NASA Commercial Programs

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NASA's Office of Commercial Programs: Providing a Focwfor Action Space has become an economic frontier, a new territory of commercial competition, where the spacefaring nations of the world seek new opportunities for industrial growth and economic benefit. In 1984, the United States Congress amended the 1958 Space Act to assign the National Aeronautics and Space Administration an important new mission: ' . . seek and encourage, to the maximum extent possible, the fullest commercial use of space?' President Bush, in his first presidential address to ajoint session of Congress, sounded strong support for this national goal when he called for "more commercial development of space?' NASA?s Office of Commercial Programs is providing a focus for action to stimulate and assist an expanded involvement and investment by the U.S. private sector in civil space activities. Strengthened by a rich tradition of NASA cooperation with industry, the office supports new high-technology commercial space ventures, the commercial application of existing aeronautics and space technology, and greater access by commercial firms to available NASA capabilities and services. This report, prepared by the Public Affairs Office of the Office of Commercial Programs, highlights NASA-sponsored and assisted commercial space activities of the past year. For additional information, write to:

BARBARA E. SELBY, Public Affairs Officer Office of Commercial Programs NASA Headquarters Washington, DC 20546

Contents: Letter 1989: Establishing a Strategic Vision The U.S. Private Sector in Space • Industrial R&D in Space • Centers for the Commercial Development of Space • New Cooperative Agreements Building U.S. Competitiveness Through Technology • Technology Utilization - A National Priority • An Exploration of Benefits • Honoring Apollo-Era Spinoffs Small Business Innovation Selected Economic Indicators • International and Domestic R&D Trends • Space Sector Budget Highlights and Trends Commercial Programs Management

Commercial Programs Advisory Committee CM ORIGINAL CONTAINS tOLOR ILLUSTRATIONS

As we observe the 20th anniversary of America's first lunar landing this year, it is important to recognize that our nation's space enterprise has paid "dividends" to every citizen. Those benefits have come in the form of technological advances, improvements in the quality of our lives here on Earth, and in far-reaching positive impacts on our national economy. Through cooperative efforts with U.S. industry to commercially develop space and accelerate the commercial application of space technologies, NASA seeks to expand the economic returns from our public investment. During 1989, we made significant progress in defining an James T. Rose overall program of commercial space development. We have categorized and scoped the different types of commercial space activities, assessed the unique requirements and issues affecting the growth of each, and developed mechanisms to carry out a comprehensive and aggressive program. We witnessed this year the re-emergence of an active flight program of industrial research and development experiments in space. These industry investigations into the practical commercial uses of space represent a growing interest by the U.S. private sector, stimulated and encouraged by NASA- sponsored programs. There is an increasing recognition, both in the U.S. and abroad, that space has attributes that are of great value. These resources and characteristics will play a major role in opening a new economic frontier for the spacefaring nations of the world. It is clear then that commercial development is both a logical next step in America's civil space efforts and a prudent competitive strategy. Our challenge is to organize these efforts into a program that develops commercial space markets, low-cost commercial space transportation systems, and a commercial space infrastructure industry. The rewards of our success will be significant contributions to America's future industrial competitiveness, and the maximum economic returns to our stockholders - the American people.

JMES T ROSE NASA Assistant Administrator for Commercial Programs

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Amid a dramatic growth of activity and interest in the commercial development of space, NASAs Office of Commercial Programs (OCP) focused in 1989 on the establishment of a strategic vision. Several key initiatives carried out during the year will culminate in a strategic plan, founded in national space policy goals for expanding U.S. space commercial activity. The need for a strategi( vision, and a plan for realizing its goals, is clear. Space harbors valuable resources that represent a new economic frontier for the spacefaring nations of the world. The commercial development of space is both a logical next step and a prudent competitive strategy. In Europe andJapan, our increasingly space- capable trading partners have identified the attributes of Earth orbit as having significant potential for producing new high-technology products and services with global markets. Foreign firms operate with a high level of direct and indirect government support, enhancing their competitive position.

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Other space powers, • Actively fostering notably the Soviet Union the development of space- and China, have become related markets. aggressive marketers of • Improving the space transportation and availability of and access related services, seeking to transportation and to attract foreign currency infrastructure to support into their economies. emerging markets and Between 1984 and 1988, new ventures. President Reagan and the • Using NASA U.S. Congress, recogniz- resources to support the ing the importance of a development and growth policy framework that of successful commercial would foster American space ventures. leadership in the economic development of space, took the first major steps to focus federal action on an expanded role for the U.S. private sector in the nation's civil space program. These actions included an amendment to the 1958 Space Act that directed NASA to "seek and encourage, to the maximum extent feasible" the commercial use of space, and the incorporation of commercial space initiatives into the administration's national space policy. Early in his term, President Bush signaled a continued emphasis on the economic importance of space commercial development. Based on major efforts this year to identify key issues, define appropriate relationships between government and industry, and chart a course toward U.S. preeminence in space commerce, the Office of Commercial Programs' Glavkosmos, the strategic planning has Soviet Union's commercial three key goals: space marketing organization, is offering opportunities for use of the Mir space station.

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Whave a manned spac station, a vigrii. safe Space Shuttle program, and more commercial development (1/ space." - President Bush addressingJoint Session of Congre

Seeking U.S. recommendations, em- These recommenda- Space Industrial bodied in a report tions, most addressing Competitiveness entitled Charting the critical policy issues, The Commercial Course: US. Space and the continuing Programs Advisory Enterprise and Space input from the CPAC, Committee (CPAC), a Industrial Competitiveness. are helping to shape the distinguished panel of The CPAC was estab- commercial development industry chief executive lished in 1988 through strategic plan. officers and their uni- the initiative of NASA Also supporting the versity counterparts, Assistant Administrator OCP's strategic planning serving as a standing for Commercial Programs effort was a study committee of the NASA James T. Rose. Chaired conducted this year by Advisory Council, issued by Edward Donley, this year its first formal Chairman, Executive Committee, Air Products and Chemicals, Inc., the CPAC undertook a thorough review of commercial space issues, and formulated a series of key recommendations for consideration by the nation's leaders. four

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New Analysis Capabilities and Policy Guidelines OCP's Plans, Policy, and Evaluation Division, which coordinated and supported the 1989 strategic planning activities, also established this year a financial and business analysis function and managed the development of commercial space infrastructure policy guidelines. With the continuing growth of the commercial space sector, and increasing competition for limited resources, the new financial and business analysis capability provides information to help NASA decision- makers in their review of candidate commercial ventures. Commercial space infrastructure guidelines issued this year are intended to provide a framework to encourage U.S. commercial investment and involvement in NASAS space and technology programs. the American Institute The AIAA study Commercial space of Aeronautics and addresses overall goals infrastructure is that Astronautics (AIAA) to and objectives, the scope portion of space lay groundwork for the of commercial space infrastructure - the strategic plan by defining activities, and the roles of facilities, services, and issues and potential industry, academia, and systems that enable space objectives associated with government. It also activities - in which the the commercial devel- explores issues and private sector retains a opment of space. barriers, and suggests permanent interest and The AIAA formed a federal actions and policy responsibility. steering committee changes. The OCP also consisting of senior-level established procedures private sector managers. and criteria to guide The resulting study NASAs orderly, timely, and equitable evaluation document, Issues in of commercially initiated Strategic Planning for proposals for infra- Commercial Space Growth, represents inputs from structure systems or more than 90 industry services. representatives.

