A Proposal for a State Space Secretariat: Why Does It Make Sense for the State of São Paulo?

INTRODUCTION

The first aerospace activities began in Brazil in the 1940s. Since then, a legacy of initiatives has been built across infrastructure, educational institutions, research institutes, companies, and professional training. The governance of the Brazilian Space Program (PEB) is structured around the Brazilian Space Agency (AEB), created in 1994. Federal legislation regulates the AEB’s attributions and the national space innovation system. Recent research shows that the Brazilian program is undergoing a significant transformation, shifting from a solely state-led model to New Space initiatives characterized by commercialization, innovation, and increased involvement of private actors. ¹ The drivers of the PEB have been shaped not only by declared policies but also by consistent patterns of behavior influenced by political, economic, and institutional factors. ² In this context, there is an opportunity to integrate states and municipalities in the exploration of space activities to benefit local society. This article presents a history of the PEB, information about the State of São Paulo, the growth of the global space economy, the rationale guiding the discussion, the methodology used in the focus group, and the conclusions.

THE BRAZILIAN SPACE PROGRAM

The history of the PEB can be divided into three phases: 1.

1940–1979: establishment of institutions and formation of human capital.

The first Brazilian initiatives to organize the development of aerospace activities occurred in 1941 with the creation of the Ministry of Aeronautics and the establishment of the Aerospace Technical Center in 1946.^3,4 In the sequence, two scientific institutes were established: the Technological Institute of Aeronautics (ITA) in 1950 for higher education, and the Institute for Research and Development in 1954 for research and development in military and civil aviation, both located in São Paulo state.

In 1966, the Executive Group for Work and Studies on Space Projects was created to involve the Ministry of Aeronautics in the work of the National Commission for Space Activities (CNAE). This group was responsible for planning rocket development and, in 1969, became the Institute of Space Activities. In 1971, CNAE became the National Institute for Space Research (INPE), which is also located in São Paulo state.^3,5

On January 20, 1971, the Brazilian Commission for Space Activities (COBAE) was created. Its mission was to exercise interministerial coordination over Brazilian space activities and advise the President of the Republic on issues related to the National Policy for the Development of Space Activities (PNDAE).^3,6

The second phase of the PEB began in 1979, when COBAE proposed the establishment of MECB to execute a comprehensive space program comprising satellites, launch vehicles, and ground infrastructure, including a launch control center, stations, and data networks.^5–7 The MECB’s proposal, as the first Brazilian space policy, was to build four satellites (two for collecting environmental data and two for remote sensing) in ten years, until 1989, a satellite launch vehicle, and another launch center in a more remote location, in Alcântara, Maranhão.^3,7

MECB’s achievements included the launch of the SCD-1 and SCD-2 Data Collection Satellites, both launched abroad; the development of the Satellite Launch Vehicle (VLS-1), with three launch attempts; the installation of the Alcântara Launch Center; and the implementation of the Brazilian Data Collection System. The VLS-1 project, although conceived under the MECB, continued into the third phase of the PEB after 1994, with three launch attempts coordinated by the AEB. These efforts reflected the continuity of national ambitions for autonomous access to space, despite repeated setbacks and structural challenges. ²

The third phase of the PEB started in 1994 with the creation of the AEB. Its purpose was to coordinate, update, and ensure compliance with the PNDAE, as well as to prepare the PNAE.^3,8

The National Space Activities Development System was created in 1996 to organize the execution of activities aimed at space development of national interest, with the AEB as the central coordinating body at the federal level.^2,5

The PEB is governed by the objectives and guidelines consolidated in the PNDAE, whose main aim is to promote capacity building in Brazil to develop and use space resources and techniques to solve national problems and benefit Brazilian society.^5,9

In the latest version of the PNAE published in 2023, the PNAE 2022–2031 was formalized as the planning instrument for Brazilian space activities for the decade, with a future vision of Brazil being the leading South American country in the space market. ¹⁰ The latest version of the PNAE establishes five critical factors for strengthening the Brazilian Space Sector: 1.

Articulation and convergence between the various actors involved—government, industry, academia, and society.

In this context, the PNAE 2022–2031 outlines the nation’s priorities for the next decade and lays the foundation for capacity building in the Brazilian space sector. Within this framework, the State of São Paulo plays a vital role as the main hub of the national space industry, with research institutions and funding agencies, and concentrates most of the companies and technological infrastructure dedicated to space activities.

