Brexit: Science & Space

Artist's rendition of a satellite - paulfleet/123RF Stock Photo

Artist’s rendition of a satellite – paulfleet/123RF Stock Photo

Brexit currently dominates UK politics. Whilst it’s clear the UK is leaving the European Union (EU) in March 2019, the practical impact, and consequences, are still a confused fog hanging over everything. The UK Government Department for Exiting the European Union has been issuing position papers to set out how it sees the UK’s future arrangements with the EU.

Last week, the ‘Collaboration in science and innovation: a future partnership paper’ was issued. Given our company’s focus we were eager to see what was planned. Unfortunately, like a lot of the UK Government pronouncements on Brexit, it is high on rhetoric, but low on any helpful, or new, information or clarity.

It begins with a positive, but perhaps rather obvious, statement, stating that one of the UK’s core objectives is to ‘seek agreement to continue to collaborate with European partners on major science, research and technology initiatives.’

Future Partnership with EU Principles
Key aspects of the UK’s ambition for the future partnership include:

  • Science & Innovation collaboration is not only maintained, but strengthened.
  • With its strong research community, the UK wants an ambitious agreement for continued research co-operation.
  • Government wants the UK to be a hub for international talent in research, and to welcome the brightest and best people from around the world.

The principles are followed by four particular areas the UK wants to discuss with the EU. Interestingly, it specifically outlines how non-EU countries currently participate in each of these areas, which are Research & Innovation Framework Programmes, Space Programmes, Nuclear R&D and Defence R&D.

Research & Innovation Framework Programmes
Horizon 2020 is highlighted as the UK ranks top across the EU in terms of contracts and participants in it. The Government confirms its commitment to underwriting any projects submitted whilst the UK is still an EU member.

Support for this programme is good, however with an end date of 2020 it is going to be equally important to be a strong partner of whatever research funding programme that is going to follow.

Space Programmes
As we have described before the European Space Agency is not an EU institution, and so is not impacted by Brexit – a fact reinforced by the paper. Three key EU, rather than ESA, led space programmes are highlighted:

  • Galileo Navigation and Positioning System – Issues here surround both the use of the system and its ongoing development. UK firms have been key suppliers for this work including Surrey Satellite Technology Ltd (SSTL), Qinetiq, CGI, Airbus and Scisys.
  • Copernicus – The Copernicus Earth Observation data is freely available to anyone in the world. The key element here is about being at the table to influence the direction. Although, the paper does refer to existing precedents for third party participation.
  • Space Surveillance and Tracking – this is a new programme.

The paper states that given the unique nature of space programmes, the ‘EU and UK should discuss all options for future cooperation including new arrangements.’

What Is Not Said
There are a lot of positive and welcome words here, but also a huge amount unsaid, for example:

  • Interconnectivity: Science and innovation happens when researchers work together, so the UK’s approach to the movement of people is fundamental. Will the brightest and best be allowed to come and work here, and will they want to?
  • Education: Education is fundamental to this area, yet it does not merit a single mention in the paper. New researchers and early career scientists benefit hugely from programmes such as Erasmus, will our involvement in these continue?
  • Financial Contribution: How much is the UK willing to pay to be part of science and innovation programmes? The paper notes any financial contribution will have to be weighed against other spending priorities. Not exactly hugely encouraging.
  • Contractual Issues: Part of the issue with Galileo is that the contracts specifically exclude non-EU countries from involvement.. Whilst, it is possible to see that the UK could negotiate use of Galileo, continued involvement as a supplier may be more difficult.

Conclusion
The UK wants dialogue with the EU on far-reaching science and innovation agreement. This ambition is to be applauded, but we are a very long way away from that point. We hope both parties are able to work together to get there.

Queen’s Speech Targets Space

Artist's rendition of a satellite - paulfleet/123RF Stock Photo

Artist’s rendition of a satellite – paulfleet/123RF Stock Photo

Last week was the State Opening of Parliament in the UK following the General Election, this included the Queen’s Speech which set out the legislation the Government intends introduce in the coming Parliament. As expected, Brexit dominated the headlines and so you may have missed the announcement of the Space Industry Bill.

