Space projects need private input
Yang LiChina Daily  Updated: 2005-12-19 05:27

As innovation has become the latest catchphrase of official rhetoric, Shenzhou VI, China's first ever multi-astronaut and multi-day space mission, has become a proud symbol of technological development at home.

But if we want to allow the great scientific and technological progress achieved in the course of the space project to benefit technical innovation in China overall, much more has to be done.

The most urgent task is involving more enterprises in the space programme.

Most space technology has been developed by space enterprises, such as China Aerospace Science and Technology Corporation and China Aerospace Science and Industry Corporation, with some specialized research carried out by institutes of the Chinese Academy of Sciences.

While putting more resources into satellites, spaceships and rockets, the two conglomerates originally one big group have tried to commercialize their innovations for other sectors.

In some cases, space enterprises have tried to sell their advanced technologies to other players in the market.

Yet factors including higher costs have made such transactions difficult.

It may be better to directly involve the market-oriented private sector in space technology and product development. Wider participation may help reduce the costs of such technologies.

More importantly, this wider involvement would mean more enterprises would have the capacity to develop space technologies.

Some may claim it would be difficult to ensure the quality of space products, such as spaceships, satellites or rockets, if the sector was opened.

It may also be argued that the involvement of more enterprises, particularly private firms, increases the risk of State secrets being leaked.

In fact, China's non-State sectors including private, township collective and foreign invested companies have developed an astonishingly strong manufacturing and research capacity.

They produce at least 70 per cent of China's exports, including high-tech products.

Given the chance to participate in the development of space technologies they are likely to be able to cope with the challenge.

To ensure the quality of newcomers, the authorities could organize bids for certain parts of the spaceship.

Bidding should be open to all both State space enterprises and non-State firms competing on a level playing field.

In terms of protecting State secrets, leaks are the result of poor management, not of the involvement of more enterprises.

The participation of more non-space sector firms in space technology and product development would not only benefit newcomers, but also revitalize the old system by increasing competition and reducing costs.

Meanwhile, the market-oriented financing, promotion and marketing strategies of the non-Space enterprises could be encouraged in the space sector, increasing efficiency.

Outside involvement will be a gradual process. It is likely that initially wider involvement in space projects will delay spaceship development as newcomers will need to become familiar with the rules of the game.

But efforts will pay off because eventually the wider participation will create not only more efficient space projects but also faster proliferation of high-tech products promoting the national innovation strategy.

(China Daily 12/19/2005 page4)

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