THE SPACE ECONOMY

The OECD (Organisation for Economic Co-operation and Development) defines the space economy as the “full range of activities and the use of resources that create and provide value and benefits to human beings in the course of exploring, understanding, managing, and utilizing space.” ¹⁴ Since the early 2000s, reductions in production and launch costs have driven a sharp increase in the number of satellites placed in orbit. Figure 1 illustrates this intensification between 2013 and 2022, particularly with the emergence of commercial nanosatellite constellations.

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Fig. 1.

Number of payloads launched into space. Source: OECD, 2022.

Since 2019, global launch activity has been dominated by the deployment of broadband satellite constellations in low Earth orbit.

More countries are engaging in space activities, and since the launch of Sputnik, over 80 nations have registered at least one satellite in orbit. ¹⁵ The size of the global space economy reached USD 613 billion in 2024, growing by 7.8% compared to the previous year. ¹⁶ Approximately 78% of this amount was generated by the commercial sector, while government programs accounted for around 22%. Public budgets expanded by 6.7%, reaching USD 132 billion, with the United States accounting for about USD 77 billion in civil and national security programs. ¹⁶

Current investment flows are concentrated in satellite communications, Earth observation, positioning and navigation systems, and space transportation, with a particular emphasis on reusable launch vehicles. At the same time, enabling technologies such as propulsion systems, advanced materials, and software development are becoming increasingly central, while space exploration and science continue to play a long-term strategic role by fostering innovation and human capital development. Recent projections indicate that the global space economy may surpass USD 1 trillion by the early 2030s, with growth largely driven by commercial applications and new markets arising from satellite-based services. ¹⁷

The ongoing expansion of the space economy also requires rethinking conventional economic and governance models. As highlighted in recent studies, this emerging domain is shifting from a state-led exploration framework to one increasingly driven by commercial innovation and technological development. Its long-term sustainability will depend on collaborative approaches that integrate private investment, public policy, and international cooperation to address challenges such as orbital congestion, regulatory challenges, and equitable access to resources. ¹⁸

METHODOLOGY

Given the nature of the research question, the selected method was the focus group since it is a group discussion in which participants, usually 6–8, focus collectively on a chosen topic, ¹⁹ in which the participants influence each other by responding to ideas and statements during the discussion, stimulated by comments or questions provided by the moderator. ²⁰

The discussion took place in São Paulo, hosted by the Federation of Industries of the State of São Paulo and the National Defense Material Industry Union, and was recorded for qualitative analysis using the software Atlas.ti.

There were invited six senior professionals with experience in the PEB representing the industry, the academia, and the government, as illustrated in Table 1.

A literature review on space policy was conducted to examine how national strategies in the sector are being structured. The main points identified in this review were then used to formulate the interview guide applied in the focus group.^20–27

What are the primary needs and opportunities in the State of São Paulo that we can address using space technologies? What would be the priorities?

At the beginning of the event, each participant had 5 min to introduce themselves and give a brief presentation on the topics discussed. The questions to the participants were grouped into three parts to optimize the time available at the event.

RESULTS

The participants’ initial considerations highlighted several key points: the importance of establishing a high-level governance structure within the government, the need for a consistent budget, the dual role of the State of São Paulo as both a state and an economic entity with significant influence, and the existing gap in space economic policy. They also discussed the potential for integration with other states and São Paulo’s role as a major generator of demand.

A representative from the AEB emphasized that a high-level governance structure ensures autonomy and visibility within the government framework, along with a steady budget flow to provide predictability for stakeholders. A representative from a research institute emphasized the importance of the space agenda for São Paulo, given its size and potential societal impact. Despite Brazil’s lack of a comprehensive space economy policy that focuses on developing industry capabilities, a vision for the future exists in which the industry can supply space products. Other states, such as those involved with the Alcântara Launch Center, are also active in space activities, suggesting the possibility of leveraging regional governance structures, like those in the Southeast, to advance the space agenda.

In response to the first set of questions about the needs and opportunities São Paulo can address using space technologies, topics such as geointelligence, geopositioning, and communication were discussed. Participants unanimously agreed that the most immediate and significant returns are in the downstream sector, particularly in remote sensing and sustainability applications, such as monitoring greenhouse gas emissions. A representative from a research institute highlighted the importance of meteorology, while a military representative emphasized the significance of navigation systems. It was noted that Brazilian space policy is centralized at the federal level, with no state-level coordination on issues such as natural disasters, which have also affected Brazil.

