Chapter 5
Government and space research and industry
Government and space research
International comparison of Australia's
space research
5.1
Comparing expenditure on space science and industries across
countries is difficult. As the OECD comments:
...the space sector is one of the least developed in terms of
robust, internationally comparable statistics and data...[in particular]
disentangling the space sector from the larger aerospace sector remains a
challenge in most countries.[1]
5.2
It is notable in the OECD's international comparison that Australia
is excluded from many tables due to lack of data. However, the data presented
in Table 5.1 is consistent with the general view that Australian government
support for space research is comparatively low.[2]
Table 5.1: Government outlays on space research and
development (percentage of total government outlays on R&D, 2004)
United States
|
17.4
|
|
United Kingdom
|
2.3
|
Belgium
|
11.1
|
|
Hungary
|
2.3
|
France
|
11.0
|
|
Norway
|
2.2
|
Italy
|
8.7
|
|
Denmark
|
2.0
|
Japan
|
7.1
|
|
Finland
|
1.9
|
Germany
|
5.4
|
|
Czech Republic
|
0.9
|
Canada
|
4.7
|
|
Sweden
|
0.7
|
Spain
|
4.1
|
|
Greece
|
0.6
|
Netherlands
|
4.1
|
|
Austria
|
0.3
|
Switzerland
|
4.0
|
|
Portugal
|
0.2
|
South Korea
|
3.8
|
|
Australia
|
0.2
|
Source: OECD
, The Space
Economy at a Glance 2007, p. 40.
5.3
The Productivity Commission estimates that less than 1 per cent
of Australian government support for science and innovation is directed towards
'exploration and exploitation of space'.[3]
The Report on the Review of the National Innovation System has recommended
increased investment in the space science sector as a priority sector for
growth in Australian innovation and industry.
Australian space research diffused
across universities
5.4
Particularly given the shortage of funding, it may be better to
concentrate on a few elite schools which could then afford better equipment and
have more, formal or serendipitous, exchange of views and collaborations. For
example, at present there are fifteen Australian universities teaching
astronomy.
5.5
Asked about the merits of concentrating expertise in fewer centres
of excellence, some academics were generally supportive:
...when we had the Cooperative Research Centre for Satellite Systems,
we had a concentration like that, and it was extremely beneficial.[4]
I think there is certainly benefit in having some nodes...One of
the main things that the National Committee for Space Science actually put
forward was actually a National Institute for Space Science.[5]
5.6
Of course, there may be less agreement if the discussion reached
the specific stage of deciding which university schools to close. This is
particularly likely if offering space science attracts better students to the
university.
Australian Research Council funding
5.7
Some evidence presented to the committee was critical of the
attitude of the Australian Research Council (ARC) towards space science:
We all apply to ARC, which is very difficult to work with from a
user’s point of view. Even if you are successful in ARC, you very rarely get
funding that is of an international level. That means that it is very difficult
for all of us to compete in an international business like space science or my
own business of astrophysics.[6]
When a discipline falls below a certain 'critical mass' in Australia,
it is regarded as a 'backwater' and finds it very difficult to convince
Australian Research Council assessor panels (of necessarily non-experts) that
the work is worth doing, however well it is regarded internationally.[7]
5.8
The ARC denied that they discriminated against projects involving
international projects, but they are reluctant to fund projects extending more
than five years.[8]
Annual funding by the ARC for space-related projects has been around $10-15
million in recent years.[9]
Should there be a space cluster?
5.9
There are often argued to be synergies in bringing together
related expertise. A 'cluster' is 'a geographic concentration of interconnected
companies, specialised suppliers, service providers, firms in related
industries, training institutions and support organisations within a local area
or region. One mark of a successful cluster is that its value as a whole is
greater than the sum of its parts'.[10]
5.10
Clusters may develop because of the availability of some key
resource or position,[11]
become established where the item produced was first invented,[12]
grow around a university[13]
or spin off from another cluster.[14]
Some clusters develop in a particular location for no obvious reason but, once
established, act as a magnet for skilled people in that industry, and
supporting industries, and so remain a prime location.[15]
5.11
The literature suggests clusters can take considerable time to
develop but are then long-lasting.[16]
In some cases, once clusters have emerged, governments have encouraged them by
funding more educational facilities and supporting infrastructure. But some
attempts by governments to create clusters have been less successful.[17]
5.12
The space industry thought a space cluster would be particularly
beneficial for small- and medium-sized companies, which often drive innovation.
