Interplay of the Public and Private Sectors in the Development of Outer Space

of the Public and

The article presents the results of a study of the interaction between the public and private sectors in the field of outer space exploration.The purpose of the study was to identify the peculiarities of interaction between public authorities and private companies involved in space activities.It has been established that all leading space powers create favorable conditions for attracting private companies to space exploration.The main areas of space activity that are most attractive for private investment are identified: 1) production, launch and operation of spacecraft and launch vehicles; 2)production and operation of ground equipment; 3) space research; 4) satellite observation of the Earth; 5) TV and radio broadcasting and lease of repeaters; 6) satellite internet; 7) mining in space; 8) space tourism; 9) space waste management; 10) cargo delivery to Earth orbit, etc.The current state of the space industry in Ukraine is determined.The main obstacles to space commercialization in Ukraine are also highlighted: 1) legal regulation lags far behind and does not meet the needs of space activities in Ukraine; 2) international agreements are not in line with the level of national regulation of advanced countries and new global trends; 3) Ukraine's space industry is focused mainly on less profitable areas of the space economy, which reduces the attractiveness for private investors; 4) there is no clear distinction between national interests and commercial activities in space; 5) mechanisms for coordinating private, state and public interests in the context of space commercialization are either absent or extremely ineffective; 6) there are no effective mechanisms for attracting foreign capital to space exploration.The authors identify two main competitive models of the interplay between the public and private sectors in space exploration: "American" and "European."It is emphasized that both models can serve as a

Introduction
Several centuries ago, thoughts and dreams about space exploration were the prerogative of scientists and science fiction writers, but today, it is a commonplace that almost everyone can relate to.And if, in the 18 th century, the idea of a "man in space" was a product of the vivid imagination of science fiction pioneers F. Godwin and J. Kepler (in the novels The Man in the Moon (Godwin, 1971) and Somnium (Kepler, 1967), in the 21 st century space tourism is almost ordinariness.
The world is changing, technologies are changing, but the human desire to learn new things and find answers to eternal questions remains unchanged: "what is space?","what awaits humanity beyond Earth?", and "how to reach the stars?".However, if in the second half of the 20 th century the main participants in space exploration were states, today, in addition to nation-states, the private sector is also a participant in the space race.Outer space has ceased to be a sphere of interest exclusively for the state, giving way to other influential actors in the process of making administrative-managerial decisions at both the national and international levels: corporate entities.The interest of transnational corporations in the exploration of outer space, as well as their growing influence on the domestic and foreign policies of national states, is not a new and unique phenomenon.In 2000, the head of the Secretariat of the International Political Science Association, W. Lafferty at the annual conference of the IPSA proposed the concept of "corporate coup" to characterize the impact of corporate entities on socio-economic and political processes in the world (Lafferty, 2000).Twenty years later, big business has become an integral part of national space programs, and the concept of space tourism is not surprising to the average citizen.As the Ukrainian journalist V. Nekrasov aptly noted, "It took humanity forty years to send the first tourist into space after Yuri Gagarin, and another twenty years for private companies to learn how to send tourists into space" (Nekrasov, 2021).
Today, the space industry is perhaps one of the most promising sectors of the economy.The country's membership in the elite club of "space powers" is extremely prestigious and statusbased and, to some extent, reflects the industrial and intellectual potential of the state.To strengthen their competitiveness in the international arena, national governments are creating favorable conditions for business participation in space activities, pursuing several goals: 1) stimulating the development of this strategic industry; 2) attracting additional investment; 3) commercializing the space industry; 4) partially shifting the "financial burden" to the private sector, etc.
Ukraine is claims for a membership in this elite club, and therefore must be prepared for incredible competition in space exploration.Given Russia's aggression against Ukraine and the difficult socio-economic and political situation, the Ukrainian state cannot be the sole beneficiary of space activities, and therefore needs the support of all stakeholders.Only the involvement of all interest groups (private sector and civil society) and the accumulation of all available resources (intellectual, technical, financial, etc.) with their subsequent effective use will ensure Ukraine's place in the "league of space powers." Understanding the nature of the interaction between the public and private sectors in the field of space exploration on the example of the leading space powers will allow us to propose an optimal model of such relations for Ukraine.

