Our 'hot takes' and key insights:

Space and satellites aren’t just for astronauts – they’re economic engines. The UK’s space economy is already a major growth driver, yet it could all be delivered without human spaceflight.

Space and satellites do have barriers to entry and do need an industrial strategy – but the sector has a strong record of delivering very high returns on that investment.

Letting homegrown startups move abroad would be a massive own-goal – The UK is great at innovation, and there is a role for the government to play in enabling better policies and investment to ensure that UK startups have the opportunity to scale here too.

Small satellites are the UK’s secret power – We  already have a global edge - let’s double down and lead the market.

Quantum computing in space? That’s next-level – Space provides natural cooling, making it the perfect environment for high-powered quantum processors.

Investing in space isn’t an option, it’s a necessity – Whether  it’s climate monitoring, defense, or communications, every critical sector relies on satellite data.

If data is the new oil, then satellites are the drills – The  real value of space isn’t just rockets - it’s the massive amounts of intelligence satellites provide, fueling everything from agriculture to finance.

Read on for some of the key discussion points and make sure you check out the full The PSC in Conversation episode on Spotify.

Key themes discussed:

Invest 2035: The UK’s Industrial Strategy

• The government’s industrial strategy is meant to stimulate growth, particularly in key high-potential sectors.
• Despite its relevance, space and satellites are not explicitly mentioned in the strategy, though they align with areas like digital, clean energy, and advanced manufacturing. Satellites are a real strength of the UK, but are not necessarily what catches headlines or the public's interest. 
• Debate about the strategy and how it might translate into policy is ongoing. This gives an opportunity for lobbying to take place from the space and satellite sector, to make the case for inclusion as a specific piece of work. 

The Space & Satellite Industry: A Growth Powerhouse

• The sector has grown 3.5 to 4.7 times faster than the wider UK economy over the past decade.
• It is a “sunrise sector”, meaning its full economic potential has yet to be realised.
• Space technology supports industries beyond aerospace, including healthcare, urban planning, and climate monitoring.

The Case for Government Support

• The UK ranks 5th in the world for space-related innovation, but lags behind in competitiveness (20th) and knowledge absorption (31st).
• The industry faces high barriers to entry, particularly in satellite manufacturing and launch infrastructure, requiring government intervention.
• There is a risk of British space startups moving overseas due to lack of support beyond early-stage funding.

Strategic Investment Areas for the UK

• The UK has expertise in small satellites and should prioritise investment in this niche.
• In-orbit servicing (repairing satellites in space) is another potential competitive advantage.

The Role of Government in Driving Growth

• The government should signal long-term commitment to the space sector, which attracts investors and talent.
• Space-based industries offer high-paying jobs and geopolitical advantages, making them an ideal target for industrial policy.
• Public procurement can stimulate demand for space-based services, encouraging private-sector growth.

Exciting Future Possibilities

• Next-gen small satellites could revolutionise data collection, connectivity, and remote healthcare.
• AI-driven satellite analytics will uncover new economic opportunities, similar to how GPS revolutionised navigation.
• Space-based quantum computing could provide the next leap in computational capabilities.

Stay tuned for our next episode in the series - out next Thursday 20th March - where we are joined by Director of HSAT.AI, Paul Brabant, to discuss the role of space and satellites in digital and technology.