Technology Intelligence Report Commercial Manned Spaceflight

TECHNOLOGY INTELLIGENCE REPORT COMMERCIAL MANNED SPACEFLIGHT

It’s rocket science How manned spaceflight is the new frontier of innovation

ED WHITE, VICE PRESIDENT, TECHNOLOGY AND INNOVATION INTELLIGENCE ABOUT CPA GLOBAL

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Technology Intelligence Report | Commercial Manned Spaceflight 2 TABLE OF CONTENTS

Executive Summary 4

Key Findings 6 -- Patents through the Space Era 9 -- What is the Private Sector Investing In? 10 -- How Important is IP in Commercial Manned Spaceflight? 11 Collection Summary 12 -- Summary Patent Activity 12 -- Activity Timeline 13 -- Geographic Activity 14 -- Geographic Distribution 15 -- Commercial Spaceflight Patents 16 Commercial Analysis 17 -- Major Active Entities 17 -- Entity Timeline 19 -- Applicant Activity Focus 20 -- Emerging Entities 21 -- Current US Commercial Space Launch Entities 22 -- SpaceX vs. Blue Origin...Musk vs. Bezos 23 -- Summary Commercial Findings 24 Technical Analysis 25 -- Technology Trends 26 -- Emerging Technologies 27 -- Commercial vs. Government Focus: Historical 28 -- Commercial vs. Government Focus: United States - Last Decade 29 -- Inter-Technology Patented Innovation: Hot Spot Analysis 31 -- Entities by Technology (1) 32 -- Entities by Technology (2) 33 Conclusion 34

About the Author 35

Technology Intelligence Report | Commercial Manned Spaceflight 3 EXECUTIVE SUMMARY

The world of intellectual property (IP) and patents in particular, can be seen as arcane and complex. In reality studying IP and patents can help discover key technology trends across complex industries.

In this report CPA Global, the It is notable that to date, no-one world’s leading Intellectual has ridden a private space vehicle Property management and into orbit. That fact is likely to technology company, applies an change in the next 5-10 years. analysis of patent information While the commercialization to uncover intelligence within of manned spaceflight will be the specific industry sector of available to the general public manned spaceflight. – the largest customer is still This sector has seen incredible likely to be government entities, technical advancements and such as the Commercial Crew fundamental, systemic changes Development Program underway as the private sector enters at NASA that is funding private commercial spaceflight. businesses such as Boeing, SpaceX and Blue Origin to Less than 600 people have left develop new vehicles. planet earth since Yuri Gagarin made his historic first orbits in If mankind is to return to the 1961. The mission of commercial moon, or fly to Mars, the chances spaceflight is to increase this are that astronauts will do so number by making access to in vehicles developed by a space cheaper, safer and more much wider and diverse group common. of innovators than previous generations of vehicles.

Technology Intelligence Report | Commercial Manned Spaceflight 4 This report covers who these innovators are, what they are developing and where the opportunities for commercial advantage lie.

This report details the This report explores the nature fundamental shift in the US of intellectual property rights space industry – a change from in manned spaceflight and how corporate entities such as the those rights compare to the Boeing Company supplying aviation industry in general. This components and building report also reviews the various spacecraft to NASA or DOD intellectual property strategies specifications, to corporations of the launch providers at the developing and specifying the forefront of manned spaceflight mission, vehicles and underlying and looks at the way that patent technologies. activity maps closely to the technical and commercial insights The nature of this shift surrounds that are widely known. next generation versions of space launch technologies and Patents are a unique source of increasing focus on the activities data that reliably and accurately of astronauts themselves once links commerce and technology. in space, and less expensive yet This report shows how you safer methods of getting them can exploit patent data to get there in the first place. powerful, usable and sharable intelligence.

