Biology – Quantitative Biology – Quantitative Methods
Scientific paper
Jan 2002
adsabs.harvard.edu/cgi-bin/nph-data_query?bibcode=2002iaf..confe.265z&link_type=abstract
IAF abstracts, 34th COSPAR Scientific Assembly, The Second World Space Congress, held 10-19 October, 2002 in Houston, TX, USA.,
Biology
Quantitative Biology
Quantitative Methods
Scientific paper
The purpose of this paper is to examine the hypothesis that commercialisation of space results in inefficient contracting policies by the space agencies, using the US NASA as a case study. Though commercialisation is seen by many as a way to reduce costs in space programmes, as the space industry is seen as a decreasing costs industry, this is not a problem-free process. Commercialisation of space has affected the US and European space industries and policies in two major ways. The first is that the public sector actively encourages mergers and acquisitions of major contractors, confined, however, within the geographical borders of the US and Europe. This follows largely from the perceived benefits of economies of size when competing in global commercial markets. The second is the formation of an increasing number of public-private partnerships (PPPs) in space programmes and a more `cosy' relationship between the two within a public-assistance strategic trade theoretic framework. As ESA's contracting policy of `juste retour' is marked by limited competition, the paper focuses on the case of NASA, which is expected to be more pro- competitive, to examine the impact of commercialisation. With the use of quantitative methods based on time series econometric analysis, the paper shows that NASA's contracting policy, results in increasingly less competition and more rent-favouring contracting. This is attributed to the decreasing number of major contractors in conjunction with the preferential treatment of the domestic space industry (`Buy American'). The results of the paper verify that the support of the domestic space industry in commercial and public space markets results in inefficient contracting policies, with NASA facing the conflicting tasks of a stated policy of enhancing competition and efficiency in contracting, as well as, supporting the competitiveness of the domestic space industry. The paper concludes with an analysis and assessment of solutions to this dilemma. 1 meeting.
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