The Importance of Political Economy of Space Technology

 
Introduction: Among the 196 countries worldwide, 134 actively engage in basic space technology and services. Governments annually allocate $117 billion to space technology development. As of this writing, over 9,900 satellites orbit Earth, with telecommunication satellites comprising the largest segment at 3,135. The United States leads with 2,926 satellites, and an average of 197 launches occur annually to maximize space utilization. By 2028, over 15,000 active satellites are projected to be in Earth's orbit. Despite economic challenges like poverty, inflation, and unemployment, many countries continue to invest in national space programs. Some nations, such as Saudi Arabia and the UAE, leverage their financial resources to participate in extensive space programs led by countries like China and the United States. This research aims to explore the reasons behind countries' investments in national space programs, even in the face of economic constraints. It argues that not only are the costs of investing in space programs lower than the costs of not investing, but there are no viable alternatives.
Methods: This article analyzes the political economy of space technology through analytic eclecticism, an approach that integrates causal mechanisms from multiple theories, models, and explanatory narratives across competing research traditions. The goal is to create a coherent and adaptable research framework capable of addressing complex problems, concepts, methods, and causal arguments. The study employs abductive reasoning, beginning with observations and then proposing the simplest and most plausible explanations.
Results and discussion: Using an integrated approach to political economy, this research examines space technology through the lens of four theoretical frameworks: economics, management, political economy, and international relations. According to the theory of multilateral monopoly, nations invest in developing indigenous space technology to escape dependency deadlocks caused by monopolistic control. Weaponized interdependence theory highlights how interdependence can be exploited, enabling governments controlling key nodes to wield their position as a tool of power. This poses threats to national security, driving countries to localize space technologies—such as satellite television, telecommunications, and navigation systems—to reduce reliance on external powers and mitigate risks of exploitation. Another critical dimension of space technology is its role in forming networks of influence, ranging from ordinary citizens to institutions, universities, and military centers. Space technology cascades through interconnected sectors, significantly influencing national authority, international prestige, and credibility.
Conclusion: Space technology, with its dual-use capabilities for both civilian and military applications, impacts diverse aspects of human life. Considering intergovernmental interactions and the role of these technologies in international relations, space technology encompasses social, security, and political dimensions. Nations that invest in this domain achieve multiple objectives simultaneously, enhancing economic, political, and strategic advantages. Given the broad utility and transformative potential of space programs, investment in this sector remains a priority for both developed and developing nations. Space continues to be one of the most promising and beneficial areas of investment, with its significance expected to grow in the foreseeable future.