2021 & 2022 State of the Canadian Space Sector Report – Facts and Figures 2020 & 2021

OBJECTIVE

The State of the Canadian Space Sector Report provides factual information about the Canadian space sector. The report, which is now in its 24th/25th edition, is based on a questionnaire sent to companies, not-for-profit organizations, research centres and universities with space-related activities in Canada.

To align with international practices, the publication is identified by the year in which the survey took place (2021 & 2022), but reports on data covering the year 2020 and 2021. All of the information in the report represents data from 2020 and 2021, with the exception of the work done in collaboration with Statistics Canada on the Linkable File Environment (LFE) sections of this report, where data covers up to 2019. Further information on the LFE is available in Annex B.

The report includes data on the number of organizations active in the sector and their composition, the sectors of activity, the Canadian space workforce and its composition, research and development (R&D), and innovation. In this edition, data on economic trends are reported for the 2017–2021 period. Readers should consult previous editions (available on the Canadian Space Agency website or the Government of Canada Open Government portal) for information regarding results prior to 2017.

The organization-specific information used to compile this report remains strictly confidential and will not be released in any manner other than aggregate form. Consequently, in certain circumstances, a detailed explanation or in-depth reporting of the results cannot be provided in order to protect the confidentiality of the respondents.

Of note, the numbers presented throughout the report may not add up precisely to the totals provided due to rounding. Additionally, the findings presented throughout this report are provided at current prices (i.e. unadjusted for inflation).

ABOUT THE AUTHORS

FOR MORE INFORMATION

For more information about the Canadian space sector, or for an electronic copy of this report, please go to www.asc-csa.gc.ca/eng/publications.

ACKNOWLEDGMENTS

The CSA wishes to acknowledge all those who responded to the questionnaire. Without them, this report would not have been possible.

ECONOMIC IMPACT – GROSS DOMESTIC PRODUCT

The space sector contributed $2.7B to Canada's GDP in 2020, and $2.8B in 2021. This represents the value of all final goods and services produced by the space sector within Canada. Total GDP contribution was broken down into the following:

The space sector creates benefits in the larger economy with a GDP multiplier of 1.98 (2020), and 1.99 (2021). In other words, every dollar that the space sector contributed to GDP resulted in an additional $0.98 (2020) and $0.99 (2021) in GDP contributions for the broader economy.

ECONOMIC IMPACT – JOBS SUPPORTED

The space sector supported a total of 22,846 jobs (2020) and 24,190 jobs (2021) in Canada. The total workforce contribution was broken down into the following:

The space sector creates jobs in the broader economy with a workforce multiplier of 2.10 (2020) and 2.08 (2021). In other words, every job in the space sector supports an additional 1.10 jobs (2020), or 1.08 jobs (2021) in the broader economy.

TOTAL REVENUES

In 2020, total revenues in the Canadian space sector significantly declined, totalling $4.9B, a −11% (−$592M) decline year-over-year. Revenues for the space sector were virtually unchanged in 2021, remaining at $4.9B. The compound annual growth rate (CAGR) of the space sector between 2017 and 2021 declined 3.3%.^{Footnote 2}

COVID-19 and global supply chain issues continue to impact the global economy and contributed to the decline and stagnation of Canadian space sector revenues. A detailed analysis of the source of this decline in growth can be found in the section of this report on Revenues by Markets and Customers.

TOTAL WORKFORCE

In 2020, the space sector workforce totalled 10,868 FTEs, a 3.3% decrease, or −368 FTEs. The space sector workforce rebounded in 2021, totalling 11,629 FTEs, a 7% increase, or +761 FTEs.

The space sector workforce breakdown remained the same in 2020 and 2021, consisting of 47% of FTEs in the upstream segment, 46% of FTEs in the downstream segment, and the remaining 7% of FTEs at the CSA. Definitions of what classifies as upstream and downstream activities are available in Annex C.

Note that workforce data now include CSA employees.

Gender Distribution of Employees

In total, 121 (2020) and 130 (2021) organizations responded to the workforce section on gender, representing 63% and 68% of organizations surveyed, respectively.

Results indicated that the Canadian space sector workforce is primarily made up of people who identify as male, with 72% in 2020 and 71% in 2021. Those who identify as female represented the remaining 28% and 29% of the workforce, respectively. The Other category accounted for 0.3% (2020) and 0.1% (2021) of employees in the Canadian space sector.