five Industrial R&D in Space

A resurgence of industrial research and development activity in space took place this year following the successful return of the Space Shuttle to flight operations in September 1988. The flight of STS-26 included the involvement of several U.S. pharmaceutical companies in an investigation of protein crystal growth and a 3M experiment in organic thin films. In 1989, the Office of Commercial Programs Right: Astronaut sponsored commercial George "Pinky" development payloads on Nelson operates two more Space Shuttle 3M's experiment flights and funded the in organic thin first U.S. commercial films on mission launch of a materials STS-26. Flying for the second science payload. time under 3M's The Commercial Joint Endeavor Development Division Agreement with I.,-- focused on supporting NASA, the indus- the growth of industry trial research payloads stemming from equipment produced thin increased demand for film camniac flight opportunities. dunn The division has Shuttle projected a total of 12 3M has commercial payload a pa flights through FY 1990 new discover for launch aboard the inves Space Shuttle and commercial sounding rockets. Four of these payloads are manifested through March 1990. Another 22 payloads are projected for flight opportunities in the 1991 timeframe. Most of this commercial interest is directed towards focused or applied research in the

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six behavior and processing Protein crystals made OCP Budget for the Commercial Use of Space of materials in the in space may help to (Current Dollars) significantly advance microgravity environment 35 of space. The industry medical research into new demand also reflects treatments for cancer, 30 commercial interest in rheumatoid arthritis, privately developed space high blood pressure, infrastructure and AIDS, and other diseases. 25 support services and The experiments were in commercial Earth conducted by scientists at 20 observations. the Center for Macro- In an effort to match molecular Crystallog- 15 space transportation and raphy, a NASA Center for support capabilities with Commercial Development 10 the anticipated growth in of Space (CCDS) at the industry requirements, University of Alabama— the Commercial Devel- Birmingham, in collab- opment Division in 1989 oration with industrial initiated grant funding researchers representing FY86 FY87 FY88 FY89 for a commercial eight leading U.S. pharm- sounding rocket aceutical companies. Protein crystals program. 2) An experiment in grown aboard the The division also the space processing of Space Shuttle identified the need for the indium conducted aboard have helped commercially provided the Shuttle Atlantis in investigators Spacehab module as a April. This research was determine that carrier for NASA- performed in Rockwell better-formed crystals can be sponsored industry International's Fluid grown in micro- payloads and discussions Experiments Apparatus gravity, as were initiated for NASA's (FEA) flown under a Joint demonstrated use of Spacehab, sched- Endeavor Agreement with by the photos uled to make its first flight NASA. Collaborating with of space-grown in 1992. Rockwell in the investi- (top), and ground-grown The 1989 spaceflight gation was the Indium crystals. activity sponsored by the Corporation of America, Improved protein Office of Commercial exploring through op crystals may Programs consisted of: microgravity research the prove to be 1) Another flight of prospects of obtaining of great benefit MW protein crystal growth higher purity indium. to medical researchers experiments aboard the 3) The March 29 seeking to Space Shuttle Discovery launch of materials develop new drug in March. These experi- processing experiments treatments for ments, coupled with those developed by the Con- cancer, high performed on STS-26, sortium for Materials blood pressure, produced clear evidence Development in Space, emphysema, and that microgravity enables a NASA CCDS at the other diseases. the manufacture of University of Alabama— superior crystals. Huntsville, aboard Space Services, Inc.'s, Starfire rocket at White Sands Missile Range, New Mexico. The suborbital flight, which provided ORIGINAL PAGE seven minutes of COLOR microgravity, represented PH the first federally licensed commercial launch.

seven In collaboration with COS Summary - 1989 its industry partners, the Consortium for Materials AFFILIATES Development prepared CCDS COMMERCIAL FOCUS six experiments to inves- INDUSTRY UNIVERSITY GOVERNMENT tigate the manufacture of MATERIALS new materials in space. PROCESSING IN SPACE 4) Preparations for the BATELLE Electronics. Pol y mer, and Catalysts 8 7 flight of 3M's experiment Applications—Aeropropulsion, Airframes and on the effects of micro- Space Structures gravity on polymeric UAH Superconductors and Electro-optical 9 0 materials, scheduled for Materials—Optical Scanners, Satellite flight on STS-34 in Components..

October. The flight will VANDERBILT Metals, Alloys, Ceramics, and Glasses—Solar 7 2 3 be 3M's fifth, and will be Dynamics, Nuclear Systems, Turbines, the first under a 10-year Nozzle Components... Joint Endeavor

Agreement calling for up CLARKSON Electronics, Communications—Computers, 11 4 6 to 62 flight experiment Semiconductors... opportunities. HOUSTON Thin Film Growth and Materials Purifica- 7 0 3 In addition to the tion—Electronics, Magnetic Devices, flight activity, industrial Computer Circuits... research and develop- SPACE STRUCTURES ment was supported in CASE Films, Expandable Structures—Space 8 1 2 1989 through continued WESTERN Structures... programs enabling access to NASA ground and REMOTE SENSING airborne facilities for ITO SRSC Processed Remote Sensing Information— 12 8 5 microgravity and remote Forestry, Fisheries, Agriculture... sensing investigations. OHIO STATE Remote Sensing Sensor and Display 9 0 3 These activities Applications—Coastal Planning, Crop Stress, included cooperative Mining... agreements with U.S. LIFE SCIENCES firms for use of NASA PENN STATE Understanding of Cell Functions for Disease 14 0 3 drop towers at the Lewis Treatment—Osteoporosis, Growth System...

Research Center in COLORADO Pharmaceutical, Health Care, or Agricultural 30 4 2 Cleveland, Ohio, and the BIOSERVE Production

Marshall Space Flight LAB Crystal Growth for Use in New Pharmaceuti- 11 10 4 Center in Huntsville, cals or Biotechnology Alabama; NASA ROBOTICS microgravity and remote WISCONSIN Automation and Robotics—Dexterous Robot 12 3 2 sensing research aircraft; Hands, Intelligent, Flexible Automated the Earth Resources Systems...

Laboratory at Stennis ERIM Sensor and Automated Manipulation 9 1 3 Space Center, near Bay Technology for Hazardous Environments— St. Louis, Mississippi; and Nuclear Waste Clean Up, Mining... life sciences capabilities SPACE POWER at Ames Research Center, AUBURN Alternative Commercial Space Power— 4 4 6 Transmission Systems, Advanced Moffett Field, California. Controllers...

TEXAS A&M Commercial Space Power Systems— 24 3 7 Microwave Transmission, Space Station Augmentation...