World experience of interplay between the public and private sectors in space exploration
The current "space race" is not so much about a rivalry of superpowers seeking to demonstrate their technological, industrial, military and ideological superiority over their opponents as it is a competition between governance models and mechanisms for involving all stakeholders in space policymaking.A few decades ago, space exploration was the prerogative and "duty" of the state alone.This was clearly enshrined in the fundamental international document on space law: The Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies (or Outer Space Treaty of 1967).Article 1 of the Outer Space Treaty clearly states that outer space is open for exploration and use by all "States without discrimination of any kind, on the basis of equality and in accordance with international law, and there shall be free access to all areas of celestial bodies" (Outer Space Treaty, 1967).Today, space exploration, due to its conditional accessibility and commercial attractiveness, is a subject of interest to the private sector, which is both a competitor and a partner of the state in this area.As a result of this trend, relevant government agencies are increasingly relying on the success of business in space exploration and taking its interests into account when developing their programs.In turn, the commercialization of space activities has led to the emergence of a new sector of the economy: the space industry.And the competitiveness of national space programs largely depends on the effectiveness of interaction in the "authorities -businesscivil society -individual" system.
Before proceeding to characterise the relations models between public authorities and the private sector in the field of space exploration in different countries, it is necessary to define the content of the basic concepts: "space activities," "space policy," "space economy" and "space industry."Space activities in the broadest sense are the study of outer space and celestial bodies and their use for practical purposes, carried out with the help of space technology (Netska, 2021).However, this type of human activity is not limited to outer space and can extend to the Earth and other celestial bodies, provided that it is related to the launch of space objects, their operation and return to Earth.The Law of Ukraine "On Space Activities" provides a more detailed definition of this concept.According to Article 1, space activity is "scientific space research, use of outer space, development, production, repair and maintenance, testing, operation, management of space objects (including their units and components), ensuring the launch, launching and return of spacecraft and their components from outer space to Earth" (Law of Ukraine, 1996).In turn, space policy in the broadest sense is the activity of public authorities aimed at carrying out space activities.However, world practice shows that, in addition to national states, coalitions of countries and international organizations are involved in space activities: specialised UN agencies, intergovernmental, non-governmental and regional international organisations, etc. (Bezzubov, 2018).Thus, it is reasonable to say that space policy is the process of making the administrative-managerial decision at the level of a state, a coalition of states, or international organizations regarding the use of outer space for both civilian (scientific, commercial, etc.) and military purposes.
Equally interesting are the approaches to defining the concepts of "space economy" and "space industry."There is some terminological uncertainty, as active business participation in space programmes is a fairly new phenomenon that requires further scientific and theoretical substantiation.For example, the terms "space economy", "space business" or even "satellite industry" are used synonymously with the concept of "space industry".However, the concepts of "space business" and "satellite industry" are narrower, as they only take into account the production and launch of satellites and launch vehicles.Instead, the term "space industry" is much broader and encompasses various sectors that are directly or indirectly involved in the exploration of outer space.In our opinion, the most appropriate approach is to define the space industry as a sector of the economy that provides space-related goods and services (Schrogl et al., 2010).This definition goes beyond a narrow understanding and does not limit the scope of activities to the production and maintenance of space equipment (Bromberg, 2000).All public and private players involved in the development, production, maintenance and provision of space equipment and other services related to space activities are space industry actors (Jolly & Razi, 2007).Accordingly, the space economy is the whole range of activities and resources that create value and benefits for people in the process of exploring, researching, understanding, managing and using space (OECD, 2012).Despite their similarity and sometimes used as synonyms, these concepts are different but also interdependent, just like "economy" and "industry." The low level of regulation of space activities and the high level of investment attractiveness make outer space one of the most promising areas for the private sector.And this is despite the high risk associated with both the use of launch vehicles and the aggressive space environment.After all, the commercialization of space exploration is a kind of "Wild West" frontier for big business, especially in the face of increasing competition in the "full world" (Daley, 2005).
