The Developing Space Economy for Commercial Space and Entrepreneurship

Space Society of Silicon Valley The Developing Space Economy for Commercial Space and Entrepreneurship Tiffani Crawford, PhD March 11, 2015

Space Society of Silicon Valley Space Entrepreneurship and Economic Development (SEED) http://spacesociety sv.org/space entrepreneurship.html 2 The Developing Space Economy for Commercial Space and Entrepreneurship

The Developing Space Economy Who plays in the developing space economy now? New entrepreneurs New R&D teams within companies New investors angels, VCs and stock buyers New V corps non profit R&Ds become for profit corps Pre market ideas (PayPal Galactic) Recent entrepreneurship Made In Space 3D Printer @ ISS PlanetLabs Satellites and Earth images Moog Components and satellites Established entrepreneurship (SpaceX, Google, Virgin) Established aerospace companies (SSL, Boeing) Government R&D (NASA Ames, NASA JPL) International collaborators and NGOs (OECD) 3 The Developing Space Economy for Commercial Space and Entrepreneurship

Terms of the Trade Space Entrepreneurship New idea for a product or company New idea for a technology innovation or research effort Some basis in market research Solves a problem in new technology or business Space (Economic) Development Commercial space and entrepreneurship Aerospace industry operational and R&D University and government programs Computing, data analysis and infrastructure support Spaceport locality economic development Space Industry Operations and effort to understand and go into space At least some infrastructure is deployed in space 4 The Developing Space Economy for Commercial Space and Entrepreneurship

Building Out Infrastructure from Earth 6 The Developing Space Economy for Commercial Space and Entrepreneurship

Who Is Not on the List? Moog Components and satellites Made In Space 3D printer space manufacturing Humphries & Associates Low gravity and zerog manufacturing and habitats international patent Server Sky Orbiting data centers Shackleton Energy Lunar based solar power Ansari Space vehicles and payloads SpaceSystemsLORAL Satellites and optical communications Moonandback Travel Space travel for all Deep Space Industries Space vehicles, satellites Google All Earth Internet 7 The Developing Space Economy for Commercial Space and Entrepreneurship

Silicon Valley Space Center http://www.svsc.org/ 8 The Developing Space Economy for Commercial Space and Entrepreneurship

HackerDojos, Makerspaces and Garages 9 The Developing Space Economy for Commercial Space and Entrepreneurship

Space Innovation Competitions 10 The Developing Space Economy for Commercial Space and Entrepreneurship

Space Innovation Competitions 11 The Developing Space Economy for Commercial Space and Entrepreneurship

Crowdfunding Takes Off 12 The Developing Space Economy for Commercial Space and Entrepreneurship

NASA Citizen Science Projects: Discovery! 13 The Developing Space Economy for Commercial Space and Entrepreneurship

NASA Technology Transfer (T2) Program http://technology.nasa.gov/ 14 The Developing Space Economy for Commercial Space and Entrepreneurship

NASA T2 Innovation and Adaptation 15 The Developing Space Economy for Commercial Space and Entrepreneurship

NASA Advanced Technology Roadmaps 16 The Developing Space Economy for Commercial Space and Entrepreneurship

NASA Advanced Technology Roadmaps http://www.nasa.gov/offices/oct/home/roadmaps/index.html 17 The Developing Space Economy for Commercial Space and Entrepreneurship

NASA Emerging Space Office http://www.nasa.gov/offices/oct/emerging_space/ 18 The Developing Space Economy for Commercial Space and Entrepreneurship

NASA Commercial Crew and Cargo 19 The Developing Space Economy for Commercial Space and Entrepreneurship

Space Economy Cross-Sector Benefits 22 The Developing Space Economy for Commercial Space and Entrepreneurship

Global and U.S. Space Industry Trends 23 The Developing Space Economy for Commercial Space and Entrepreneurship

Traditional Space Economy Clusters 24 The Developing Space Economy for Commercial Space and Entrepreneurship

Challenges and Opportunities 25 The Developing Space Economy for Commercial Space and Entrepreneurship

State Incentives for Space Companies 26 The Developing Space Economy for Commercial Space and Entrepreneurship

California in the Space Economy, 2014 29 The Developing Space Economy for Commercial Space and Entrepreneurship

California in the Aerospace Market 30 The Developing Space Economy for Commercial Space and Entrepreneurship

CA Space and Aircraft Market Share 31 The Developing Space Economy for Commercial Space and Entrepreneurship

CA in Global Space Launch 32 The Developing Space Economy for Commercial Space and Entrepreneurship

