UP TO ten companies a year could be launched from a new space centre taking shape at the Harwell campus.

The International Space Innovation Centre (ISIC) is to open on the Harwell campus in April 2011. It will cost £40m, with some £24m from government and the rest from industry, and is expected to create up to 700 jobs over the next five years.

The European Space Agency, which will operate alongside the centre, last week signed an agreement with the Government's Science and Technology Funding Council to set up a business incubator centre. It will offer technical expertise and business support for up to 10 start-up businesses a year.

It is the fifth ESA has set up. David Southwood, ESA Director of Science and Robotic Exploration, said: “In the UK, academia and industry are working together productively, rather than as separate elements.

“We’re setting up here to learn how things are done in the UK and to spread that across Europe.”

ISIC will focus on understanding and countering climate change, space security and observation satellite data. Future areas will include robotics and new power sources.

ESA’s pan-European incubators allow entrepreneurs to set up companies at their own risk based on a technology developed by Europe’s space industry and institutions.

They offer a cash incentive with up to £40,000 for intellectual property protection, design, prototyping and market studies. Since the end of 2004, 55 start-up companies have been established.

The Government claims the space and satellite industry supports 68,000 jobs in the UK directly and indirectly, as well as contributing £6bn to the economy. Science Minister David Willetts said: “Establishing a centre like ISIC as part of the Harwell space cluster can only help strengthen the thriving space sector in the UK.

“Bringing together vital components of Earth observation, security and resilience and space science know-how will make it easier for small companies to grow more quickly and will help manifest and drive innovative ideas.”