The development of the space industry opens up not only a new area for business development and a new "package" of services for all groups of interests, but also makes it possible to use space technologies in other industries: meteorology, energy, telecommunications, insurance, transport, aviation, urban planning, etc.The space industry is not only a promising industry for commercialization in its own right, but also a powerful catalyst for the growth of other sectors of the economy.The factors that influence the rapid development of the space economy are (ESA, 2019): a) the public interest in space activities; b) an extremely high level of private sector investment in space enterprises, driven by the commercial attractiveness of the industry and the growing venture capital market; c) the number of participants involved in space exploration, including representatives of the private sector, is constantly growing; d) a constant growth of space industry revenues; e) the development of space commercial activities: small satellites/cubesats, micro launchers, space flights, etc; f) a significant competition and market volatility that threatens the "traditional" space industry (but which still generates the bulk of the industry's revenues); g) a rapid development of the NewSpace philosophy; h) the integration of space into society and the economy leads to new socio-economic benefits for businesses and citizens.
According to some experts, the following list can be completed by additional factors of the rapid development of the space economy (Rani, 2022): a) strengthening the relationship between space and climate change, where the space industry is a tool for combating climate change; b) increasing the dependence of national security and space activities; c) the rapid development of satellite internet and other telecommunication technologies; d) the prospect of mining on asteroids; e) the interest in waste management in space; f) the rapid development of space tourism, etc.
The space economy is extremely attractive for private sector investment.One of the largest US bank holdings, Morgan Stanley, estimates that in 2020, the space industry's capitalisation reached $350 billion.By 2024, the industry's revenue could cross the $1 trillion mark (Morgan Stanley, 2020).The British astronomer B. Cox provides no less impressive figures.According to his estimates, every dollar spent on space exploration already brings between $7 and $40 in profit, directly or indirectly (McFarlane, 2019).
No less important is the fact that today, private investment in space activities is estimated to be five times higher than government spending on national space programmes.According to the Euroconsult consulting group, spending on the space industry in 2022 increased by 9% compared to 2021 and reached a record $103 billion.The top 10 countries and state unions with the largest space budgets are as follows: United States ($61.967 billion), China ($11.935 billion), Japan ($4.898), France ($4.204), Russia ($3.417),European Union ($2.599), Germany ($2.527), India ($1.934), Italy ($1.736) and the United Kingdom ($1.154) (Euroconsult, 2022).
The interest in space activities is due to the fact that the space economy, in addition to its own investment attractiveness, is to some extent an umbrella industry that contributes to the intensive development of other sectors of the economy: telecommunications, energy, transport, automotive, tourism, agriculture, etc. Space activities are becoming a kind of trigger for a qualitative technological transformation of all sectors of the economy, increasing their profitability and investment attractiveness both in the domestic and foreign markets.While in the 1990s, the most attractive industry for investment was the IT sphere, today it is the space industry that is claiming to become a trend in the global economy.This is facilitated by the constant reduction in the cost of space activities, the involvement of new start-ups in space exploration, and the rapid development of space technologies.
The following sectors of the space economy are of the greatest interest to the private sector: a) production, launch and operation of spacecraft and launch vehicles; b) production and operation of ground equipment; c) space research; d) satellite observation of the Earth; e) TV and radio broadcasting and lease of repeaters; f) satellite internet; g) mining in space; h) space tourism; i) space waste management; j) cargo delivery to Earth orbit, etc.
