Today in the global space-rocket industry we see the rapid growth of New Space and Emerging Space companies, which represent private space firms or start-ups. There are also diverse private space projects in Russia. The article presents a comparative review of the US, the EU and the Russian government policies in creation of the institutional environment for the development and stimulation of national space business. We also analyzed the current state of private space enterprise in Russia, its main representatives, the current situation of the sector and institutional conditions, which favor and impede its development. We discovered that the institutional environment of domestic space startups functioning in the space sector has significant weaknesses, among which we mark low state demand and weak system of order stimulation by the government. We also mark archaic legislation or lack of it, significant administrative barriers, lack of developed financial institutions in the country. The article points out possible perspectives and provides recommendations for improving the institutional environment for private enterprise development in the Russian space industry. The obtained results may be helpful to public authorities responsible for the development of the space-rocket industry and to the decision-making officials; to space industry analysts; to private companies and entrepreneurs who want to create and implement projects in the space industry having benefits.
Highlights:
- Today we see an increase in the business activity of private companies and increase in their number in the space industry
- Private space companies and start-ups are already present in the downstream, upstream and in the space sector segments
- The issues of development and improvement of the mechanisms of interaction between government and private sector in the space industry become important
- Almost all the private space companies in Russia are concentrated in a space technology cluster of Skolkovo innovation center
- Institutional environment in Russia is the most difficult for private activities in the space industry compared with the US and the EU
- Strategically preferred composition of the domestic space industry must include the coexistence of private and public components
- Update of legislation and revision of administrative barriers are critical as factors of improvement of institutional conditions for the development of Russian private initiative in the space industry
- In terms of absence of B2G business schemes on the national market, the Russian space startups should at first focus on business based on B2B and B2C models, and at the international level.
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