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This paper demonstrates a method that can be used to analyze the degree to which an organization's systems engineering capabilities meet government‐industry defined systems engineering needs. To demonstrate this process, using universities as the case study, we summarize secondary research completed for nine institutions from various countries that offer systems engineering graduate level programs in the space domain. Next, we select a Masters degree program from three universities, one from each country, and map their space‐based systems engineering courses to the 37 systems engineering capabilities within the 10 systems engineering competencies. These capabilities represent the knowledge, skills, and behaviors that systems engineers are expected to possess and perform as a part of their job. We then review a process for a more detailed mapping of the curriculum to one of four levels of proficiency within each capability, using the Stevens Institute of Technology as the example. The result is a systems engineering competency‐based approach that can be used by universities or companies to compare the “as is” state of their systems engineering capabilities development against a government‐industry defined set of needs to identify and address gaps or opportunities in the curriculum, training, or experience of their students and/or employees. © 2009 Wiley Periodicals, Inc. Syst Eng