In the second set of questions, participants shared their views on current legislation and its potential to foster the development of space activities, the objectives of a state space policy, and ways to promote R&D. A military representative noted that Brazilian society is largely unaware of the benefits of space activities, despite the widespread use of technologies such as telecommunications and meteorology. An AEB representative suggested that the development agenda should better use existing instruments, such as the technological order, which allows multiple companies to be contracted simultaneously for technology development.

The discussion also highlighted the gap between academia and the PEB, as well as the competition between the Brazilian state and private companies, particularly in the supply of space equipment. The current legislation was criticized for being overly lengthy, which hinders agility in establishing contracts with the private sector. To address this, a dialogue between state and federal levels was proposed to develop new laws and policies to attract talent and create venture capital funds. Creating an innovation district in São Paulo was discussed as a potential opportunity for the space sector.

An industry representative identified an opportunity for São Paulo and Brazil to strengthen ties with the agribusiness sector, particularly in the space farming sector. A Brazilian Air Force representative advocated for developing local solutions in collaboration with the industry, sometimes contracted abroad, suggesting that such capacity could be built domestically. The final part of the discussion focused on how public policies for the space sector could benefit the population, increase the HDI, and determine which governance structures would be most suitable for the State of São Paulo. Participants unanimously supported the creation of a spatial governance structure in São Paulo, backed by capital support, such as a venture capital fund. This would enable the implementation of initiatives such as natural disaster management and public works monitoring, while also ensuring national sovereignty and autonomy.

The main ideas from the technical panel participants’ responses were summarized into six key points, listed in Table 2, and are shown below.

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Table 1.

List of Participants and Their Triple Helix Relation

	Institution
1	Brazilian Space Agency
2	São José dos Campos Technological Innovation Park
3	Financier of Studies and Projects
4	National Institute of Space Research
5	Brazilian Air Force
6	Technological Research Institute

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Table 2.

Consolidated Central Ideas from the Technical Panel Participants

	Central Ideas
1	Organizational Structure, Regulation, and Budget
2	Promoting Research, Innovation and Development, and Competitiveness of the Space Industry
3	Competitiveness of the Space Industry
4	Expansion of Space Services, Public Awareness and Outreach
5	Legislation, Regulatory Environment, Synergy with other States, and Space Business
6	Priority Space Technologies, Needs, and Opportunities

The focus group results revealed key ideas about creating a governance structure for the space sector in São Paulo. One key point was the importance of positioning this governance at the same hierarchical level as other state departments, with direct reporting to the Governor. This setup would prioritize space-related decisions and secure ongoing funding, similar to practices already used in countries that benefit greatly from space activities. Participants pointed out that because the space sector is cross-cutting, it needs coordination with multiple areas like agriculture, disaster management, climate change, education, and urban planning. Therefore, the governance system should be inclusive, involving representatives from government, industry, academia, and possibly civil society, aligning with the “triple helix” model that promotes collaboration among these groups. São Paulo’s role as Brazil’s main economic and industrial hub was emphasized, almost like a country itself, reinforcing the need for a state-level space policy.

Discussions also highlighted the potential for forming coalitions of states to align their strategies and develop joint initiatives in the space sector, thereby promoting regional cooperation. Another point raised was the need for the proposed governance to interact effectively with other departments, such as Science and Technology or Economic Development, depending on the project types. Despite progress such as the activities of the Committee for the Development of the Brazilian Space Program and the creation of the National Space Council, participants noted that the lack of effective governance remains a long-standing challenge for the sector. Establishing new financial mechanisms was seen as crucial, including the creation of private funds, such as venture capital, to support startups and companies, as well as ensuring continuous funding and long-term planning through stable, predictable budgets.

In terms of research, innovation, and industrial competitiveness, São Paulo was recognized for its capacity and resources to lead in the space sector. Creating a State Innovation District, supported by FAPESP, was seen as a practical opportunity to attract private companies and strengthen the state’s research and development ecosystem. The group highlighted the importance of reducing dependence on imported products and services by promoting a strong domestic industry to serve local needs.

Expanding space services was another key theme, with participants emphasizing São Paulo’s potential to grow its economy through developing infrastructure and creating a comprehensive space economy strategy at the state level. The downstream segment, particularly remote sensing and sustainability applications, was identified as a priority offering immediate socioeconomic benefits. Increasing public awareness about the importance of space technologies—often invisible but widely used, such as GPS and weather forecasting—was seen as a crucial step to build societal support and engagement. Regarding space policy, respondents indicated that objectives should remain aligned at both the local and national levels, balancing the goals of addressing challenges and delivering societal benefits. Sovereignty and autonomy were deemed essential, even though Brazil relies on international partnerships for part of its initiatives. The legal and regulatory framework was also discussed: while current systems could be better utilized to streamline technology procurement, participants agreed that legislation is overly complex and needs simplification. São Paulo could lead efforts to develop a state-level framework aligned with federal initiatives.