Technology Intelligence Report | Commercial Manned Spaceflight 5 KEY FINDINGS

• Manned spaceflight patent • The US, China and Russia, activity is much larger and each with active manned diverse than one would spaceflight programs, anticipate. While it’s difficult represent three-fifths of all to calculate, we estimate that patent filings. there are over 17,000 manned • Other countries, including spaceflight inventions that Japan, represent only 5% have been patented since the of the patent activity that’s early 1960s. occurred in the last 5 years. • Patent filings are trending • The National Aeronautics sharply upwards, particularly and Space Administration since China’s entry into the (NASA) is the top applicant crewed space race. China’s of manned spaceflight patent first astronaut, Yang Liwei, rights. However, our analysis flew aboard the Shenzhou shows that securing patent 5 space craft on October 15, protection is not a core 2003, making China the third strategy of the agency. country in the world with a manned spaceflight program. • Boeing in the United States and Energia in Russia, both of • The filing trend is also due to which are major contractors increasing patent activity by to the US and Russian space private launch providers in the programs, are the largest United States – where a clear patent applicants. transition from the public to private sector is currently • Airbus in Europe is also filing, underway. but in a more limited manner.

Technology Intelligence Report | Commercial Manned Spaceflight 6 KEY FINDINGS cont’d.

• Chinese patent filings, • The SpaceX “no-IP” strategy though large in volume, are was recently tested by Blue generally limited to academic Origin’s patent for sea-based institutions which likely means soft landing systems for launch that commercial interests in vehicles. This technology the Chinese program is very enables booster rockets to small. be reused, which significantly lowers launch costs. This • Emerging private entities patent was subsequently held include Microsoft, French- to be invalid. engine manufacturer Safran, US defence contractor Harris • So far, SpaceX has successfully Corporation and Blue Origin – navigated the IP minefield, a private spaceflight company but considering the volume founded by Amazon founder of information included in this and CEO, Jeff Bezos. study, it is likely that this test will not be the last. • Blue Origin is one of a number of firms to have received $25M • The more “rocket science” in US government funding via technologies of propulsion, the Commercial Crew Program spacecraft design and launch (CCP). systems are only a proportion of the technologies from • SpaceX has been awarded an IP perspective. Primary $3.1 billion in CCP funding, concentrations of patent reflecting its supply contracts protection technology occur in for the International Space guidance, control systems, life Station. support and vehicle docking systems.

Technology Intelligence Report | Commercial Manned Spaceflight 7 KEY FINDINGS cont’d.

• Interest in human-enablement • Where once the space in space is growing: industry was driven by astronaut tools and on-orbit being a partner and supplier manipulators, astronaut to government-run space training and simulation aids, programs, the industry is spacecraft tracking and now generating innovation observation technologies to shape future space are high growth areas. In exploration directly. aggregate, these topics • The current focus on suggest increasingly complex astronaut capabilities and tasks that astronauts are cheaper access to space all performing once they are in point to the fact that human space. spaceflight is maturing rapidly • Vehicle launch and propulsion and is being driven by the systems exhibit high levels private sector. of strategic IP Innovation in these fields, enabling cheaper, safer access to space.

Technology Intelligence Report | Commercial Manned Spaceflight 8 PATENTS THROUGH THE SPACE ERA

• In the United States, a • This patent trend goes hand fundamental shift has in hand with the increasing occurred in technical presence of the private innovation supporting the sector in manned spaceflight astronaut program. innovation.

• NASA was the primary source of patented innovation, but private industry is now the main source of innovation.

Technology Intelligence Report | Commercial Manned Spaceflight 9 WHAT IS THE PRIVATE SECTOR INVESTING IN?

• The shift to private sector engaged in the development manned spaceflight has seen of “core” space technologies a reversal of technical focus. of propulsion and spacecraft design. • Industry supported government programs • Commerce is also focusing by supplying parts and on empowering astronauts to components (guidance, do more in space – through electronics, life support etc.), training aids, simulators and but commerce is now fully in-orbit tools.

Technology Intelligence Report | Commercial Manned Spaceflight 10 HOW IMPORTANT IS IP IN COMMERCIAL MANNED SPACEFLIGHT?

• A comparable industry is 1. Applicants commitment in commercial aviation – a sector that securing IP rights (granted has seen an increase in patent filing and active patents); from entities such as Airbus, Boeing 2. CPA Global’s PatentStrength™ and Bombardier. score; • Companies competing in the 3. Geographic breadth of commercial manned spaceflight patent protection (proxy for market appear to be placing more investment in IP rights); and emphasis on IP rights than their aerospace counterparts. This is 4. Number of forward patent based on the following four factors: citations (a proxy for impact).