SPACE PROPULSION

TENNESSEE Alternative Space Propulsion Technologies 8 3 2

TOTAL 183 50 53

eight Centers for the • Spaceflight experi- Centers for the Commercial Development of Space ments coordinated and (CCDS)Funding Leverages (Dollars in Millions) Commercial conducted by the Center Development for Macromolecular Crystallography (Uni- NASA/Non-NASA of Space versity of Alabama— Support for First 5 CCDS's Birmingham) and the Battelle, UAB, UAH, Consortium for Materials lID, Vanderbilt NASAS network of Development in Space sixteen Centers for the (University of Alabama— Commercial Development Huntsville). of Space witnessed con- • The development of tinued progress towards a stronger, more efficient attracting significant power supply through a involvement by U.S. firms collaborative effort by the in space commercial Center for Commercial development. Development of Space The number of corpo- Power (Auburn rate affiliations with the University) and Maxwell CCDS centers grew to Laboratories, San Diego, 180, and the share of California. financial contributions While conducting by industry members research into space power continued to increase. $16M equipment, the research * For the first five CCDSs, team identified potential FY 1988 established by the Office commercial applications of Commercial Programs to existing terrestrial in 1985, the ratio of markets. The advance, private-to-government already being marketed support is now by Maxwell, represents approximately 3:1. the first technology NASA initiated the spinoff by a NASA CCDS. $17.6M CCDS program to attract • The initiation by a broad U.S. industry the Space Vacuum FY 1989 involvement. The centers Epitaxy Center (Univer- represent consortia of sity of Houston) of a university, industry, and hardware development government involved in project to build a wake early research and testing shield facility to enable NASA stages of potentially viable commercial research in a products or services. high ultra-pure vacuum NON-NASA A CCDS Management during Space Shuttle Operations Working flights. *Estimated Funding Group was established $20.6M last year by OCP and FY 1990* the group functioned effectively in 1989, serving as a coordinating body for collaborative efforts and program planning. Among the most significant CCDS achievements of 1989 were:

nine New Cooperative Agreements

NASA in 1989 expanded its partnership with U.S. industry through the signing of cooperative agreements providing support for industrial space research, commercial space transportation, and the private development of space infrastructure and services. Commercial launch vehicle agreements were signed with Martin Marietta, enabling the firm to gain access to payload processing Satellite pictures facilities at the Kennedy of Earth, like this - Space Center; LTV false-color image Missile and Electronics of a frontier basin in Asia, Group, granting the firm help Unocal exclusive rights to scientists commercially produce _____ identify deposits ______and market the Scout of oil and gas. launch vehicle; and with Unocal is Conatec, of Lanham, working with NASA to advance Maryland, facilitating the firm's use of NASA launch its use of remote j--' sensing facilities at Wallops technology. Island, Virginia. A Memorandum of Agreement (MOA) was signed with the University Corporation for Atmos- Right: Artist Above: pheric Research (UCAR), concept of the A Space Shuttle Boulder, Colorado, wake shield external tank, facility deployed photographed establishing the terms and on the end after it was conditions for use of the of the remote jettisoned during Space Shuttle's external manipulator arm. the flight of tanks for suborbital STS-29. The experiments. Completed University in December 1988, the Corporation for agreement will make Atmospheric Research (UCAR) available to UCAR the use plans to use up of up to five designated to five ETs for external tanks. conducting A Memorandum of experiments Understanding (MOU) during their signed with the Coca-Cola suborbital flight. Company will support the firm's investigation of fluid dynamics, gas-liquid separation, and metering ten technologies in space. NASA also signed NASA uses a number of Commercial Space Involvement of Fifty a Memorandum of innovative and functional Largest U.S. Industrial Corporations Understanding (MOU) agreements that provide with Corabi International industry with assistance, ccDs Telemetrics, Inc., a services, and facilities • Agreements Affiliations Maryland-based tele- to help reduce the risks 1 GENERAL MOTORS 1 medicine systems associated with commer- 2 FORD MOTOR company, supporting the cial space ventures. 3 EXXON commercial development Joint Endeavor 4 INTERNATIONAL BUSINESS MACHINES 1 of telemedicine services Agreements (JEA) involve 5 GENERAL ELECTRIC 1 for the Space Station no exchange of funds 6 MOBIL Freedom. and are designed to 7 CHRYSLER In addition to these encourage private 8 TEXACO 9 El DU PONT DE NEMOURS 3 signed agreements, a companies to conduct 10 PHILIP MORRIS number of candidate space research and 11 CHEVRON

Joint Endeavor development leading to 12 AMOCO 1 Agreements and Space new products and 13 SHELL OIL System Development services. Private industry 14 OCCIDENTAL PETROLEUM Agreements were funds the experiments 15 PROCTER & GAMBLE 1 identified during 1989. and NASA provides 16 UNITED TECHNOLOGIES TEA 0 Among the companies transportation and 17 ATLANTIC RICHFIELD discussing potential other services. 18 EASTMAN KODAK 1 cooperative agreements Space Systems 19 BOEING JEA, OTHER 5 20 RJR NABISCO with NASA is Unocal Development Agreements 21 DOW CHEMICAL 1 (Union Oil of California), (SSDA) provide industry 22 XEROX already engaged in a with a deferred payment 23 USX commercial remote schedule for Space 24 TENNECO sensing project under Shuttle launch services. 25 MCDONNELL DOUGLAS MOA 4 a Proprietary Work This allows a new 26 PEPSICO Agreement with Stennis commercial space venture 27 WESTINGHOUSE ELECTRIC 3 Space Center. to have a more favorable 28 ROCKWELL INTERNATIONAL JEA, CPAC 6 Genentech, a biotech- cash flow during a time 29 ALLIED-SIGNAL nology firm which is when capital investment 30 DIGITAL EQUIPMENT 1 working in collaboration costs are typically the 31 PHILLIPS PETROLEUM 1 32 GOODYEAR TIRE & RUBBER 1 greatest. with the Center for Cell 33 LOCKHEED 3 Research (Pennsylvania Technical Exchange 34 MINNESOTA MINING & MANUFACTURING JEA,CPAC 0 State University) and Agreements (TEA) are 35 CATERPILLAR signed this year a designed for companies 36 SARA LEE Technical Exchange interested in commercial 37 WEYERHAEUSER Agreement with NASA's applications but not yet 38 UNISYS Ames Research Center, is ready to commit to 39 HEWLETT-PACKARD also discussing other specific spaceflight 40 ALUMINUM CO. OF AMERICA potential cooperation. experiments or ventures. 41 GENERAL DYNAMICS MOA 1 Biocryst, a Birming- Under this agreement, 42 INTERNATIONAL PAPER 1 NASA and a company 43 GEORGIA PACIFIC ham, Alabama, firm, is 44 CONAGRA seeking to commercialize agree to exchange 45 JOHNSON & JOHNSON technologies being technical information and 46 ANHEUSER-BUSCH developed by the Center cooperate in the conduct 47 UNOCAL CPAC 0 for Macromolecular and analysis of ground- 48 SUN Crystallography. based research programs. 49 COCA-COLA MOU 0 Other agreements, 50 UNION CARBIDE

such as Memoranda of KEY CCDS: Center for the Commercial Understanding and * CPAC Member retired from Corpora- Development of Space Memoranda of tion TEA: Technical Exchange Agree- JEA: Joint Endeavor Agreement ment Agreement, provide a MOIJ: Memorandum of Understand- MOA: Memorandum of Agreement ing framework for meeting Source: Fortune, "The Fortune 500, CPAC: Commercial Programs Advi- April 24, 1989 and NASA Office of other commercial sory Committee interests in cooperation Commercial Programs with NASA.

