Northern Europe's hidden advantage – The new space economy is no longer science fiction

In Northern Europe, and more broadly across Europe, companies are already widely using space-derived data – satellite positioning, imaging, and telecommunications – often without realising they are part of the rapidly growing space economy. According to Punnala, this very lack of awareness is the biggest barrier to unlocking a growth potential worth billions.

– Location-based data now drives almost all activity – logistics, mobile phones, IoT devices, and infrastructure. European industry, transport chains, and societies rely on satellite data, often without noticing. Yet, few companies identify as part of the space economy or utilise the open data provided by the European Space Agency to develop their business, Punnala states.

According to Punnala, the Nordic countries and Europe already have world-class expertise in areas like earth observation, telecommunications, and positioning, navigation and timing services. What is needed now is a broader understanding that space has become a critical part of our infrastructure, strategic competitiveness, and Europe's strategic autonomy.

Technology and geopolitics are shaping a new space era

For decades, space was the exclusive domain of superpowers and the aerospace industry. Technological development has changed this landscape: satellites have become smaller, launch costs have plummeted, and using space data is now commonplace. This has opened the door for agile SMEs, which have become a key driver of the global space economy.

At the same time, intensified great-power competition has made space a strategically vital domain, creating opportunities for smaller nations to strengthen their own autonomy and resilience.

Financial markets are now signaling the direction of development. Where investors once shied away from the defense sector, capital is now flowing strongly into dual-use technologies that serve both civilian and security needs.

Punnala, who combines a geostrategic and political perspective with technology entrepreneurship in his research, sees major opportunities in this disruption: jam-resistant positioning, navigation and timing, broader use of earth observation services, advanced telecommunications, and strengthening the space ecosystem are key areas where Europe can take a leading role.

– My core message to European companies is clear: the momentum is now. If we don't seize this opportunity, others will. The space business is inherently global – and this moment demands both strategic vision and the courage to act, Punnala outlines.

Dissertation

Punnala, Mikko (2025) Internationalising in the Space Economy: Ecosystems, Institutions, and the Strategic Behaviour of Small and Medium-Sized Enterprises in the New Space Economy. Acta Wasaensia 567. Doctoral dissertation. University of Vaasa.

Publication PDF

Public defence

The public examination of  GS Mikko Punnala’s doctoral dissertation “Internationalising in the Space Economy: Ecosystems, Institutions, and the Strategic Behaviour of Small and Medium-Sized Enterprises in the New Space Economy”will be held on Thursday 13 November 2025 at 12 (UTC+2) at the University of Vaasa, auditorium Nissi.

It is possible to participate in the defence also online: https://uwasa.zoom.us/j/69042649537?pwd=3rW733iDu0LrOJ84wJQIozeUShHxDm.1

Password: 435956

Professor Petri Ahokangas (University of Oulu) will act as opponent and Professor Arto Ojala as custos.

The defence will be held in Finnish.