Technology Intelligence Report | Commercial Manned Spaceflight 11 COLLECTION SUMMARY SUMMARY PATENT ACTIVITY

• Innovation related to the • Key topics for research and transportation of human technical improvement relate crew into orbit (and beyond) to launching a spacecraft, is an active field of patent controlling it, propulsion and protection. maintaining a life-sustaining environment on-board. • Our data collection contains 4,320 inventions that have been • However, these topics are now registered with patent offices giving way to those that help around the world, related to astronauts do more once they technologies to get people into are in orbit – patent volumes in orbit. training aids, simulators, tools and observation innovations are growing rapidly.

Technology Intelligence Report | Commercial Manned Spaceflight 12 ACTIVITY TIMELINE

• The pace of patent protection • In 1987, a new phase of activity is accelerating. activity began with NASA’s large-scale patenting • During 1960s, 70s and of manned spaceflight early 80s activity was light innovations. – this era was dominated by government space • Patent filings remained at programmes where a similar level for the next commercial entities (those twenty years until 2007, when most likely to want to achieve growth in patent applications the commercial benefits of began to increase rapidly. a patent right) were simply subcontractors.

Technology Intelligence Report | Commercial Manned Spaceflight 13 GEOGRAPHIC ACTIVITY

• Three countries have sent people • 93% of Chinese patent filings into space: The United States, occurred after 2003, the year Russia and China. China sent its first taikonaut into orbit. • These three countries stand out for the significant increase in • Other trends include a large patent activity. However, patent historical volume of patents activity in China has grown from Japan, and recent low level particularly quickly. activity from South Korea.

– Primary patent protection nations include three with current manned spaceflight programs - The United States, Russia and China.

– Japan has a high number of patents filed, although only a small proportion have been registered since 2012.

– China has seen a large scale increase in patent activity, with the most registered since 2003, the date of China’s first crewed mission, Shenzhou 5, that launched the taikonaut, Yang Liwei.

– South Korea has also seen growing patent activity, although two-thirds of this is from non-Korean applicants protecting IP in this country.

Technology Intelligence Report | Commercial Manned Spaceflight 14 GEOGRAPHIC DISTRIBUTION

• The three nations with active • China is also the single most human spaceflight programs prolific protection location in have registered 60% of all terms of patents filed per year: patent filings. - In 2014, 148 manned • Chinese patent activity since spaceflight patents 2003 has jumped from the were filed in China, in 8th largest location of manned comparison to just 40 in spaceflight patent protection the United States. to the 2nd largest position. - The vast majority of these patents were filed by Chinese academic institutions.

Technology Intelligence Report | Commercial Manned Spaceflight 15 COMMERCIAL SPACEFLIGHT PATENTS

• Since patent filings from • Technical innovation in crewed NASA collapsed in 1994, space vehicles is being passed the US private sector has from government entities experienced prolific patent to corporate entities with activity. commercial interests.

• Recent data suggests that a retrenchment in commercial spaceflight is currently underway.

Technology Intelligence Report | Commercial Manned Spaceflight 16 COMMERCIAL ANALYSIS MAJOR ACTIVE ENTITIES

• NASA is the top applicant of • Chinese patent filings are manned spaceflight patent rights: generally limited to academic institutions: - However, very little of NASA’s patenting activity - This raises questions about is recent and only a small the commercial viability proportion of their patents of Chinese IP rights in the remains in force. Being a manned spaceflight sector. government organization, IP • Japanese electronics and heavy protection is not a core to industry corporations have patent their success. portfolios available: • Government space program - Indicates supply chain contractors Boeing (United ecosystem extending to States) and Energia (Russia) Japan. currently represent the largest patent applicants.

Commercial Manned Spaceflight | Technology Intelligence Report 17 MAJOR ACTIVE ENTITIES cont’d.

– The top patent applicant in manned spaceflight is the US National Aeronautics and Space Administration (NASA), although just 18% of its filed patents remain in force and only 9% have been filed in the last 5 years.

