Government-Industry Collaboration
LEADERS FROM NASA, CAPELLA (AN IONQ COMPANY), DIFFRAQTION, AND ZENO POWER SHARE LESSONS FROM THE FRONT LINES OF SPACE COMMERCIALIZATION
As the commercial space economy accelerates, collaboration between government agencies and private companies is becoming one of the most powerful drivers of innovation. At spaceNEXT 2026, a panel of industry leaders explored how these partnerships are helping transform early-stage technologies into operational capabilities—while also identifying the challenges that still remain.
Moderated by La Vida Cooper of NASA, the discussion brought together executives from Zeno Power, Capella Space (an IonQ company), and Diffraqtion to examine how government funding, research programs, and strategic partnerships are shaping the future of space technology.
The conversation highlighted not only success stories, but also practical lessons for startups and policymakers working to accelerate the commercialization of space.
Turning breakthrough ideas into real missions
Each panelist shared how their company emerged from a combination of entrepreneurial vision and government-supported research.
John Jacobs of Zeno Power described how his company is developing commercial radioisotope power systems—often referred to as nuclear batteries—designed to power spacecraft, lunar landers, and even seabed monitoring systems in environments where solar energy is not available.
“These systems enable missions where there is literally no other option for power,” Jacobs explained. “They keep assets online in environments where traditional power sources simply don’t work.”
Zeno Power’s technology uses isotopes such as strontium-90 and americium-241, materials that can be extracted from nuclear waste. By repurposing these isotopes, the company aims to dramatically reduce the cost and production time of radioisotope power systems—an area historically dominated by expensive plutonium-based systems.
The company recently secured access to one of the largest known supplies of strontium-90 from the Oak Ridge National Laboratory site and signed a first-of-its-kind agreement with France’s Orano to source americium-241 for future space missions.
“These materials allow us to produce power systems much more frequently and at far lower cost,” Jacobs said.
From hackathon to orbit
For Capella Space, innovation began in a very different setting: a defense innovation hackathon.
According to John Horn, Vice President of Customer Engagement, Capella was born out of a Defense Innovation Unit (DIU) hackathon that explored whether synthetic aperture radar (SAR)—a powerful imaging technology traditionally used on large government satellites—could be miniaturized and deployed on smaller spacecraft.
The result was a new generation of small satellites capable of capturing high-resolution radar imagery of Earth, dramatically expanding access to space-based data.
“People realized you could fit that capability into a small satellite,” Horn explained. “That innovation really accelerated the company.”
Capella’s recent acquisition by IonQ, a leader in quantum computing, marks the next phase of that journey. The combined company is now exploring how quantum technologies might enhance space-based sensing and navigation capabilities.
“The fact that we were able to move quickly, iterate fast, and deploy complex space systems helped prove what the company could do,” Horn said. “That’s what ultimately attracted IonQ.”
Quantum sensing for the next generation of satellites
Another company pushing technological boundaries is Diffraqtion, which is developing a quantum-enabled imaging system designed to dramatically reduce the size of advanced satellite sensors.
Co-founder Johannes Galatsanos traced the inspiration for the technology back to academic research and a chance encounter with a professor working on experimental imaging systems funded by NASA and DARPA.
The resulting technology could fundamentally change how satellites observe Earth.
“Our camera allows the optical system to become about twenty times smaller,” Galatsanos explained. “That means you can achieve extremely high-resolution Earth observation capabilities using CubeSats.”
The company, which is still in its early stages, is currently developing a satellite scheduled for launch in 2028. In the meantime, Diffraqtion is testing its technology using ground-based telescopes while continuing to work with government partners to mature the system.
Government funding as a catalyst
A consistent theme throughout the panel was the critical role government programs have played in enabling innovation.
For Diffraqtion, a DARPA Small Business Innovation Research (SBIR) award, jointly supported by NASA, helped transform an academic concept into a startup.
“That support was a big reason the company exists,” Galatsanos said. “It gave us the runway to build the technology.”
Capella and Zeno Power have followed similar paths, using early government contracts and grants to bridge the gap between research and deployment.
Capella’s growth was supported by funding from organizations such as In-Q-Tel and a series of government contracts, while Zeno Power received NASA’s Tipping Point award, which helped move its nuclear power technology from laboratory research to real-world demonstrations.
“These programs help companies move from pilot projects to actual deployment,” Jacobs said.
Just as importantly, government involvement often signals credibility to investors.
“Venture capitalists want to see that there’s real demand,” Galatsanos noted. “Government partnerships send that signal.”
Where the system still slows innovation
Despite the success stories, panelists also identified several areas where collaboration between government and industry could improve.
One challenge, especially for startups, is the delay between winning a government contract and actually receiving funding.
“You might be selected for a program, but it could still take six months or more before the money arrives,” Galatsanos said. “For a small startup, that creates real challenges.”
Regulatory hurdles were another major concern. Horn noted that outdated policies and slow-moving regulatory frameworks can make it difficult for American companies to compete internationally.
“The technology is moving much faster than the regulations,” he said. “We need policies that keep up with where the industry is today.”
For Zeno Power, coordination between federal agencies has proven to be another bottleneck. Although NASA and the Department of Defense recognize the importance of radioisotope power systems, the isotopes required to build them are managed by the Department of Energy—creating additional layers of complexity.
Breaking through those barriers requires close collaboration across multiple agencies.
Advice for the next generation of space entrepreneurs
The panelists also offered practical advice for entrepreneurs hoping to build companies in the rapidly evolving space economy.
One of the most important lessons: expect failure early and often.
“Space is hard,” Horn said. “You’re going to have to iterate multiple times. Plan your funding and your roadmap around that.”
Galatsanos offered a slightly more provocative perspective: space may not always be the easiest starting point for a startup.
“Space is actually a terrible beachhead,” he joked. “It’s the hardest environment you could pick.”
But for companies with the right technology, the rewards can be extraordinary. The key is minimizing risk wherever possible—testing technologies on the ground first, partnering with established organizations, and protecting intellectual property along the way.
Above all, collaboration is essential.
“You can’t do everything yourself,” Galatsanos said. “You have to partner.”
The next wave of space technologies
Looking ahead, each company on the panel is preparing to deploy new capabilities that could shape the future of the space economy.
Diffraqtion plans to launch its first quantum imaging satellite by 2028, following ongoing testing with ground-based telescopes.
Capella, now part of IonQ, is exploring how quantum technologies could enhance positioning, navigation, and timing systems, potentially offering alternatives to existing GPS infrastructure.
Meanwhile, Zeno Power is building a new radioisotope production facility in the United States and preparing to deploy its first nuclear battery systems on NASA’s Commercial Lunar Payload Services (CLPS) missions later this decade.
If successful, these systems could enable spacecraft to survive the long, frigid nights on the lunar surface—an ability currently demonstrated primarily by China’s lunar missions.
Building the ecosystem together
As the session concluded, the panel returned to its central theme: the importance of sustained collaboration between government and the private sector.
From early-stage research funding to large-scale mission deployments, these partnerships are helping new technologies move from concept to reality.
And as space becomes an increasingly vital domain for science, security, and economic growth, those collaborations may prove more important than ever.
At spaceNEXT, the panel made one point clear: the future of the space economy will not be built by government or industry alone.
It will be built together.