The space sector has been a growth target for the Government since 2010, when it set an ambitious target of delivering 10% of the global space economy. The last UK Space Agency report covered 2014/15 and indicated the industry was worth £13.7bn – equivalent to 6.5% of the global space economy.

Our space industry is inextricably linked to Europe through the European Space Agency (ESA). Whilst, as we have described before, Brexit won’t affect our role in ESA, other projects such as Copernicus and Galileo are EU led projects and the UK’s future involvement isn’t clear. This Bill is part of the Government’s response, and its aim is to make the UK the most attractive place in Europe for commercial space activities.

We’ve previously written about the current UK licencing and regulatory arrangements for anyone who wants to launch an object into space, as detailed in the Outer Space Act 1986. This Bill will change that framework and has the following key elements:

  • New powers to license a wide range of spaceflight activities, including vertically-launched rockets, spaceplanes, satellite operations, spaceports and other technologies.
  • Comprehensive and proportionate regulatory framework to manage risk.
  • Measures to regulate unauthorised access and interference with spacecraft, spaceports and associated infrastructure.
  • Measures to promote public safety by providing a regulatory framework to cover operational insurance, indemnity and liability.

The Bill itself is based on the draft Spaceflight Bill published in February, together with the Government responses to the twelve recommendations of the Science and Technology Committee Report on the Draft Spaceflight Bill which was issued on the 22nd June.

There are still a number of questions to be answered over the coming months.

  • Limited Liability: Currently, the standard requirement is to have insurance of at least €60 million. However, the draft Bill suggests that insurance requirements will be determined as part of the license application process. Clearly, the different types of spaceflight will have different risks and so having flexibility makes sense; however, until the industry understands this aspects it will be a concerning area of uncertainty.
  • Spaceports: Previously, the Government intended to select a location for a spaceport, but last year this changed to offering licences for spaceports. This means there could be multiple spaceports in the country, but it is questionable whether there is sufficient business to support multiple sites. Given the specialist knowledge and skills needed to launch spacecraft, it is likely that a preferred site will eventually emerge, with or without Government involvement.
  • Speed of Change: Back in 2012 the Government acknowledged that regulations for launching objects into space needed to be revised as they didn’t suit smaller satellites. Since that time satellites have got even smaller, constellation launches are increasing rapidly and costs are decreasing. The legislation and regulations will need to evolve as quickly as the technology, if the UK is to be the most attractive place to do business. Can we do this?

The UK Space Industry is in for a roller coaster over the coming years. Brexit will undoubtedly be challenging, and will throw up many threats; whereas the Space Industry Bill will offer opportunities. To be successful companies will need to tread a careful path.

Brexit Biting for UK Space Industry

Artist's rendition of a satellite - mechanik/123RF Stock Photo

Artist’s rendition of a satellite – mechanik/123RF Stock Photo

UK companies involved in European Commission space programmes face an uncertain future according to media reports over the last week. The Financial Times reported that the European Commission wanted two key clauses in the contracts for work on the next part of the €10 bn Galileo Satellite Navigation System. These would allow the Commission to:

  • Cancel the contracts, without penalty, of any supplier who is no longer based in an European Union (EU) member state; and then
  • Charge that supplier all costs associated with finding their replacements.

Clearly, this poses a huge risk to UK companies given the fact that the UK has indicated its intention to leave the EU in 2019 by triggering Article 50. We wrote about the potential impacts of Brexit last year, and whilst we did pick up concerns over Galileo we didn’t see this coming!

Should the UK Space Industry be concerned?
Yes!

Despite reports to the contrary, this does not mean we are leaving the European Space Agency (ESA). We are very much remaining part of ESA, something that was confirmed at the ministerial in December. This solely relates to programmes owned, and funded, by the European Union (EU). However, it is concerning for two key reasons:

  • Anyone who has tried to negotiate contract terms with large governmental organisations will be aware that it tends to be a binary take it or leave it scenario. Therefore, if these clauses are in the contract, then it is highly likely companies will have to sign up to them to get the work.
  • It may not just be Galileo, the Copernicus Programme could be next. Copernicus is also an EU programme, and therefore it has to be a possibility that they may apply the same clauses to future Copernicus tenders. Galileo isn’t something Pixalytics is involved with, but if this was extended to Copernicus we’d be potentially impacted and would need to make choices.

