Victoria has been vying for Australia’s first national space agency, to create jobs and boost the state’s economy, by touting its manufacturing history and industry links.

A search for the home state of the new agency is under way after the Turnbull government set aside $41 million for it in May’s federal budget.

But a space expert said the states should settle down, because it’s not going to be “NASA Down Under”.

Victorian Industry Minister Ben Carroll has requested a meeting with his federal counterpart by the end of June to press the state’s case.

Victoria is home to some of the world’s biggest names in aerospace, including Lockheed Martin, Thales, Boeing and BAE Systems.

“No other state or territory can boast having one-in-five space industry headquarters right here in Victoria, ready to go,” Mr Carroll said on Monday.

A government statement on Monday said the global space industry was projected to be worth more than $1 trillion by 2040.

“Victoria can help see Australia’s share of this market increase to tens of billions of dollars, potentially creating 20,000 jobs.”

Australian Strategic Policy Institute space lead Malcolm Davis said the agency was not going to be the job creator some think it is.

“The space agency might employ, at the most, a few hundred to a thousand people,” Dr Davis told AAP.

“It’s not going to employ 20,000 people.”

Western Australia Science Minister Dave Kelly on Monday released an ACIL Allen report outlining the state’s geographic advantages and its already thriving space industry.

South Australia, NSW, the Northern Territory and ACT have all expressed interest in hosting the space agency, which will set up temporarily in Canberra from July 1.

It’s hoped a decision on a permanent base will be made by the end of 2018.

Dr Davis said a decision on the agency’s base should be made quickly to stop states fighting.

“What the states need to understand is the space agency is not going to be a NASA Down Under.

“It’s not going to be an all-encompassing organisation that builds hardware, launches hardware, runs space missions.”

Instead the agency will co-ordinate funding, research and policy in a bid to drive private sector investment.

Dr Davis said the agency was meant to create the conditions for the private sector to flourish, rather than be a political football for states to fight over.

“Frankly, it’s counter-productive to allow this to go on,” he said.

“It’s actually detracting from the whole purpose of the organisation, which is to develop Australia as a space power.

“I think it’s ludicrous to say ‘Victoria should have it over South Australia’. It’s going to be a national activity.”

Innovation Minister Michaelia Cash, who will address an ASPI space conference in Canberra later this week, said the agency is aimed at giving Australian businesses access to a global industry.

“We welcome all expressions of interest in building Australia’s space capability and encourage businesses to get involved in this exciting new growth industry,” she told AAP.

-with AAP