Space has no limits

Elements for downstream

innovation in Switzerland

ESA Forum on Innovation in European downstream activities

Harwell, June 9, 2016

Johann Richard / SERI/Swiss Space Office / @johannrichard Credit: ESA / NASA

Switzerland in Space

Why?

© ESA / NASA

Applications

Curiosity

Niches

© ESA, EC

Swiss Space Policy &

Implementation Plan

Source: ESA

• Guides Scientific,

Innovation, and Industrial

Policy

• Mandate for the Swiss

Space Office to implement

the policy with and through

ESA (ESA is our agency)

• Complemented with other,

targeted initiatives (e.g.

bilateral cooperation, other

institutional engagements)

Switzerland’s ESA Contribution in 2016 (Expected)

146 MEURGeneral Budget

8.9 MEUR 6%

Science20.1 MEUR

14%

PRODEX17.0 MEUR

12%

Human Space Flight &

Exploration16.3 MEUR …

Earth Observation 23.3 MEUR

16%

Technology, Telecommunication &

SSA18.1 MEUR

12%

Navigation0.7 MEUR

0%

Launchers and the Guiana Space

Centre42.1 MEUR

29%

For Switzerland, …

Technologies

Products

Downstream

Services &

Start-ups

Systems

& Missions

… ESA is the Space Innovation Engine

Steady growth: 48 newcomers over 4 years

+ 24

+ 12+ 9 + 3

189

210219

227 229

+ 13% / + 24+ 19% / + 36 + 24% / + 45

+ 25% / + 48

+ 0

+ 50

+ 100

+ 150

+ 200

+ 250

ESA & National contracts(incl. historical participation, excl. consolidated entities)

Delta #

#

Delta cumulative

What about

downstream?Lessons learned and

an outlook

The early years(2009-2012)

Baby-steps to test the approach

(2009-2012)

1 MEUR in ESA Integrated

Applications Promotion

Programme

~ 9 Projects

11 Entities

Loosely coupled consortia

“Usual suspects” from the

Space community as main

actors

Largely centred around

“traditional” space

capabilities

Igniting an

ecosystem(2012-2016)

IAP-Push3yr National

Initiative

AP-SwissAmbassador

platform

OutreachTargeted

Experiments

An integrated, scalable approach

~ 7+ MEUR IAP Budget

~ 20 Activities

~ 30 Entities involved

Individual actors from

Switzerland

90% Newcomers

Strong involvement of

various Satellite Services

Operators in downstream

activities

Very diverse type of

projects / areas

Strong investment

leverage

Examples of activities (Sample)

Law enforcementElectronic Offender

Monitoringproviding secure, reliable and precise positioning

and surveillance means worldwide

Examples of activities (Sample)

Sea Searchthe development of an added value service

designed for maritime surveillance based on

mobile phone detection and identification of

suspect vessels using AIS and EO imaging

Maritime Security

and Surveillance

Examples of activities (Sample)

Real Time Cargo Monitoringintegrating satellite communications, SAT-AIS with

a custom for advanced, real-time monitoring of

assets and shipments

Transport and

Logistics

Examples of activities (Sample)

Precision Farming Serviceintegrating satellite communications, a custom

long-endurance solar-powered autonomous UAV

and custom hyperspectral camera technology

Agriculture

LearningsTypes of Activities,

Growth and Leverage

Types of activities

Consultancywith an entity

providing user or

expert input, but

not participating in

service exploitation

“Pure” Serviceusing only “off the

shelf” technology or

other components

sourced from third-

parties

Hybrid Techwith unique

technology

components

leveraged by the

service

70%of funded activities

are “hybrid” leveraging unique

technology components

with the service

91%of activities by

start-ups are

“hybrid” activities36%of activities by SME’s

are “hybrid” activities

100xrevenue unlockedthrough the results of

another 250 kEUR

activity (Swiss share)

5 MEURacquisition offerto a company (partly) based

on results created through

their 250 kEUR ESA activity

33%of the growth in

newcomers was generated by

downstream services

initiatives

1%of our budget was needed for that

part of growth

Operatorsactively involved and

investing in downstream

services projects play a

role as “Service

Incubator”, tooand they provide a very valuable

complement to the emerging

institutional ecosystem

50%co-funding is a

challengeespecially for start-ups

and to a lesser extent

SMEs

Great Ideas are increasingly hard to find

with the current toolsand usually don’t turn up at doorsteps

overnight..

Moneyis an issue especially for the

co-funding

requested from

start-ups

Ideasare hard

to findthe great

ones don’t

show up on

your doorstep

overnight

The most important learnings

Most promisingare start-ups with

“hybrid” projectsthat provide unique value and

hence unique opportunities.

What’s next?Where to take the emerging

ecosystem from here?

Pushing the

boundaries(2016 onwards)

A complete, value-added ecosystem

Build on achievements

+ learnings

Increase effectiveness

and efficiency

Integrate newcomers

from outside the space

community (and from

outside Switzerland as

well)

Optimize access to

finance

Systematically increase

investment leverage

Compound

effectsCatalyse and

combine efforts

Idea

sourcingFind even more

great ideas

Long-term

affordabilityLeverage

limited budgets

Business

IncubationAmbassador

Platform

Funding

Partnership

Credit: ESA / NASACredit: ESA / NASA

Scope for ESA BIC Switzerland

Business Incubation

Center

+ Ambassador

Platform

Services

Spin-outSpin-along

Spin-in

Objectives of ESA BIC Switzerland, in a nutshell

• Public-private partnership

with mutual benefits

• State as risk-taker, covering

significant amount of seed

funding

• Funding model with a mix of

grants/equity (for the

incubator)

• A truly Swiss solution (and

not only for one of our 26

cantons)

Risk and reward sharing for

all parties, all over Switzerland

500 kEUR

24 months

40:60 funding ratio10x

60% Private

Partners

40% ESA

Incubation Boost

450 kEUR

Structure and timeline for Downstream Incubation

1 monthPreparatory

coachingBusiness plan, Finance

& Marketing basics

24 monthsBusiness and Technical coaching

ESA “Standard”

Incubation

Incentive

50 kEUR

Preparatory

Scheme

The Operatorhas been selectedand will be announced

within the next three

months.

year of

preparation1

very different

approaches

proposed3

start-ups

in the

pipeline10

Supporta strong,

worldwide

community

Our ambitions for the future

Huntand don’t

wait for them

to come

Selectfor the best

teams and

ideas

Teachwith the best

teachers

Investwith smart

funding

Innovatethe process

continuously

business incubation centre

ambassador platform

Switzerland

Johann RichardSwiss Space Office

johann.richard@sbfi.admin.ch

@johannrichard

Credit: ESA / NASACredit: ESA / NASA