NASA vs SpaceX : The False Dichotomy of Innovation
Neil DeGrasse Tyson recently challenged the narrative that SpaceX is outperforming NASA in space innovation (video here). His argument is clear: NASA’s long-term, high-risk investments laid the groundwork for private-sector companies like SpaceX to innovate more affordably and efficiently later. SpaceX’s innovations, like reusable rocket technology, are indeed groundbreaking, but SpaceX role could not have emerged first. Why? Because private companies answer to investors—they can’t bankroll missions without guaranteed returns, like a trip to Mars (or even the moon, for that matter). Private companies might build the ships, but the long-payback, high risk-taking appetite required to push a frontier? That is a job the government is quite well-suited for.
Simply put, SpaceX can launch rockets cheaply today precisely because NASA first undertook the costly and difficult groundwork. This isn't an either/or situation but a symbiotic relationship: public investment unlocks private innovation.
This model is exactly what nations need to address their housing crises.
Consider the Level-Up Challenge run by Canada Mortgage and Housing Corporation (CMHC), a government agency tasked with promoting housing affordability and stability. Much like NASA enabled SpaceX, CMHC's investment is creating fertile ground for private innovators to scale housing solutions faster and cheaper. Recent winners demonstrate the potential of this model:
Promise Robotics – Autonomous robotic factories for rapid, decentralized production of timber-based prefab buildings.
mddl – Practical tools to enable gentle density and diverse middle housing.
One Bowl – Indigenous-led timber construction and social enterprise to strengthen local supply chains.
Tapestry Community Capital – A platform empowering community housing providers to raise affordable capital through community bonds.
But identifying solutions isn’t enough—we need to bring the entire industry together to fast-track progress. That’s why we’ve launched our Centre for Housing Innovation (CHI). Backed by government funding (via FedDev), CHI brings together the housing industry under unified leadership. By accelerating down the pathways that government initiatives like CMHC’s challenge have opened, CHI will help private-sector innovators scale their solutions faster—driving tectonic shifts in housing affordability and sustainability.
The new government’s pipeline of initiatives is further amplifying these efforts, targeting 500,000 new homes annually—double the current rate—through:
Build Canada Homes (BCH): A new entity constructing affordable housing on public lands, supported by over $25 billion in financing.
Policy Reforms: Modifying the National Building Code to streamline approvals for modular homes and incentivizing local governments.
Accelerating Housing Supply: Continued CMHC Housing Accelerator Fund ($4.4 billion+) to expedite local approvals and boost housing supply.
The lesson from NASA v. SpaceX is clear: when government takes the first bold steps and takes care to pave the way, private innovation can follow at speed. Canada now has the key ingredients to deliver impact not only within Canada, but also globally. Now let’s build some homes.
From your friends at GroundBreak Ventures