Accordingly, they
endorse the space cluster, including tertiary education
partners, as a method of fostering and supporting the development, trialling
and maturation of new technologies and products which a space industry may be
expected to generate.[18]
5.13
The BLUEsat students are helped in developing their skills in
satellite building due to the proximity of some industries whose facilities
they use.[19]
5.14
In principle, with modern communications there could be a
'virtual cluster'. But there still appear to be advantages from physical
proximity in the cross-pollination of ideas. One pivot for a cluster would be a
Cooperative Research Centre, such as the one that operated for Satellite
Systems from 1998 to 2005.[20]
5.15
A cluster in Adelaide could develop around the Institute for
Telecommunications Research at the University of South Australia, research
centres at the University of Adelaide and a number of Adelaide-based companies
and benefit from relative proximity to Woomera. The South Australian government
regards the state as 'the natural home of Australia's space effort'.[21]
Adelaide hosted a nine-week international course by the International Space University
in 2004.[22]
5.16
A cluster in Canberra could develop around the Acton Black Mountain
area which houses the ANU and CSIRO. Also in the Canberra region are the
relevant Australian government departments, Mount Stromlo and the Deep Space
Tracking Centre at Tidbinbilla.
5.17
Arguments could be mounted for adding Sydney and/or Melbourne
(and perhaps a site in Western Australia for radio astronomy if the SKA
proceeds) but Australia is too small to have a large number of space clusters.
Space science as an inspiration for students and others
5.18
Space seems to capture the public imagination in ways that most
other science struggles to do. Almost everybody over fifty can remember what
they were doing when Neil Armstrong took that one small step onto the lunar
surface. Many younger people have used the internet to share in watching the
pictures beamed from Mars as probes explore the Martian terrain. As the lyrics
cited in the earlier chapters illustrated, space science has permeated popular
culture in ways that other science does not. There is much unexplored territory
in the deep sea, with new lifeforms to discover.[23]
However, this gets much less public attention. (How many songs are there about
exploration of the deep sea?[24]
Or about nanotechnology? Or the Higgs Boson?)
5.19
While interest in western countries has perhaps waned with the
(temporary?) suspension of flights outside earth orbit, space still interests
the general populace. The chair of Young Engineers Australia explained:
I do a lot of speaking engagements at schools...When I go out
there, I use space as a tool to engage. It is the one time when, even if I am
talking to underprivileged people or people from a lower socioeconomic
audience, you can hear a pin drop. They are absolutely spellbound by the
possibilities.[25]
5.20
Space seems particularly to captivate children:
Any of us who have had children knows that space, astronomy and
dinosaurs are the things that seem to grab all of the kids’ attention.[26]
...students at schools are very excited about space.[27]
...dinosaurs and space bring children into science and
engineering...[28]
5.21
The importance of getting children interested early was
emphasised by some witnesses:
Anything that turns the kids on and gets them started down that
path is desirable. My understanding of the education theory is the earlier you
do it, the better, and the more chance you have of retention. We would love to
see anything that gets them excited happen.[29]
5.22
The Australian space industry is of the opinion that:
...a persistent view among science educators, reinforced by strong
anecdotal evidence that space inspires interest in the broader physical
sciences, engineering, mathematics, technology and innovation.[30]
5.23
However, as befits scientists, they suggest this hypothesis be
tested:
[we] encourage the Australian Government to test this assertion
with quantitative research and to gather the experience of science educators
around the world. [31]
5.24
Space science was seen as an important motivator for encouraging
study of science and engineering by a number of individual witnesses:
It is essential that we draw more of our young people into the
engineering and science fields at universities, and then we must keep them in Australia.