Gender Question

• Respondents were asked to identify the gender breakdown of their space-related employees by percentage, under the headings Male, Female, and Other.

2022-12-15. The Canadian CubeSat Project

Space Sector Workforce Gender Distribution

Space Sector Workforce Gender Distribution 2020

	Male	Other	Female
Gender distribution in 2020	72%	0.3%	28%

Space Sector Workforce Gender Distribution 2021

	Male	Other	Female
Gender distribution in 2021	71%	0.1%	29%

Gender composition in the provinces is as follows:

	2020			2021
	Male	Female	Other	Male	Female	Other
B.C.	72.2%	27.6%	0.3%	70.2%	29.7%	0.1%
Prairies	77.2%	22.8%	-	75.8%	24.1%	0.1%
Ontario	70.6%	28.7%	0.7%	70.4%	29.5%	0.1%
Quebec	73.7%	26.3%	-	69.9%	30.1%	-
Atlantic	60.5%	39.5%	-	64.3%	35.3%	0.4%

STEM Employees

The STEM indicator tracks the number of engineers, scientists, technicians, management, health professionals and students working in the space sector. STEM employees totalled 6,532 FTEs in 2020 and 7,238 FTEs in 2021, which represented 60% and 62% of the total Canadian space workforce, respectively.

Definition of STEM Employees

• STEM = Engineers, scientists, technicians, management, health professionals, and students

There are significant differences between the upstream and the downstream segments. In 2020, 81% of the workforce in the upstream segment were STEM, while only 36% of the workforce in the downstream segment were STEM. Results for 2021 were similar, with 86% of the workforce in the upstream segment and 40% in the downstream segment identified as STEM.

Of particular note is the proportion of STEM employees as a percentage of the total workforce, examined at the regional level. In the Prairies (Alberta, Saskatchewan and Manitoba) and B.C., STEM employees accounted for more than 80% of the provincial space workforce. STEM employees accounted for less than 65% of the space workforce in Ontario, Quebec and Atlantic Canada (New Brunswick, Prince Edward Island, Newfoundland and Nova Scotia). A lower share of STEM employees often reflects an industry that includes more downstream companies (especially broadcasting companies), which tend to employ a higher number of administrative employees.

Distribution of STEM Employees by Region: 2020 & 2021

Distribution of STEM Employees by Region: 2020 (in %)

	2020
B.C.	10%
Prairies	15%
Ontario	38%
Quebec	34%
Atlantic	3%

Distribution of STEM Employees by Region: 2021 (in %)

	2021
B.C.	9%
Prairies	17%
Ontario	36%
Quebec	34%
Atlantic	4%

2022-10-20. Space Brain Hack session

STEM Workforce: 2020 & 2021

STEM Workforce: 2020

	Total Workforce	Total STEM	% of STEM Relative to Total Regional Workforce	% of STEM Relative to Total Number of STEM in Canada's Space Workforce
B.C.	746	638	86%	10%
Prairies	1,109	999	90%	15%
Ontario	3,984	2,469	62%	38%
Quebec	4,287	2,221	52%	34%
Atlantic	742	205	28%	3%
Total	10,868	6,532	-	100%

STEM Workforce: 2021

	Total Workforce	Total STEM	% of STEM Relative to Total Regional Workforce	% of STEM Relative to Total Number of STEM in Canada's Space Workforce
B.C.	808	679	84%	9%
Prairies	1,324	1,246	94%	17%
Ontario	4,215	2,628	62%	36%
Quebec	4,514	2,423	54%	34%
Atlantic	768	262	34%	4%
North	1	1	-	-
Total	11,629	7,238	-	100%

REGIONAL DISTRIBUTION AND TRENDS

In 2020, despite the challenges surrounding COVID-19, the proportional share of total revenues and employment by province remained relatively stable compared to 2019. Similarly, 2021 showed only small variations in the regional distribution from 2020.

*Note: The North (Yukon, Northwest Territories, and Nunavut) reported revenues for the first time. They are minimal and therefore not included in the graphs, but may appear in tables discussing total revenues.