According to a report by an analytical and engineering company BryceTech, in 2019, about 75% of the global space economy's turnover was accounted for by space radio communications, the Internet, navigation and satellite Earth observation (BryceTech, 2019).According to the UK publication Aerospace Technology, this is why Luxembourg is among the 10 most active countries in the world in space.The Grand Duchy actively operates communications and remote sensing satellites and is home to the headquarters of two of the world's leading telecommunications satellite operators: SES (Société Européenne des Satellites) and Intelsat SA (Aerospace, 2015).In addition to Luxembourg, the top 10 states actively exploring outer space include the United States, China, Russia, Japan, the United Kingdom, India, Canada, Germany, and France (Aerospace, 2015).Among them, only China and Russia moderately involve the private sector in the development of the space industry, leaving key functions to the state.However, it is worth noting that there are also some attempts to integrate private capital into their national space programmes.In 2018, the Chinese aerospace private company LandSpace Technology Corporation carried out the first launch of the three-stage rocket, ZQ-1, but it was unsuccessful.All other launches that year (38 in total) initiated by the state were successful.For comparison: The United States made 34 launches in the same year, and Russia -20 (BBC, 2019).In turn, the first private space company was founded in the Russian Federation only in 2020 -Success Rockets (from 2022 -SR Space), as a response to the termination of cooperation between NASA and the Russian Federation on the delivery of astronauts to the International Space Station as a result of Russian aggression against Ukraine and the occupation of Crimea in 2014.In the same year, the United States launched a reusable rocket, Falcon 9, produced by the American private enterprise Space Exploration Technologies Corporation.In the summer of 2023, SR Space announced plans to develop and launch the first private launch vehicle, Nebo, for suborbital flights, but most experts consider this prospect doubtful.All other countries actively involve the private sector in the development and implementation of their space programmes.
The European Union is actively working to strengthen the competitiveness of its private sector involved in space exploration.In 2013, the European Commission prepared a policy document "European space industry -competing globally in a complex sector" (European Commission, 2013), in which it proposed mechanisms to improve the competitiveness of the space programmes of the European Union and its member states.The European Commission made adjustments to the EU space programme and strengthened the role of European institutions in regulating the space industry for two reasons: 1) more than half of the European space industry's turnover depends on the commercial market.However, the space market does not follow classical competition rules and is heavily subsidised by governments.Direct support from the supranational union is needed to strengthen the competitiveness of the European Union's space industry with the space industries of the United States, China, and India etc.; 2) the belief that over the next decade, the EU and its member states will be one of the largest customers of the European space industry.Dependence on the "space product" of other countries is a threat to the security and defence of the European community.
Today, the European Union is taking systematic steps to strengthen its economy and space industry by commercializing space and implementing innovative solutions based on space data and technologies: targeted investment programmes in European small and mediumsized start-ups (e.g., the CASSINI initiative) (European Commission, 2022).As a result of this policy decision, the EU has invested heavily in its space industry: over €5 billion in 2007-2012, €11 billion in 2014-2020, and over €14 billion in 2021-2027.According to European Commission analysts, COPERNICUS, Galileo and EGNOS programmes will provide socio-economic benefits to EU citizens worth around €60-90 billion over the next twenty years (European Commission, 2013).
The European space policy defines space activities as a key means of modern existence and competition in the context of technological competition.Strengthening the competitiveness of the space industry by attracting the private sector will allow (European Council, 2023 According to the European Commission research, the European space economy employs more than 231,000 people, and the industry's value in 2017 crossed the €53-62 billion mark (European Council, 2023).