eleven NASA and Industry Support for the Centers for the Technology Commercial Development of Space 30 I Utilization - IF INDUSTRY A National 25 FA NASA SOURCE. NASA Office at Priority Commercial Programs 20 I Millions of Dollars Shortly after his inauguration, President 15 Bush urged Americans to "take actions today that will ensure a better tomorrow. We must extend American leadership in technology, increase long-term investment, improve our educational system, and 1985.iI 1986 1987 1988 1989 boost productivity. These In 1989, NASAs In addition, the are the keys to building a Technology Utilization division has taken an better future?" Division continued to active role in national The President's open new avenues for efforts aimed at helping comments not only the transfer of NASA- to regain America's echoed the concerns of a developed technologies industrial competitive nation, but also form the to the public and private strength by increasing basis of recent legislative sectors. federal technology and executive directives By participating in transfer activities and concerning technology a number of new improving coordination transfer. A demonstration cooperative ventures among the government The failure of many at MIT's Artificial and implementing new agencies involved. Intelligence U.S. firms to capitalize Laboratory initiatives, NASAs As a proactive force on the research and shows use of a nationwide technology in technology utilization technologies generated in prototype robot transfer network has for more than 26 years, federal programs is widely hand, developed been further strengthened NASAS Technology viewed as a major factor as a result of a and expanded. Utilization Division has in the U.S?s declining NASA program helped to promote and global marketplace to promote advancements in facilitate the transfer of position. the development literally thousands of In an effort to bridge of dextrous NASA spinoffs. this critical gap, NASA telemanipulators These spinoffs, in areas has continued to review for space and as diverse as medicine and and strengthen its own industrial transportation, have technology utilization applications. generated a multitude of program, comply quickly social and economic with specific directives, benefits for the entire and work closely with nation to reap. other organizations. In 1989, the agency began implementation of a new strategic plan, which serves as a guideline for NASA technology tranfers. The plan was formulated following a thorough review of the program in 1988. - COL.. twelve NASA was also the formed a task team of first federal agency to technology transfer distribute its patent experts to assist with royalty income as the effort. required by Public Law Following the devel- 99-502. On June 3, 1988, opment of a preliminary checks totaling $56,944 National Technology were issued to 35 current Transfer Center design, and former NASA the task team solicited employee-inventors. comments from The checks paid the representative federal inventor's share of NASA's agencies involved in the patent royalty income technology transfer received between the process. effective date of the The incorporation Federal Technology of these inputs helped Transfer Act of 1986 produce a plan that (October 20, 1986) and promises significant December 31, 1987 Some benefits for the public $61,000 in royalties and private sectors. The received during 1988 are plan was submitted to currently being the Committees on distributed. Appropriations in the In addition, NASA House of Representatives responded to a mandate and Senate on from congressional February 1, 1989. conferees of the Committees on A California Appropriations aimed at company coordinating federal discovered a technology transfer commercial efforts by providing market among industry with a single principal elec- point of contact. tronic systems manufacturers The mandate directed for a training NASA's Office of circuit board Commercial Programs to used to instruct "conduct a definition/ and qualify design study of the five- workers. The year master plan for the market was establishment of a identified as a result of work national repository for the firm federal research and performed for development (technology the Jet transfer), which would Propulsion be located in West Vir- Laboratory. ginia.....Five-year cost estimates and a proposal for cost sharing were also requested. NASA assigned prep- aration of the study to the Technology Utilization Division, which in turn LL: COL H

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An Expanded TU Network New links to public Advanced com- and private-sector groups puter software developed by in 1989 have helped to NASA and enhance both the size and available cope of NASA.S nation- through NASA's wide technology transfer Computer network, as well as to Software fulfill national economic Management and objectives. Information Center (COSMIC), With the addition of has been used 4 seven new affiliates, the widely by U.S. network now extends into industry. 40 states across the Structural design country. and analysis Through a variety of software has, for example, been mechanisms, the network employed by allows NASA to move Chrysler Corp. in information into the automobile private sector and to engineering, and assist in its application. by the University A recent agreement of Georgia with the Center for New Agricultural Engineering West (CNW) will link the Department, Another initiative NASA network to CNW seeking to underway involves members and affiliates in improve poultry transferring what NASA eighteen western states. facilities for the has learned about space- CNW is a nonprofit benefit of related science, engineer- policy research organ- Georgia's billion- ing, and technology to dollar-a-year ization committed to poultry industry. our nation's school understanding America's systems. emerging new economy, Under the proposed promoting economic effort, the feasibility of growth in the western producing a high-school U.S., and improving the textbook or textbooks is competitiveness of being investigated. The western enterprise in the textbook could be offered world marketplace. to the public sector for A Memorandum of licensing and publishing Understaning (MOU), and subsequently be signed by NASA and available for use in high CNW, will provide a schools across the vehicle for the exchange country. of information, dissemi- It is hoped that the nation of research results, availability of such a and development ofjoint textbook would facilitate projects. a dramatic increase in the number of high-school space science classes offered, sparking the interest and imaginations of America's students and encouraging them to pursue science and engineering studies at the university level.

fourteen Nlaj( )I igieenicnt Center related acti\ it its OCP Budget for Technology Utilization between NASA field will be sponsored by (Current Dollars) centers and five states are NASA and will include expected to enhance program management, NASAs technology program analyses and transfer efforts, as well as integration, and center impact favorably on the design and development. economic activities of The Technology each state. Utilization Division is also The MOUs, signed by working closely with the NASA and the states of Department of the Navy Alabama, West Virginia, to assist in development Tennessee, Virginia, and of a Navy Technology Florida, were negotiated Transfer Center. by NASA Field Center The Navy is interested Technology Utilization in identifying state-of-the- Officers and are expected art technology available to lead to new joint in industry, academia, and endeavors. other government FY86 FY87 FY88 FY89 In addition, a agencies, and in bringing cooperative venture it into Navy repair and between NASA and the maintenance facilities to NASAs AdaNet state of California is solve critical problems. program is currently in expected to help advance Under the initiative, Phase II of its implemen- research in the highly NASAs Industrial tation plan. The AdaNet dynamic research area of Applications Centers Software Repository is superconductivity. (IACs) will work on intended to be a self- Recognizing that a number of Navy supporting commercial organization to provide superconductivity projects, evaluating users of Ada with technologies promise to problems, assessing information sharing and play an important role in potential solutions, and depository services. the future of California recommending courses industry and NASA of action. The Navy has missions, the two parties transferred initial funding are cosponsoring a pilot for the effort to NASA Superconductivity and is currently priori- Applications Center. The tizing projects and project will consist of a holding discussions with technical program and various IACs. center related activities. Under the technical program, which will be sponsored primarily by the state of California, NASAs Jet Propulsion Laboratory and the California Institute of Technology will work on four superconductivity-related research tasks in cooperation with TRW and Rockwell International.

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It will operate on a for-profit basis and is targeted to become self- sustaining through client income by 1991. NASA is also planning to enhance the capabilities of field center technology utilization offices through implementation of a microcomputer-based 111 system that efficiently stores data and facilitates timely access to new technologies developed in NASA programs. This system will complete the linkage of \ \ technology utilizatiot field installation offi COSMIC, the NASA Scientific and Technical Information Facility, and memo— lAGs to provide a quicker distribution of new technologies than had been previously possihic.

