Exploring the Unknown - NASA's History Office

Risk Adjusted Return
on Investment—%
50
40
30
20
10
EXPLORING THE UNKNOWN 515
Government Sponsored
Research and Development
(through 1984)
Industry
Invests
Typical ROI Current Operations
Industry Will Not Invest
Figure 22. Risk adjusted return on investment
Industry Sponsored
Research and Development
(No Space Manufacturing)
0
77 78 79 80 81 82 83 84 85 86 87 88 89 90
[17] 8.0 ORGANIZATIONAL EVALUATION
A COMSAT type congressionally chartered corporation was considered as a possible
organizational arrangement for implementing commercial space manufacturing, and
compared to a joint venture and existing separate company(s). While the financing of a
Congressionally chartered corporation is aided by its special charter, and it or a joint venture
would tend to spread the risk, existing separate companies were chosen, because of
the tax advantage of being able to expense the cost of the required research and development
against profits from operations as it is incurred. In the chosen arrangement, an aerospace
company would design and fabricate plants for sale to electronics companies for the
manufacture of silicon ribbon. Implementing space manufacturing through existing separate
companies has the additional advantage that Congressional interest and oversight is
not required as in the case of COMSAT, and possible antitrust action is avoided that could
result from the formation of a joint venture including major industry producers.
[18] 9.0 CONCLUSIONS AND RECOMMENDATIONS
Year
The following conclusions can be drawn about the implementation of space manufacturing:
• A method of assessing the feasibility of space manufacturing has been formulated to
evaluate the associated technical, economic and risk factors.
• Product manufacturing in space appears to be feasible, but other product analyses
and supporting research are necessary to verify assumptions.
• The cost of space material in comparison with earth material is not necessarily a valid
comparison. The value-added from material improvements must be computed and
assessed to evaluate economic feasibility.
• Ribbon manufacturing in space appears to be technically and economically feasible,
but private initiative may be blocked by the long term, high risk development program
required.
• The government should sponsor space processing research and [original placement
of Figure 23] development in the interest of promoting future economic benefits to
the U.S.