“Commercial” has become a defining term in today’s space policy landscape — yet its meaning varies widely across programmes, regions, and institutions. To support clearer policymaking and more effective procurement strategies, the European Space Policy Institute (ESPI) and The Aerospace Corporation’s Center for Space Policy and Strategy (CSPS) have partnered to examine how governments in the United States and Europe are leveraging commercial space capabilities.
This initial paper introduces a framework for understanding three procurement models, Commercial‑Lite, Commercial‑Led, and Purely Commercial, and applies them to a set of representative programmes across both regions. The analysis highlights how governments are shifting risk and decision‑making to industry, the outcomes associated with different approaches, and the policy drivers shaping these choices.
“The term ‘commercial’ is used with growing enthusiasm — yet without a shared understanding of what it truly means for procurement, innovation, or competitiveness. If Europe wants to remain a leading space power, we must bring clarity to this concept and adopt procurement approaches that reflect real market dynamics. Disruptive models are essential. We cannot afford to treat commercial procurement as a slogan; it must become a strategic tool that accelerates innovation, strengthens resilience, and positions our industry to compete globally.”
— H. Ludwig Moeller, Director, European Space Policy Institute (ESPI)
“There is a huge push from governments on both sides of the Atlantic to leverage commercial innovation in space, but not much clarity on how to define what “commercial” is or go about actually doing it. Everyone wants to buy commercial, but that is a complicated topic with many different definitions and approaches. What we’re trying to do with this report is bring some clarity to the topic and help governments develop initiatives to leave commercial space capabilities to speed up acquisitions and save the taxpayer money.”
— Brian Weeden, Director of Civil and Commercial Policy, The Aerospace Corporation (CSPS)
Phase 2 of the project will deliver a full cross‑case comparison and recommendations for aligning future commercial programmes with policy objectives.
Have your say!
As ESPI and CSPS prepare phase 2 of our transatlantic study on commercial space procurement, we are inviting industry to share insights on:
- How procurement models shape innovation
- Where government–industry risk sharing works — and where it doesn’t
- What “commercial” should mean in practice
- How Europe and the US can better align procurement with market dynamic
Your feedback will help refine the comparative analysis and inform recommendations for policymakers.
Commercial Space Procurement report feedback
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