The European ESA BIC space start program is celebrating its 20th anniversary. What started with experience in the Netherlands has become the largest network of space incubators in the world. The chief of ESA BICS NIELS Eldering had been there from the start: “In space, startups are essential”.
In space, there is always room for new talents. This is obvious from the figures for the incubation centers for companies in the European space agency ESA. More than 20 years, more than 1,700 startups from 22 different countries began their business in an ESA BIC installation. Niels Eldering has experienced them all.
ESA BIC chief
If you were to start a space startup yourself, what type of business would it be?
“To be honest, I must say that I would never start a startup myself. It takes a lot of concentration, dedication and persistence for an idea. Instead, I work with many different companies. I can help them in the first step in their development. This gives me the most satisfaction. You might even say: this is my vocation.
The very first ESA BIC was created in 2004 on the field of Estec in Noordwijk. What was the idea?
“Towards the turn of the century, you have seen more and more startups appear in Europe. ESA had a knowledge transfer program for years, but which has focused on mature companies that wanted to bring space technology to the market. That there must have been a starting program was clear even then, but exactly how had not yet been understood. It was therefore there that I wrote my master’s thesis in 2002 as a student in Rotterdam affairs administration. The idea was to set up an incubator who would select promising startups with different ideas for the space industry. Then support them with commercial and technical knowledge. ESA was impatient to try this itself. Thus was born ESA BIC Noordwijk in 2004.
What made the Netherlands the good reproductive soil for such an incubation experience?
“I think there are three reasons for this. First: standing on the shoulders of the giants. At Estec in Noordwijk, we have been working on valuation since the 1990s: providing knowledge and experience of space to the market. We could build on this with Esa Bic. Second, the Dutch government at the time had a very specific subsidy program, an infrastructure subsidy Technostarters (SIT), which stimulated the development of incubators. And finally, this subsidy had few restrictive conditions. For example, there was no obligation for startups to stay in the Netherlands after the first years as well. This really allowed ESA BIC to be a test field for Europe, born from our open -minded spirit and economics. The idea was: you can do good deals with the Netherlands, so come to us, start your business and do big things together. So economic growth will naturally come.
He did not stop in the Netherlands. What caused the rapid growth of ESA BIC in Europe?
“When Esa Bic Noordwijk became a success, other ESA sites wanted to try it too. ESOC in Darmstadt and Esrin in Frascati began incubators in Germany and Italy, respectively, using the lessons we had learned in the Netherlands. In 2008, German Bavaria showed that you do not necessarily need an ESA site to start a space incubator. The key ingredient is a sufficient entrepreneurial talent in the region: the people with whom to collaborate. The success of ESA BIC in Bavaria has created the necessary case to open the door to all of Europe.
What has the ESA BIC program has done so far?
“We now have 30 incubators in 22 different countries. Together, they have helped nearly 1,700 start-ups over the years. Among these companies, around 85% survived the first three to five years. Even more interesting than the rapid growth we have known is to understand the ingredients you need to start successful companies in space. This is what we will seek in the years to come, in collaboration with business administration faculties such as those of the Rotterdam School of Management from Erasmus University.
The world changes quickly. How has Esa Bic changed over the years?
“Startups are the pioneers of the economy. They are often a little ahead of the rest of the market because they provide for major trends and developments. During the 20 years of the existence of ESA BIC, you have seen three major developments. The first generation of startups brought space equipment to other sectors, such as health care and logistics. The second generation has seen the great promise of European satellite programs like Galileo and Copernic. Even before the launch of satellites, they paved the way for commercial use scenarios. They started working on satellite applications for our company. The current generation focuses on the “newspaper”: they build rockets, satellites or components for an international space economy rapidly growing.
What role does the NSO play in the history of ESA BIC?
“The NSO supports the ESA BIC program in the Netherlands with funds from the Ministry of Economic Affairs, and for this reason, in itself, plays an essential role alone. But we also work very closely in terms of content. NSO specialists, as well as local partners and ESA, are involved in the selection of companies that can join the Noordwijk incubator. They examine opportunities in Europe as well as national spatial strategy.
What makes space such an attractive field for startups?
“The idealistic approach is that space is connected. In the end, we are only people on a small blue ball in the large universe. We have to work together not only to survive this universe, but to move forward as a humanity, as a society. Startups are naturally good to work together. On the other hand, space is a very competitive market. It is a market that aims to push the limits, to want to be the first, to offer innovations. This field of tension, working together and competitive, leads to a dynamic world that is never boring.
What is the next twenty years like ESA BIC?
“In the years to come, knowledge of space and a good network will become even more important. I expect more involvement in ESA because it has the knowledge necessary to develop equipment for space travel. And that’s what many startups will do. Initially, a large part of the accent will be placed on satellite communication networks. In the additional future, also towards production activities in low terrestrial orbit, for example solar energy. For this, you need shuttle services, charging stations, new interconnection systems. Startups will offer brilliant ideas to develop all of this. And many of them will start Esa Bic.