Finally, participants stressed the importance of attracting, retaining, and reattributing talent, especially professionals with international experience, as human capital is crucial in the space race. They also highlighted key technological priorities for the state, including high-resolution remote sensing, greenhouse gas monitoring, Position, Navigation, and Timing systems, and Space Situational Awareness. These areas are strategic for meeting national demands, such as the current carbon market, and ensuring the protection and proper operation of satellites. Recognizing the rapid growth of the global space sector, participants urged Brazil—and particularly São Paulo—to capitalize on this momentum to strengthen its position and take advantage of the unprecedented opportunities.

DISCUSSION

According to the respondents, the private sector is concentrated in the State of São Paulo and has a history of developing technologies in the upstream sector. They highlighted the importance of the downstream industry in achieving short-term results oriented toward addressing societal problems, such as natural disasters and meteorology. The State of São Paulo has a research development agency, a bank, research institutes, and universities. The state’s participation could be directed toward establishing new legislation aligned with the federal sphere and creating investment funds for the industry. One participant’s contribution suggested creating a policy to attract talent to the state in partnership with the Federal government.

The involvement of Brazilian academia in the national space program remains limited, emphasizing the need for greater integration with its activities. Strengthening these links would increase research contributions and better align scientific capabilities with national goals priorities. Assigning higher political priority to space-related matters within the state government structure, placing the executive entity at the highest hierarchical level alongside other state departments, could boost local activities in São Paulo and, consequently, increase Brazil’s presence in the global space business. Beyond this immediate contribution, it is also important to reflect on the extent to which a state-level space policy could reinforce national autonomy and sovereignty. While international space law assigns responsibility for outer space activities to national governments, mobilizing subnational resources can enhance a country’s overall capacity. In the case of Brazil, the leadership of São Paulo would not signify institutional fragmentation but rather a complementary effort that enhances investment mechanisms, boosts technological capabilities, and supports national objectives. As noted in the European context, regional initiatives can play a key role in advancing strategic autonomy and resilience. ²⁸

CONCLUSION

The panel participants supported establishing a governance framework for space in the State of São Paulo. The state benefits from a strong foundation of infrastructure, skilled professionals, educational institutions, and companies that promote the growth of this agenda. However, challenges remain, including ongoing sector promotion, the creation of venture capital funds, and the development of new laws focused on the space economy. In this context, the main question guiding this paper—a proposal for a state space secretariat: why does it make sense for the State of São Paulo?—is especially relevant, given the concentration of industrial and scientific capacity in the state and the potential to link these resources with local needs.

A limitation of this study is the representativeness of the stakeholders involved in the focus group. The industry perspective was provided through the Technological Innovation Park of São José dos Campos, which manages the Aerospace Cluster, rather than directly by private companies. Similarly, having only one research institution represent academia limited the diversity of viewpoints, since other universities and research centers could have offered broader perspectives.

The findings suggest that the State of São Paulo has competitive advantages to increase its role in the global space industry. By utilizing existing resources and improving operational conditions, São Paulo can support the growth of its local industries and those from other states involved in space activities. Establishing a state-level secretariat dedicated to the space sector in São Paulo could serve as an effective pilot project for developing and refining better public policy solutions.

Establishing a state-level space secretariat in São Paulo could serve not only the state’s interests but also act as a pilot project for nationwide adoption. The governance structures, investment mechanisms, and innovation strategies implemented in São Paulo could provide a replicable model for other Brazilian states, thereby accelerating the decentralization and diversification of Brazil’s space policy landscape.

Instead of being restricted to a local initiative, a state-level secretariat in São Paulo could become a benchmark for developing innovative governance models across Brazil. By connecting local strengths with national goals, it can boost industrial growth, attract more investment, and help the country become more competitive in the global space economy.

AUTHORS’ CONTRIBUTIONS

B.N.V.: Conceptualization; methodology; investigation; workshop design and facilitation; writing—original draft; writing—review and editing. J.V.V.: Investigation; workshop facilitation; data curation; writing—review and editing. L.N.A.: Methodology; supervision; validation; writing—review and editing. L.E.V.L.daC.: Investigation; visualization; writing—review and editing. All authors have read and approved the final version of the article.