Innovative partnerships: a legal-economic analysis

Paper number

IAC-19,E3,6,8,x53861

Author

Ms. Mirella Fatica, Italy, Italian Space Agency (ASI)

Coauthor

Ms. Simonetta Di Ciaccio, Italy, Italian Space Agency (ASI)

Year

2019

Abstract

Until a few years ago, most space activities were financed and managed exclusively by the
governments of a few countries.
Today the situation is very different. The number of countries active in the space sector has doubled
in the last decade and there has been a steady increase in private investment in many areas of the
space sector. A third evolution characterises the last period: new forms of collaboration, innovative
partnerships between government agencies and the private sector. This new distribution of
responsibilities between the public sector and industry has mutual benefits. The public sector aims
to facilitate private investment in the public interest and entrepreneurs see a massive opportunity to
make money: by 2025, the space economy will be between $5 trillion and $10 trillion or equivalent
to the gross domestic product of an entire continent.
In this article we analyse and compare two of the legal instruments and economic models used to
implement this innovative partnership. These two models are used respectively in the United States
and Italy, in particular the NASA Space Act Agreements (SAA) and the Italian model of publicprivate
participation (PPP).
The NASA Space Act Agreements for Collaborations for Commercial Space Capabilities is designed
to promote the advancement of space-related business activities. Under these agreements, NASA
undertakes to provide goods, services or facilities that the Agency is not using to the full. By
facilitating access to spaceflight resources, including technical expertise, NASA aims to facilitate the
development of integrated space capabilities and to promote private investment in the sector.
Some of the main features that distinguish the Italian PPP are the relatively long duration of the
partnership, the predominantly private financing arrangements, the strategic role of the private
sector and relevant at each stage of the project, and the distribution of business risk between public
and private entities. The public partner focuses, mainly on the definition of the objectives to be
achieved in terms of public interest, on the quality of the services offered.
By examining these two different models, common and different characteristics are clarified.

Abstract document

IAC-19,E3,6,8,x53861.brief.pdf

Manuscript document

IAC-19,E3,6,8,x53861.pdf (🔒 authorized access only).

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