2022-01-20. Canada announces strategy for satellite Earth Observation

MARKET SHARE BY VALUE-CHAIN SEGMENTS

Space sector revenues can be broken down into value-chain segments and sub-segments based on the type of work that the organization is carrying out. The two main segments this analysis has been split into are upstream and downstream activities. The upstream segment – comprised of the research, engineering and consulting as well as the space segment manufacturing and ground segment manufacturing sub-segments – generated $0.73B in revenues in 2020, and $0.83B in 2021. The downstream segment – comprised of the satellite operations, manufacturing of products (e.g. terminals), development of software applications, and the provision of services (e.g. broadcasting) sub-segments – generated $4.17B in revenues in 2020, and $4.07B in 2021.

In 2020 and 2021, significant declines in revenues were noted across the value chain, due in large part to impacts from COVID-19 and global supply chain issues. Impacts differed year-over-year.

In 2020, the Services sub-segment of the value chain was the only area to see positive growth (5%), with all other areas of the value chain declining. The decrease in Products and Applications (42%) was the most significant within the value chain. Ground Segment Manufacturing was similarly impacted, declining 31%, followed by declines in Space Segment Manufacturing (−23%). The remaining areas of the value chain declined at a more modest pace.

In 2021, a partial recovery in revenues from the previous year was visible in the upstream segment of the value chain, with Research, Engineering and Consulting growing 23%, followed by growth in Space Segment Manufacturing at 23%, but a decline in Ground Segment Manufacturing by 10%. The downstream segment was less volatile, with declines in Satellite Operations of 8%, as well as declines in Services, Products and Applications by less than 2% each.

A detailed description of the value-chain categorization is provided in Annex C. Revenues in each sub-segment can be broken down as follows:

• Research, Engineering and Consulting amounted to $265M in 2020 and $326M in 2021, which represented an 11% increase ($33M) from 2019. This sub-segment accounted for 5% of total revenues in 2020, and 7% in 2021.
• Space Segment Manufacturing amounted to $255M in 2020 and $314M in 2021, a decline of 5% ($17M) from 2019. It accounted for 5% of total revenues in 2020, and 6% in 2021.
• Ground Segment Manufacturing amounted to $210M in 2020 and $188M in 2021, a 38% decline ($118M) from 2019. It accounted for 4% of total revenues in 2020 and 2021.
• Satellite Operations amounted to $879M in 2020 and $813M in 2021, a 15% decline ($145M) from 2019. It accounted for 18% of total revenues in 2020, and 17% in 2021.
• Products and Applications contracted to $616M in 2020 and $615M in 2021, a 42% decline ($447M) from 2019. It accounted for 13% of total revenues in 2020 and 2021.
• Services amounted to $2.67B in 2020 and $2.64B in 2021, a 4% increase ($100M) from 2019. It accounted for 55% of total revenues in 2020, and 53% in 2021.

2022-09-30. 50th anniversary of the David Florida Laboratory (DFL)

MARKET SHARE BY SECTOR OF ACTIVITY

In 2020, COVID-19 significantly impacted revenues across all Canadian space sectors of activity, with the exception of revenue growth in Space Exploration, and flat revenues in the Navigation sector. In 2021, revenues recovered in all Canadian space sectors of activity from declines in 2020, with the exception of an additional decline in revenue for the Satellite Communication sector. Trends for the 2017–2021 period are detailed below.

MARKET SHARE BY CUSTOMER LOCATION

MARKET SHARE BY CUSTOMER TYPE

Customers are categorized as either government or non-government. Government customers include domestic governments (municipal, provincial, federal) and foreign governments. Non-government customers include businesses, individual consumers and non-profit organizations or foundations (both domestic and foreign).

Overall, 11% of the space revenues in 2020 derived from government customers and 89% from non-government customers. Changes in 2021 were minimal, with 12% of the space revenues derived from government customers and 88% from non-government customers. It is important to note that government customers make up the majority of market share in some sectors, such as Space Exploration and Space Science, whereas Satellite Communication customers are primarily non-government.

Both upstream and downstream focused organizations derived revenues from non-government clients in 2020 and 2021. The upstream segment derived 58% (2020) and 60% (2021) of revenues from non-government clients, whereas the downstream segment derived 95% (2020) and 94% (2021) of revenues from non-government clients.

BUSINESS EXPENDITURES ON R&D (BERD) (COMPANIES ONLY)

Canada has seen unprecedented growth in BERD expenditures over the past few years, reaching $479M (from 77 companies) in 2020, and $547M (from 78 companies) in 2021. This represents a 46% increase from the $376M spent on BERD in 2019. Upstream organizations were responsible for 46% of total space sector BERD in 2020, and 40% of total space BERD in 2021.