What Can UK Companies Do?
The options are limited:

  • Bid anyway! Accept the potential financial risk, or hope that it will get resolved within the various Brexit negotiations. Given the size of these contracts, it will be a brave CEO who goes down this route.
  • Not bidding for any Galileo contract is probably the financially prudent option, but equally it removes a significant revenue stream.
  • Move to another European Country. I think there will be a number of companies who will be looking at moving some, or all, of their operations to another EU member state.

Any Causes For Optimism?
Not really, but there are tiny strands of hope.

  • Security – A key issue with Galileo is security. Currently, all EU members have agreements on security and when the UK leaves the EU, it leaves that agreement. Of course, security is just one of hundreds of agreements the UK will be hoping to discuss with the EU through Brexit negations. If security agreements are reached with the UK, maybe the position will change.
  • UK Election – Whilst writing this blog, the UK Prime Minister has announced a General Election in June. Parliamentary changes may influence the type of Brexit we have, but again it is highly unlikely.

It was fairly obvious, despite the contrary political rhetoric, that Brexit would have huge consequences on the UK’s relationship with Europe.

The UK’s space industry looks as though it will be at the forefront of those consequences. Forget 2019, the bite of Brexit is being felt today!

Have you read the top Pixalytics blogs of 2016?

Artist's rendition of a satellite - paulfleet/123RF Stock Photo

Artist’s rendition of a satellite – paulfleet/123RF Stock Photo

As this is the final blog of the year we’d like to take a look back over the past fifty-two weeks and see which blog’s captured people’s attention, and conversely which did not!

It turns out that seven of the ten most widely viewed blogs of the last year weren’t even written in 2016. Four were written in 2015, and three were written in 2014! The other obvious trend is the interest in the number of satellites in space, which can be seen by the titles of six of the ten most widely read blogs:

We’ve also found these blogs quoted by a variety of other web pages, and the occasional report. It’s always interesting to see where we’re quoted!

The other most read blogs of the year were:

Whilst only three of 2016’s blogs made our top ten, this is partly understandable as they have less time to attract the interest of readers and Google. However, looking at most read blogs of 2016 shows an interest in the growth of the Earth Observation market, Brexit, different types of data and Playboy!

We’ve now completed three years of weekly blogs, and the views on our website have grown steadily. This year has seen a significant increase in viewed pages, which is something we’re delighted to see.

We like our blog to be of interest to our colleagues in remote sensing and Earth observation, although we also touch on issues of interest to the wide space, and small business, communities.

At Pixalytics we believe strongly in education and training in both science and remote sensing, together with supporting early career scientists. As such we have a number of students and scientists working with us during the year, and we always like them to write a blog. Something they’re not always keen on at the start! This year we’ve had pieces on:

Writing a blog each week can be hard work, as Wednesday mornings always seem to come around very quickly. However, we think this work adds value to our business and makes a small contribution to explaining the industry in which we work.

Thanks for reading this year, and we hope we can catch your interest again next year.

We’d like to wish everyone a Happy New Year, and a very successful 2017!

UK Government View On ESA and Space Industry

Artist's rendition of a satellite - paulfleet/123RF Stock Photo

Artist’s rendition of a satellite – paulfleet/123RF Stock Photo

This week we got a glimpse of the UK Government’s view on the space industry, with the publication of Satellites and Space: Government Response to the House of Commons Science & Technology Committee’s Third Report of Session 2016/17. The original report was published in June and contained a series of recommendations, to which the Government responded.

The timing is interesting for two reasons:

  • Firstly, it comes just before the European Space Agency (ESA) Ministerial Council taking place on Thursday and Friday this week in Lucerne. We highlighted the importance of this meeting in a recent blog.
  • Secondly, it has taken the Government five months to respond, something the Committee themselves were disappointed with.

