membership, governance, organization , legal vehicles, financial strategy, business administration, input/output model, influence approach, policy liaison, and public image . Multiple models exist for win -win collaborative government and industry partnerships, including R&D cost sharing, techn ology partnerships, and joint development of infrastructure . Instructive examples of public -private partnerships evident in United States history include development of the transcontinental railroad, the commercial airline industry, the telephone industry, the McMurdo Antarctic research station, the Tennessee Valley Authority, and the National Park Service . The international communications satellite consortium Inmarsat also provides a useful recent model for cooperation . To maximize opportunities for indust ry involvement in public -private partnerships, Boeing is engaging in an international dialogue to explore potential space commerce opportunities, in cooperation with NASA and entrepreneurial as well as established companies, within and outside the space se ctor. In the area of lunar commerce specifically, two Lunar Commerce Executive Roundtables, sponsored by an industry group chaired by the Boeing Company’s Space Exploration unit, have stimulated dialogue with non -space industry leaders, space industry exec utives, NASA, and academia, including international as well as U.S. participants . These dialogue sessions are leading to concrete initiatives to stimulate the development of space commerce, with special emphasis on space solar power, in -space propellant su pply, robotics, and media (e.g., entertainment, education, advertising, branding, sponsorship) . Boeing chaired roundtables have shown that an important factor in stimulating industry interest from outside the space sector is emphasis on dual -use technologi es and low -cost, near -term robotic “proof of concept” demonstration missions . By demonstrating the validity of commercially relevant processes, and avoiding any requirement of massive initial private investments, market entry can be rendered considerably m ore attractive, thereby benefiting both government and industry across the globe.