Exploring the Unknown - NASA's History Office

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SPACE AS AN INVESTMENT IN ECONOMIC GROWTH
Principle NASA incentives available in joint arrangements may include in addition to
making available the results of NASA research: (1) providing flight time on the space
transportation system on appropriate terms and conditions as determined by the
Administrator; (2) providing technical advice, consultation, data, equipment and facilities
to participating organizations; and (3) entering into joint research and demonstration
programs where each party funds its own participation. In making the necessary determination
to proceed under this policy, the Administrator will consider the need for NASA
funded support or other NASA action to commercial endeavors and the relative benefits
to be obtained from such endeavors. The primary emphasis of these joint arrangements
will be to provide support to ventures which result in or facilitate industrial activity in
space when such activity would otherwise be unlikely to occur due to high technological
or financial risk. Other ventures involving new commercial activities in space will also be
supported. In either case, private capital must be at risk.
As major areas for NASA enhancement of total United States capability, including the
private sector, may become apparent from time to time, the factors to be considered by
NASA prior to providing incentives may include, but not be limited to, some or all of the
following considerations: (1) the effect of the private sector activity on NASA programs;
(2) the enhanced exploitation of NASA capabilities such as the Space Transportation
System; (3) the contribution to the maintenance of United States technological superiority;
(4) the amount of proprietary data or background information to be furnished by the
concern; (5) the rights in date to be granted the concern in consideration of its contribution;
(6) the impact of NASA sponsorship on a given industry; (7) provision for a form
of exclusivity in special cases when needed to promote innovation; (8) recoupment of the
contribution under appropriate circumstances; (9) support of socio-economic objectives
of the government; and (10) the willingness and ability of the proposer to market any
resulting products and services.
This policy supersedes the NASA Guidelines Regarding Early Usage of Space for Industrial
Purposes. It does not affect existing programs (such as Materials Processing in Space) and
relationships which are consistent with or outside the scope of the policy. This policy is not
to be construed as authorizing or requiring NASA to perform a regulatory review of a proposed
commercial use of space where no cooperative agreement or other appropriate
arrangement between NASA and the commercial entity is contemplated. . . .
II.B. Description and Discussion of Actions and Transactions
In order to understand NASA’s view of its role in the commercialization of space, it
should be noted that the National Aeronautics end Space Act of 1958, as amended (Space
Act), establishes NASA as the agency responsible for the direction of civil “space . . . activities”
of the United States. The legislative history states that “the term ‘activities’ should be
construed broadly enough to enable the Administration to carry on a wide spectrum of
activities which relate to the successful use of outer space. These activities would include
scientific discovery and research not directly related to travel in outer space but utilizing
outer space, and the development of resources which may be discovered in outer space.”
The Space Act also establishes that space activities will be conducted to make the
“most effective utilization of the scientific and engineering resources of the United States
. . . in order to avoid unnecessary duplication of effort, facilities, and equipment.” NASA
has made large scale use of private industry as contractors in carrying out its activities. It
has provided space launch services for commercial purposes since 1962. Beginning in
1979 it has entered into “partnership” arrangements with private sector firms to enhanced
the commercial utilization of space resources.
In light of the Presidential policy of July 4, 1982, NASA will continue and expand its
effort to facilitate private sector investment in space and will encourage commercial space
activities consistent with that policy.