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WHEN COMMERCIAL FIRMS DEVELOP THEIR OWN SPACECRAFT THEY RISK THEIR INVESTORS FUNDS. TO COMPENSATE FOR HEIGHTENED RISK INVESTORS IN PRIVATE SECTOR INNOVATION COMPANIES COMMONLY DEMAND HIGHER THAN NORMAL RATES OF RETURN. YET ONEROUS RATES CAN DISCOURAGE ENTREPRENEURS FROM SEEKING INVESTMENT AT ALL. TO BREAK THIS CYCLE ENTREPRENEURS OFTEN SEEK OTHER FORMS OF ASSISTANCE THAT HAVE THE EFFECT OF REDUCING FINANCIAL RISK OR ASSURING MORE SATISFACTORY RATES OF RETURN. HISTORICALLY EXTERNAL ASSISTANCE HAS TAKEN MANY FORMS: SHARED RESEARCH DIRECT GRANTS PURCHASE AGREEMENTS CONSTRUCTION OF PUBLIC FACILITIES INDEMNIFICATION POLICIES ASSET TRANSFERS LOAN GUARANTEES TAX EXPENDITURES FAVORABLE REGULATIONS PRIZES AND PRICE STABILIZATION. PUBLIC BODIES PROVIDE MUCH OF THIS ASSISTANCE AND TO A LESSER EXTENT FOUNDATIONS PHILANTHROPISTS AND NON PROFIT ORGANIZATIONS. SUCH ASSISTANCE HAS BEEN USED EXTENSIVELY IN THE TRANSPORTATION INDUSTRY ALTHOUGH IT IS BY NO MEANS CONFINED TO THAT SECTOR. THE PRINCIPAL INVESTIGATOR (PI) PROPOSES TO CONDUCT AN ECONOMIC STUDY THAT DESCRIBES THE EXTERNAL ASSISTANCE PRACTICES UTILIZED TO ASSIST THE COMMERCIAL LAUNCH SERVICE INDUSTRY AND COMPARE THOSE PRACTICES TO THE ONES HISTORICALLY USED TO REDUCE FINANCIAL RISK IN NEW TRANSPORTATION ACTIVITIES.

$49,449FY2016National Aeronautics and Space AdministrationNASA

American University, Washington DC

Investigators

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