The Government’s response has a number of insights into the future for the UK space industry. The full report can be seen here, but we wanted to pick out three things that caught our eye:

ESA
For us, and the ESA Ministerial, the most interesting comment was that the Government reaffirmed that the UK will remain a member of ESA after Brexit. It also noted that “The UK’s investment in the European Space Agency is an important part of our overall investment in space, from which we obtain excellent value.” Whilst the level of financial commitment to ESA won’t become clear until the Ministerial, the mood music seems positive.

Earth Observation
The role of the Space for Smarter Government Programme (SSGP) was highlighted, particularly in relation to helping the Department for Environment, Food and Rural Affairs use satellite data more. As part of SSGP we ran a successful Flood Mapping project during 2015/16. SSGP is running again this year, but given the importance placed on the programme on embedding space activities within Government it was disappointing not to see a further commitment beyond March 2017.

A business plan for a Government Earth Observation Service is currently being written, which is aimed at increasing the uptake of EO data within Government. We’ve not seen too much about this service yet, and will be very interested in the business plan.

Responding a question on harnessing the public interest in Tim Peake’s time in space, it was nice to see the work of the EO Detective highlighted. This is a fantastic project that raises awareness of the space industry in schools, and uses space/satellite imagery to help children explore topics such as climate change.

Small Satellites
“The Government intends to establish the UK as the European hub for low cost launch of small satellites.” It’s an interesting ambition; although it’s not completely clear what they mean by the term small satellites. As we described last week definitions are important.

On top of the three points above there were some words on funding for space related research; however these amounted to no more than an acknowledgement that various Government bodies will work together. There was also reference to the development of a new Space Growth Strategy, something we’ll talk more about in two weeks.

The Government’s response to this report was an interesting read, and whilst there are still a lot of unanswered questions it does hint at cautious optimism that they will support the space industry.

We were all on tenterhooks this week waiting the big announcements from the ESA Ministerial, and here are some of the headline outcomes:

  • Overall, ESA’s 22 member states plus Slovenia and Canada allocated €10.3 billion for space activities and programmes over the next five years. This includes an EO programme valued at €1.37 bn up until 2025.

Within this overall envelope, the UK has allocated €1.4 bn funding over five years, which equates to 13.5% of total. This includes:

  • €670.5 m for satellite technology including telecommunications, navigation and EO.
  • €376.4 m for science and space research
  • €82,4 m for the ExoMars programme.
  • €71 m for the International Space Station Programme
  • €22 m for innovate space weather missions

Our eye was, of course, drawn to the investment in EO and there is a little more detail, with the €670.5 m is:€60 m for the development of the commercial use of space data €228.8 m for environmental science applications and climate services through ESA’s EO programme, including:

  • Incubed – a new programme to help industry develop the Earth observation satellite technology for commercial markets
  • the Biomass mission to measure the carbon stored in the world’s forests
  • the Aeolus mission, measuring wind speed in three dimensions from space

Finally, it is worth noting Katherine Courtney, Chief Executive of the UK Space Agency, who commented, “This significant investment shows how the UK continues to build on the capability of the UK space sector and demonstrates our continuing strong commitment to our membership in the European Space Agency.”

High Noon for ESA Funding

Sentinel-2 Image of Plymouth from 2016. Data courtesy of Copernicus/ESA.

Sentinel-2 Image of Plymouth from 2016. Data courtesy of Copernicus/ESA.

The future direction of the space industry in Europe is set to be debated at the European Space Agency (ESA) Ministerial Council taking place at the start of December. It will look at the Space Strategy for Europe which we reviewed last week, and crucially will set ESA’s budget for the few next years.

The Council is the governing body of ESA and each of the 22 member states is represented, plus Canada. The Council is chaired by ESA’s Director General Jan Woerner, and he gave a press briefing in Paris earlier this week in advance of the meeting.

