1. Using FAA-AST’s Economic Impact Research to Guide State Aero/Space Economic Cluster Development: A Case Study Jeff Krukin Executive Director www.spacefrontierfoundation.org February 9, 2006 Jkrukin@spacefrontierfoundation.org 800-787-7223 (919-338-0936)

2. Using FAA-AST’s Economic Impact Research to Guide State Aero/Space Economic Cluster Development: A Case Study Creating a local initiative Transition from aerospace industry to Aero/Space Economy Combining FAA-AST’s economic impact research with state/regional economic cluster analysis to guide economic development The Space Frontier Foundation’s emphasis on economic development

3. Creating a local initiative Find an ally with similar interests, never stop pushing your vision Chris Brown, Botany Ph.D. Research Professor Director… (in Plant Gravitational Biology and Genomics)

4. Creating a local initiative 2007 Research Triangle Park opens the corporate/academic Space Exploration Enabling Technologies R&D Institute 2009 Honda’s business aviation unit in Greensboro begins designing personal suborbital spacecraft, working closely with Triad-based aviation companies 2010 Virgin Galactic begins East Coast space flights from North Carolina 2011 DHL begins trans-Atlantic sub-orbital cargo flights to Global TransPark (renamed the North Carolina Inter-modal Transportation Complex) 2013 Durham’s GE Transportation-Aircraft Engines facility begins manufacturing engines for small commercial hybrid air/space vehicles 2014 Ft. Bragg/Pope Air Force Base complex (“Home of the Airborne and Special Forces”) inaugurates space flight deployment 2015 North Carolina State University opens a permanent North American International Space University campus 2020 NCSU, University of North Carolina, and Duke University operate the first orbiting campus built with Bigelow Aerospace habitats Present a vision based on local assets and activities

5. Creating a local initiative White paper at www.spacefrontierfoundation.org

6. Transition from aerospace industry to Aero/Space Economy

7. Transition from aerospace industry to Aero/Space Economy (2) Some researchers classify this group of North American Industry Classification System (NAICS) codes as an aerospace cluster rather than the aerospace industry. Distinguishing an “industry” from a “cluster” is a subjective exercise.

8. Transition from aerospace industry to Aero/Space Economy (4) This is just one of several possible aerospace-related clusters. Another possible aerospace- related cluster, composed of enabling technologies, is suggested in the Aldridge Report.

9. Transition from aerospace industry to Aero/Space Economy The final and most extensive level is the Aero/Space Economy, which is far more encompassing than “industry” or “cluster.” North Carolina (as well as the nation and the entire world) was once primarily an agrarian economy, where input to and output from agriculture permeated and influenced all (or most) other economic (and social) activities. The agrarian economy was replaced by an industrial economy, which is transitioning to the knowledge economy. The stage is set for federally driven aerospace activities to become increasingly commercial, thus creating the foundation for an emerging Aero/Space Economy.

10. Combining FAA-AST’s economic impact research with state/regional economic cluster analysis to guide economic development

11. Technology Clusters in NC (1) -matches with- Space Enabling Technologies (2) Chemicals/plastics Advanced structures Pharm./medical technology Biomedical risk mitigation Industrial machinery Planetary in situ resource use Information tech./instruments Autonomous systems and robotics Information tech./instruments Scientific data collection/analysis Communication services/software High bandwidth communications Aerospace All 17 identified technologies Comparison of NC Technology Clusters with Enabling Technologies for Space Exploration (1) Tracking Innovation: North Carolina Innovation Index 2003. North Carolina Board of Science and Technology (2) Report of the Commission on Implementation of United States Space Exploration Policy. President’s Commission on Implementation of United States Space Exploration Policy, 2004 (aka, The Aldridge Report)

12. Combining FAA-AST’s economic impact research with state/regional economic cluster analysis to guide economic development

13. The Space Frontier Foundation’s emphasis on economic development The Frontier Enabling Test Our definition of a "frontier enabling" technology or policy is one which has as its effect the acceleration of the creation of low cost access to the space frontier for private citizens and companies, enables or accelerates our use of space resources, and/or accelerates the rate at which wealth can be generated in space. In other words, is the project or policy going to provide a return on the national investment, if we define "return" to be the economically sustainable human habitation of space? "While civilization is more than a high material living standard it is nevertheless based on material abundance. It does not thrive on abject poverty or in an atmosphere of resignation and hopelessness. Therefore, the end objectives of solar system exploration are social objectives, in the sense that they relate to or are dictated by present and future human needs." – Lunar visionary Kraft Ehricke, 1970

14. The Space Frontier Foundation’s emphasis on economic development