Boosting space industries down under: Nicholas Borroz compares the space agency interventions in New Zealand and Australia.

• Author: Borroz, Nicholas

New Zealand and Australia appear to have similar political economies, yet their space agencies intervene differently. In this article I will summarise how in the academic literature there is an expectation that their respective space agencies will intervene similarly, describe how the space agencies actually intervene differently and discuss why the differences might exist. I end by suggesting areas for future research.

This article builds off doctoral research based on the developmental state literature. The literature indicates that governments intervene as they do because of their mindsets. (1) There are caveats, of course, but that is the main analytical thrust: governments have different mindsets about what appropriate intervention is and thus intervene with different tools and targets.

New Zealand and Australia both appear to be 'market-rational', in the literature's parlance. (2) They contrast with 'plan-rational' political economies according to mindsets, tools and targets. (3) Government entities in market-rational political economies are expected have the following characteristics:

* Mindsets: Government entities think they should facilitate business.

* Tools: Government entities intervene to make firms competitive.

* Targets: Government entities target interventions to support competitive firms.

In line with expectations, the New Zealand Space Agency (NZSA) seeks to enhance New Zealand's 'businessfriendly' environment and to intervene in ways that minimise unnecessary prescription' and 'compliance costs'. It seeks to 'attract entrepreneurs, researchers, international business and investors' into 'areas where New Zealand has existing strengths'. (4)

The ways NZSA intervenes are fourfold: regulations; informational and networking services; person- or organisation-specific support (mostly financial); and agreements with foreign firms and governments. Regulations are the most emphasised intervention tool and generally relate to launches. (5) NZSA defines what firms must do to carry out launches or high-altitude flights, ensures debris mitigation plans are in order and assesses if payloads can launch. NZSA frames its requirements as minimal and sometimes lets firms use licenses or permits from other countries to do business; NZSA states that it does this because it wants to 'avoid over-regulating'. (6)

Besides regulation, a second tool that NZSA uses is informational and networking services. NZSA's website provides information on various issues that are relevant to market actors in the space sector. Its website has a 'NZS-paceTalk' section that informs readers on various space sector developments in New Zealand. NZSA is furthermore a sponsor of Aerospace Christchurch, which is the most well-developed space-sector networking organisation in New Zealand.

A third tool NZSA uses to intervene is person- or organisation-specific support (mostly financial). Several schemes are offered by the Ministry of Business, Innovation and Employment (MBIE). (7) It funds the MethaneSAT mission to support analysis of data and a mission control centre at the University of Auckland's Te Punaha Atea--Auckland Space Institute. MBIE's Catalyst Fund has allocated $6 million to MethaneSAT, and up to $500,000 to many other space-related research projects. NZSA also provides funding related to the upcoming 'NZ in Space Exhibition'. Applicants can apply for up to $350,000 to develop content for the exhibition, which is intended to 'inspire the next generation of space professionals'. NZSA, furthermore, awards internships for students to work with the American space agency NASA.

A fourth tool NZSA uses is agreements with foreign firms or governments. MBIE signed a memorandum of understanding with Maxar and the firm pledged to share data for a hackathon. (8) MBIE signed a memorandum of understanding with LeoLabs and the firm agreed to build facilities in New Zealand. LeoLabs also built 'visualization and analytics tools' for NSZA to help the agency monitor space traffic. (9) Both firms are beneficiaries of MBIE's Innovative Partnership programme, which helps research and development intensive businesses connect to New Zealand.

MBIE, along with the Ministry of Foreign Affairs and Trade, also entered into agreements with Rocket Lab, which is a US firm. The Rocket Lab agreements facilitate exports from the United States to New Zealand--one agreement is with the US government to let Rocket Lab export to New Zealand, and a second is with Rocket Lab to allow the firm to use US licenses to launch from New Zealand. (10) In May 2021, NZSA signed the Artemis Accords, signaling commitment to the US Artemis Program to return humans to the Moon by 2024. (11) Signing the accords implies opportunities for local firms to access Artemis Program-related contracts.

There is an expectation that NZSA will provide support to competitive firms regardless of the particulars of their business, but there appear to be at least three obvious business areas where NZSA targets its interventions. One of these target areas is in terms...