Sadly, I was unable to go to France for the meeting; but luckily Peter B de Selding from Space News was there and produced an excellent article which highlighted the key points including:

  • ESA is seeking an €11 billion settlement
  • Concern over the Norway’s proposed 75% contribution reduction
  • The ExoMars Programme, which hit the headlines earlier this year when the Schiaparelli lander crashed on its descend to the Mars surface, has a funding gap of €400 million.
  • €800 million is being sought to continue the collaboration with NASA on the International Space Station until 2024

The headline message on money is clearly the requested €11 billion settlement. In 2016 the ESA budget was €5.25 billion, of which almost 30% was income from the European Union (EU), Eumetsat and other programmes. The remaining 70% came from the contributions of each member state and Canada, and it is these future contributions that will be discussed at the Ministerial. This year the biggest contributor was Germany (€872.6 m), followed by France (€844.5 m) and Italy (€512 m) – between them these three accounted for almost 60% of the ESA member state budget.

For us, Pixalytics and the UK, there were a couple of interesting points. Firstly, ESA’s Earth Observation Envelope Programmes (EOEP-5) has had a 12.5% funding cut reducing their budget down to €1.4 bn for the period 2017 – 2025. It’s not currently clear what impact this reduction will, or will not, have on existing and planned activities.

Secondly, and for the second week running the blog has had to mention the B word. We’ve previously written about the fact that ESA and the EU are different organisations, and that Brexit does not directly impact our involvement with ESA – a point reinforced by the Director General at the briefing.

Indirectly though, Brexit impacts, if not dominates, the political and financial landscape of the country and as such will have affected the discussions surrounding our ESA contribution commitment. For example:

  • Dropping Value Of Sterling: The pound has dropped by over 13% since the EU Referendum, significantly increasing the cost to the UK of our ESA contribution which was €13.2 m in 2016.
  • Budget Pressures: In addition to the drop in the pound, the UK Space Agency has to compete with every other Government Department for funding. Given the current austerity financial approach, coupled with the additional costs of dealing with Brexit, money is tight.
  • Space Industry Profile: Every industry is currently fighting to get their agenda’s onto Government Minister’s desk to ensure they get then ‘best deal from Brexit’. Space is no different. We may not have the London centre of the financial sector or the emotional impact of the farmers and fisherman, but we are a strong and important part of the economy.

We need Ministers to understand our industry, and to ensure that they support us as much as possible. This means, as we said last week, that we need to give a positive commitment to our ongoing involvement with ESA and a strong financial contribution at the Ministerial in Lucerne on the 1st and 2nd of December.

We await the outcome with interest!

Space Strategy For Europe

Artist's rendition of a satellite - paulfleet/123RF Stock Photo

Artist’s rendition of a satellite – paulfleet/123RF Stock Photo

A Space Strategy for Europe was issued last week by the European Commission (EC), based around four strategic goals.

  • Maximising the Benefits of Space for Society and the European Union (EU) Economy
  • Fostering a Globally Competitive & Innovative European Space Sector
  • Reinforcing Europe’s Autonomy In Accessing & Using Space In a Secure & Safe Environment
  • Strengthening Europe’s Role as a Global Actor & Promoting International Co-operation

The strategy began with a heartening assessment of the European space economy, recognising that it supports almost a quarter of million jobs and is valued at around €50 bn.

The Earth observation (EO) sector is strongly represented within the document, particularly in the first two goals. Whilst some of the references to EO are fairly obvious statements, there are also some intriguing comments.

Maximising the Benefits of Space for Society and the EU Economy
This goal identifies a significant untapped potential for the uptake of space services and data, and outlines a number of actions that will be taken to unlock this; including:

  • Encouraging the use of space services and data, wherever they provide effective solutions – the last part provides an interesting test.
  • Ensuring EU legislation will be supportive of the uptake of these services.
  • Provision of improved access to, and exploitation of, Copernicus data – anyone who has tried to access data will know the need for continued improvement.Improving interconnectivity with other data infrastructures and other datasets.
  • Define clear limits between free Copernicus core information services and commercial applications – hopefully this will show Copernicus services as an opportunity rather than a threat; something that is currently unclear for, particularly SME, businesses.