R&D spending was financed through internal sources (e.g. company profits reinvested in R&D) at 64% (2020) and 76% (2021), while the remaining 36% (2020) and 24% (2021) was financed through external funding sources (e.g. government grants and contributions). Internally (i.e. company) funded R&D reached $306M (2020) and $414M (2021), and externally (i.e. government) funded R&D reached $174M (2020) and $133M (2021).

R&D INTENSITY LEVEL (COMPANIES ONLY)

The R&D intensity indicator reflects the ratio of BERD spending relative to the GDP contribution of the space sector. It serves as an indicator of the level of effort and investment by a company (or by an industry as a whole) in innovative activities such as the creation of new products, services and technologies, or the improvement of business functions such as production techniques. Overall, space sector R&D intensity was 46% in 2020, and 53% in 2021. The upstream segment is more R&D intensive than the downstream: upstream R&D intensity was 55% (2020) and 56% (2021), while downstream R&D intensity was 41% (2020) and 50% (2021).

• In 2020, the R&D intensity for the manufacturing sub-segment (in the upstream) is 56%, which is 16 times higher than the average for manufacturing in Canada.
• In 2021, the R&D intensity for the manufacturing sub-segment (in the upstream) is 59%, which is 18 times higher than the average for manufacturing in Canada.

COMMERCIALIZATION OF EXTERNALLY FUNDED R&D PROJECTS (ALL ORGANIZATIONS)

Organizations report on the level of commercialization of projects that were initially funded by government (externally funded R&D). Organizations derived $198M (from 27 organizations in 2020) and $136M (from 33 organizations in 2021) in revenues through the commercialization of externally funded R&D projects. This represents a 46% decline from 2019 commercialization revenues, which is not unexpected given the large drop in demand associated with COVID-19 and supply chain related issues. The upstream segment accounted for 73% (2020) and 67% (2021) of commercialization revenues, while the downstream segment accounted for the remaining 27% (2020) and 33% (2021). Almost all commercialization takes place through companies.

RETURN ON INVESTMENT

For the past five years, the CSA has been surveying companies to determine the return on investment (ROI) from CSA space development programs.

Overall, 73% of respondent companies indicated that CSA-financed projects generated positive reputation benefits, 77% have attempted to generate follow-on revenues, and 76% intend to generate follow-on revenues.

The total ROI figure encompasses data collected from the 2017–2021 period for projects that concluded in 2016–2020. It is expected that for each year beyond the completion of a project, opportunities for further follow-on revenues are generated, and therefore the ROI has the potential to continue growing over time.

The analysis is conservative in nature, as the projects for which companies did not provide responses are counted as generating an ROI of zero. In addition, a lower return on investment for space development programs was expected in recent years due to the decline in demand for the space sector associated with COVID-19 and global supply chain issues.

CSA space development programs have demonstrated success in generating follow-on revenues for companies. The intent is to continue to follow CSA-funded projects that have ended, in order to determine the cumulative total ROI for each space development project.

INVENTIONS AND PATENTS (ALL ORGANIZATIONS)

In 2020, 55 organizations reported having made an invention and 25 registered a patent. Subsequently, in 2021, 48 organizations reported having made an invention and 23 registered a patent. Between 2019 and 2021, the number of organizations with inventions and registered patents decreased by 16% (from 57 organizations in 2019) and 8% (from 25 organizations in 2019), respectively.

Between 2017 and 2021, the number of organizations with inventions decreased by 13% (from 55 to 48), while the number of organizations registering patents decreased by 34% (from 35 to 23).

A total of 215 (2020) and 226 (2021) inventions, and 64 (2020) and 76 (2021) registered patents were reported.

The number of inventions decreased by 7%, from 243 (2019), to 215 (2020), to 226 (2021).

The number of registered patents increased by 15%, from 66 (2019), to 64 (2020), to 76 (2021).

CANADA'S LEADING SPACE ORGANIZATIONS

Canada's top 30 space organizations (i.e. based on their revenues) generated 97% (2020) and 95% (2021) of space revenues and accounted for 72% (2020) and 69% (2021) of space employment, which is consistent with results from previous years despite impacts from COVID-19 and changes in the composition and rank of the top 30 space organizations. Canada's top 30 organizations are comprised of 26 companies and 4 universities (2020 & 2021). In 2020, the top 30 organizations account for 89% of BERD (companies only) 48% of inventions, and 63% of registered patents. And, in 2021, the top 30 organizations account for 81% of BERD (companies only) 31% of inventions, and 41% of registered patents. In both years, 60% of the top 30 organizations were downstream companies, with the remaining 40% including upstream segment companies and universities.

