Exploring the Unknown - NASA's History Office

EXPLORING THE UNKNOWN 503
space industries. Facilities for permanent manned operations in orbit are becoming feasible.
For the first time it could become possible to assure industry of routine access to
orbit and a suitable place to work once there.
Though the technology is ripe, manmade barriers block or slow private sector
entrance to space. Laws and regulations enacted long before private investments in space
were envisioned still govern commercial space operations. Onerous tax and tariff laws and
regulations and outdated or inappropriate administrative mechanisms are discouraging
even some of the staunchest advocates of investment in commercial space endeavors.
To these artificial handicaps must be added the natural high risks and costs inherent
in space operations. Expenditures for building and launching research and manufacturing
equipment for use in space can require investments from 10 to more than 100 times
as large as for comparable facilities on the Earth. The danger of loss is many times greater
in space. The possibilities of quick profit are low.
Yet, the ultimate social, economic and technological benefits for our nation and individual
citizens justify the risks. Privately owned and operated, highly profitable communications
satellites are already demonstrating that free enterprise in space works well.
Prolonged near-weightlessness and other unique attributes of space may make possible
the manufacture of unprecedented products: medical preparations for fighting some
of our most widespread diseases; alloys stronger yet lighter than any presently known; electronic
components for faster and smarter computers and better electronic machines than
are now available, and systems for almost universal information availability to increase the
diffusion of knowledge.
[v] Domestic and international markets for space-based products and services are estimated
to be immense and they may grow geometrically. Understandably, competitors
abroad are experimenting in all of these fields. Foreign subsidies are often large and
extend beyond research and development into production and marketing.
The accompanying 20 issue papers, in six categories, discuss each of the major problems
connected with the commercialization of space:
National Commercial Space Policy. Because commercial developments in space often
require many years to reach the production phase, entrepreneurs need assurances of
consistent Government actions and policies over long periods.
Economic Incentives. Laws and regulations which discriminate against commercial
space ventures need to be changed or eliminated.
Expanded Government Research. In partnership with industry and academia, NASA
needs to expand basic and applied research and improve dissemination of research
results which may have implications for investors aiming to develop marketable products
and services.
Role of Federal Agencies. Responsibilities of U.S. Government Agencies relating to
commercial space activities need to be firmly assigned and clearly defined.
Legal and Regulatory Barriers. Laws and regulations predating space operations need
to be updated to accommodate space commercialization.
National Security Issues. Gaining access to Government-owned technical information
and assuring fair international competition are among major concerns of prospective
investors in space endeavors.