Overall, the strategy states this will open up new business opportunities, including for SME’s and start-ups. We’re supportive of these actions, however we also have concerns.

The document has a single line stating it will reach out to new users and connect downstream activities to non-space sectors. This is the holy grail for every EO commercial organisation, and very few have come close to achieving it. The minimal statement potentially suggests the EC is fundamentally underestimating how difficult this will be.

An intriguing element is the intention “to introduce an ‘industry test’ to check downstream suppliers can provide reliable and affordable services.” We’d support any quality accreditation, but it will be interesting to see whether this is a certification scheme for everyone or a barrier to market for SMEs and start-ups.

This issue was strongly debated at a European Space Agency (ESA) meeting last week, particularly over the question as to whether the accrediting body assumes liability when a service doesn’t deliver. It is worth noting that the European Association of Remote Sensing Companies (EARSC) has an existing certification scheme for management practices, but only a few organisations have gone through the process to date.

Fostering a Globally Competitive & Innovative European Space Sector
This goal focuses on supporting research and development within the space economy, together with promoting entrepreneurship and business opportunities.

It specifically references the launch of a dedicated sector skills alliance for space/Earth observation – which sounds great. However, it appears to be a committee of stakeholders to discuss the necessary skills requirements for the industry, and so it is not clear what it will actually do.

The Commission also aims to support space entrepreneurs, start-ups and SME’s through a variety of programmes, dialogues and synergies! Lots of good words used with little clarity of real action.

Reinforcing Europe’s Autonomy In Accessing & Using Space In a Secure & Safe Environment
This goal has a focus on ensuring that Europe has the infrastructure and capacity to operate in space freely; although this does seem slightly at odds with the international co-operation trumpeted in the final goal.

However, the most interesting element for the EO community is the statement that the radio frequency spectrum must be protected from interference from other systems. This is something that is vital for space sector, but falls short of guaranteeing space technology having access to radio frequencies. In recent times, there has been a threat to the microwave frequencies from the requirements of mobile phone and wifi networks.

Strengthening Europe’s Role as a Global Actor & Promoting International Co-operation
The final strategic goal highlights the importance of international co-operation and the desire for the EU to have a much greater global lead. Given that the EU has the second largest public space budget in the world, this emphasis is welcomed.

It also notes that the EU will contribute to initiatives including the Global Earth Observation System of Systems (GEOSS) and the Committee on Earth Observation Satellites (CEOS).

Summary
Like all strategies there are lots of good intentions within these words, but limited practical details. It won’t be until the detailed plans are draw up to implement these actions that we will be able to determine whether this document is a valuable step forward for the space economy in Europe, or a thirteen page missed opportunity.

Our Footnote for the UK
The strategy makes clear the EU & ESA will be key to the delivery of this strategy, and so we can’t comment without mentioning the Brexit word. The current plan is that the UK will be out of the EU in early 2019, and therefore the UK Government’s input to the upcoming ESA ministerial is absolutely critical, alongside decisions on how we’ll interact with the Copernicus program.

We need to give a strong and positive commitment to our ongoing involvement with ESA, without this the UK’s space economy will face a significant setback. Everyone within the community must ensure that the Government, and Ministers, are fully aware of the importance of this in the coming weeks.

Brexit and the Earth Observation Market

Artist's rendition of a satellite - mechanik/123RF Stock Photo

Artist’s rendition of a satellite – mechanik/123RF Stock Photo

Last week the UK voted to leave the European Union (EU). For us it was sad day, evidenced by the fact that on voting day Sam was at the European Association of Remote Sensing Laboratories (EARSeL) Symposium in Bonn, Germany; and I was in Brussels having attended the European Association of Remote Sensing Companies (EARSC) Annual General Meeting the day before – I should say we had both already submitted our postal votes!

This obvious topic for this week is what Brexit means for the UK Space Market, and in turn what it means for us:

European Space Agency (ESA)
ESA is not the EU. It has a different membership and different rules. The UK can remain part of ESA even if it leaves the EU, as evidenced by Norway and Switzerland’s membership, and even Canada’s associate membership.

