Exploring the Unknown - NASA's History Office

David Cross and I will be glad to discuss details of our analysis and conclusions with
you at any time.
Document III-6
Cordially,
[hand-signed “Bob”]
Robert D. Shriner, Ph.D.
Director of Washington Operations
Document title: “Economic Impact and Technological Progress of NASA Research and
Development Expenditures,” Executive Summary, Midwest Research Institute, Kansas
City, Missouri, for the National Academy of Public Administration, September 20, 1988,
pp. 1–4.
Source: NASA Historical Reference Collection, NASA History Office, NASA
Headquarters, Washington, D.C.
This Midwest Research Institute study of NASA economic impacts replicated the methodology of the
1971 analysis and calculated a nine-to-one return. Modifications of the economic methodology that
had been developed subsequent to 1971 were employed, and the results were subjected to sensitivity
analysis. This study was mainly a postscript to earlier studies—it did not add anything significantly
new to the previous results, and it met with similar technical criticisms as had the prior macroeconomic
analyses performed by Chase in 1976 (Document III-4), and the Midwest Research Institute in
1971 (Document III-3). What follows is the Executive Summary from Volume I, Executive Report.
Economic Impact and Technological Progress of
NASA Research and Development Expenditures
[1] EXECUTIVE SUMMARY
EXPLORING THE UNKNOWN 427
“Thirty years ago, there was no satellite communications industry. Today that industry
generates gross annual revenues from sales of services and equipment exceeding $6 billion,
provides an indispensable service to people, businesses, and governments throughout the
world—and is responsible for returning more each year in tax revenues than the entire 30year
NASA investment cost to U.S. taxpayers.
“Perhaps even more significant, although not as obvious, is NASA’s role in driving
technologies which benefit the U.S. economy and the nation’s security across the board.
Requirements posed by NASA programs like Apollo, planetary exploration, and the
Shuttle have produced miniaturized electronics, power systems and components, automatic
checkout equipment, computers and software, high-volume data processing and
communication, guidance and control systems, high-strength materials—the list is virtually
endless. These technologies have transformed American business, spawned hundreds
of new products and services, and made innumerable contributions to national defense.” 1
1. “The Civil Space Program: An Investment in America,” Report, American Institute of Aeronautics
and Astronautics Workshop, Airlie House, Virginia, November 17–18, 1987.