Application Efforts NASAs direct sup! of technology application House Subcom- efforts in 1989 helped to mittee on Space Science and produce advances in NASA Tech Briefs Applications fields ranging from med- magazine conducts hearing icine to transportation. reaches more on the technol- than 100,000 Some 80 application ogy spinoffs subscribers projects are currently from the space annually. Elan, being conducted at nine program. Inc., a California NASA field installations. firm, discovered a NASA-patented device designed by an astronaut to produce brewed coffee in space. Obtaining a license to commercialize the device, Elan has developed and is now marketing this new coffee maker.

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At an April hearing of A major advance in dia- Increasing Visibility I ie House Subcommittee betes control has resulted NASAs technology If Space, Science, and from another application transfer efforts have \ pplications, numerous project. received increased media mmercial applications Known as the attention, with articles on NASA-developed Rechargeable Physiologic the subject appearing in chnologes were Sensor, an implantable national publications cscribed by company device is being developed and numerous radio and uid university officials that promises to free one television broadcasts presenting a diverse million Type 1 insulin focusing on NASA rray of fields. dependent diabetics, in spinoffs. The witnesses the U.S. alone, from The 20th anniversary recounted a number numerous daily finger- of Apollo 11 this year )f "success stories" in prick blood tests required resulted in an which NASA application to monitor glucose levels. extraordinary level of projects had resulted in The device will also interest in the spinoffs social and economic gain. provide a more accurate associated with America's One of the projects analysis of glucose levels. effort to land the first described at the hearing Researchers expect a men on the Moon. was the Sterling engine. prototype sensor to be In addition, the scope The Sterling is an external completed by the end of and circulation of NASA )rnbustion engine that, 1989 and predict that a Tech Briefs and Spinoff hen compared with commercial unit could be publications continues to )nventional internal in the marketplace within grow. Tech Briefs, which )tnbustion engines, four years. identifies new technol- offers a number of Application projects ogies developed in NASA unique advantages. It is a are geared toward the programs, is presently high-torque engine that solution of public and receiving 1,500 inquiries operates at a constant private sector problems per day for more detailed speed. It uses one spark that have been identified information on specific plug, needs no muffler, by user organizations. technologies. emits no noxious gas, and Direct NASA assistance Likewise, NASAs can use fuel of any kind. and primary funding are annual Spinoff continues In addition to use in provided. to report new applica- vans and trucks, the They involve tions of NASA-developed engine is also being cooperative efforts to technologies. considered for irrigation build and test prototype pumping and mobile hardware if the industrial processing in agriculture, partner agrees to provide drying proceses in the partial funding and is lumber industry, and for prepared to complete use on trawlers, dredges, marketing of the transfer. and shrimp boats in the Two application teams, fishing industry. Research Triangle A multi-year, multi- Institute and Rural phase demonstration Enterprises, Inc., are program has been created presently operating. The by an industry/govern- teams broker industrial nient team to obtain clients' needs and match early operation and such needs with NASA performance data; eval- technology. In FY 1990, uate integrity, reliability, NASA will continue to and durability; and broaden application team accelerate development. responsibilities. Given its many advantages and versatility, the Sterling engine may have profound impacts on both the transportation and processing industries. seventeen It was also calcu- An Exploration lated that the revenues of Benefits produced through the estimated sales generated federal income tax A contracted study revenues of nearly $356 to assess the economic million. Additionally, impacts of NASA tech- 352,000 jobs were nology transfer was projected to have been completed this summer, created, or retained due resulting in new findings to the increased revenues that indicate substantial not savings) attributed to financial benefits to U.S. these spinoffs. business. This study continues to Entitled An Explora- identify the enormous tion of Benefits From social and economic NASA "Spinoff" the study benefits generated by was conducted by the NASAs technology Chapman Research transfer efforts. Group, Inc., of Littleton, Because it concentrates Colorado. on a few applications and The research deter- measures only some of mined the estimated the quantitative benefits revenues and cost-savings Special fabric derived from those developed in derived from a sample applications, the study the 19605 for of applications reported may reveal only a fraction spacesuits in NASAs Spinoff provided the of the real value stem- publication. ming from the "spinoff" basis for More then 400 material used of NASA technology. later in applications reported in the magazine between construction- Honoring Apollo-Era grade fabrics. 1978 and 1986 were Spinoffs The first traced. It was found that adaptation of 342 applications resulted This year marked the this technology in acknowledged 20th anniversary of the was in contributions to sales or U.S. space program's Michigan's savings. Of these, about greatest triumph: the first Silverdome. human footsteps on the NASA technology 75 percent, or 259 cases, utilization permited some quantifi- Moon. managers and cation of sales or savings. At special events in the team of Twenty The 259 applications were Washington, D.C., and individuals years ago: determined to have Paris, the astronaut crew Man on credited with the contributed to the sales of Apollo 11 recalled the application of the Moon. historic flight, and shared space technol- V. of new or improved ogy to use in products in the amount with national leaders and fabric structures of $21.3 billion and citizens of the world a are recognized contributed to savings perspective on that at this year's of nearly $316 million. achievement of Spinoff Hall of July 20, 1969. Fame ceremony ja In May, the U.S. Space in Colorado Foundation honored Springs, Colorado. three technology spinoffs that resulted directly from the program to land Americans on the Moon. The organization hosted a special ceremony in Colorado Springs, Colorado, its headquarters, to recognize the individuals and eighteen organizations instru- O NTIN ULD

NASA's Technology Transfer System 0 - Ajj^,*l 0 0 0 0 0 0

0 A0

OA.0U 0 • A• 0 0 I •0

mental in the adaptation These three technol- Field Center Technology Utilization Officers: manage center of Apollo technology for ogies, inducted into the participants in regional technology utilization activities. use in: U.S. Space Foundation's • Industrial Applications Centers: provide information retrieval • Cordless Tools, Spinoff Hall of Fame, services and assistance in applying technical information relevant developed by Black and represent but a few of the to user needs. Decker as a derivative of thousands of technology 0 Industrial Applications Centers Affiliates: state-sponsored specialized tools used by applications to be spun business or technical assistance centers that provide access to the Apollo astronauts to off from the Apollo NASA's technology transfer network. collect lunar samples. program. • Scratch Resistant The national corn- U The Computer Software Management and Information Center (COSMIC): offers government-developed computer Lenses, which use the mitrnent to land U.S. programs adaptable to secondary use. technology developed for astronauts on the Moon protecting the reflective and return them safely to A Application Team: works with public agencies and private visors on the astronaut's Earth spurred major institutions in applying aerospace technology to solution of public helmet. advances in emerging problems. • Fabric Structures, technologies, such as like the covering over the computers, which became Silverdome football smaller, lighter, and more stadium in Pontiac, efficient, to meet the Michigan. The fabric used requirements for manned in such construction is a spacecraft. Today, twenty derivative of the Apollo years after Apollo li's spacesuit material. "giant leap for mankind," the technology that enabled that achievement continues to enhance our lives on Earth through uses in fields such as health, safety, recreation, manufacturing, transportation, and energy.