No less interesting for analysis is the model of relations between the private and public sectors in space exploration in the most successful space industry in the world -the United States of America.In 2020, President D. Trump issued the National Space Policy Directive, which clearly states that "a United States commercial space sector that leads in the global space marketplace is foundational to national strategic objectives that include increased and sustained prosperity, free market principles, enhanced international partnerships and collaboration, technological innovation, and scientific discovery, and is vital to United States and allied security" (White House, 2020).The document also proposes mechanisms for strengthening the role of the private sector in space exploration and its priority over the state, if it does not contradict the national interests and security of the United States: "prioritize partnerships with commercial industry to meet Government requirements through the modification of existing commercial space capabilities and services when potential system modifications represent a cost-effective and timely acquisition approach for the Government and are consistent with system and mission-security practices and principles" (White House, 2020).It is worth noting that the extremely important role of business in space exploration is also enshrined in other regulatory documents: SPD The US experience in the interaction of private companies and state institutions in space exploration is illustrative.It is believed that this North American country pioneered the practice of involving the private sector in space activities.The National Aeronautics and Space Administration (NASA) has been working with private aerospace companies such as Lockheed Martin Corporation, Northrop & Grumman Corporation, Boeing Company and North American Aviation since the 1960s.For example, North American Aviation developed the X-15 experimental rocket-powered aircraft, which in 1963 rose to an altitude of 107 kilometers, 7 kilometers above the boundary of outer space.At the time, such cooperation was usually part of secret military projects under the auspices of the US Department of Defence.The interplay between private capital and the government further intensified during the R. Reagan presidency (1981)(1982)(1983)(1984)(1985)(1986)(1987)(1988)(1989), who initiated a long-term programme to develop a global missile defence system with space-based elements -the Strategic Defence Initiative (SDI), better known as the "Star Wars programme." The significant changes in relations between the authorities and business in space exploration occurred in the early 2000s.In 2003, the Space Shuttle Columbia (28 space flights -the shuttle was developed by the private company North American Rockwell) crashed during re-entry into the Earth's atmosphere, which led to a temporary freeze of the manned spaceflight programme, and after a while to the closure of the Space Shuttle programme (in 2011).The years 2004-2010 are considered to be a turbulent period for US space activities.However, already in 2009, the National Aeronautics and Space Administration, at the request of the US Office of Science and Technology Policy (OSTP), convened a working group headed by Lockheed Martin CEO N.R. Augustine, better known as the HSF Committee.The commission was tasked with reviewing the United Statesэ manned spaceflight strategy and plans to ensure that the United States has a "vigorous and sustainable path to achieving its boldest aspirations in space (OSTP, 2009).On 22 October 2009, the HSF Committee published its report "Seeking of US Human Spaceflight Programme Worthy of a Great Nation" (NASA, 2009), which identified five main models for the development of the US space programme, with the priority model being the one involving private companies.
Business was involved in the development of flights to Earth orbit, while NASA remained responsible for flights beyond Earth orbit.The draft US budget for 2011 already reflects this initiative (US Government, 2010).In 2011-2015, the US government and NASA focused on supporting two main areas of private sector space activity: 1) development of manned spacecraft (over $6 billion has been allocated to support the private sector) (Nekrasov, 2021); 2) delivery of goods to Earth orbit.In the first area, the interaction between the National Aeronautics and Space Administration and the private aerospace company Blue Origin is illustrative.In 2012, they jointly tested the engine for the New Glenn super heavy-lift reusable launch vehicle.In 2020, Blue Origin and NASA signed a contract to use the New Glenn for the next decade (Bartels, 2020).The second is the signing of a $1.6 billion contract between Space Exploration Technologies Corporation, better known as SpaceX, and NASA for the transportation of cargo to the International Space Station.Supporting its own private aerospace companies allows the state to minimise its dependence on the space activities of other countries.As part of the Commercial Crew Programme, the US space agency has allocated $2.6 billion to SpaceX and $4.2 billion to Boeing to develop a manned spacecraft to stop using Russian Soyuz spacecraft to transport crew and cargo to the International Space Station (ISS).Economists estimate that every dollar invested in the US space programme brings an average of $7 in commercial benefits over the next 18 years (BusinessViews, 2019).
Undoubtedly, the "American" and "European" models of public-private sectors cooperation in space activities are not exhaustive, and there are other approaches to space commercialisation.However, in our opinion, these two models are the most competitive and best suited to Ukraine's domestic political agenda and foreign policy vector.

Ukrainian experience of interplay between the public and private sectors in space exploration
Ukraine is a state with a glorious history of space exploration, but it is important that it has an equally famed space future.The answer to this question depends on many factors, including the competitiveness of the Ukrainian model of public-private cooperation in space activities.
