The space economy strengthens Italy’s strategic role in the Mediterranean

Italy can carve out a position in the new global space economy as a geopolitical hub between Europe, Africa, and the Middle East, argues Simonetta Di Pippo in a chapter devoted to Italy’s strategic role in the European space economy, in the policy paper The European and Italian space ecosystems. Pillars for strategic autonomy, published by the Italian Institute for International Political Studies (ISPI).

Space has become a lever of industrial, diplomatic, and strategic policy. The Mattei Plan for Africa, the IMEC (the economic corridor linking India, the Gulf, and Europe), the revival of the Malindi space base in Kenya, and the consolidation of Italy’s space industry: all are part of a single scenario in which Italy could become the “center of gravity” of an international network of technological and infrastructural cooperation.

In this chapter of her book, Di Pippo moves the debate on space beyond the technical sphere, interpreting it as a fundamental component of 21st-century industrial policy.

First in Europe for space investment

The United States, China, India, and the Gulf countries are investing heavily in orbital infrastructure, Earth observation, launchers, and dual-use technologies (meaning technologies that can be used in both civilian and military contexts).

Although Europe is struggling to move with speed and strategic cohesion, Italy is the leading country on the continent and the seventh in the world for space investment as a share of GDP. And, according to the author, Italy’s potential has yet to be fully exploited.

This gives rise to the research questions implicit in the chapter:

• How can Italy turn its space expertise into geopolitical influence?
• How can the Mattei Plan and the IMEC help build new industrial alliances?
• How can Italy’s industrial ecosystem contribute to Europe’s strategic autonomy?
• What investment and public-private collaboration models are needed to support the growth of the space economy?

These issues fit into the contemporary debate on European strategic autonomy: Europe’s ability to control critical technologies and infrastructure without depending on external actors.

The strategic relevance of Malindi

Di Pippo’s contribution is a strategic reconstruction of the Italian and European space ecosystem, based on industrial cases, government initiatives, and emerging geopolitical dynamics. She interprets the Mattei Plan not only as a tool for cooperation with Africa, but as a possible platform for expanding Italian influence in the space sector. Central to this vision is the Malindi base in Kenya, historically used by Italy for space activities and now a candidate to become an African hub for Earth observation, environmental monitoring, training, and even new space launches.

The revival of Malindi could give Italy the opportunity to act as a bridge between the African Union, the African Space Agency, and European and Middle Eastern actors interested in access to space.

Thanks to the port of Trieste and its geographic position, Italy is described as a natural logistics node between Europe, the Gulf, and India in the IMEC project, the India-Middle East-Europe Economic Corridor announced at the 2023 G20. At the same time, the Gulf countries are rapidly ramping up their space investments: Oman with the Etlaq Spaceport, Saudi Arabia with new industrial investments, and the United Arab Emirates with a substantial development program. This following NASA’s cancellation of Gateway, the lunar-orbiting space station initially planned under the Artemis project, in which the UAE had intended to participate.

On the industrial front, the chapter offers a detailed snapshot of Italy’s space economy based on data from SDA Bocconi’s SEE Lab. The sector includes about 400 companies and 13,000 employees. SMEs account for 80% of the market and are integrated into an extremely complex supply chain.
One of the most relevant cases is D-Orbit’s acquisition of Planetek in 2025. The operation is cited as an example of strategic consolidation capable of integrating upstream and downstream activities: from orbital transportation services to satellite data analysis.

The technological core of the operation is AI-eXpress, a mission that uses artificial intelligence and blockchain to process data directly in orbit. The result is the creation of a new space cloud architecture called SpaceStream, designed to provide near-real-time analysis in areas such as climate monitoring, security, and emergency management.

Di Pippo links these innovations to the IRIDE program, the Italian Earth observation constellation developed with funds from the PNRR, the Italian implementation of Next Generation EU. She describes IRIDE as a possible European model of technological sovereignty in space.

But the space economy requires financing, and traditional venture capital is poorly suited to the long development timelines and hefty price tags of the space industry. What is needed instead are more patient funding sources, advanced public-private partnerships, and a long-term systemic vision.

The space data supply chain

The space economy is a cross-cutting platform involving AI, cloud computing, telecommunications, cybersecurity, logistics, defense, agriculture, and environmental sustainability. Companies able to build strategic partnerships and position themselves along the space data supply chain will gain access to new, fast-growing markets.

The chapter advocates for a much more ambitious industrial policy. The PNRR represented a turning point, especially thanks to the IRIDE program, but the risk is that investments will dry up this year when the plan ends. Italy should turn the PNRR approach into a permanent strategy, based on mission-oriented investment, human capital development, and support for dual-use technologies.

At the infrastructure level, from the possible revival of the Malindi base to the Grottaglie spaceport project, Italy could build an integrated space access ecosystem capable of attracting international partners and strengthening its geopolitical standing.

Simonetta Di Pippo. “Italy and its strategic geopolitical role.” In Alessandro Gili, Francesco Rosazza Boneitin, The European and Italian space ecosystems. Pillars for strategic autonomy, ISPI Policy Paper.