nineteen During 1989 the Benefits Realized From NASA-Furnished Technology NASA Small Business Case Applications From Spinoff Innovation Research (Reports By Categories of End Use Sales or Savings, Thousands of Dollars*) Program (SBIR) received a substantial increase in END USE NUMBER NUMBER OF CASES BENEFITS REALIZED $(000) funding. This, along with DESCRIPTION OF CASES WITH SALES OR SAVINGS SALES SAVINGS TOTAL wider understanding of the opportunities offered Communi- by SBIR, resulted in a cation/Data Processing 51 32 171,007 51,964 222,971 large increase in small, high-technology business Energy 30 13 203,500 15,613 219,113 participation in the Industrial program. (mfg & NASAs SBIR program, process) 170 107 5,767.649 67,837 5,835,486 now entering its seventh Medical 61 31 2,003,036 30,613 2,033,649 year, implements the Small Business Innova- Consumer Products 24 18 1,278,294 524 tion Development Act of 1,278,818 1982. The legislation Public Safety 27 16 347,888 555 348,443 requires government Transportation 40 18 9,887,865 116,623 10,004,488 agencies with research and development (R&D) Environmental 16 11 16,962 21,788 38.750 budgets exceeding $100 Other 22 13 1,654,989 10,232 1,665,221 million to set aside 1.25 percent of their annual R&D appropriations for Total 441 259 $21,331,190 $315,749 $21,646,939 the award of Phase I and Estimates were obtained from company officials, or derived from company estimates of manpower or other types of savings (see Appendix A, Study Approach and Conduct). The 441 cases were reported in Spinoff magazine, 1978-86; of Phase II SBIR contracts. these 368 had acknowledged sales or savings, but 109 cases could not be estimated as to extent. Eligibility requirements for small businesses and program implementation guidelines for all NASA SBIR Program Award Statistics participating agencies are provided by the Small PHASE I PHASE II PHASE I & II Business Administration. SBIR program TOTAL objectives established by PROGRAM PROPOSALS AWARDS TOTAL PROPOSALS AWARDS TOTAL PROGRAM law include stimulating SOLICITATION FUNDING FUNDING FUNDING YEAR SM SM SM

1983 977 102 5.0 92 58 24.0 29.0 1984 919 127 6.3 113 71 32.5 38.8

1985 1164 150 7.4 129 84 39.3 46.7

1986 1628 172 8.5 154 85 39.2 47.7

1987 1826 204 10.0 179 100 47.9 57.9

1988 2379 228 11.3 NA NA NA NA

TOTALS 220.1(1) To 8893 983 48.5 667 398 182.9 DATE 231 .4(2)

NOTE 1) Total Program Funding Shown is for First Five Program Solicitation Years (2) Total Program Funding Shown is for First Five Program Solicitation Years, Plus 1988 Phase 1

twenty technological innovation Program Elements OCP Budget for Small Business Innovation Research in the private sector, The SBIR program (Current Dollars) strengthening the role of consists of three distinct 60 small businesses in federal phases. Phase I objectives R&D programs, fostering are to establish the and encouraging greater feasibility of innovative 50 participation of minority concepts proposed by and disadvantaged small businesses to meet 40 persons in technological NASA program objec- innovation, and tives, solve problems, or 30 increasing private sector exploit new technological commercialization of opportunities. Phase I innovations derived from projects are completed in 20 federal R&D. six months and are A recent survey funded up to $50,000. 10 conducted by NASA of Phase II is the principal completed SBIR projects SBIR activity, in which indicated that all these more than half of the objectives are being Phase I projects are more FY86 FY87 FY88 FY89 achieved and that the fully developed. Phase II program has become a projects may be funded highly regarded element up to $500,000 and may of NASXs overall R&D take up to two years to activities. An assessment complete. of the SBIR program In Phase III, the small conducted by the General firm uses private sector Accounting Office capital to commercialize concurred with NASAs its SBIR project result, to findings. sell its product or service The NASA survey to a government agency found that the results of or contractor, or to obtain more than half the SBIR government support for projects reviewed have further R&D. Phase III already been incorpo- may not employ SBIR set- rated or will soon be aside funding. incorporated into NASA mission programs and that many projects have substantially advanced the technology base in several areas. The survey revealed that the quality of research conducted in SBIR projects was as high or higher than comparable research funded through other R&D means, and that at least one-fourth of the projects had already resulted in commercial products or enterprises by the small businesses. NASA data also indicate that a substantial number of minority and disadvantaged firms have won SBIR contracts for high-technology projects. twenty-one CR NL PAGE COLOR PHOTOGRAPH

FY 1989 SBIR Activities SBIR activities during FY 1989 included the selection of 228 Phase I - awards from the nearly 2,400 proposals submitted in response to the 1988 .\ Program Solicitation. During 1989, 100 Phase II ø . . A awards were made for . e further development of Phase I projects initiated during 1988. The 1989 SBIR program was initiated with the issuance of the 1989 SBIR GMD Systems of solicitation. Other Hendersonville, activities included Pennsylvania, program outreach and under contract to efforts to foster NASA's Kennedy Space Center, commercialization of developed a SBIR results. badge for mon- NASAs 1989 SBIR itoring workers' Program Solicitation exposure to the invited Phase I proposals toxic propellant in fifteen areas of hydrazine. technology subdivided into 150 specific subtopics. Nearly 25,000 copies of the solicitation were distributed, and by its closing on June 28, more than 2,140 Phase I proposals had been received. Those found responsive to the solicitation were distributed to the nine NASA field centers for technical evaluation. It is planned that at least 225 Phase I Through an SBIR awards will be announced contract with NASA's Johnson in early FY 1990. Space Center, SBIR outreach ac- Houston, BoMed tivities in 1989 included Medical participation in more Manufacturing than a dozen conferences Ltd., an Irvine, and seminars aimed at California, firm, developed a non- assisting small businesses invasive heart in understanding the monitor that has NASA SBIR program. In been incorpo- an effort to anticipate and rated into a encourage winning commercially companies to develop the successful system. commercial potential of SBIR results, the SBIR Office has initiated a program to follow and report on projects as they twenty-two proceed. Other efforts KO 20 4 HØ 0 PRO 0 0 47 2 Q 38 ir 6 14 1 48 76 2

0 12 0 Awards by Program Year 0 0 G 0 •0 83-1 Phase I & Il (160) 44% 84-1 Phase I & Il (199) 85-1 Phase I & II (234) 86: 1 Phase I & II (256) 0 87-1 Phase I & II (304) 88-1 Phase I Total 1381

have centered on being used in research on including use in the Space Future Focus strengthening ties with the effects of weight- Shuttle's Orbital Based on the FY 1990 NASAs network of lessness on astronauts. Maneuvering Vehicle. budget request, the Industrial Application The company sold a The badge monitors NASA SBIR budget is Centers and Centers version of this monitor a worker's cumulative expected to exceed $60 for the Commercial for use in hospital exposure by changing million, from which Development of Space operating rooms and color and responds to NASA anticipates to foster technology intensive care units and the current permissible considerable growth in transfer and commercial invested in the develop- exposure limit for the numbers of SBIR application of technology ment of a comprehensive hydrazine in as little as contracts awarded and of developed under NASA system for non-invasive 15 minutes. This will allow small businesses R&D programs. hemodynamic and employees to evacuate a participating in NASA's cardiodynamic patient contaminated work zone R&D programs. SBIR Projects monitoring and before hydrazine has Efforts to promote therapeutic management. accumulated to Two projects that began commercial development In 1988 it launched its in 1985 illustrate the dangerous levels. of SBIR project results new system. Revenues impact and value of SBIR Because this is the first will continue to focus on have increased seven-fold projects both to NASA hydrazine detector to disseminating project since 1984, and the and to the nation. measure personal expo- results more widely and BoMed Medical company is now sure levels, the firm developing linkages profitable. BoMed Manufacturing Ltd. of expects there to be a between the SBIR Irvine, California, attributes much of its significant market program and the NASA success in this field to received a contract wherever it is used, Industrial Application through Johnson Space the opportunity provided whether in spacecraft, Network, the Small by SBIR. Center to develop a missiles, boiler cleaning, Business Development GMD Systems, Inc., or fertilizer production. continuous, non-invasive Centers, and the Centers of Hendersonville, means to monitor for the Commercial Pennsylvania, has been bloodflow through the Development of Space. heart and thereby assess working with the Kennedy the heart's condition. The Space Center to develop a company delivered a badge that will measure a successful device now worker's exposure to hydrazine. Hydrazine is an extremely toxic fuel with various applications, twenty-three

