Space as an Economic Engine: Why Greater Washington is Positioned to Lead
At spaceNEXT 2026, Kevin Toner of MITRE explored the growing economic impact of space—and why the Washington, D.C., Maryland, and Virginia (DMV) region, or Greater Washington, is uniquely positioned to lead in the next phase of the global space economy.
Toner, whose background spans Air Force launch operations, finance, and public policy, focused on a simple but often overlooked question: how much of the modern economy actually depends on space?
While the industry often speaks about a future trillion-dollar space economy, Toner emphasized that space is already embedded deeply in everyday economic activity. From precision timing used in financial transactions to GPS navigation, weather forecasting, agricultural optimization, and global communications, space-based infrastructure quietly underpins much of modern life.
“Everything we do is space-enabled,” Toner noted, pointing to common daily interactions—from smartphone time synchronization and digital payments to crop monitoring and logistics—that depend on space systems.
Measuring the economic impact of space
To better understand how space capabilities influence economic performance, MITRE analyzed decades of financial data from S&P 500 companies. The study examined firms that met at least one of three criteria: companies that rely on space data to support their revenue streams, organizations that consume positioning, navigation, and timing (PNT) signals, or businesses that operate satellites.
The results revealed significant differences between companies leveraging space-based capabilities and those that do not.
Across 30 years of market data, companies meeting these criteria demonstrated:
70% higher market capitalization
24% higher stock prices
19% higher year-over-year profit growth
44% higher gross profit
Among the largest firms in the Fortune 100, the performance gap was even greater.
These findings suggest that space-enabled data and services are increasingly becoming a competitive advantage across industries—from agriculture and finance to logistics and communications.
The cost of disruptions in orbit
Toner also highlighted the economic risk of disruptions to space infrastructure.
Satellite collisions or other orbital disruptions—often described as “space conjunctions”—can have immediate financial consequences across industries that depend on uninterrupted space services. According to MITRE’s analysis, the loss of key orbital capabilities could lead to tens of millions of dollars in lost revenue within the first week, and potentially hundreds of millions over longer periods.
As reliance on space-based infrastructure grows, maintaining resilient space systems becomes not only a technical priority but an economic one.
Moving beyond launch: the next phase of the space economy
The global space sector, Toner argued, is entering a new phase.
For decades, government investment drove the development of foundational space infrastructure, with launch and exploration serving as primary drivers of activity. That phase established the capabilities now supporting modern space operations.
The next stage, however, is focused on industrialization and commercialization—building industries that operate in and benefit from space.
Key areas expected to drive this next wave of growth include:
In-space manufacturing
Orbital servicing and robotics
Advanced materials and space-enabled technologies
AI and quantum systems supporting space operations
Resilient power generation for space infrastructure
These technologies represent the shift from building space infrastructure to using that infrastructure to power new industries.
Why the DMV is uniquely positioned
While space activity occurs across the United States and globally, Toner argued that the DMV region holds a distinct strategic advantage.
The region sits at the intersection of policy, industry, and research, creating an environment where innovation can move rapidly from concept to implementation.
Several factors contribute to this advantage.
Proximity to federal regulators and agencies is a major one. The DMV is home to organizations including NASA, the U.S. Space Force, the National Science Foundation, the Department of Energy, DARPA, the FAA, and numerous policy institutions that shape the regulatory environment for space activities. Close interaction between industry and policymakers helps accelerate the development of frameworks that enable innovation while managing risk.
Talent density is another major asset. According to Toner, roughly 55% of residents in the region hold at least a bachelor’s degree, with an unusually high concentration of advanced degrees across the workforce. This concentration of technical and policy expertise supports fields ranging from quantum technologies to aerospace engineering and advanced data analysis.
Universities and research institutions also play a critical role. The region hosts a large network of universities and laboratories that contribute both research breakthroughs and workforce development.
Finally, cross-industry spillover effects strengthen the regional ecosystem. Technologies developed for space—such as AI, advanced computing, and high-performance materials—often generate economic benefits in adjacent industries, amplifying their impact across the broader economy.
MITRE estimates that innovations in areas such as AI and quantum technologies could reduce operational costs across sectors by as much as 14% through these spillover effects.
A regional hub for the next space economy
Taken together, these advantages position the DMV as a central hub for the future space economy.
With its proximity to policymakers, concentration of talent, and deep connections between government, academia, and industry, the region provides a unique environment for shaping how the next generation of space technologies is developed, regulated, and commercialized.
As the space economy transitions from infrastructure-building to industrial growth, the DMV’s ability to connect innovation, policy, and capital may prove to be one of its most important strategic advantages.