Large companies, classified as having 500 employees or more, are rare in the space sector. Only 6% of the companies surveyed were classified as large enterprises in 2020, and 7% in 2021.

A total of 67 (2020) and 78 (2021) organizations reported space revenues in excess of $1M.

SMALL AND MEDIUM-SIZED ENTERPRISES (SMES)

Ninety-three percent of Canadian space companies were SMEs in 2021 (94% in 2020), and many of Canada's top space companies were SMEs (defined as employing 1 to 499 workers). SMEs were concentrated most heavily in research, engineering and consulting activities in the upstream segment and in services in the downstream segment.

Of the SME respondents, 65% (2020) and 57% (2021) were upstream segment companies, while 35% (2020) and 43% (2021) were downstream segment companies. Together SMEs accounted for 42% (2020 & 2021) of Canadian space sector revenues and 28% (2020) and 30% (2021) of all employees.

Innovation is essential for space SMEs, and in the past few years they have overtaken large companies to represent the majority of BERD spending. In 2020, SMEs accounted for 48% of all space BERD and in 2021, they accounted for 56% of all space BERD. Upstream segment space SMEs accounted for 10% (2020) and 15% (2021) of total BERD, while downstream segment SMEs accounted for 38% (2020) and 41% (2021) of total BERD in the space sector. SMEs were also responsible for 67% (2020) and 74% (2021) of inventions, and 52% (2020) and 61% (2021) of registered patents.

Space SMEs are also export-driven. In 2020 and 2021, 60% and 58% of their sales reached customers abroad, respectively. The downstream segment accounted for 83% (2020) and 81% (2021) of SMEs' export revenues, while the upstream segment accounted for 17% (2020) and 19% (2021) of SMEs' export revenues.

The SME workforce is highly skilled and specialized, with 64% (2020) and 67% (2021) of SMEs' workforce classified as HQP (i.e. employees with at least a bachelor's degree), compared to 55% (2020) and 59% (2021) of the workforce in large firms. Similarly, 70% (2020) and 69% (2021) of SMEs' workforce were STEM employees, compared to 42% (2020) and 44% (2021) in large firms.

UNIVERSITIES AND RESEARCH CENTRES

University and research centre revenues amounted to $123M in 2020, and $135M in 2021, representing 2.5% and 2.8% of total revenues, respectively. Universities and research centres received $111M (2020) and $121M (2021) in domestic funds, with the majority from government sources:

The remainder came from private foundations or companies.

In addition, universities and research centres accessed $12M (2020) and $14M (2021) in funding from foreign sources. American organizations remain an important source of support for space-related activities in Canadian universities and research centres, with funds totalling $7.7M (2020), and $10.5M (2021). European organizations were the second largest contributor, with funds totalling $2.7M (2020) and $1.8M (2021). The remaining funding came from other regions.

Academic organizations contributed 17% of the total space sector workforce in 2020 with 1,885 FTEs, of whom 86% are HQP and 96% are STEM employees. In 2021, academic organizations represented 19% (2,240 FTEs) of the total space sector workforce, including 87% who are HQP, and 96% who are STEM. In addition, 40% (2020) and 54% (2021) of the university and research centre workforce was comprised of students, mostly at the graduate level, who were in receipt of wages or a stipend from their university for work as research assistants, as teaching assistants, or in other employee-type arrangements.

The North reported revenues and FTEs for the first time in 2021. However, given that revenues and workforce were very low relative to the rest of the country (<0.5% of revenues and workforce), they are not included in the chart or subsequent graphs.

Of the 41 university and research centre respondents, eight reported coming up with inventions in 2020 and five filed for patents. In total, Canadian universities and research centres generated 19 inventions and filed 16 patents in 2020, accounting for 9% of space inventions and 25% of registered patents.

In 2021, 42 university and research centres responded to the survey, with seven reporting inventions and three filing for patents. In total, Canadian universities and research centres generated 25 inventions and filed 14 patents in 2021, accounting for 11% of space inventions and 19% of registered patents.

