How Does NASA's Cost Affect the Economy?:
A
report by the Space Foundation estimated that NASA contributed $180 billion to the economy in 2005. More than 60% of this came from commercial goods and services created by companies related from space techonology. This means that each dollar of NASA spending creates $10 of benefit in the economy. NASA spending created the satellite communications which allows not only radio and television, but also telemedicine, GPS navigation, weather forecasts, and defense.
A 2002 study by Professor H.R. Hertzfeld of George Washington University showed there is a large return to the companies work with NASA on its research contracts. These companies are able to commercialize the products developed and market them. The 15 companies studied received $1.5 billion in benefits from a NASA R&D investment of $64 million.
Small companies didn't receive as much benefit, because they didn't have the ability to market the technology on a larger scale. The study concludes that NASA could create greater economic benefit by continuing the relationship with the companies they work with. NASA could also help open additional financial and marketing doors for these companies.
These benefits trickle down to everyday life. Since 1976, there were 1,400 NASA inventionsthat wound up as products or services,such as kidney dialysis machines, CAT scanners, and even freeze-dried food. (Article updated April 22, 2012)