Businesses in New Zealand could get a headstart in the space race under a new plan to send innovation into the stratosphere.

It sounds like something from science fiction, but the Kiwi Space Activator is in fact right here on Earth and promising to turn ideas into real-world outcomes for New Zealand SMEs. The new government program is offering $1.8m in grants to help businesses shift concepts from the lab to the skies. 

“We want to turn big ideas into big impact, and this is the first step in our journey,” said Space Minister Judith Collins. “This pilot programme will help shape future government support for the space sector and ensure New Zealand remains at the forefront of global space innovation.” 

New Zealand’s Space Sector Is Lifting Off

New Zealand’s Space Agency is less than a decade old, but it’s quickly making its mark on the global scene. New Zealand is the third most prolific launch country in the world, thanks largely to NZ-founded company Rocket Lab’s site on the Māhia Peninsula. More rockets launch from here than nearly anywhere else outside the United States and China, as uncrowded skies and low population density create perfect conditions. 

The momentum is reflected in the economic data: the space sector contributed around $2.47b to GDP in 2023‑24, growing 53 per cent in five years. The national plan is for the sector to double in size by 2030. The industry accounts for 17,000 full-time equivalent jobs, many in small businesses and start-ups.

Getting Bright Ideas Off The Ground

New Zealand’s focus is on opportunity rather than exploration – leaving moon missions to NASA and instead pursuing the economic benefits that flow from technology and innovation.

The Kiwi Space Activator pilot will run over two years and offer individual grants of up to $600,000. First in line are projects that are “ready to fly,” meaning they can be tested on a satellite, rocket or high-altitude platform within 18–24 months. This testing is expensive and often proves a barrier to SMEs with limited cash flow.

Businesses must be registered in New Zealand and round one applicants must contribute at least 30 percent of project cash costs, to prove the concept is on a path to commercialisation. 

Benefits Could Flow Back To Earth

While the aim is to produce technology that could be used in a future space mission, there may be broader benefits. Camera phones, memory foam, cordless tools, baby formula and CAT scans all stemmed from technology originally developed for the US space program. The New Zealand government hopes local aerospace innovators will find solutions that can also be applied to Earth-bound challenges, including:

• Maritime Intelligence: tracking vessels, monitoring illegal fishing and enhancing security 
• Forestry Biosecurity Intelligence: using satellite technology to detect and monitor biosecurity threats, like pest or disease outbreaks, in forests
• On-orbit Space Situational Awareness: tracking orbiting objects and space junk in an increasingly-congested environment 
• Ecosystem Health and Function: creating space-derived data tools to monitor and assess the health of land and water resources
• Novel Space Components: developing and flight-testing core satellite components

SMEs could also benefit from broader skills development in engineering, data and systems integration.

Funding applications are now open and close for Round 1 on March 1.

For businesses looking to take advantage of this niche but exciting corner of the Kiwi economy, the sky’s the limit.