– Major US and Russian space and aerospace contractors show high levels of activity with both large and active portfolios: Boeing (US), Energia (Russia) and to a lesser extent Airbus (EU).

– China tops applicants overall. These are primarily academic institutions: Beihang University and the Harbin Institute of Technology.

Technology Intelligence Report | Commercial Manned Spaceflight 18 ENTITY TIMELINE

• NASA IP filing was at its peak and early 1990s, with little activity during the space shuttle era in the in the last decade. 1980s. • General Motors patent filings are • Boeing and Energia’s patent due to its acquisition of Hughes filings are more recent, and Aircraft in 1987. illustrates the shift in innovation - These assets have now from the government to the almost completely lapsed, private sector. rendering the recent • The activity of Japanese firms corporate development – Toshiba, MHI, NEC, IHI – is of the Hughes entities concentrated in the late 1980s somewhat moot.

– Boeing, Energia and Airbus are the primary current patent applicants, alongside Beihang University and the Harbin Institute of Technology in China.

– Major Japanese Corporations Toshiba, MHI and NEC have essentially exited the space industry.

– Timeline extends from 1960 to 2014, the most recent year of complete data (as measured by the filing date of the patent application).

Technology Intelligence Report | Commercial Manned Spaceflight 19 APPLICANT ACTIVITY FOCUS

• A review of the technical focus of - NASA’s focus on docking the major applicants shows highly systems, in preparation for diverse portfolios. use by the Space Shuttle’s International Space Station • Major concentrations include: program; and

- Japanese organizational - Energia’s patent activity interest in guidance, control concentration on life support and navigation innovation; systems.

- Airbus and Northrop • Boeing has likely the most diverse Grumman’s concentration in portfolio, indicating strength in spacecraft designs; depth.

Proportion of activity by applicant within each technical field. Note due to overlap sum may exceed 100%.

Technology Intelligence Report | Commercial Manned Spaceflight 20 EMERGING ENTITIES

• A model to identify interesting • Identifies Microsoft, French- recent entrants to the field is used engine manufacturer Safran, to add context to the list of major Harris Corporation (a US defense applicants since the 1960s. contractor) and Blue Origin (a private spaceflight company • Entities which have both founded by Jeff Bezos, founder protected their IP rights in and CEO of Amazon.com). multiple territories (x-axis, proxy for investment level) and have a • Blue Origin is one of a number of high proportion of activity filed firms that have received funding in the last 5 years (y-axis) are from the US government via the annotated. Commercial Crew Program.

– The analysis reveals the convergence of high levels of recent activity and above-average levels (for this technology space) of geographic patent protection (bubble size reflects volume).

– The latter is strongly linked to investment levels and thus a flag for strategic IP.

Technology Intelligence Report | Commercial Manned Spaceflight 21 CURRENT US COMMERCIAL SPACE LAUNCH ENTITIES

• A list of entities that are active in • Bigelow Aerospace has private manned spaceflight are conducted on-orbit tests of its analysed separately for patent crew habitats, including the April activity. 2016 flight of an expandable module to the ISS. • The most successful, Elon Musk’s SpaceX, has no patent • Blue Origin is focused to date rights at all. Indeed, Mr. Musk is on reducing the cost of access on record as pursuing a trade to orbit through soft landing secret approach to technology and re-use of launch vehicles development and protection. – something SpaceX is also pursuing. • SpaceX has highly developed technology and an active program of supply flights to the International Space Station (ISS).

Technology Intelligence Report | Commercial Manned Spaceflight 22 SPACEX vs. BLUE ORIGIN… MUSK vs. BEZOS

• SpaceX’s no-registered IP successfully removed this policy had its first test due patent threat, though it is to a patent of Blue Origin’s notable that Blue Origin’s concerning powered soft patent likely covered activities landing of launch vehicles at and technologies that SpaceX sea. wishes to use.

• Overall, the powered landing • These procedures are not of launchers seeks to hugely yet fully complete, and reduce the cost of access to therefore it will be interesting space. to see how this first foray into legal procedure in the • Using legal procedures at next generation manned the US Patent Office, SpaceX spaceflight industry evolves.

