The global satellite industry has rapidly evolved into a powerful economic force, influencing a wide range of industries far beyond the aerospace sector. Within the space sector, the advancements in the satellite industry, from low-Earth orbit (LEO) mega-constellations to flexible launch systems, have catalysed the development of a larger, more dynamic, and cost-efficient sector, albeit with new competitive and sustainability challenges (unintended spillovers on targeted unit). Between sectors, the advancements act as catalysts for productivity and inclusion by connecting the unconnected and optimising industries, such as agriculture and transport (intended spillovers on non-targeted units). In the diagonal dimension, they have demonstrated that innovation can come with undesired externalities for other sectors (unintended spillovers on non-targeted units). The challenge lies in maximising the positive spillovers while mitigating the negatives with a forward-looking approach. This entails that while some measures, such as stringent policy actions for space debris mitigation and traffic management, may impose new costs on the space industry, particularly space operators, they will prevent larger economic fallout in the long run and protect the enormous downstream value the satellite sector provides to other industries. Moreover, satellite firms and secondary industries/sectors should actively collaborate to ensure smooth spillovers, avoid conflict, and capitalise on each other’s strengths.
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