Space technologies and sciences are well known to excite and motivate young
people into these fields. During the 10-year Apollo moonshot program, the US
saw its largest ever influx into engineering and the sciences. It is a good
example of what space can do.[32]
5.25
The committee has heard stories of the inspirational role that
space played in driving people to scientific careers:
Seeing the achievements of the space programme had a profound
influence upon me and was one of the reasons why I became a professional
engineer.[33]
5.26
A group of university students warned that:
[While] there is an enormous amount of enthusiasm in the general
public and among students studying in science and engineering towards almost
anything to do with space; student enthusiasm is dampened because of a lack
of a space industry in Australia to give a clear future for people skilled in
space engineering and related fields.[34]
5.27
A contrary view about the inspirational role of space science was
put by Dr Michael Green from DIISR:
...there is no evidence that I have seen to support that
particular claim...it would be a very expensive science awareness initiative.
Arguably, if you want to raise the interest of people in science, there would
be more cost‑effective ways of doing it than funding a space programme.[35]
5.28
Responding to this, Professor Dyson said:
...there is a perception that space is extremely expensive, and it
can be, but I do not think it has to be. I think the proposals put forward in
the National Committee for Space Sciences [decadal] plan has a range of
projects going from a few million up to tens of millions of dollars.[36]
5.29
An initiative to boost the interest of the community, and school
students in particular, in space is the Victorian Space Science Education
Centre.[37]
It also helps with the professional development of teachers.
5.30
Given the expense, it is not practicable to aim at 'landing an
Australian on the moon'. But it would be inspiring to have a recognisable
Australian component in an international mission, such as the 'robot arm' of
the space station which was contributed by Canada and is branded accordingly.
Australian education and a space future
5.31
Some witnesses questioned whether the teaching of science and
mathematics in Australia's high schools is providing an adequate basis for
tertiary study of space‑related fields. They noted fewer students are
studying physics.
Our school education in mathematics and science is not preparing
students to come to university to do some of the difficult undergraduate
physics that is required to prepare them for that work. That has been a trend
for quite a few years.[38]
...post primary students in Australia generally did not sustain
any enthusiasm for science beyond their second year after entering junior high
school.[39]
...the number of students wishing to take on the hard sciences
have reduced. I believe that reflects a whole manifest of situations, but this
is one area. If there is no clear signal from government and industry combined
that this is an area of influence and importance for the nation, then you are
not going to get people wanting to invest in that from an educational
perspective...[40]
5.32
One response has been the Government's initiatives to encourage
more science and maths students by designating tertiary studies in these fields
as priority areas, with a concomitant reduction in the level of HECS.
5.33
There is also concern about a 'brain drain' of space scientists
from Australian universities. These 'technogees' are leaving Australia as they
do not see adequate research and employment prospects here:
Having significant dealings with many of the students involved
in our operations, I would have to say that a significant proportion either do
not continue their activities in an aerospace related field or they go
overseas. There is very little opportunity for graduates from those sorts of
environments to gain a work career in aerospace in Australia.[41]
...like many of my university peers, my aspiration is to work
within the Space industry. In Australia, this ambition is near unachievable,
partly due to the ongoing failure of Australian government policy. As such, I
am currently preparing to move with my family to Europe for the prime reason of
working in the Space industry.[42]
I am an Australian (with a PhD in space engineering from the University
of Queensland) but owing to the state of Australian space activity...I have
worked in the UK and in Germany for the last decade...[43]
5.34
Professor Clay lamented:
Space science is not as fashionable as it used to be and it is
more difficult than a lot of other areas.[44]
5.35
Another challenge is for Australians getting on-the-job training.
Optus is doing a good job in providing on-the-job training, some of which now
qualifies for a certificate from an educational institution.
5.36
There have been 49 Australians who have taken the Masters course
at the International Space University in Strasbourg. Around a quarter of these
have stayed overseas to work. The alumni would like Australia to provide
scholarships for study there, noting that many other governments provide them
for their students.[45]
Government and space industry
5.37
Providing better education in science and engineering is probably
the main contribution the government can make to bolstering the Australian
space industry. One question posed in the Interim Report was whether
there was a case for further support.
The economic case for government
assistance
5.38
The case for government financial support for space industry
requires evidence that there are 'positive externalities' from the space
industry. In other words, the space industry needs to be able to demonstrate
that there are benefits generated for other parts of the economy from the
sector's activities that do not accrue to the space sector itself. This would
imply that without assistance the amount of private sector involvement in space
would be less than socially optimal.
5.39
Otherwise, especially in an economy suffering from skill
shortages, assistance to space programmes will have the effect of redirecting
resources away from areas where they would be more productive.
