New Zealand's space sector is blasting towards being a billion dollar industry.

A new economic report has revealed the space sector contributed nearly $1.7 billion to the economy last year, and provides up to 12,000 jobs.

Aerospace engineer John Cater told Kate Hawkesby New Zealand has a lot of natural advantages for space-based businesses.

"We can see a piece of the sky other parts of the world can't see, along with an educated workforce and various international agreements."

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