Thursday, July 26, 2018

Assessing the 2016 State of the Canadian Space Sector Report

         By Chuck Black

The 2016 State of the Canadian Space Sector, the latest in an annual compilation of Canada's space capabilities produced by the economic analysis and research team at the Canadian Space Agency (CSA), is now online.

Cover page c/o CSA.
As outlined in the December 4th, 2017 post, "The Latest CDN Space Sector Report Notes 5 Year Slump (Except for BC) & Industry Dominates, Not Academia or Gov't," the 2015 report noted a five year stagnation in space focused activities going back to 2010.

The article noted that the domestic slump was in line with international markets during that time.

But the 2016 report has noted a continuous improvement in the international market while the domestic market continues to shrink. It also noted a Canadian workforce which, while increasing, has still not rebounded to 2014 levels.

As outlined in the latest document:
  • In 2016, total revenues in the Canadian space sector came to $5.5B, representing an overall increase of 4%, or $232Mln CDN, year-over-year.
  • The average annual growth rate of the space sector between 2014–2016 was relatively low, at 1.36%. Domestic revenues decreased by 4% year-over-year and totalled $3.5Bln CDN in 2016. 
  • Non-government revenue, at 87%, continued to make up the majority of domestic revenues. 
  • The remaining 13% of domestic revenues were derived from Canadian governments (federal, provincial and municipal), mostly through federal funding.
Overall, in 2016, the Canadian space sector supported a total of 21,654 jobs of which 9,883 were listed as "space-related full-time equivalents (FTEs)" and with 41% of the positions being listed as high quality positions (HQP).

As always, most of those jobs came from the private sector although academic sector positions made up nearly 20% of the workforce.

Business Expenditures on R&D (BERD) were $254Mln CDN in 2016, a minor decline from the previous year. Industry commercialization of R&D projects that were initially funded by public monies more than doubled in 2016, reaching $123Mln CDN.

Page 7 of the 2016 State of the Canadian Space Sector Report. For an overview on the various methodologies used to measure economic impact, check out the April 1997 Economic Development Research Group paper on "Measuring Economic Impacts of Projects and Programs." Screenshot c/o CSA.

As well, Canadian space companies derived $123Mln CDN in revenues through the commercialization of externally funded R&D projects in 2016, a significant increase over 2015.

Space sector organizations also reported a total of 183 inventions in 2016, of which 42% were patented. This is an area the CSA went into a little more depth with as part of its collaboration with the Canadian Intellectual Property Office (CIPO) to produce the first Canadian "Patents in Space Report," released earlier this month.

While the newfound focus on intellectual property was welcome and noteworthy, especially given that current CSA president Sylvain Laporte was CIPO CEO from 2011 - 2015, it's not the last or even the only word on the matter.

After all, some commercial companies don't even collect patents.

Also, as outlined in the September 18th, 2016 post, "Rocket Companies, But Not SpaceX, Are Collecting Rocket Patents," Canadian patents are focused around Canada's Mobile Services System (MSS), which is used on the International Space Station (ISS).

As noted in this graph from the 2016 report, overall revenue for domestic space companies has finally increased past 2014 levels because of growing international sales, although domestic sales continue their decline. Graphic c/o CSA

Overall revenue for domestic space companies has finally increased past 2014 levels because of growing international sales, although domestic sales continue their decline. The workforce has still not rebounded to 2014 levels.

As outlined in the the presidents message section of the document:
The 2016 report is based on information gathered from 150 organizations involved in space activities from across Canada, including small businesses, multinational space companies, not-for-profit organizations, research centres and universities. It details the economic activity generated in the Canadian space sector and highlights the impact of space investments on the economy. 
Chuck Black.
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Chuck Black is the editor of the Commercial Space blog.

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