| 
            
			 Using the expertise of a defense industry that created technology 
			such as the "Iron Dome" missile interceptor, Israel plans to move 
			beyond its current focus on spy and military communications 
			satellites into producing civilian devices, some small enough to fit 
			in your hand. 
			 
			"The idea was that we have a well-developed space infrastructure for 
			our defense needs, and without a big financial investment, we can 
			use it to grab a few percentage points of the commercial market as 
			well," said Issac Ben-Israel, chairman of the Israel Space Agency. 
			 
			Ben-Israel hopes the country will capture at least a three percent 
			market share, but it faces competition from global technology giants 
			looking for new markets and industries. Some firms are already 
			pushing the boundaries of technology, such as Virgin Galactic 
			founder Richard Branson's project to take tourists into space for 
			$250,000 a ticket. 
			 
			China plans to build its own space station by 2022, and Google 
			co-founder Larry Page is backing an asteroid mining company. 
			 
			As with phones and computers, the space race is moving into making 
			things smaller, lighter and more efficient - something Israel has 
			excelled at over decades of designing satellites that keep an eye on 
			unfriendly neighbors. 
			
			  One project, Adelis-SAMSON, is designing three miniature, or nano, 
			satellites for the first controlled formation flight in space. 
			 
			On a low-friction tabletop at the Technion institute in the port 
			city of Haifa, the navigation system is being tested in a cluster of 
			round robots, the size of dinner plates, that weave in and out of 
			formation like autonomous air hockey pucks. 
			 
			The launch is scheduled next year. While in orbit, digital receivers 
			developed by a co-creator of the Iron Dome system will locate 
			distress signals on earth, with the three satellites using 
			triangulation to achieve pinpoint accuracy. 
			 
			"We call it maximizing performance per kilo," said project head Pini 
			Gurfil, holding one of the satellites, about the size of a shoe box. 
			"The new propulsion system, the application for search and rescue on 
			demand, the software and algorithms, they will be really significant 
			for the commercial market." 
			 
			For decades Israel's space industry was driven by security needs. 
			Since the 1980s, it has launched a series of spy and communications 
			satellites and is considered one of the top 10 leading space-faring 
			nations. 
			 
			But its civilian program lagged behind. 
			 
			That changed three years ago when the government for the first time 
			earmarked a modest sum of about 90 million shekels ($22.5 million) 
			to the civilian space agency, which then supported start-ups and 
			projects such as SAMSON. 
			 
			Industry sales have since doubled to over $1 billion. And trends 
			favor Israel's market strengths, like miniaturization, digitization 
			and making lightweight systems, said Ben-Israel. 
			 
			
            [to top of second column]  | 
            
             
            
			  
			INVESTMENT 
			 
			The global commercial space economy in 2013 was estimated by the 
			OECD to be more than $250 billion. 
			 
			In the past decade, commercial space ventures received more than $13 
			billion of non-government equity investment, said Amir Blachman, 
			managing director of U.S.-based Space Angels Network. 
			 
			About 20 percent of that came from angel investors - wealthy 
			individuals who fund start-ups in return for a stake - and venture 
			capitalists. That number is rising and Blachman expects to see the 
			same growth in Israel. 
			 
			"Because it has a broad spectrum of proven expertise and knowledge, 
			Israel is ripe to have a lot of start-ups and those start-ups will 
			have a lot of amazing technologies for export," he said. 
			 
			One company, SpacePharma, developed a laboratory that fits in the 
			palm of your hand and will orbit in a nano-satellite, allowing 
			scientists to conduct experiments and watch them happen on their 
			smart phones. 
			 
			Drug companies, food makers and others spend about $3 billion a year 
			to access the microgravity of space, but only those with big enough 
			budgets and political connections can send their research to 
			astronauts on the International Space Station for testing, said 
			SpacePharma CEO Yossi Yamin. 
			 
			"We're expanding bandwidth that is very tight to allow more end 
			users," he said. "This is an endless market." 
			 
			Rather than paying millions of dollars for an experiment, it will 
			cost a few hundred thousand dollars, he said. Their first satellite 
			will launch in the third quarter of this year. 
			 
			($1 = 3.9957 shekels) 
			 
			(Editing by Jeffrey Heller and David Stamp) 
			[© 2015 Thomson Reuters. All rights 
			reserved.] 
			Copyright 2015 Reuters. All rights reserved. This material may not be published, 
			broadcast, rewritten or redistributed. 
			
			   |