5.40
Some would reject this economic paradigm. Asked what he would
like as a present for NASA's 50th birthday, its head replied 'an
understanding that not everything that is worthwhile can be justified in terms
of immediate dollars and cents on the balance sheet.'[46]
Some witnesses questioned whether the economic approach is adopted in other
countries:
...there really is no level playing field in space. Most countries
feel that space technologies, in particular space capabilities, are
strategically too important to leave to the market. The sector is generally
characterised by what the Europeans call ‘juste retour’, where the governments
try and invest as much as they can in their own countries. So, if we do not
have a space programme, it is difficult to develop a competitive space
industry. If a significant space presence for Australia is desired, I do not
think it will happen without government investment, certainly not in the
foreseeable future.[47]
I know of no country that justifies its national expenditure on
space purely on economic grounds.[48]
5.41
Those space advocates accepting the economic argument point to the
potential spin-offs from a space programme. While there are anecdotes about
inventions that arose from the US space programmes, the committee is not aware
of any definitive study on the size of benefits accruing to other parts of the
economy from space activity. A recent OECD report commented:
The many derived space-based services have positive impacts on
economies and societies, although at this stage, they are more qualitative than
quantitative...In Norway, the "spin-off effect" of space programmes on
space firms has been measured at 4.4, that is for every million kroner of
government support, space sector companies have on average attained an
additional turnover of 4.4 million kroner...Although this impact measure may vary
widely depending on the country and level of specialisation, it is indicative
of possible increased competitiveness due to space involvement.[49]
5.42
Professor Butcher reports similar calculations:
I know that in the Netherlands...the government has concluded that...for
every dollar the government invests in the space industry, in space activities,
there are $3½ worth of economic activity generated, not always directly related
to space but indirectly as well. In the United States I think it is over a
factor of four. [50]
5.43
The Australian Space Industry Chamber of Commerce highlighted the
broad science and technical skill base that is enriched by the space science
sector:
The challenges involved in getting into space and deriving data
from that vantage point requires the participation of many industries.
Manufacturing, high temperature materials, advanced chemistry, information
processing, telecommunications, computing, data processing, project
management, finance and legal are examples. Future space ventures will rely
heavily on new and emerging technologies such as nanotechnology, robotics and
biotechnology and health technologies. Nations are recognising that an
investment in space can be a catalyst to stimulating innovation across the
spectrum of existing and emerging high technology industries.[51]
5.44
The potential spin-off benefits are not limited to technical
skills or scientific discoveries that turn out to have other applications. They
include broader skills. Professor Colin Norman described space science as
'character building'.[52]
In a similar vein were comments that:
The spin-off benefits from space technology are various, ranging
from the personnel development and managing complex systems through to the
actual technological systems that they are involved in.[53]
...there is the question of whether one can solve some of our
major climate problems, water problems and so forth without the expertise
gained from organising large projects with many, many people and from different
sectors and so on. That kind of effort is one that the space industry and the
military have spent a lot of time worrying about, so there is a lot of
experience in how to do that in the space industry...You want people who can do
things—people who can manage technology, who can manage big projects and who
know how to marshal industry and do things of a considerable magnitude. That is
what space trains you to do.[54]
5.45
Notwithstanding the Free Trade Agreement, there are still
difficulties in Australian firms selling in the US:
It is still very hard. Even though there is free trade there are
ITARS restrictions and so on. There are still a whole lot of other barriers ...It
is very hard to break into the market and they are very protective of their
industry... We would go into the softer markets—the Canadas, the UKs and
countries like that—the allies where, I guess, there are fewer barriers for us.[55]
5.46
As well as the specific funding for the Square Kilometre Array
(see Chapter 3) and CSIRO space projects, and ARC grants (above), there
are general support programmes for research and development, such as the tax
concessions and grants, which the space industry can access along with other
manufacturers.
5.47
DIISR claims that over $30 million has been provided for space
industry development programmes since 1996 under the AusIndustry suite of programmes.[56]
In addition, there are space-related services the government provides because
they are a 'public good' such as information gleaned from satellites.[57]
5.48
The long-term, and innovative, nature of space projects may make
it harder for them to attract finance. This problem is not unique to the space
industry. Renewable energy companies, for example, face the same problem.
