Luxembourg’s space policy and strategy provides a unique case study for space sector growth. While traditional space sector growth is spurred by government directed space activities, the Luxembourg government has supported commercially directed activities for growth of its space sector. The country has demonstrated the success of this approach through sustained space activities since the 1980s and is actively growing its space industry via attracting new space companies through its space resources initiative. Qualitative analysis of Luxembourg’s policies, programs, and strategies have yielded several emergent themes. These themes form the basis for a model of economic diversification via space sector growth that could be utilized by other nations. The U.S. could support non-spacefaring and emerging spacefaring nations in the adaptation and application of this model. Increasing the space capabilities of friendly foreign nations may provide numerous benefits to U.S. national security, civil space, and the commercial sector.