SpacEconomy – Advancing Sustainable Economic Growth through Space Economy

Key members of SpacEconomy at the kick-off meeting

The SpacEconomy project strengthens Finland’s position in the rapidly growing global space economy. A key challenge is the fragmentation of Finland’s space-related activities and the underutilization of growth potential. By promoting innovation, education opportunities, and cross-sector collaboration, we bring together experts from science, industry, business, and the public sector to enhance the foundations of economic growth, productivity, and societal well-being through the space economy.

The space economy encompasses activities that create value through space research, data, management, and utilization. Satellite technologies address challenges in communication, navigation, and environmental monitoring while driving economic growth and well-being. The global space economy is projected to exceed $1.8 trillion by 2035 (McKinsey, 2024), with growth driven by AI and machine learning in sectors such as agriculture, transportation, energy, and risk management. OECD (2024) and EUSPA (2024) highlight space’s role in climate adaptation and services like GNSS and EO for mobility and monitoring. Finland’s strong academic expertise and public funding have enabled entry into the commercial “New Space” domain, leveraging Finland’s ICT and sustainability strengths.

Earth Observation (EO) supports sustainability by tracking emissions, natural disasters, and biodiversity. EO is estimated to unlock $700 billion in economic opportunities and enable 2 gigatons of greenhouse gas reductions by 2030 (WEF/Deloitte, 2024). Space activities create jobs, support the UN Sustainable Development Goals (SDGs), and require AI for efficient data processing.

Within SpacEconomy, we develop space-data-driven AI innovations, multidisciplinary education pathways, and new business models. We promote fair and sustainable growth using metrics beyond GDP and engage stakeholders from all sectors of society through citizen and expert panels. The project is multidisciplinary, combining expertise in space technology, economics, governance, social sciences, and AI to drive systemic change. In collaboration with diverse actors, we strengthen national resilience and safeguard critical infrastructures.

Key outputs include a national roadmap for space economy growth, strategies to improve productivity and competitiveness, policy recommendations, and education pathways through institutional collaboration and openly available MOOCs.

Research Implementation

The project is organized into eight work packages (WPs):

  • WP1 builds the space data ecosystem by integrating open Earth observation and satellite positioning data into AI- and machine-learning-driven pipelines for advanced visualization and analysis. Led by Professor Johanna Tamminen, Finnish Meteorological Institute.
  • WP2 develops science-based education to address the growing skills gap, fostering collaboration and synergies among educational institutions. Led by Professor Emilia Kilpua, University of Helsinki.
  • WP3 promotes productivity growth and the development of business models and innovations in Finland, with international networks such as Winter Satellite Workshop, ESA BIC, and ESA Phi-lab. Led by Professor Jaan Praks, Aalto University.
  • WP4 focuses on sustainable space economy governance, integrating results from other WPs into a national roadmap through co-creation with stakeholders from government, industry, academia, and citizens. Led by Professor Arto Ojala, University of Vaasa.
  • WP5 strengthens national resilience and preparedness by safeguarding critical space-based services—particularly Positioning, Navigation and Timing (PNT) and Earth Observation (EO)—against natural, technological, and intentional disruptions. Policy recommendations will address space resilience and space debris monitoring and management. Led by Hannu Koivula, National Land Survey of Finland.
  • WP6 uses futures research and citizen engagement to assess long-term impacts of space economy development on societal well-being and public services, with case studies on regional growth, environmental resilience, and infrastructure security. Led by Research Director Marikka Heikkilä, University of Turku.
  • WP7 manages project interaction and dissemination through workshops and events. Communication and engagement led by interaction coordinator Jari Mäkinen, Kupla Productions Oy.
  • WP8 supports all WPs through project administration and coordination, steering group work, reporting, open science practices, and risk management. Led by Professor and Principal Investigator of SpacEconomy project, Heidi Kuusniemi, Tampere University.

Scientific Objectives

Our research examines sustainable utilization of the space economy from perspectives of commercialization, productivity, regulation, well-being, and collaboration models. Key questions address business models, data use and governance, and impacts on employment, equality, and ecosystem innovation. Methods include economic modeling, AI-based data integration, policy scenario development, qualitative field research, and co-creation, drawing on theories of networks, resource dependence, and ecosystems.