Clustering for Space: A Case Study on Strategies for Developing a Space Sector in Costa Rica

Abstract

This paper explores strategies for developing a nascent space sector in Costa Rica, using the Costa Rica Aerospace Cluster (CRAC) as a case study. It investigates how CRAC can leverage existing capabilities to enter the space sector, considering its unique context without a defense industry and the potential to exploit resources from adjacent industries like semiconductors and medtech. The research also examines how the cluster can serve as a launchpad for indigenous space startups. Through a structured methodology involving a case study approach and SWOT analysis, the paper analyzes internal factors such as CRAC's governance, capability inventory, shared infrastructure, market access, branding, and risk management, alongside external opportunities and threats related to New Space trends, regulatory environments, capital markets, and human capital availability. The findings converge on actionable strategies aimed at reducing friction and risk for sector entry, including initiatives like specialized startup memberships, aggregating demand for testing capabilities, enhancing international presence, streamlining legal frameworks, hosting investor workshops, attracting anchor clients, establishing shared test infrastructure, and launching a cluster-operated seed fund. The paper emphasizes the transferable capacity from Costa Rica's successful medtech ecosystem to accelerate aerospace and space sector development.