Commercial funding cannot be the basis for funding human space exploration in the near future. The potential for return on investing to send humans into space is not clearly established yet. Existing commercial space ventures investing in exploration have been created in the same spirit as Lewis and Clark's expedition into the American West (a frontier at their time) which eventually crossed the entire continent of America. They are mainly isolated small initiatives seeking economic opportunities. Most private companies will remain reluctant to invest in human space activities until there is a prospect that positive returns can be realized in a reasonable time and at an acceptable rate.

For this reason governments will remain the principal financiers of the development phase of space exploration. However, by nature, the private sector is much better suited than the public one to exploit space, once it has been explored. Therefore the synergy between both sectors has to be planned and stimulated from the beginning of the strategy, in order to smooth the transition between the initial government funded phase and later opportunities for the private sector.

Over the long term, governments will foster private industry involvement in order to transfer the benefit of investments in space to the private sector. This may be done by encouraging private investment in international space organizations discussed in section 3.4.1 or by investing in joint ventures with these organizations. These organizations will also spin off new commercial entities if space markets truly open up through exploration.

This shift from public funds to private funds will have to be carefully handled to be profitable to all entities. The role of the different actors will be clearly established. Governments will ensure the use of technology for the betterment of mankind and will open access to new opportunities and resources. The private sector will grow from this beginning, creating new markets and bringing new customers into space as opportunities appear.

Lunar Based Research Laboratory

Utilization of the Moon is a key stepping stone in the Step-by-step strategy. A permanent outpost on the moon will undoubtedly follow numerous robotic and manned missions. A scientific research laboratory may conceivably form the basis of a long-term lunar outpost. This section discusses the process of transitioning the lunar laboratory from government funding to a state of self-sufficiency. Examples of self sufficient labs on Earth which were previously university laboratories include the Jet Propulsion Laboratory (JPL) (Caltech) and Draper labs (MIT). Both are discussed and analogies made to the lunar outpost.

As presented, the initial financing of a scientific lunar research center will be through an international organization, MoonCorp. Initial research plans are likely to be undefined with limited financial returns. Once the infrastructure is in place for the research center, costs will be dramatically reduced to general overheads such as salaries, maintenance and research activities. Several years will be required to develop suitable research plans, obtain micro- and low-gravity research experience and identify opportunities for commercial applications. Over a transition period, the lunar research center would change from government funding to independent commercial contracts. The research center would gradually become self-sufficient, either a non-profit or profit making organization, depending on whether and how the lab was spun out of MoonCorp.

University laboratories such as Draper and JPL have demonstrated the ability to successfully obtain self-sufficiency through government and private contracts on Earth. Drapers's roots date back to the 1930's, when Dr. Charles Stark Draper created a teaching laboratory at MIT to develop angular and linear motion instrumentation. In 1973 Draper labs became an independent, non-profit research and development corporation. Total revenues for the current fiscal year are expected to exceed $265 million. The lab employs more than 750 engineers, scientists, and technicians on a broad array of programs for government and commercial sponsors. Given the success of JPL and Draper labs, it is anticipated that a similar concept could be applied to a lunar outpost.

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