Launch Market Share Goes Overseas 33 The Developing Space Economy for Commercial Space and Entrepreneurship

CA in Satellite Manufacturing 34 The Developing Space Economy for Commercial Space and Entrepreneurship

CA in Ground Equipment 35 The Developing Space Economy for Commercial Space and Entrepreneurship

NASA Spending on Engineering Services 36 The Developing Space Economy for Commercial Space and Entrepreneurship

CA Top 4 DoD Space Programs 37 The Developing Space Economy for Commercial Space and Entrepreneurship

CA in DoD Space Spending 38 The Developing Space Economy for Commercial Space and Entrepreneurship

CA in Satellite Services 39 The Developing Space Economy for Commercial Space and Entrepreneurship

Growing Demand for Satellite Services 40 The Developing Space Economy for Commercial Space and Entrepreneurship

Top Satellite Services 41 The Developing Space Economy for Commercial Space and Entrepreneurship

CA Aerospace Job Creation 42 The Developing Space Economy for Commercial Space and Entrepreneurship

CA Aerospace Revenues 43 The Developing Space Economy for Commercial Space and Entrepreneurship

CA Competitiveness in the United States 44 The Developing Space Economy for Commercial Space and Entrepreneurship

Case Studies: Unique Advantages 45 The Developing Space Economy for Commercial Space and Entrepreneurship

Cluster of Innovation Drives R&D 46 The Developing Space Economy for Commercial Space and Entrepreneurship

Competition in Policy and Politics 47 The Developing Space Economy for Commercial Space and Entrepreneurship

Strategic Maturity and Disruption 48 The Developing Space Economy for Commercial Space and Entrepreneurship

Emerging Industries: 3D Printing 3D printing was a $2.2 billion operation in 2012, and by 2015, that estimate is projected to increase to $3.7 billion. The 3D printing industry (hardware, software and services) will grow to a $5.1 billion market by 2018. Large scale 3D printed manufacturing is in development for Earth based commercialization and space colonization using Moon/Mars source materials. General Electric is expecting to use 3D printers to help build their nextgeneration jet engines, and projects by 2020 to have nearly 100,000 3D printed components integrated into their jet engines. The potential economic impact is so great that the federal government has awarded $30 million to establish the National Additive Manufacturing Innovation Institute (NAMII) in Youngstown, Ohio. NAMII is a consortium of community colleges, manufacturing firms, non profits and universities, who have matched the award with an additional $40 million. The Institute will be tasked with several functions, including assisting small manufacturers, and training the future workforce in additive manufacturing techniques. 3D printers may eventually become a permanent fixture in both the office and home, becoming a trillion dollar industry in just a few decades. As such, California could position itself to reap huge economic benefits from the continued expansion of the 3D printing industry. 49 The Developing Space Economy for Commercial Space and Entrepreneurship

Emerging Industries: Quantum Computing Potential applications for quantum computers are numerous, and additional applications will undoubtedly follow as the industry develops. One of the applicable areas is in astrobiology and medicine. As astrobiology and medicine advance, large volumes of data require analysis to draw conclusions. Quantum computers are key in the space industry. Complex spacecraft models improve and adapt with quantum computing. Modeling with quantum computers also benefits weather systems and chemical reactions. Quantum computers can advance cryptology with advanced encryption capabilities that far exceed traditional encryption sequencing, vastly improving the security of cyberspace and the interoperability of devices in space. The Canadian government has invested nearly $500 million. The founder of BlackBerry, Mike Lazaridis, has invested more than $250 million at the University of Waterloo s Institute of Quantum Computing, with the intent of commercializing quantum computers. Quantum computers will eventually replace current computers, which will translate into off the chart economics. As it currently stands, one computer electronics manufacturing job also creates 16 other jobs. Substantial economic activity will follow. Between 2017 and 2022 the quantum computing industry is projected to grow nearly 140%. 50 The Developing Space Economy for Commercial Space and Entrepreneurship

More Emerging Industries and Technology Underwater Habitats Applications for habitats and labs underwater may impact space settlement. Habitat design, computing and shielding from elements and pressures may cross pollinate and offer additional market opportunities to space companies. Will a torus surrounded by water provide cheap shielding and storage in space? Quantum Dots Nanotechnology manufacturing valued in UK biotechnology at $50M in revenues Holographics High Resolution 3D Imaging Graphene Carbon based storage Cryogenics Deep freezing for space Solar Powered Aircraft and Spacecraft Small Scale and DIY Space Payloads Astronomy Data Processing and Analytics Automation Space Based Monitoring and Rescue Orbital Junk Removal and Repurposing Bioengineered Agriculture Genetic Community Planning 51 The Developing Space Economy for Commercial Space and Entrepreneurship