International and Domestic R&D Trends

The charts and graphs included in this section rercentage of Total R&U Expenditures characterize key international and domestic trends in Funded by Business research and development expenditures. International 70 comparisons focus on spending by major U.S. trading 68 FRANCE FRG JAPAN — UK — USA — partners who are also active in space research and 66 Source: Science and Engineering indicators commercial applications. 64 62 1987. Appendix Table 4-1, P.234-235 and Space sector data demonstrate the commercial space Unpublished Estimates, National Science 60 Foundation interests of leading U.S. industrial corporations, the contribution of the high-technology aerospace industry n 56 0 Estimated to the U.S. balance of trade, and information on the 54 emerging commercial launch vehicle industr y and its 52 competitive position. 50 48 ' 46 44 42 40 38 36 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 Year

- Relative Changes in Federal Defense and Total R&D Expenditures as a Percentage of GNP Non-Defense R&D Obligations (Constant 1982 Dollars) * 2.9 35 0 34 2.8 FRANCE FAG JAPAN UK USA 0000 * .m 33 DEFENSE ' NON-DEFENSE 0 2.7 Source: Science and Engineering Indicators 0 Source: Science and Engineering Indicators 1987, Appendix Table 4-2, P.236 and 31 1987, Appendix Table 4-37, P.265 cL 2.6 Unpublished Estimates, National Scienc 30 Foundation 29 *Estimated 2.5 W 28 Estimated 2.4 ! 27 rn 26 2.3 25 C. 0 24 <2.2 023 (0 22 21 cc 2 20 19 1.9 18 ' 17 1.8 16 1.7 15 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85868788 Year Year

Non-Defense R&D Expenditures as a U.S. Basic and Applied R&D by Sector, 1988 Percentage of GNP (Estimated) (Estimated) 2.8 100 2.7 Source: Unpublished Estimates, National Science Foundation FRANCE FAG JAPAN UK USA — CL 2.6 Source: Science and Engineering Indicators cn 2.5 80 1987, Appendix Table 4-3, P.237 and • INDUSTRY o i 2.4 0 Unpublished Estimates, National Science i • GOVERNMENT 2.3 Foundation R UNIVERSITIES 2.2 . 60 1 < 2.1 CE 2 0 1.9 40

1.8 a 1.7 0 0 20 1.6 cc 1.5 1.4 1.3 0 M 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 Basic Applied Development Year

Space Sector

Aerospace Balance of Trade Verses Overall U.S. Government Civil Space Applications Budgets Balance of Trade, 1970 - 1987 (Current Dollars) (Approximate)

Satellite Remote Materials Entity Communications Sensing Processing

-20 1983/84 1987 1983/84 1987 1983/84 1987 -30 -40 ESA 222 249 41 198 75 39 2 -50 - FRANCE 53 105 92 120 8 14 -60 WEST GERMANY 100 30 5 8 22 32 70 AEROSPACE U.S. JAPAN 73 109 66 99 9 14 -80 Source: Aerospace Facts and Figures (1988- CANADA 33 36 35 43 N/A N/A -90 1989). "U.S. Total and Aerospace Foreign 5100 Trade', page 125 TOTAL 480 529 239 468 114 99 -110 -120 U.S.A. 32 100 15 24 22 35 -130 -140 -150 SOURCE: U.S. Civil Space Program: An AIM Assessment, March 1987, AIM -160 -170 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 81 Year

Space Product Sales as a Percentage of Aerospace Commitments to Launch Satellites Sales (Estimated Commercial, Government Sales) U.S. Firms and Arianespace, 1989 - 1993 21 30

20 25 - Source. Aerospace Facts and Figures (1988- Industry Product Group", page 15 20

-E 0 Source: U.S. Commercial Launch Manifest, June 1989, Department of Trans- 73 75 77 79 81 83 85 87 portation and Ar,ane Launch Manifest, July 1988 and March 1989, Ananespace, Inc. Year

Communications Satellite Revenues (Estimated, Millions of Dollars, by Market, 1986)

SATELLITES (53.6%)

INTERNATIONAL SERVICES (5.9%)

DOMESTIC TRANSPONDER

EARTH STATIONS (27.6%)

twenty-Jive Source: Space Market Model, Space Business Information Center, August 1988 Presented in this section are the budget history of the NASA Budget in Current Dollars Office of Commercial Programs, a review of the overall 12 I NASA budget trend, and economic impacts attributed to NASA funding. 10 Source: Aerospace Facts and Figures (1988-89), "National Aeronautics and Space Administration Budget Authority", p.68 OCP Budget History (Current Dollars) Estimated 120 Source: NASA Office of Commercial Programs =

100 =

'OC

= 'a 80 (I) =1 'a 2 Does Not Include Three Month "Transition Quarter" 60 (July 1 to September 30, 1976) =

DI *40 62 64 66 68 70 72 74 76 78 80 82 84 86 88 * Year 20

= 0 NASA Budget in Constant 1982 Dollars FY86 FY87 FY88 FY89 18

Source: Aerospace Facts and Figures (1988-89),"Na- i: r NASA Budget Breakdown by Function tional Aeronautics and Space Administration Budget (Constant 1982 Dollars) - '5 Authority in Constant Dollars", p.69

RESEARCH AND DEVELOPMENT CONSTRUCTION OF FACILITIES RESEARCH AND PROGRAM MANAGEMENT IN SPACE FLIGHT CONTROL AND DATA COMMUNICATIONS

Source: Aerospace Facts and Figures (1988-1989), *National Aeronautics and Space Administration Budget Authority in Constant Dollars*, p.69

Estimated Does Not Include Three Month "Transition Quarter" 2 (July 1 t September 30, 1976)

0 62 64 66 68 70 72 74 76 78 80 82 84 86 *88 Year

NASA Budget Outlays as a Percentage of Federal Budget Outlays 85 85 87 88 89 Year

Source: Aerospace Facts and Figures (1988-89), "Gross National Product, Federal Budget and Defense = 3.5 Budget", p.19, and "Federal Outlays Defense, NASA = and Aerospace Products and Services , p.20

twenty-sax 61 63 65 67 69 71 73 75 77 79 81 83 85 *87 89 Year U.S. Space Spending by Department, 1978 NASA Procurement and Employment (Millions of Current Dollars, Estimated) by Center, FY88

PROCUREMENT EMPLOYMENT* - ($Millions)