Technology Intelligence Report | Commercial Manned Spaceflight 23 SUMMARY COMMERCIAL FINDINGS

• The top applicant of manned • Emerging entities include spaceflight patent rights Microsoft, French-engine is NASA, as would be manufacturer Safran, Harris expected. However, analysis Corporation (a US defense of its activity shows that IP contractor) and Blue Origin protection is not currently a (a private spaceflight core strategy of the agency. company founded by Jeff Bezos, founder and CEO of • Instead, major contractors Amazon.com). for the US and Russian space programs represent the • Blue Origin is one of a largest current applicants, number of firms that have Boeing in the US and Energia received funding from the in Russia. US government via the Commercial Crew Program • Airbus is also present, though (CCP) – to date the firm has in a more limited manner received just over $25m. to Boeing, and with no EU manned spaceflight program, • Other recipients of funding its commercial interests and under the CCP include revenues are more limited. SpaceX (to date awarded $3.1 billion in CCP funding, • Chinese representation in the reflecting its contracts to list of applicants, though large supply the International in volume across the entire Space Station). patent ecosystem, is limited to academic institutions • SpaceX follows a which means that commercial “no-IP” strategy – reflected interests in the Chinese in this study as no patent program is very small. applications or granted patents were found for the company.

Technology Intelligence Report | Commercial Manned Spaceflight 24 TECHNICAL ANALYSIS

• Designing craft that can take • Instead, primary humans into the unforgiving concentrations occur in environment of space is guiding and controlling challenging – the epitome of these vehicles, maintaining a “rocket science”. life supporting environment on-board and docking • However, the rockets systems allowing astronauts themselves are only a to disembark while on orbit. proportion of the technology involved, indeed they are not the highest volume fields in terms of patents filed.

– Largest volume technology sectors are: guidance, life support and atmospheric regulation, docking systems and propulsion.

– New, lower volume fields include astronaut training and simulation technologies, on-orbit tools, and manipulators and spacecraft tracking/observation innovations.

Technology Intelligence Report | Commercial Manned Spaceflight 25 TECHNOLOGY TRENDS

• High level trends across the 11 • Tracking and observation topics (note normalised axes) show technologies (monitoring spacecraft growing interest in a more diverse on orbit, or detecting debris or group of technologies, in particular threats to the craft) are related to astronaut tools and on-orbit this increasing complexity. manipulators, astronaut training and • It is notable, however, that these simulation aids, spacecraft tracking overall trends run somewhat counter and observation technologies. to the focus of companies such as • These topics surround the SpaceX and Blue Origin on revised, increasingly complex tasks that innovative launch and propulsion astronauts are performing once systems, indicating multiple axes of in space – for example, the innovation for manned spaceflight. construction and operation of the ISS.

Technology Intelligence Report | Commercial Manned Spaceflight 26 EMERGING TECHNOLOGIES

• These counter-trends are • Launch and propulsion evident when an emerging innovation maps closely to the technology model is applied. focus of SpaceX and Blue Origin and points to a 2nd phase of • No technical field can be R&D occurring in these sectors. described as both high investment and young. • Innovation in these topics would enable cheaper, safer access to • Three sectors, launch, propulsion space for human beings, which systems and power supplies, when considered in conjunction do exhibit high levels of with increased capability once “strategic” IP. there (training, tools, etc.), paints an optimistic picture for future manned spaceflight.

– The analysis assesses the convergence between high levels of recent activity and above average (for this technology space) levels of geographic patent protection; bubble size reflects overall volume.

– The latter is strongly linked to investment levels and thus a flag for strategic IP.

– Technologies that exhibit high levels of both metrics are therefore identified as “emergent”: recent increases in patent output in a strong and committed manner by any applicant. This is particularly useful assessing trends in low volume technologies.

Technology Intelligence Report | Commercial Manned Spaceflight 27 COMMERCIAL vs. GOVERNMENT FOCUS: HISTORICAL

• The split between government • The profile suggests (and and private sector patent indeed history proves) that innovation across the entire the space industry was a space era shows historical partner and supplier to commercial interests in 8 the government run space out of 11 topics, in particular programs – components guidance, docking, launch and parts were the focus, and power supply fields, with while critical systems such as less emphasis on propulsion propulsion were developed in systems and astronaut house. operations (training and tools).