Universities and research centres are categorized as part of the upstream segment of the value chain, as they are mostly engaged in research and engineering. However, it is important to note that some universities and research centres also participate in downstream segment activities, such as satellite operations and the development of software and algorithms to transform space data into space-enabled solutions.

QUESTIONNAIRE

In order to measure the changes taking place in Canada's space sector each year, the CSA uses a questionnaire to collect baseline data. Questionnaires are sent to private sector enterprises, not-for-profit organizations, research organizations and universities in Canada that engage in space activities. The questionnaire follows a census model and therefore aims to be as inclusive and exhaustive as possible.

Most organizations that responded to the 2020 and 2021 questionnaires reported on a fiscal year (generally ending March 31), with the remainder reporting on a calendar year, from January 1 to December 31, 2020 and 2021. As in previous years, the questionnaire had a high response rate, covering a total of 191 (2020) and 190 (2021) organizations over the past two years.

Additionally, the CSA performs quality control measures on the survey data to ensure the accuracy of the findings.

ATTRIBUTION

Data are also supplemented based on CSA transfer payments (Contracts, Grants, and Contributions) in cases where this information has not been included as part of the survey responses to more fully capture revenues.

In addition, there is a limited number of cases where data are compiled from publicly disclosed reports (e.g. for publically traded companies) and verified through consultation with company officials.

ECONOMIC TRENDS

Prior to 2017, the CSA made changes to the methodology, whereby significant adjustments impacted indicators for domestic revenues, Satellite Communication revenues, government vs. non-government funding, and workforce. For that reason, the economic trend analysis for this report assesses the past five years (2017–2021). For information on the economic trends prior to 2017, readers are invited to consult previous editions of this report.

STATISTICS CANADA LINKABLE FILE ENVIRONMENT

Through a linkage process, the Linkable File Environment (LFE) leverages the single-subject ability of existing surveys and administrative data to inform on business and economic issues. It positions these surveys and administrative data to support longitudinal and cross-sectional analysis and offers opportunities to use additional variables to assess entrepreneurship, employment, productivity and competitiveness.^{Footnote 3}

Additional information on the LFE is available at: https://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getSurvey&SDDS=6000

ECONOMIC IMPACT ANALYSIS

As described in the OECD's 2012 Handbook on Measuring the Space Economy, and further elucidated in the updated OECD Handbook on Measuring the Space Economy, 2nd Edition (2022), measuring economic impacts in the space sector is a challenging task, as there is no single industrial classification for space activities. In order to overcome this difficulty, a model was developed jointly by the CSA and Innovation, Science and Economic Development Canada (ISED) to calculate the space sector's contribution to GDP (gross domestic product or value added). This process involved taking into account the various industrial classifications, weighing them and categorizing them using a value-chain approach, in order to develop a set of multipliers based on Statistics Canada's Input-Output tables. These multipliers are used to determine the impacts on GDP and employment of the space sector, the suppliers to the space sector, and the consumer spending by employees associated with both the space sector and its supply industry.

A detailed explanation of the Economic Impact Model follows:

1. North American Industry Classification System (NAICS) codes were retrieved for each space company through Statistics Canada's Business Register. This exercise generated a list of 11 separate industrial classifications that covered all active Canadian space sector companies.
2. Canadian space companies were categorized into a value-chain model based on the goods and services they provide: Research, Engineering and Consulting; Manufacturing; Satellite Operations; Service Providers; and Broadcasting Services.
3. Universities, research centres and associations were grouped together under Research, Engineering and Consulting, as in most cases their space sector activities are related to R&D.
4. The grouping of NAICS codes in each of the value-chain categories were then weighted for their relative importance within that particular category. Weighting was established on the basis of workforce tied to each NAICS code. The more workforce associated with organizations in a particular NAICS code, the heavier that NAICS code was weighted relative to the grouping of NAICS codes in that value-chain category.
5. Customized economic multipliers were then built for each value-chain category based on Statistics Canada's input-output accounts for existing NAICS codes. These multipliers are at three levels: space sector, supply industry and consumer spending by associated employees.
6. Employment levels for each value-chain segment of the space sector (collected directly from companies through the questionnaire) are entered in the Economic Impact Model. The customized economic multipliers are then applied to generate the space sector's total GDP and workforce impact numbers.

The "multiplier effect" refers to the total impacts (space sector, supply industry and consumer spending by associated employees) divided by the initial space sector impact. This gives the reader an idea of the impact that one job or one dollar in the space sector has on the wider economy.