Federal Support Employees Contractors NASA 55.6% -- MARSHALL SPACE FLIGHT CENTER 2428 3429 1231 JOHNSON SPACE CENTER 1806 3498 8590 OTHER 08% GODDARD SPACE FLIGHT CENTER 1356 3727 3300 KENNEDY SPACE CENTER 1069 2330 9364 NASA RESIDENT OFFICE/JPL 986 5628 COMMERCE 1.6% LEWIS RESEARCH CENTER 418 2716 1246 HEADQUARTERS 661 1829 809 AMES RESEARCH CENTER 432 2169 1928 DOD 42.0% LANGLEY RESEARCH CENTER 297 2966 1720 STENNIS SPACE CENTER 92 159 1213 *AS of September 30, 1988

Source: Aerospace Facts & Figures (1988-1989), "Federal Space Activities Budget Source: NASA Pocket Statistics. January 1989. "Total Procurement by Installa- Authority" p66 tion", p.C-4, "Employment Summary", p.C-26

States in Which NASA Procurements Created U.S. Space Spending by Department, 1988 Over 1000 Jobs (Estimated Direct and Indirect Effects (Millions of Current Dollars, Estimated) on Employment, FY87)

Employment (Number of Jobs)

COMMERCE 1.3% CALIFORNIA 63612 TEXAS 17094 FLORIDA 13462 NASA 33.2% MARYLAND 10342 ALABAMA 7457 OHIO 7264 OTHER 0.4% NEW YORK 6728 VIRGINIA 5962 CONNECTICUT 5452 DOD 65.1% UTAH 5330 PENNSYLVANIA 5111 COLORADO 4876 NEW JERSEY 4810 ILLINOIS 4801 LOUISIANA 3929 MICHIGAN 3727 MASSACHUSETTS 3719 Aerospace Facts & Figures (1988-1989), "Federal Space Activities Budget Source: MISSOURI 2829 Authority'. p.66 GEORGIA 2743 INDIANA 2695 WASHINGTON 2669 ARIZONA 2111 NASA Procurement by Center NORTH CAROLINA 2096 (Fiscal Year 1988, Estimated) TENNESSEE 1903 MISSISSIPPI 1858 WISCONSIN 1736 MINNESOTA 1550 KANSAS 1383 KENTUCKY 1165 OKLAHOMA 1100 NEW MEXICO 1090

Source: Management Information Services Inc., 1988 -

twenty-seven Source: NASA Pocket Statistics, January 1989, Total Procurement by Installation", p.C-4. 'Employment Summary". p.C-26

States in Which NASA Procurements Generated Over States in Which NASA Awarded Over $1 Million in $100 Million in Sales (Estimated Direct and Indirect Contracts, FY1988 (Businesses, Educational Institu- Economic Effects, FY87) tiorts, and Non-profits))

Sales Contract Awards ($MIllions) ($Milllons)

CALIFORNIA 5219.5 CALIFORNIA 2411.4

TEXAS 1653.8 TEXAS 913.1

FLORIDA 996.7 FLORIDA 873.4

756.5 MARYLAND 661.3 MARYLAND OHIO 707.7 ALABAMA 547.8

ALABAMA 633.9 UTAH 429.2

NEW YORK 543.0 LOUISIANA 332.2

VIRGINIA 481.3 VIRGINIA 318.3

PENNSYLVANIA 460.3 OHIO 159.6

CONNECTICUT 457.4 NEW JERSEY 112.3

UTAH 455.9 PENNSYLVANIA 105.1

4264 COLORADO 86.6 LOUISIANA ILLINOIS 420.5 MISSISSIPPI 85.0

MICHIGAN 388.9 CONNECTICUT 76.1

NEW JERSEY 385.5 MASSACHUSETTS 64.0

379.5 DISTRICT OF COLUMBIA 56.7 COLORADO MASSACHUSETTS 290.4 NEW YORK 55.0

INDIANA 263.1 NEW MEXICO 45.6

260.5 WISCONSIN 32.4 MISSOURI WASHINGTON 235.9 TENNESSEE 21.5

GEORGIA 228.2 ARIZONA 21.1

MISSISSIPPI 178.7 KANSAS 20.7

176.1 MICHIGAN 17.6 ARIZONA NORTH CAROLINA 174.6 WASHINGTON 17.5

TENNESSEE 158.9 GEORGIA 15.7

149.4 ILLINOIS 15.2 WISCONSIN KANSAS 132.6 MISSOURI 13.4

OKLAHOMA 127.2 INDIANA 11.7

MINNESOTA 126.8 MINNESOTA 9.0

KENTUCKY 110.5 IOWA 7.9

NEW MEXICO 108.1 NEW HAMPSHIRE 7.4 HAWAII 6.9 NORTH CAROLINA 6.2 DELAWARE 3.6 Source: Management Information Services Inc., 1988 OKLAHOMA 3.4 OREGON 2.9 ALASKA 2.8 RHODE ISLAND 2.5

Source: NASA Pocket Statistics, January 1989, "NASA Contract Awards by State", p.C-4

twenty-eight Commercial Programs Management

JAMES T ROSE Assistant Administrator LAWRENCE F. HERBOLSHEIMER Deputy Assistant Administrator

J. MICHAEL SMITH Deputy Assistant Administrator (Program Development) RICHARD H. OTT Director, Commercial Development Division HENRYJ. CLARKS Director, Technology Utilization Division HARRY WJ0HNs0N Director, Small Business Innovation Research Division DR. BARBARA STONE Director, Plans, Policy, and Evaluation Division THOMAS D. BROWN Director, Program Support Division

Commercial Programs Advisory Committee

In July 1988, the PAUL BANCROFT, III DR. H. BRYCEJORDON Commercial Programs Retired President and President Advisory Committee (CPAC) Chief Executive Officer The Pennsylvania State was formally created to Bessemer Securities University provide NASA with a diverse, Corporation LEWIS W LEI-tR high-level industry viewpoint DR. THOMAS A. BARTLETT Retired Chairman and on commercial space Chancellor Chief Executive Officer business. The Oregon State System of 3M As a subcommittee of the Higher Education NASA Advisory Council, the JOHN C. RENNIE group was chartered to assist ROBERT K. CAMPBELL Chairman and Chief NASA by reviewing policies Chairman, President, and Executive Officer and programs, and by Chief Executive Officer Pacer Systems, Inc. recommending strategies to Pennsylvania Power DR. ROLAND W. SCHMITT implement national space and Light policy goals. President Committee members were JOHN L. CLENDENIN Rensselaer Polytechnic drawn from the ranks of U.S. Chairman and Chief Institute Executive Officer corporate chief executives DAVID W. THOMPSON BellSouth Corporation and their university President and Chief counterparts. PETER M. FLANIGAN Executive Officer Managing Director Orbital Sciences CHAIRMAN Dillon, Read, and Corporation EDWARD DONLEY Company, Inc. Chairman, Executive JOE B. WYATT Committee FRED L. HARTLEY Chancellor Air Products and Chairman of the Board Vanderbilt University Chemicals, Inc. Unocal Corporation ROBERT ANDERSON LARRY D. HORNER Chairman of the Executive Chairman and Chief Committee Executive Officer Rockwell International KPMG Peat Marwick Corporation CHARLES E. HUGEL RAND V. ARASKOG President and Chief Chairman and Chief Executive Executive Officer Officer Combustion Engineering, ITT Corporation Inc. JAMES K. BAKER Chairman and Chief Executive Officer Arvin Industries, Inc.