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Measuring the Space Economy with Input-Output Linkages

Author

Listed:
  • Luisa Corrado
  • Christos Makridis
  • Christos A. Makridis

Abstract

Space-enabled technologies underpin communications, navigation, Earth observation, and critical infrastructure, yet most estimates of the space economy are revenue tallies built on proprietary classifications that ignore production linkages. We develop a reproducible accounting framework, based on publicly available U.S. Bureau of Economic Analysis input–output tables, that measures the production-network footprint of a conservatively defined core space sector and separates direct core output from the indirect requirements connecting the core to suppliers and user industries. Indirect requirements exceed direct output in every benchmark year and grow faster: direct core output rose from $60 billion in 2007 to $78 billion in 2017 (2017 chain dollars), while indirect requirements rose from $83 billion to $125 billion, so that each dollar of core output was associated with $1.60 of cross-sector production requirements by 2017. The largest upstream requirements sit in communications infrastructure and business services rather than aerospace-specific inputs, and downstream dependence rises fastest in federal defense. In an illustrative projection to 2030, the baseline footprint reaches $350 billion, two-thirds of it indirect. Results are robust to a value-added mapping. The framework turns space-economy measurement from sizing a sector into mapping exposure and concentration in the infrastructure the economy increasingly runs on.

Suggested Citation

  • Luisa Corrado & Christos Makridis & Christos A. Makridis, 2026. "Measuring the Space Economy with Input-Output Linkages," CESifo Working Paper Series 12449, CESifo.
  • Handle: RePEc:ces:ceswps:_12449
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    References listed on IDEAS

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    1. Luisa Corrado & Stefano Grassi & Aldo Paolillo & Edgar Silgado-Gómez, 2023. "The macroeconomic spillovers from space activity," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 120(43), pages 2221342120-, October.
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    3. Matthew Weinzierl, 2023. "Expanding economic activity in space may offer a solution to secular stagnation," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 120(43), pages 2221347120-, October.
    4. Julien Guyot & Akhil Rao & Sébastien Rouillon, 2023. "Oligopoly competition between satellite constellations will reduce economic welfare from orbit use," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 120(43), pages 2221343120-, October.
    5. Shawn Kantor & Alexander Whalley, 2025. "Moonshot: Public R&D and Growth," American Economic Review, American Economic Association, vol. 115(9), pages 2891-2925, September.
    6. Maxwell Fleming & Ian Lange & Sayeh Shojaeinia & Martin Stuermer, 2023. "Mining in space could spur sustainable growth," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 120(43), pages 2221345120-, October.
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    Keywords

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    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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