MONTREAL - A new study says Canada has experienced a small bounce in its space competitiveness and retains a skilled workforce but is still facing future challenges.

It's one of the observations made by U.S.-based space forecaster Futron Corporation in its 2014 space competitiveness index.

A Futron official says Canada still hasn't penetrated international markets to the extent it could, even though it has a reputation as a country that is easy to work with.

Futron also questions whether increased levels of funding for Canada's RADARSAT Constellation Mission are sustainable.

The final development costs for the Canadian Space Agency-led project have already jumped to more than $1 billion from $600 million.

An official at the space agency says there will be no response to the report.