Ukraine has been and remains competitive in the space technology market.According to some experts, in 1991, Ukraine inherited one third of the industrial space potential of the former Union of Soviet Socialist Republics (Krawec, 1995).Even today, at a difficult time for the domestic space industry, Ukraine is among the TOP 5 countries with a full cycle of rocket and space technology production (NAS of Ukraine, 2019).In addition, since independence, more than 150 Ukrainian rockets have been launched from various launch sites: Baikonur, Vallops, Plesetsk, Sea Launch platforms, etc.; more than 380 spacecraft were launched into Earth orbit, including the Mohammed VI-B spacecraft developed by Airbus Defence and Space at the request of the Moroccan government; a fourth stage upper stage engine block for the Vega launch vehicle was developed at the request of the European Space Agency (ESA); six space programmes have been implemented (though not fully), etc.
Ukrainian state institutions directly related to space activities (more than 30 space industry enterprises) are also world-renowned.These include Dnipro state-owned enterprises Yuzhnoye Design Bureau named after M.K. Yangel and Production Association Yuzhny Machine-Building Plant named after A.M. Makarov, Kharkiv-based JSC Khartron and SOPE Obednannya Komunar, Kyiv-based SE Kyivprylad, PJSC Kurz and PJSC Elmiz, Chernihivbased PJSC Chernihiv Plant of radio equipment, etc.
Until recently, the space industry was a budget-forming industry in Ukraine.According to Horbulin's estimates, the industry's enterprises annually fulfilled more than 150 international contracts worth up to $450 million.Even after Russia's aggression against Ukraine in 2014, taxes and mandatory payments to the country's budget "amounted to more than ₴1 billion, which was 10-15 times higher than the funding received under state space programmes" (Horbulin, 2020).And in the best years, exports of space industry products and technologies reached 60-75% of the industry's total turnover.
On the sixtieth anniversary of the first human space flight on 12 April 2021, the Day of Rocket and Space Industry of Ukraine, President of Ukraine V. Zelenskyy noted that there are two main tasks of the state in the space industry: "We must preserve everything that has been done by older generations.And at the same time, we must make every effort to ensure that the successes of the past years are not the only ones.Our generation must make a significant contribution to the development of the space industry" (Ukrinform, 2021).After all, in the context of full-scale Russian military aggression, the space industry is a key element of Ukraine's national security and defence.
Today, Ukraine spends slightly more on space exploration than African countries.For example, in 2016-2018, Ukraine spent about $320 million on space activities, while Algeria spent $278.5 million and South Africa spent $68.3 million.This is partly a result of Ukraine's neglect of the most profitable sectors of the space economy (telecommunications, the Internet and satellite Earth observation); the outdated technological base of the domestic space industry; insufficient funding for the industry (at 30% of the planned level, for example, for the fifth space programme (2013-2017), ₴377 million was allocated out of the planned UAH 1109 million; the lack of an effective model of interaction between the government and business, which could partially compensate for the limited state spending on space activities; inefficiency of public administration, etc.
To a certain extent, these problems are a Soviet legacy, partly due to the lack of a systematic vision of the future of Ukraine's space industry among the state's leadership and relevant state institutions.The first space programmes of independent Ukraine were mainly focused on preserving the potential inherited from the USSR: the foundations were laid for a system focused on the full cycle of rocket and space technology development, launching spacecraft for various purposes, their operation in Earth orbit, etc. (Horbulin, 2020).According to the director of the Space Research Institute of the National Academy of Sciences of Ukraine, O. Fedorov, the introduction of a new competitive model of space activities is a necessary step to "restart" the national space industry, where the main goal is not "strategic pursuit in the name of leadership" but the implementation of the sustainable development principles and customer focus (Surzhyk, 2019).According to the scientist, today the effectiveness of space programmes "...is assessed not by the number of launches, but by the answers to the following questions: how much will the security of the country and the region increase, what is the benefit of disasters forecasting or assessing emergencies, how to improve specific management decisions" (Surzhyk, 2019).This task is extremely important, because, as noted above, not only the "status" and prestige of Ukraine, but also the prospects for further economic development depend on the effective functioning of the space industry.The state and prospects of the space industry directly affect the quality of national security and defence, the effectiveness of implementing the principles of sustainable development (or, in the case of Ukraine, sustainable recovery from the consequences of war), the depth of resource monitoring, the systematic nature of environmental protection and climate change, the efficiency of the agricultural sector and the competitiveness of communication and navigation services, etc.
