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During 2004, as part of a major restructuring, UKspace followed a more proactive engagement policy with both the industry and government. Central to this was the recognition of the vital importance of the downstream space sector. Of the £3.9 billion, which the space industry contributes to the national economy, over 80 per cent is now derived from the downstream sector. By working closer with both SBAC and Intellect UKspace took 2004 as an excellent opportunity to significantly increase the effectiveness of the UKspace lobby.

2004 was a year of significant change in the key UK and European public sector organisations that set the context for space activity. In the UK, the impact on the future of the space industry of the Lambert Report and the Innovation Review will be profound, and UKspace engaged with government in developing a rationale for the future funding of technology and key space infrastructure. UKspace also played a full part in the numerous policy studies of the space sector, most notably the report by DEMOS and the National Audit Office study of the funding of civil space, and was closely engaged with British National Space Centre in seeking innovative mechanisms to fund key technology.

One of the first steps in orchestrating this campaign was the publication, with SBAC, of a set of UKspace position papers covering the main policy themes: European Space Policy; Technology Strategy; Digital Divide; Satellite Navigation; Earth Observation; Security and Defence; and Science and Exploration. These papers were launched at a highly successful conference in December 2004 on the theme of 'Profiting from Space' and addressed by the science minister, Lord Sainsbury.

A key objective for UKspace in 2006 will be to address the lack of a national space technology programme as it will become increasingly difficult for UK industry to sustain the capabilities and expertise to exploit the opportunities presented in the global space market. UKspace aims to take this debate forward with government at the highest levels, including the Treasury, and demonstrate the real contribution to the wider UK economy which investment in space technology generates. With space identified by SBAC as one of the three key market groups and the evident success of the AeIGT as a model, UKspace will continue to develop its technology strategy paper into an implementation plan.