New Space Economy: Zurich as an innovation hub for the space economy

A new era has dawned in space travel. The so-called New Space is no longer dominated exclusively by state actors, but increasingly also by private companies. After all, space offers huge economic potential: according to a McKinsey study, an estimated 1.8 trillion US dollars in turnover is possible by 2035.

"The Canton of Zurich is well prepared for this," said Markus Müller, Co-Head of Business and Economic Development Division for the Canton of Zurich, in his presentation on the New Space Economy. "Our location could become an innovation hub for those who think outside the box."

Production facilities in space

Oliver Ullrich, Director of the Space Hub at the University of Zurich, shares this opinion. "We are on the brink of a huge industrial revolution." Today, space is still mainly used for research, but in the future, companies will also produce there. This is because zero gravity is perfect for many industries: for the production of semiconductors, glass fibers and, above all, biomedical products such as medicines or even human organs. "Production in space makes sense and saves money," Ullrich is convinced.

Ullrich sees an opportunity for space as a production location at the end of the International Space Station (ISS), where many insights into weightlessness could be gained. The ISS will be decommissioned in 2030. "This will free up a lot of resources that were previously used for their operation. This will enable us to make a quantum leap."

The key factors for the success of production facilities in space are costs, reliability and the frequency of transportation between Earth and the space station. In addition, the cost-intensive training of astronauts needs to be reconsidered: "Professions in space will become much more diverse," says Ullrich.

Many start-ups in the innovation hub of Zurich

Numerous Swiss companies are already in space today - including many start-ups that are supported and financed by the ESA Business Incubation Center Switzerland. According to Nanja Strecker, Head of ESA BIC Switzerland, these are mainly young companies that develop technologies and materials for space travel, as well as companies that use data generated in space on Earth. "Every one of us uses data from space every day," said Strecker at the panel discussion. "For example, when we use navigation systems or weather apps."

Companies that produce goods for Earth in space and those that only operate in space are still in the minority. However, this could change if hurdles for start-ups are further reduced, says Strecker. Today, there is still a lack of funding and talent. "Competition in the industry is fierce. And the big US tech companies pay higher salaries than a Zurich start-up," says Strecker.

From old to new space

The pace of development is currently being set in the USA, said Holger Wentscher, Senior Vice President Programs Launchers at Beyond Gravity. Beyond Gravity (formerly Ruag Space) manufactures parts for the European Ariane rockets, among other things, and is one of the long-established companies in the industry. According to Wentscher, the successful transfer to the new era is key for the so-called "old space" companies. This succeeds if you find the right niche in the New Space with developments that have already been made.

One of the biggest challenges, however, was the successful market entry in the USA. Wentscher: "Swiss industry must stick together here. That is the basis that is needed."