Options for Strengthening Finland’s Space Administration

A working group that assessed the operating model of Finland’s space administration has submitted its final report to Minister of Economic Affairs Sakari Puisto. The report examines how the current operating model responds to the needs of a changing environment and how the role of administration should be strengthened to promote the objectives of the National Space Strategy.

There is a need to evaluate how the current national space administration operating model responds to the needs of the evolving space operating environment and to determine how the role of space administration should be strengthened so that it can best support the achievement of the goals of the space strategy.

The importance of space activities for Finland is growing rapidly due to technological development, a tightening geopolitical situation, and the digitalisation of society. Space services are increasingly important for national security, security of supply, business competitiveness, and research and innovation. The space sector is growing rapidly, and its significance is increasingly evident in business, public authorities’ tasks, and defense.

At the same time, the space sector is undergoing multiple transformations. The sector is rapidly commercialising, geopolitical fragmentation is deepening, dependence on space technology is increasing, and the dual-use nature of space infrastructure—serving both civilian and military purposes—is strengthening. Due to its strategic and societal importance, space has become both a geopolitical and an industrial policy instrument. The sector is highly international and dependent on access to high technology and global cooperation.

“The growth of Finland’s space sector is a success story that is only just beginning. The sector has significant economic and strategic impacts. As it grows, it is also important to ensure up-to-date legislation and licensing supervision so that Finland remains an attractive and credible operating environment for the space industry”, says Minister of Economic Affairs Sakari Puisto.

The working group appointed by the Minister of Economic Affairs examined the current decentralised operating model of space administration as well as three alternative models for strengthening governance. In line with its mandate, the group analysed the positive and negative characteristics of both the current and alternative models from the perspectives of different administrative responsibilities. The report serves as an information base and a starting point for discussion on strengthening space administration. The discussion on necessary measures will continue across administrative sectors and with stakeholders.

 

Perspectives on National Space Administration

At the national level, the framework of space administration can be divided into three interdependent areas:

1. national defense,
2. other public authority functions, and
3. the ecosystem formed by business, science, research, and education.

The objectives and goals for these are described in the National Space Strategy and in the forthcoming Defense Space Strategy.

The working group defined six perspectives through which the goals and alternative operating models of space administration are examined:

• Governance of space administration: The most central objective is to compile a strategic situational picture and steer activities.
• International cooperation: Forming and aligning Finland’s positions and policies with international forums in accordance with strategic guidance is essential for achieving national objectives.
• Operating environment of the space economy: An up-to-date regulatory framework, an active innovation environment, appropriately targeted funding, smooth licensing processes, export promotion, and attracting companies and talent to Finland.
• Building space capabilities: Identifying and prioritising national needs; cooperation between defense and civilian actors; consistent procurement to achieve required capabilities; ensuring availability and continuity of operations.
• Utilisation of space services: Using available space services and data in society.
• Communication: Ensuring smooth information flow within administration and across society, both nationally and internationally.

 

Alternative Operating Models for Space Administration

The final report of the Evaluation Working Group describes the current model and three alternative operating models. The assessment section first examines, at a general level, the advantages and challenges of decentralising versus centralising political and strategic decision-making, the executive level, and funding—without taking a position on specific models. It then evaluates the strengths and associated risks of each model. The models are presented objectively from the perspective of functionality of the space administration, without considering stakeholders’ interests. The discussion on the implementation of a model and the will to do so must be held at the political level. The purpose of the report is to create a knowledge base for this discussion.

At a high level, the models differ in how political and strategic decision-making and the executive level are centralised or decentralised:

1. Current model – The Finnish Space Committee (ANK), status quo: A decentralised space administration where ANK as a coordinating forum. Both political and executive levels are decentralised.
2. Alternative model 1 – ANK – strengthened model: A decentralised space administration where ANK coordinates implementation of the space strategy; responsibilities are defined in legislation; and resources for ANK and its secretariat are strengthened.
3. Alternative model 2 – Space Policy and Strategy Unit (APSY) and space programme: Political leadership of space administration and strategic coordination are centralized in a new unit; sectoral ministries handle implementation; needs of administrative sectors are coordinated within a space program framework. The executive level remains decentralised.
4. Alternative model 3 – Space Policy and Strategy Department (APSO), Space Agency and space programme: Political leadership of space administration and strategic coordination are centralised in a new unit, and implementation is centralised in a single agency. 

 

Evaluation of the Alternative Operating Models

The operating models are assessed primarily from the perspective of how administrative tasks and functions are organized. Space activities and the use of related services cut across all sectors of society. As the space sector and its societal relevance grow, also administrative responsibilities expand and diversify, requiring sufficient resources and effective administrative structures.

At the political and strategic level, the key tasks of national space administration include:

• Maintaining a comprehensive national and international strategic picture and monitoring the operating environment
• Preparing the national space strategy, guiding its implementation, and drafting and presenting the budget
• Communication and influencing domestically and internationally
• Maintaining and interpreting the legislative framework

The decentralised decision-making and strategic planning operating model of the space administration involves different administrative sectors and makes available the sectoral expertise located in different organisations and the understanding of the needs of different sectors of society. In contrast, centralised decision-making at the political and strategic level facilitates maintaining an overall strategic view, long-term planning, prioritisation, and balanced allocation of resources. A clear challenge is combining strategic planning for civilian and military activities.

At the executive level, the benefits of decentralisation are emphasised compared to a centralised solution. The challenges of the decentralised model also narrow significantly if the coordination from the political and strategic level is clear and consistent. Centralising the executive level in one place would require thorough research and would mean significant changes in existing organisations. Separating space activities from their current host organisations would also potentially have wide-ranging effects on the performance of statutory tasks.

In the decentralised model for the financing of space activities, each administrative sector prepares proposals for the budget independently for its own activities. These are also dealt with in the Government as separate entities and the decided funding is allocated directly to the budget of the administrative sector. In the centralised model for financing, budget proposals are prepared in one place and presented as a whole. For decision-makers, this provides an opportunity to review the financing of space activities as a whole. The use of the decided “space budget” can be allocated taking into account the prioritisation of different components. In the intermediate financing model, the budget proposals prepared by different administrative sectors are compiled into a single space programme proposal and are examined as a financing framework.

 

Conclusions of the evaluation of the operating models of the space administration

The evaluation of the operating models shows that the current operating model should be strengthened in order to ensure the operational capacity of space administration. Of the alternative models, the “Space Advisory Board ANK – strengthened model” is seen as feasible and, if implemented correctly, would provide the necessary support to the administration in the short term. Its introduction could also be implemented quite quickly. However, in the longer term, as the sector continues to grow, there would be a need to strengthen the administration, especially in terms of political and strategic decision-making and the allocation of resources and funding. 

In the evaluation, alternative model 2 “APSY and Space Programme” meets the needs that can be seen well and is also seen as sufficiently flexible to be able to adapt it in the future when the operating environment changes again. The third option described, the centralising model at the executive level “APSO, Space Agency and Space Programme”, was not seen by the working group as feasible in the evaluation.

The mandate of the working group set up ends with submission of the final report to the Minister of Economic Affairs. The report does not directly lead to measures or changes in space administration, but it serves as a knowledge base and an opening for a broader discussion.

Final report of the Evaluation Working Group of the Operating Model of Space Administration (in Finnish)