ETD

• disruptive innovation
• innovation
• innovation economics
• new space
• space activities
• space economy

Space activities have been an integral part of our economy and daily lives for many decades now. They have become critical to countless applications in both economic and non-economic areas, such as transportation, energy, finance, food supply, government, public safety, law enforcement, emergency services, critical manufacturing, and national security. But today, the space economy is undergoing a radical transformation. A new wave of innovation-driven companies, commonly referred to as “New Space,” is pushing the frontier even farther. Advances in reusable rockets, satellite miniaturization, and additive manufacturing, as well as the introduction of new business models, are driving down costs within established markets and often putting traditional companies (“Old Space”) at risk of displacement. Meanwhile, several startups are exploring new market opportunities in orbit and beyond, including commercial space stations, new space habitats, in-space manufacturing, in-orbit services, space mining, new forms of space logistics, and even space tourism.

Through the adoption of an evolutionary perspective to economics, this study investigates the dynamics and factors behind these changes. What are the differences between Old Space and New Space, in particular? Several elements must be considered. First, there are external forces such as the increased availability of private funding, particularly in the form of venture capital, as well as the role of innovation clusters like Silicon Valley. Changes in the relationship between the private and public sectors should also be considered, such as the use of public-private partnerships instead of traditional procurement or fixed-price contracts instead of cost-plus ones, as well as the impact of antitrust and other rules (e.g., in finance) on firms’ strategic decisions. Second, there are internal factors related to the organization's structure or the pursuit of specific goals. Should managers aim to maximize profits as their primary goal? This is one of the questions we will address.

The thesis is divided into four chapters, progressing from broader to more narrowly focused topics. Chapter I provides a general analysis of the space economy. It introduces the main related concepts, provides a historical analysis of the phases that have characterized it, and contrasts the current scenario with previous ones, discussing future outlooks. Chapter II introduces the concepts of innovation, creative destruction, innovation clusters, and big surges. Then, it discusses future opportunities in the space economy and the potential for an in-space economy alongside the technologies that enable these changes. Chapter III employs targeted case studies to examine the two main risks associated with innovation projects from the standpoint of the innovation sequence. Then, it discusses how new entrants can challenge incumbents and why the latter may fail to respond adequately. Finally, Chapter IV discusses how organizational structure, market structure, and internal resources impact traditional firms’ behavior. Through case studies, it explains why traditional space companies risk falling behind in the new race for innovation.