Does Market Value for Space Technology Innovation?

Abstract

Space technology innovation plays a crucial role in advancing scientific knowledge and economic growth. We investigate the impact of India's Moon mission, Chandrayaan-3, on the market value of firms involved. Our event study analysis reveals that, despite initial negative market reactions during the launch, the successful landing resulted in approximately 3.7% cumulative average abnormal returns within two days. This suggests that initial investor skepticism, driven by uncertainty and perceived costs, shifts to positive sentiment following the mission's success. Our findings underscore the significant economic benefits of successful space technology innovations and contribute to the broader discussion on their value and impact.