Case Study: Mojave Air and Spaceport Several states have already taken direct action to support the establishment of a spaceport. The most notable is the New Mexico spaceport, which opened in 2011 at a cost of $209 million, paid for by the taxpayers. It is already attracting thousands of visitors as a tourist destination. Because of the unique industry requirements, spaceports must have specialized capabilities, requiring a substantial investment and a complex federal operating permit process. Given the virtually unprecedented growth of the commercial spaceflight industry, the potential return on investment makes initial financing a worthy endeavor. That is one of the primary reasons why a growing number of state governments are taking actions to establish a spaceport. Mojave includes space companies Virgin Galactic, XCOR and others alongside the former Space Shuttle Program landing area at Edwards Air Force Base. Spaceports attract spaceflight companies, creating additional high wage jobs and serving as a major tourist destinations, increasing economic revenues. Including a space related research park and a business incubator in the spaceport locality plan advances the commercial spaceflight industry with support resources and catalyzes the development of a highly skilled workforce, all of which translate into substantial tax revenue. 52 The Developing Space Economy for Commercial Space and Entrepreneurship

Space Industry Special Economic Zones As a means to encourage economic growth & development, some nations have established a variety of Special Economic Zones (SEZs), regions that have reduced tax and regulatory burdens. Some SEZs in the United States support the space industry. Many countries have established space, astronomy, computing and other economic development SEZs, including Russia, India, China, Pakistan, Malaysia and the Philippines. Establishing a Space Industry SEZ maximizes an area s ability to attract and retain space entrepreneurs via spaceflight specific tax incentives. For example, states offer: Investment tax credit of 25% for purchases on all machinery and equipment specific to spaceflight R&D and operations Up to 20 years of corporate income tax credits equal to 5% of total capital costs for new and expanding infrastructure, predicated on a minimum $25 million investment State income tax exemption for first two years of operation State franchise tax exemption for first two years of operation 53 The Developing Space Economy for Commercial Space and Entrepreneurship

Economic Data Sources See these references to find the sources of the data and conclusions presented in this overview. Emerging Space: the Evolving Landscape of 21 st Century American Spaceflight, 2014 NASA http://spacesociety sv.org/files/99979511.pdf California Aerospace Industry Economic Impact Study, 2014 ATKearney http://spacesociety sv.org/files/99979196.pdf California and the Commercial Spaceflight Industry, 2013 State of California Office of Economic and Workforce Development http://spacesociety sv.org/files/99979220.pdf California and Emerging Industries, 2014 State of California Office of Economic and Workforce Development http://spacesociety sv.org/files/99979224.pdf 54 The Developing Space Economy for Commercial Space and Entrepreneurship

References ActionEconomy is the only company in the world that builds Big Data Analytics platforms for Space. Visit the startup at http://www.actioneconomy.com. S3V s Space Entrepreneurship and Economic Development (SEED) Program http://spacesociety sv.org/space entrepreneurship.html NASA s Emerging Space Office http://www.nasa.gov/offices/oct/emerging_space/ NASA s Technology Transfer (T2) Program http://technology.nasa.gov/ NASA s Space Technology Roadmaps http://www.nasa.gov/offices/oct/home/roadmaps/index.html Silicon Valley Space Center http://www.svsc.org/ OECD Space Forum International Space Development http://www.oecd.org/futures/oecdspaceforum.htm Technology development economics research and competitiveness index http://www.amazon.com/effectiveness California Community Colleges Development/dp/1448641578/ 55 The Developing Space Economy for Commercial Space and Entrepreneurship

Contact Information Tiffani Crawford, PhD 408 829 7096 zapquick@aol.com Tiffani Crawford, PhD, builds global Big Data Analytics systems. She has 25 years of high technology experience with Fortune 500 companies, including Cisco Systems, Facebook, Microsoft/Skype, Bank of America, VISA/Inovant, BAE Systems, Shoretel, Ditech Networks, Starview, ActivIdentity, Applied Competitive Technologies, Big 4, defense contractors and startups. She has developed groundbreaking technologies in Big Data, analytics, cloud, networking, telecommunications, software development, mobiles, cloud security, ediscovery, transaction systems, distributed multi tier applications, digital entertainment, geographic information systems/gps, intelligent transport systems and finance. She is a credited software developer in Java for network element management and a published author. She earned her PhD from the University of Southern California in 2005. She has also earned her Master's, Bachelor's and various technology certifications. 56 The Developing Space Economy for Commercial Space and Entrepreneurship