The current space race is a competition to improve positions in the international division of labour; a struggle for market share of space products and services; global competition of national governance models; a competition to expand foreign policy potential and strengthen the state's regional positions.Therefore, the question of the need to find and further implement a model for the functioning of the national space industry that would meet the challenges and threats of today and be a structural element of Ukraine's development strategy is rhetorical.The strategy of space activities should be focused on the realisation of the national interests of the state and the satisfaction of social needs, and in no case be a "hostage to historically established trends" (Horbulin, 2020).As O. Fedorov aptly noted, "we inherited not only the Soviet space potential, but also the way of thinking" (Surzhyk, 2019).The disadvantages of this inheritance need to be overcome, and the advantages preserved and multiplied.
Developing a competitive national space strategy requires taking into account a number of important factors, both global and Ukrainian: the transformation and commercialisation of space activities; the security component of the space industry in the context of full-scale Russian aggression against Ukraine; reorientation of the space industry to other markets (both foreign and domestic); reforming the space management system as a structural element of an effective public administration system; determining the foreign policy vector of Ukraine, etc.
According to V. Horbulin, the implementation of a competitive model of space activities in Ukraine involves the following steps (Horbulin, 2020): a) formulation of the strategy and tactics of Ukraine's space activities as a component of the national development strategy of the state; b) building an effective vertical management of space activities in the state authorities system; c) reforming the domestic space industry; d) systematic state support for scientific and technical projects aimed at developing and modernising infrastructure as a factor in attracting foreign investment; e) creation and development of the domestic market of space technologies and information; f) stimulating scientific research and innovative developments in promising areas of space activities; g) harmonisation of programme and strategic documents with the European Space Strategy; h) comprehensive update of the space legislation of Ukraine.
In our opinion, the implementation of a competitive model of space activities, in addition to the above steps, requires strengthening interaction in the system "authorities -business." The socio-economic and political situation in the country, taking into account all internal and external factors, is unfavourable for active space exploration and the development of the resource-intensive space industry.However, despite this, it should be acknowledged that certain steps have already been taken to strengthen cooperation between the public and private sectors.In his interview, V. Taftai (Head of the State Space Agency of Ukraine in 2021-2022) stressed two important points that determine the prospects for implementing the model of government-business cooperation: 1) Ukraine has decided on its foreign policy course, and the State Space Agency of Ukraine plans to join the European Space Agency in 2024; 2) only in 2019, the Law of Ukraine "On Space Activities" was amended to allow private companies to operate in the space industry.The amendments to the law came into force in 2020 (Taftai, 2021).
According to Article 1 of the Law of Ukraine "On Space Activities," the subjects of space activities are "enterprises, institutions and organisations of any form of ownership and legal form, including international and foreign ones, which carry out space activities" (Law of Ukraine, 1996).A private space entity that intends to carry out space activities is obliged to submit a declaration on conducting economic activities in the field of space activities to the central executive body that ensures the formation and implementation of state policy in the field of space activities.In turn, space entities, regardless of their form of ownership, are controlled by the state, which issues permits for certain types of space activities, exercises state supervision (control) over compliance with the legislation on space activities in Ukraine, and bears international responsibility for their activities in outer space, etc. (Law of Ukraine, 1996).Taking into account this law and other regulations governing the space industry in Ukraine, it can be concluded that "space activities can be considered as a type of economic activity with its own characteristics" (Netska, 2021).Article 10 of the aforementioned regulatory document establishes a list of types of space activities that require the permission of state authorities: testing (except for computer tests) of launch vehicles, including their units and components, and spacecraft; starting launch vehicles and/or spacecraft; control of spacecraft in Earth orbit or outer space; return of spacecraft and/or their components from Earth orbit or outer space to Earth (Law of Ukraine, 1996).
