New Space refers to a commercialisation of space exploration that is increasingly driven by companies, including more and more start-ups. Commercial players are creating a momentum of innovation in space exploration by developing new technologies and business models. Policy brief TAB-Fokus no. 29 provides an overview of current developments and future prospects for German space research and industry, taking particular account of new development and start-up dynamics. New Space refers to a commercialisation of space exploration that is increasingly driven by companies, including more and more start-ups. Commercial players are creating a momentum of innovation in space exploration by developing new technologies and business models. The overall picture shows that Germany’s space and New Space players with their high-performance space research and development are diverse and absolutely able to keep up with other countries in the field of technical components and their manufacturing. In Germany as well, the creation of new companies can be observed, and numerous funding measures are available especially for the early start-up phase. As the space market is growing substantially, it also promises lucrative market opportunities for German companies. However, the potentially promising development opportunities face various barriers to innovation, such as a lack of venture capital (especially in the growth phase of start-ups), a funding system with no easy access for smaller players and legal uncertainties. Altogether, Germany invests rather little in space exploration compared to other countries, which leads to a poorer starting position in competition. Furthermore, a crucial obstacle to overcome is the development of business models based on space data and technologies into other industries to tap the promising potential for applications – particularly in the downstream segment.