Insider Brief
- NASA’s recently released report found the organization’s activities in FY 2023 contributed $75.6 billion to the U.S. economy, generating nearly 305,000 jobs across diverse sectors, including R&D, manufacturing, and education, with each job paying above the national average.
- The Moon to Mars (M2M) campaign and climate change research are two major pillars of NASA’s economic contribution. M2M generated $23.8 billion in economic output and nearly 100,000 jobs, while climate initiatives added $7.9 billion and supported 32,900 jobs.
- The agency’s influence reaches all 50 states, providing significant financial benefits even in regions without a NASA center. Forty-five states saw an economic impact exceeding $10 million, with California, Texas, and Florida being the top beneficiaries.
- NASA’s collaborations with private companies, academic institutions, and international agencies, especially via the ISS and technology transfer initiatives, are driving advancements in high-tech fields. In FY 2023, NASA recorded 1,564 new tech disclosures, 40 patent applications, and 69 patents, supporting innovation across multiple industries
NASA’s recent Economic Impact Study for Fiscal Year 2023 reveals substantial contributions to the U.S. economy, spanning job creation, tax revenues, and the growth of critical sectors like manufacturing, R&D, and climate technology. Conducted by the Nathalie P. Voorhees Center at the University of Illinois Chicago, this third agency-wide economic impact report quantifies NASA’s economic influence across multiple dimensions, including the Moon to Mars (M2M) campaign, climate research, and international collaborations.
A Nationwide Impact on Jobs and Economic Output
NASA’s economic reach extends far beyond its own centers, with each dollar spent by the agency amplifying economic activity through direct, indirect, and induced effects. In FY 2023, NASA’s projects and operations contributed $75.6 billion to the national economy. This impact goes beyond immediate spending, as NASA’s expenditures for procurement, wages, and infrastructure trigger demand for goods and services across industries, creating a multiplier effect throughout the economy.
Supporting High-Quality Jobs Across Sectors
The nearly 305,000 jobs sustained by NASA’s activities cover a range of sectors beyond aerospace, including R&D, high-tech manufacturing, education, and transportation. The average annual income for jobs supported by NASA sits at around $90,547, significantly above the U.S. national average of $73,416. This differential highlights the high-skilled and specialized nature of the roles associated with NASA programs, reflecting the agency’s influence in creating and supporting well-compensated jobs.
Contribution to Government Revenue
NASA’s activities also contribute substantial tax revenues. In FY 2023, these amounted to $9.6 billion, a blend of federal, state, and local taxes generated through the agency’s diverse employment and spending footprint. This revenue directly supports state and local services, ranging from education to infrastructure, and provides fiscal support in regions reliant on NASA’s sustained presence.
Major Economic Contributions of Moon to Mars and Climate Initiatives
NASA’s M2M initiative stands as a flagship in this economic profile, responsible for $23.8 billion of the total economic output and generating nearly 100,000 jobs nationwide. This campaign integrates multiple American sectors, supporting innovations in areas such as spacecraft design, materials science, and software development. The M2M initiative alone generated $2.9 billion in annual tax revenues, benefiting both the national and state economies.
NASA’s commitment to climate change research yielded an additional $7.9 billion in economic output in FY 2023, creating approximately 32,900 jobs. This sector spans data collection, analytics, and advancements in Earth observation and climate adaptation technologies, delivering indispensable resources to sectors reliant on environmental data, such as agriculture, national security, and public health. The investments in climate research also contributed $1 billion in annual tax revenues, underscoring the financial significance of NASA’s environmental priorities.
National Reach with Regional Benefits
NASA’s impact touches every corner of the United States, as its programs support economic activities in all 50 states and Washington, D.C. This reach is particularly notable in states with NASA centers or a significant aerospace presence, but the benefits extend widely due to the distribution of contracts and partnerships.
Economic Gains Across Key States
California, Texas, and Florida are among the most impacted states, each with outputs exceeding $1 billion due to the concentration of NASA centers, contractors, and suppliers. Alabama and Maryland also experience substantial impacts, benefiting from high levels of NASA-funded R&D and procurement activities. In Alabama, for example, NASA’s Marshall Space Flight Center fuels the state’s economy through contracts with local suppliers, driving significant job creation and tax revenue.
Benefits to Smaller Markets
Smaller states also see benefits, even those without NASA facilities. Of the 45 states with impacts exceeding $10 million, many benefit from NASA contracts with local suppliers and research institutions. By engaging a network of academic institutions, technology firms, and service providers, NASA drives a ripple effect of economic growth, which is particularly valuable to states with emerging technology sectors.
Partnering for Technological Advancement
NASA’s partnerships extend its influence well beyond government operations, engaging private firms, universities, and international space agencies in cutting-edge technology development and exploration. In FY 2023, NASA maintained 644 active international agreements and more than 2,600 domestic and international partnerships. These agreements allow for collaboration on projects that serve dual roles: advancing NASA’s mission objectives while transferring valuable technology and expertise to the private sector.
The Role of the International Space Station
One of NASA’s most visible partnerships is the International Space Station (ISS), a collaboration with 15 countries and five space agencies. This international cooperation enables the ISS to serve as a hub for experiments, material testing, and life sciences research that benefits not only space exploration but also commercial applications on Earth. Partnerships on the ISS have led to developments in fields such as telemedicine, materials science, and renewable energy—areas of growing interest among investors and commercial tech sectors.
Domestic Collaborations and Industry Engagement
NASA also prioritizes collaboration with U.S.-based companies, academia, and non-federal partners, creating opportunities for domestic innovation. These partnerships support technology development in robotics, AI, climate monitoring, and more. By aligning its R&D goals with commercial interests, NASA fosters industry-relevant advancements that can accelerate product development timelines for private companies, creating a pipeline from federally funded innovation to market-ready technologies.
Impact on R&D and the Private Sector
Research and development remain at the core of NASA’s mission, with FY 2023 showing R&D as the largest single sector impacted by NASA’s activities, representing 19% of the agency’s total economic impact. Through dedicated research efforts, NASA catalyzes advancements in technology that are adopted across the private sector, translating scientific research into real-world applications that benefit industries and communities.
Expanding Commercial Spinoffs and Patents
NASA’s commitment to innovation drives the development of “spinoffs,” products or processes derived from NASA technology. In FY 2023, NASA reported 1,564 new technology disclosures, 40 patent applications, and 69 patents issued. These spinoffs and patents create commercial opportunities in various industries, including telecommunications, energy, healthcare, and agriculture. Technologies initially developed for space missions find new applications in areas such as sensor technology, environmental monitoring, and sustainable agriculture practices.
Supporting the High-Tech Supply Chain
NASA’s procurement practices also bolster high-tech supply chains, supporting businesses that manufacture advanced materials, sensors, software, and aerospace components. The agency’s procurement spending, estimated at $23.3 billion in FY 2023, underpins a network of suppliers that benefit from long-term, stable contracts, enabling them to invest in R&D and expand their capacities. This symbiosis between NASA and the private sector amplifies the reach of government-funded research, fostering an environment where private firms benefit from and contribute to technological innovation at scale.
NASA’s FY 2023 Economic Impact Report underscores the agency’s role in driving economic value, workforce growth, and technological progress across the U.S. economy. From major programs like Moon to Mars to pioneering climate research, NASA’s projects provide unique opportunities for private-sector growth while advancing national and international interests in space and environmental resilience. For industry leaders, investors, and policymakers, the report offers data-driven insights into the ways NASA catalyzes American innovation and strengthens the commercial space ecosystem.
Read the full report here.
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