OECD Global Forum on Space Economics 10 (e): The Space Sector and International Trade

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OECD Global Forum on Space Economics10 (e) The
Space Sector and International Trade An
OECD/SG/AU reportPierre-Alain Schieb, Claire
Jolly
Joint 8th International Trade Statistics (ITS)
and Trade in Services (TIS) Session Session 10
- Paris, 8 September 2007
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Advisory Unit to the Secretary-General (SGE/AU)
International Futures Programme (IFP)

• Multidisciplinary team, created in 1990,
  reporting directly to the Secretary-General of
  the OECD
• Mission Identify and explore emerging policy
  issues (management of new emerging risks, the
  security economy, the bio-economy)
• Participation / Project Funding Involvement of
  governmental bodies and private actors in each
  (self-financed) project

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OECD and the Space Sector

• 2 year IFP Futures Project The Commercialisation
  of Space and the Development of Space
  Infrastructure The Role of Public and Private
  Actors (2002-2004)
• Results 2 OECD publications and recommendations
  to policy-makers for a sustainable space
  infrastructure

2004
2005
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New Mandate (2006-2008)

• Demand from governments for further OECD work on
  space statistics and indicators
• 9 organisations (key space agencies, other
  institutions) joining in the OECD Global Space
  Forum
• Objective collect and evaluate existing data
  and socio-economic indicators, to provide
  evidence-based analysis and assist
  agencies/governments in shaping policies to
  contribute to ensuring that the potential of
  space is more fully realised

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Defining the Space Economy

• The space economy embraces
• All public and private actors involved in
  providing space-enabled products and services. It
  comprises a long value-added chain, starting with
  the manufacturers of space hardware (e.g. launch
  vehicles, satellites, ground stations) and ending
  with the providers of space-enabled products
  (e.g. navigation equipment, satellite phones) and
  services (e.g. satellite-based meteorological
  services or direct-to-home video services) to
  final users.

Source OECD (2007), The Space Economy at A
Glance, OECD, Paris
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The Space Economy at a Glance

• First OECD publication to look at the space
  sector to be released in Oct. 2007
• Statistics and Indicators on the Space Economy
• Examine multiple aspects of the Space Economy
• e.g. Goods, Services, Budgets, RD, Human
  Capital, Patents
• Diverse Data Sources Both Official and
  Unofficial
• Official OECD and Governments (e.g. NSOs and
  space agencies)
• Unofficial Industry Associations (e.g. GIFAS,
  AIA) and Private Consultants
• Coverage
• OECD include all major OECD players
• non-OECD include Russia, China, India, others

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A significant and expanding high-tech sector

• Relatively few countries are producers of
  space-related goods, but many are
  customers/users (e.g. meteorology)
• Economic estimates on the sector vary widely
  (lack of internationally comparable data)
• Worldwide institutional budgets of around USD 45
  billion in 2005 for OECD countries alone
  (probably more with unpublished defence-related
  programmes)
• Commercial revenues from space-derived products
  and services around USD 110-120 billion in 2006
  worldwide (small upstream activities, i.e.
  rocket manufacturing vs. large downstream
  activities, telecom, navigation)
• Underlying trend in the space economy is one of
  growth

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Downstream space activities (applications) often
much larger than upstream segment
(manufacturing), e.g. UK
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Globalisation of Trade in Space Products and
Services

• Focus OECD countries
• International Trade in Commodity Statistics
  (ITCS) database
• Two Harmonized System (HS) codes employed which
  indicate space-related elements (but not only)
  
• (1) HS880260 (Spacecraft, including satellites,
  and suborbital and spacecraft launch vehicles)
  and
• (2) HS880390 (Parts of balloons, dirigibles, and
  spacecraft not elsewhere specified).

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Figure 1. Amount and share of OECD space products
exports, 2004 (Exports in millions of current US
dollars and as a percentage of OECD total )
Exports in 2004 USD 3.74 billion (total for the
two HS codes)
Source OECD (2007), The Space Economy at A
Glance, OECD, Paris Note Data derived from the
OECD/UN International Trade in Commodity
Statistics (ITCS) database, April 2007
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Figure 2. OECD Exports of Space Products
1996-2004 (Exports in billions of current US
dollars)
Source OECD (2007), The Space Economy at A
Glance, OECD, Paris Note Data derived from the
OECD/UN International Trade in Commodity
Statistics (ITCS) database, April 2007
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Challenges to overcome in data collection

• Trade two codes, one of the two includes
  non-space and space, not available in all
  countries
• Dual use activities some space-related products
  are considered sensitive and are not traded / or
  may be exported under strict technology transfers
  regimes (i.e. Wassenaar Arrangement)
• High level of data aggregation aerospace vs.
  space manufacturing versus services
• Confidentiality One / few companies for country
• Non-OECD countries Obtaining trade-related data
  difficult

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Next steps for space-related statistics
indicators

• Towards a list of space-related indicators
  comparable internationally
• Choice of Space Forum Steering Group members
• Contacts with NSOs, industry associations
• Need to drill down on TRADE in downstream
  space-related services (telecom industry, GPS
  industry)

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What can be done at OECD level?

• We have a pilot group of interested parties
  within OECD Forum on Space Economics with
  assistance from NS0s on a voluntary basis
• Current developments at ISIC level (Revision 4)
  with satellite communications activities better
  represented (i.e. new Class 6130)
• Probably some interesting experience in terms of
  trade in ICT sector?
• Lessons learned from ICT sector?

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Problematic of Pinpointing to Specific
Application e.g. GPS devices

• HS Codes
• 90.14 Direction finding compasses other
  navigational instruments and appliances.
• 9014.10 - Direction finding compasses
• 9014.20 - Instruments and appliances for
  aeronautical or space navigation (other than
  compasses)
• 9014.80 - Other instruments and appliances (incl.
  Instruments and apparatus of 9014.80, used solely
  or principally with an automatic data processing
  machine of a kind used on sea-going vessels)
• 9014.90 - Parts and accessories
• We are interested in possible experiences from
  delegates (e.g. ICT sector)

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• Thank you.
• Pierre-Alain Schieb
• Counsellor, Head Futures Projects
• pierre-alain.schieb_at_oecd.org
• Claire Jolly
• Policy Analyst
• claire.jolly_at_oecd.org
• More information www.oecd.org/futures