5.49
The Canadian Space Agency spoke of their success as a space
exporter:
about 50 per cent of the $2.5 billion in revenues that space activities
bring to Canada is due to export. Canada is probably the world leader in that
department... All of that would not have been possible without firstly having a
long-term space program and secondly having a well-understood funding envelope
which can be sustained and used to encourage industry to identify niche
markets, gain the knowledge and expertise and then hopefully commercialise what
they are good at... there are also advantages in having a space agency that
helps with the funding and helps with the R&D costs, which are quite
extensive. It also ensures that the government users and the public good are
looked after.[58]
5.50
While most discussion of space industry (much like discussion of
industry in general) focuses on manufacturing, there have also been some
successes in space services:
...GIO was generating $175 million a year in space insurance
services, all export revenue, that no-one in the broader business community or
within the government was really aware of...[59]
5.51
The recent Cutler Report highlighted space in its overview:
In terms of stimulating complementary private sector innovation,
the following areas deserve attention: resource industries, space and
astronomy, finance and risk management, and marine industries.[60]
[emphasis added]
5.52
It went on to comment:
Space and astronomy are natural areas for Australian
specialisation for three reasons: (i) Australia’s geographical size and
vast areas of extremely low population density mean that it is an ideal site
for space research free of radio-interference. The success of Australia’s bid
to host the Square Kilometre Array (SKA) telescope would consolidate Australia’s
position as a key node in global research systems. (ii) Australia is already an
important southern hemisphere node in global space surveillance systems. (iii) Australia
has an increasing interest in access to satellite facilities to support remote
monitoring and sensing capabilities for climate monitoring, agricultural
production management, security monitoring, and remote sensing networks (such
as national water and weather observatories and emerging requirements around
carbon monitoring). Australia has little involvement in the satellite
infrastructure to support these strategic areas of application deployments
based on satellite facilities. This is a putative area for more significant
international collaborations.[61]
The security case for government
assistance
5.53
Alternatively it could be argued that on military or security
grounds Australia needs to do more than the private sector would undertake on
its own initiative. For example, while the Australian defence forces can buy
satellite information from foreign satellite operators, it might be argued that
there is an unacceptable risk that these data may not be available in a period
of international tensions. This could build a case for having Australian-owned
and operated satellites even if during more normal times this is less
cost-effective.[62]
5.54
Dr Andy Thomas told the committee:
I believe Australia must control its defence assets, and that is
only possible if the country can maintain and operate the assets that it owns
and those assets which support national security. That can only be achieved if Australia
can build the satellite systems and the ground based support systems, and
communication networks that it needs for its own unique applications, and
possibly even maintain the technical infrastructure to be able to launch these
systems to the required orbital planes on demand. That is a basic capability
that does not exist in Australia at present...[63]
5.55
Another aspect of security concerns is that in some cases they
interfere with international collaborations. A witness gave this example of
where such barriers lead to a case for government support for Australian
research:
...the major limiting factor for that sort of environment is our
national treaty obligations with the Missile Technology Control Regime and the
US ITAR, International Traffic in Arms Regulations. That limits the transfer of
that sort of technology to ensure that missile systems and weapons technology
is not proliferated across many nations. These limits stop us from being able
to interact across international borders, for fear that we may be proliferating
these technologies. That almost drives a need to have indigenous and internal
development of these technologies to ensure that not only do we not proliferate
but we also have the skills to be able to utilise and provide an informed
audience to those sorts of applications in future.[64]
5.56
The Department of Defence is currently developing a White Paper
and 'the impact of space systems on the Australian Defence Force's ability to
contribute to Australia's security will also be addressed in this major policy
statement.'[65]
Defence told the committee that:
Defence’s demands for space capabilities are expected to increase
over coming years. Notably, greater access to space systems underpins the
modernisation of the ADF, especially in relation to the network-centric warfare
construct that seeks to enhance operational effectiveness through precision
engagement, enhanced situational awareness, global connectivity and
synchronisation. Additionally, more than 50 per cent of Defence’s major
capability development projects for the period 2006-16 have a dependency on
services that are derived from space. Furthermore, while still at the early
stages, Defence is committed to ensuring its space capability is underpinned by
the development of staff space expertise.[66]
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