South Australia could venture into space alone if the federal government fails to set up a national space agency, Defence Industries Minister Martin Hamilton-Smith says.

The federal government on Thursday announced plans for a review of the nation’s space industry with a report to be completed by March 2018.

Former CSIRO head Dr Megan Clark will assess Australia’s current space industry capability, including existing and future international partnerships.

However, Mr Hamilton-Smith has criticised the pace of the review and says the state will look at establishing its own agency later this year if the government fails to act.

“The commonwealth government is moving too slowly to establish a national space agency,” Mr Hamilton-Smith said.

Federal Science Minister Arthur Sinodinos, who announced the review, said developing space technology would allow Australia to develop skills to grow other advanced manufacturing industries.

“This review is timely, given the current pace of change in the international space sector and advances in technologies that provide an environment that encourages commercial investment in space activities,” Senator Sinodinos said in a statement.