Despite changes in Ukraine's legislative framework and the implementation of a mechanism for involving the private sector in space exploration, significant obstacles to space commercialisation remain: 1) legal regulation lags far behind and does not meet the needs of space activities in Ukraine; 2) international agreements are not in line with the level of national regulation of advanced countries and new global trends; 3) Ukraine's space industry is focused mainly on less profitable areas of the space economy, which reduces the attractiveness for private investors; 4) there is no clear distinction between national interests and commercial activities in space; 5) mechanisms for coordinating private, state and public interests in the context of space commercialisation are either absent or extremely ineffective; 6) there are no effective mechanisms for attracting foreign capital to space exploration, etc.For example, the Law of Ukraine "On State Support of Space Activities" does not meet the current needs and interests of all space actors (The Law of Ukraine, 2000).The law focuses exclusively on supporting the public sector of space activities.
As a result, Ukraine is losing the opportunity to implement competitive space industry projects in cooperation with the private sector, which would contribute to the security of the state and the development of related sectors of the economy: the private US-Ukrainian aerospace company Firefly Aerospace (founded by Ukrainian M. Polyakov in 2017) is one of nine private companies that send landers as part of the lunar exploration programme commissioned by NASA; Space 1000 -(founded by D. Rudenko), a closed community of entrepreneurs, IT specialists and top managers of leading Western companies specialising in launching collectible coins and precious metals into space; Spacebit, a private British-Ukrainian company (founded by P. Tanasiuk in 2017) specialising in the launch of small lunar rovers; SpaceVR, specialising in space exploration using virtual reality, etc.
Given the glorious history of national cosmonautics, the formation of an innovative and competitive commercial space sector can become both a symbolic and a real catalyst for Ukraine's sustainable development and its emergence as a regional hegemon.Take into consideration the foreign policy vector of Ukraine, enshrined in the Constitution (Constitution of Ukraine, 1996), the "American" and "European" models of interaction between the public and private sectors in the development of outer space are more relevant.Given Ukraine's historical heritage, governance system and aspirations to become a member of the European Union, as well as the lack of sufficient resources to implement the "American" model of space activities (US space spending per capita is $73, EU -€10, and Ukraine -2 hryvnias), the "European" model is the most optimal.

Conclusions
The space industry is a marker of a state's competitiveness in the international arena.Today, no country can compete for the top spot in space exploration on its own, without cooperation with other countries and international organisations.However, in addition to international partners, the space programme also has a domestic partner -business.Effective interplay between the public and private sectors in the development of outer space is one of the formulas for the success of the state.Ukraine is faced with the task of finding and implementing its own model of interaction between the state authorities and private capital in the field of space exploration to strengthen its competitiveness and direct space technologies and data to meet the socio-economic needs of its citizens.The evolution of interaction between space actors has gone through a cyclical path: from the interest of individuals and society as a whole to the competition of superpowers for the exploration of outer space, to the commercialisation of this industry and, finally, to the orientation of space services and goods towards the needs of society and humans.Understanding the nature of such interaction between space exploration participants allows us to find and implement an optimal model of such relations for Ukraine.

 References
Aerospace (2015) The 10 countries most active in space.Available online: https:// www.aerospace-technology.com/features/featurethe-10-countries-most-active-inspace-4744018/ ): a) to create additional jobs and attract private investment to Europe; b) to stimulate the development of science and research (knowledge economy); c) to strengthen other EU policies in the areas of security and defence, industry, digital technologies, etc.; d) to accelerate the recovery of the European economy after the COVID-19 crisis; e) to fight climate change more effectively.
-2: Streamlining Regulations on Commercial Use of Space, SPD-3: National Space Traffic Management Policy, SPD-4: Establishment of the United States Space Force, SPD-6: National Strategy for Space Nuclear Power and Propulsion, SPD-7: the United States Space-Based Positioning, Navigation, and Timing Policy; executive orders: 13914: Encouraging International Support for the Recovery and Use of Space Resources, 13905: Strengthening National Resilience through Responsible Use of Positioning, Navigation, and Timing Services; US Commercial Remote Sensing Space Policy, NAO 217-109: NOAA Commercial Space Policy etc. (OSC, 2023).