However, at the ESA Ministerial in December member countries will need to declare how much money they intended to contribute towards ESA programmes. ESA operates a geo-return principle which dictates that countries cannot receive more money back than they put in, and therefore the decision on how much funding to commit at the December meeting will be vital for the UK Space Industry.

At the moment there is a power vacuum in this country following the resignation of the Prime Minister, and it would appear that no major decisions will be made on the future direction of the country until the new Prime Minister is appointed in September. Given the new Prime Minister will want to set up his own Executive arrangements and that the most pressing matter will be Brexit, it is not clear who will be taking the significant decision on the UK’s ESA Contribution.

Lack of commitment at this point has the potential to damage the UK Space Industry far more than Brexit.

European Union
Despite the assertion above that the EU and ESA are different bodies, they are linked organisations. They have a joint European Space Strategy and the EU is the biggest financial contributor to ESA’s budget. In addition, the EU owns a number of programmes such as Copernicus and the Galileo positioning, navigation & timing network.

Outside the EU the UK will probably no longer have a voice within these programmes and it is unlikely the siting of significant infrastructure related to these programmes, such as ground segments, will include this country. Hence, even remaining an active participant within ESA, it is hard to argue against the fact that the UK’s role in the future of the European space industry will diminish.

Single Market
The space industry, like other industries, currently benefits from the single market which makes it easier for European businesses to trade with each other. It is clear that most of our businesses, and politicians, feel that this is a benefit they’d like to keep. The question is whether they will be willing to pay the EU’s price?

If they do, then it is likely that change will be limited. However, if they don’t and the UK leaves the Single Market then trade with Europe will become more difficult. It will of course continue, but there may be tariffs, limitations on exports/imports and the potential for businesses to open or close offices within the UK or Europe to best maintain their access to both the UK and European markets.

Scientific Collaboration
We collaborate with a lot of EU companies, scientists and students. Now again there is no suggestion that this would stop, but everything will become more complicated.

  • How easy and quickly will people be able to get visa to travel to Europe or vice versa? This could impact attendance at meetings or conferences.
  • Will European Conferences still come to the UK?
  • What will be the impact on placement programmes such as ERASMUS? ERASMUS has different membership to the EU, like ESA, but will the UK still be as attractive to those students?

Of real scientific concern is the emerging anecdotal evidence that UK researchers are being removed from EU based funding bids, such as Horizon 2020, as the consortia fear their bids will be less attractive if the UK is involved. If true, this is will impact scientific research, at least in the short term until our involved in such programmes is clarified.

UK Space Industry
The UK has an expanding, exciting and innovative space industry and the future is certainly not dependant on us being part of the EU. However, it would be naïve to suggest that we don’t face challenges ahead following Brexit. There are a number of key elements we need in place to ensure that our industry can continue to thrive:

  1. Commitment to our continued membership of ESA, supported by funding at the December ministerial.
  2. Commitment that the resources the UK Science and Space sectors received via EU funding, such as Horizon 2020, must be replaced with equivalent UK based funding calls.
  3. Not to let the Brexit negotiations overtake everything else. For example, it must not stop continuing progress on elements such as a UK Spaceport.

Pixalytics
We have a variety of strong European links including:

  • European contracts
  • Scientific collaboration with European Researchers/Institutes
  • European placement students spending time working with us
  • Contracts that are either directly, or indirectly, based on ESA funding
  • Membership of European Associations

We believe we have a strong business, with good value products and a positive brand. However, like all other UK businesses, we are going to need to assess our current business strategy, and decisions we need to make, through the prism of Brexit as further information is known.

Conclusion
Almost one week on from the UK vote, I think our position is best summed up by paraphrasing the famous statement of US Secretary of Defense, Donald Rumsfeld:

There are some things we do not know, but there are also things we don’t know we don’t know and those will be the difficult ones.

Or to put it more succinctly, we face months, and years, of uncertainty! What does everyone else think?