The space economy is undergoing a profound transformation driven by technological advances, commercialization, and the integration of space-based capabilities into terrestrial economic activities. This study examines the role of innovation in this structural transition, focusing on its main drivers, key actors, economic implications, and policy conditions. Drawing on the OECD’s conceptualization of the space economy and the literature on New Space and mission-oriented innovation, it adopts a qualitative, exploratory research design based on a structured review of academic, institutional, industry, and governmental sources, complemented by descriptive quantitative indicators. The study develops an integrated framework comprising four interconnected dimensions: technological, financial, business model, and institutional/policy innovation. It examines how interactions among these dimensions shape the development, commercialization, and diffusion of space-related innovations. The analysis suggests that technological progress alone cannot explain the transformation of the space economy; rather, it emerges from the interplay of technological advances, financing mechanisms, entrepreneurial activity, organizational arrangements, and institutional frameworks. These interactions foster hybrid public-private ecosystems involving governments, space agencies, established aerospace firms, start-ups, investors, research institutions, and downstream industries. Governments remain pivotal through public investment, procurement, regulation, infrastructure provision, and market creation. Moreover, the economic significance of space extends beyond upstream production to encompass space-enabled applications and services in communications, transportation, agriculture, finance, logistics, environmental monitoring, and security. The study also highlights the importance of policy direction, international cooperation, and effective governance in addressing challenges related to orbital congestion, cybersecurity, geopolitical competition, and unequal access to space capabilities. By integrating technological, financial, organizational, and institutional perspectives, the study advances an ecosystem-based understanding of space innovation. Its contribution lies in explaining how these dimensions interact to shape the evolution of the space economy and its capacity to generate economic and societal value. Methodologically, it synthesizes heterogeneous indicators into a unified analytical framework, facilitating a more integrated interpretation of the drivers and implications of innovation in the space economy.
This paper utilizes the recent ARDL modelling technique to test whether foreign capital complements or substitutes for private capital and economic output (labor productivity) in the Chilean economy for the 1960-2020 period. That is, it evaluates whether the so-called “complementarity hypothesis” is refuted in the Chilean case. The discussion is motivated by presenting a modified production function which treats the foreign capital stock as an additional input and provides an economic rationale for its inclusion. The paper also addresses the issue of whether inward foreign direct investment diverts resources away from the financing of private investment spending via the repatriation of profits and dividends back to parent companies, often residing in developed countries. Several important findings were revealed. First, the Bounds test indicated that the included I(0) and I(1) variables in both the production (labor) productivity functions are cointegrated. Thus, there is a long-term and stable relationship between the variables over the period under review. The error-correction terms for both functions indicated that deviations away from the long-term output (labor) productivity relationship are corrected in subsequent periods. Second, the results suggest that both private and foreign capital have a positive (long-term) effect on both economic output and labor productivity, controlling for both quantitative and qualitative variables included in the empirical model, such as the terms of trade and dummy variables. Third, the model diagnostics for both the output and labor productivity equations indicated that the estimates do not exhibit serial correlation and heteroscedasticity, and that they are structurally stable over the period under review. Fourth, the estimates for the output and labor productivity equations which include the “net” foreign capital stock (viz., adjusted for the repatriation of profits), suggest that foreign capital continues to have a positive, albeit smaller, effect on economic output and labor productivity. The latter finding suggests that, although the impact of foreign capital in terms of financing may be diminished, it still may be providing other benefits or externalities in the form of the transfer of better technologies and managerial expertise. Fifth, Block-Granger “causality” tests find strong support for precedence from foreign and private domestic capital to output (labor productivity), but also for “reverse causality or precedence” from output (labor) productivity to foreign capital and from foreign capital to private domestic capital. This finding provides further support for the complementarity hypothesis.
In August 2023, the Taiwanese government launched the New Youth Housing Loan Subsidy Policy (hereafter the New Youth Policy), which lowers the threshold for young people to buy homes through interest subsidies, higher loan ceilings, longer maturities, and extended grace periods. However, when housing supply is difficult to increase in the short run, such a demand-side subsidy may push up housing prices through a price capitalization mechanism. Taking New Taipei City as the study area, this paper uses more than one hundred thousand transaction records from the Ministry of the Interior’s actual price registration system between January 2021 and September 2024, and applies a hedonic price model to construct a multiple regression. After controlling for building characteristics, location, and annual trends, the study examines the effect of the policy on the unit price of housing. The pooled specification shows that the unit price of housing was about 4.4% higher in the post-implementation period, a differential equivalent to roughly one-fifth of the conditional appreciation of the market over the same window. To test whether this differential can be attributed to the policy rather than to a market-wide trend, we exploit the NT$10 million loan ceiling to construct a difference-in-differences design in which small dwellings, whose transaction prices fall within the ceiling, are treated as the high-exposure group and large dwellings, whose prices lie far above it, serve as the low-exposure comparison group. Once the control variables are allowed to differ across the two segments, the difference-in-differences estimate is economically and statistically indistinguishable from zero, and this null result is stable across four alternative size thresholds. An event-study specification reveals a significant pre-policy divergence between the two groups, and a placebo cut-off placed in the first half of 2023 yields a significant coefficient, so the parallel-trends assumption is not supported. A split-sample estimation by unit size likewise finds no significant difference in the policy coefficient between small and large dwellings. Building age and floor area have negative effects while floor level has a positive effect, reflecting the phenomenon of higher unit prices for smaller units. We therefore conclude that housing prices in New Taipei City rose markedly over the observation window, but that the data do not provide robust evidence that this increase is attributable to price capitalization of the New Youth Policy; the 4.4% pooled differential should be read as a conditional association and most probably overstates the policy contribution. The study suggests that when the government promotes housing finance subsidies, it should simultaneously introduce supply-side measures such as increasing social housing and urban renewal, so as to fulfill the goal of housing justice.
Business and Economic Research (BER) would like to thank the following reviewers for reviewing manuscripts from June 1, 2026, to September 1, 2026. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Many authors, regardless of whether BER publishes their work, appreciate the helpful feedback provided by the reviewers. Macrothink Publishing appreciates the following reviewers’ rigorous and conscientious efforts for this journal. Each of the reviewers listed below returned at least one review during this period.Carla MorroneEddie John FisherGrigorios L KyriakopoulosHengky Sumisto HalimJosé MartinsNaftaly MoseNemer BadwanNurul Farhana NasirSantosh B. ManjegowdaYutian YangZi-Yi GuoZoran Wittine
Business and Economic Research (BER) would like to thank the following reviewers for reviewing manuscripts from March 1, 2026, to June 1, 2026. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Many authors, regardless of whether BER publishes their work, appreciate the helpful feedback provided by the reviewers. Macrothink Publishing appreciates the following reviewers’ rigorous and conscientious efforts for this journal. Each of the reviewers listed below returned at least one review during this period. Carla MorroneChristian A. Ruiz FloresCorina M RadulescuCosimo MagazzinoEddie John FisherGrigorios L. KyriakopoulosHengky Sumisto HalimJosé MartinsNaftaly MoseNemer BadwanNurul Farhana NasirRoderikus Agus TrihatmokoSantosh B. ManjegowdaYutian YangZi-Yi GuoZoran Wittine
