Impact of the Space Program on the U.S. Economy: National and State Analyses ROGER H. BEZDEK & ROBERT M. WENDLING SUMMARY This paper estimates the private sector economic and employment impacts (disaggregated among 80 industries and 475 occupations) of the U.S. Space Program on the nation and on each state. Nationwide, it finds that FY1987 NASA procurement expenditures of $8.6 billion had an economic multiplier of 2.1 and generated, directly and indirectly: $17.8 billion in total industry sales, 209,000 jobs, $2.9 billion in corporate profits, and $5.6 billion in Federal, state, and local government tax revenues. While the jobs created are disproportionately concentrated among Scientists, Engineers, and skilled workers, in absolute terms many more jobs are created for blue collar and lesser skilled labor. Substantial numbers of jobs are created for workers in virtually every industry and every occupation. The industry and job impacts are concentrated in those states such as California, Texas, and Florida that are the largest direct recipients of NASA program funds. However, every state in the nation benefits significantly from the Space Program, and the total sales and jobs created in each state are detailed. For many states the indirect economic benefits are found to be very high. States are ranked on the basis of three criteria, which allow identification of the states benefiting the most (directly and indirectly) from the Space Program. These "winners" include many states not usually linked to the Space Program, such as New Jersey, Arizona, Kansas, Illinois, Tennessee, Wisconsin, Michigan, New Hampshire, and North Carolina. The individual state impacts of the U.S. Space Program are illustrated by examining the detailed industry and job benefits in Louisiana and Indiana. In Indiana it is found that for every dollar the state received directly in 1987 Space Program expenditures it received an additional $11 indirectly. The major conclusions of this study are: 1) The detailed economic effects of the Space Program can be reliably estimated by industry and occupation for the nation and for each state; 2) The total (direct plus indirect) economic and employment impacts are between two and three times larger than is usually assumed, and are much more pervasive than is generally recognized; and 3) The major beneficiaries - specific industries, occupations, and states, - include many which have heretofore not been linked closely to the Space Program or to NASA procurement. Management Information Services, Inc., 116 Fourth Street, SE, Washington, D.C. 20003.
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