Europe is pouring billions into space. Can Glasgow's satellite industry keep up?

Europe is pouring billions into space. Can Glasgow's satellite industry keep up? Finland’s aerospace firm ICEYE specialises in synthetic aperture radar (SAR) satellites that can produce images of the Earth’s surface through cloud and darkness. Macdonald says these have been used in the war in Ukraine, where space‑based imagery can provide intelligence – for example, spotting a Russian vessel in a Crimean port – when conventional optical cameras cannot. In June, ICEYE announced a funding round worth more than €1 billion, valuing the company at over €10 billion. The Finnish government has also increased its stake and now holds roughly 12 % of the firm. Finland’s Minister for European Affairs, Joakim Strand, said the geopolitical situation has highlighted the value of domestic ownership in what he called a “key strategic sector”. Governments want guaranteed access to space‑based communications, especially when their nation faces a crisis. Some prefer that the satellites – and the capability to build them – remain within their own borders. That could have consequences for Glasgow. “The recent increases in space spending elsewhere in Europe matter,” says Gabriele Piazza, an economist at the London School of Economics who studies government procurement of advanced technology. Space is not a typical market. Where contracts are awarded can influence where companies invest, where engineers work and where expertise develops. “Since capabilities build on themselves, firms with a large customer base at home gain an advantage that lasts,” Piazza adds. Meanwhile, as well as Clyde Space’s 2018 acquisition by AAC Microtec, Glasgow‑founded Alba Orbital has moved its office to the United States while retaining a Scottish base and team. Spire has expanded its manufacturing capability into Munich. The Scottish government maintains that Glasgow still builds more small satellites than any other location in Europe. So, the sector is not in decline. But the bigger challenge, Smith says, is helping companies that start in Scotland to scale up here. “I wouldn’t want it to be overly negative,” says Macdonald. “It’s really just like seeing warning lights flashing that other parts of Europe are investing far more aggressively and moving far more quickly than we have.” Read the full story at BBC News →