Note: Two types of primary inputs can be used in an input-output model: revenues or employment. Employment has been chosen here, as it provides a more accurate portrait of the true level of economic activity being performed within Canada's borders. The results of this analysis can be considered a conservative estimate of Canada's space sector impact, particularly when compared to third-party studies or comparative international reports, which may use different methodologies.

CANADA'S SPACE SECTOR

The Canadian space sector is defined as organizations (private, public and academic) whose activities include the development and use of space assets and/or space data.

SPACE VALUE-CHAIN CATEGORIES

This report uses a methodology developed by the Organisation for Economic Co-operation and Development's Space Forum, of which the CSA is a Steering Committee member, to characterize Canadian space activities on the basis of a value-chain approach. The definitions of space sector categories were updated in the 2014 edition of this report as per the value-chain approach, with findings presented on the basis of upstream and downstream segment activities. This re-categorization is intended to improve the measurement of the space sector and enable international comparisons.

Under this value-chain approach, data have been organized into categories that align with the stages of producing space goods and services: Research, Engineering and Consulting; Space Segment Manufacturing; Ground Segment Manufacturing; Satellite Operations; Products and Applications; and Services. This approach replaces the space categories used in the annual State of the Canadian Space Sector Reports from 1996 to 2013.

SECTORS OF ACTIVITY

The activities of space organizations can also be broken down, as has been done in previous reports, according to the ultimate use or purpose of the research carried out or the goods and services produced. Space sector activities can serve commercial, civil or military purposes, and refer to activities across the value chain:

• Navigation: The development and use of satellites for localization, positioning and timing services. Navigation is used for air, maritime and land transport, or the localization of individuals and vehicles. It also provides a universal referential time and location standard for a number of systems.
• Satellite Communication: The development and use of satellites to send signals to Earth for the purpose of fixed or mobile telecommunications services (voice, data, Internet, and multimedia) and broadcasting (TV and radio services, video services, Internet content).
• Earth Observation (EO): The development and use of satellites to measure and monitor Earth (including its climate, environment and people) for a number of purposes such as resource management, mineral exploration, disaster assessment, security and defence.
• Space Exploration: The development and use of crewed and unscrewed spacecraft (space stations, rovers and probes) to investigate the reaches of the universe beyond Earth's atmosphere (e.g. the Moon, other planets, asteroids). The International Space Station and astronaut-related activities are considered in this sector.
• Space Science: The various science fields that relate to space flight or any phenomena occurring in space or on other planets (e.g. astrophysics, planetary science, space-related life science).
• Other: Generic technologies or components that are not destined for use on a specific space system or for a specific space application. This could be the case for early-phase research, small off-the-shelf components used in various systems, or services based on integrated applications.

RETURN ON INVESTMENT (ROI)

RETURN ON INVESTMENT (ROI) is defined as the ratio rate of return between net income and investment.

For the past five years the CSA has been surveying companies to determine the return on investment (ROI) from CSA space development programs. The process involved asking a series of questions related to reputation effects, intent to generate revenues, and revenues generated for each project supported by space development programs.

HIGHLY QUALIFIED PERSONNEL (HQP)

HIGHLY QUALIFIED PERSONNEL (HQP) is defined as space-related employees who have at least a bachelor's degree. This definition aligns with Statistics Canada's definition of HQP, enabling comparisons with other sectors of the economy.

SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS (STEM) EMPLOYEES

SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS (STEM) EMPLOYEES are space-related employees involved in science, technology, engineering or mathematics activities. For the purpose of this survey, STEM employees include engineers, scientists, technicians, management, health professionals and students working in the space sector. Management employees are included in the STEM indicator because the vast majority of employees in this category are managing STEM-related activities. Similarly, students were included in this indicator, because the vast majority of students employed by space companies are directly involved in STEM activities. This approach aligns more closely with Statistics Canada's and the OECD's definitions of STEM employees.

CANADIAN SPACE AGENCY (CSA) EMPLOYEES

The report now includes data on CSA employees as members of the space sector, and will look to incorporate other government departments in the future. Data related to CSA employees have also been backdated in order to be consistent with trend analyses throughout the report.

BUSINESS EXPENDITURES ON RESEARCH AND DEVELOPMENT (BERD)

BERD measures the spending towards R&D activities in a company. The source of funds could include their own internal private investment (cash on hand; debt; private injection) or external funding sources (government funding, other).