Experts will be encouraged to develop cutting-edge space rockets in Queensland but authorities have been unable to find a suitable launch site.

An update on the state's space race was detailed in the state government's response to an inquiry, which investigated job creation opportunities in Queensland from the establishment of an Australian Space Agency.

The Queensland government has investigated possible sites for a launch facility.

The Queensland government, which accepted or accepted in principle all 15 recommendations from the inquiry, has pledged to explore ways to facilitate and encourage the continued development of space rockets and hypersonic aircraft in the state.

However, attempts to find a suitable site for a launch facility in regional Queensland have so far proved elusive.