– Review of the concentration of commercial activity by technical field or spacecraft design attribute.

– Annotation is a comparison to collection-wide average of commercial versus non-commercial spaceflight patent activity.

– Evidence of commercial specialisms in component manufacture (guidance, docking, power, launch systems, tracking).

– Note time frame is entire spaceflight era, 1960 to present.

Technology Intelligence Report | Commercial Manned Spaceflight 28 COMMERCIAL vs. GOVERNMENT FOCUS: UNITED STATES – LAST DECADE

• Focusing on the present day and • The trends shown on previous just within the US, this “supplier” pages – focus on astronaut profile for the private sector is capabilities, SpaceX/Blue Origin- almost completely reversed. led focus on cheaper access to orbit – are evident in this analysis • Now, commerce is focused on and can be considered at this propulsion, spacecraft design, point confirmed. astronaut operations (training and tools), with significantly less • The maturation of human emphasis on the component spaceflight is underway, enabled technologies. by the increasing independence and engagement of the private sector.

Commercial Manned Spaceflight | Technology Intelligence Report 29 COMMERCIAL vs. GOVERNMENT FOCUS: UNITED STATES – LAST DECADE cont’d.

% Filed by Commercial Entity

– Review of the concentration of commercial activity by technical field or spacecraft design attribute.

– Annotation is a comparison to collection-wide average of commercial versus non- commercial spaceflight patent activity.

– Previous evidence of focus on components is reversed. Focus is now on major facets including propulsion, spacecraft design, astronaut training and on-orbit tools.

– Note time frame is 2006 patent applications onwards and only those in the United States.

Technology Intelligence Report | Commercial Manned Spaceflight 30 INTER-TECHNOLOGY PATENTED INNOVATION: HOT SPOT ANALYSIS

• Gaps remain ready to be Training systems are only exploited. concentrated in life support, indicating a current focus on • The intersection of the study’s safety technologies. technology fields shows the volume of protection across • The hot topics are propulsion the subdivisions. These are and launch. These are fields in particularly evident in the which commercial interests are “astronaut enablement” sectors currently switching attention (training and tools). to, indicating a second wave of potentially disruptive • Little, if any, IP exists in the innovation. fields of training and simulation aids for on-orbit tools.

Technology Intelligence Report | Commercial Manned Spaceflight 31 ENTITIES BY TECHNOLOGY (1)

• Each of the topics measured • Additionally, entities with in this study are reviewed here strategic patents in the for the major patent applicants topic are also noted, though within them. their volume of protection may be light. • Mostly, this reflects the overall major applicants, though deviations from this (non-major applicants in the top 5 on a per topic basis) are noted.

Technology Intelligence Report | Commercial Manned Spaceflight 32 ENTITIES BY TECHNOLOGY (2)

• The inclusion of several - This reflects the fact that Chinese academic institutions the CSA has specialised in the astronaut training sector in supplying NASA for is notable. many years with robot arms for its Space Shuttle • The Canadian Space Agency and the Mobile Servicing (CSA) is involved in activity in System, currently on-orbit tools: on-board the ISS is supplied by the CSA and known colloquially as “Canadarm2”.

Technology Intelligence Report | Commercial Manned Spaceflight 33 CONCLUSION

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Technology Intelligence Report | Commercial Manned Spaceflight 34 ABOUT THE AUTHOR

Ed White Vice President, Technology and Innovation Intelligence London, United Kingdom

Ed leads the Technology Intelligence practice at CPA Global. He has 10 years of experience as a manager and consultant within innovation intelligence and intellectual property.

Ed has a background in developing new communication methods for advanced statistical analysis of R&D activity, including patent strength measurement, scoring algorithms and harmonization of patent and non-patent data sources.

Ed has worked with hundreds of different client organisations across almost all R&D intensive industries, delivering to Fortune 500 board members, government agency heads and ministers and CTOs/General Counsels. He has a Bachelor of Engineering from the University of Nottingham in the UK.

Technology Intelligence Report | Commercial Manned Spaceflight 35 LET’S GET STARTED Contact us at [email protected] or visit cpaglobal.com