Page 19 - International Space Station Benefits for Humanity, 3rd edition.

The AMS-02 investigation is a good example supporting the decision-making of organizations with
of what can be missed if one focuses purely on R&D portfolios valued in the hundreds of millions to
concrete economic benefits, to date. While a better billions of dollars as well as the research selection
understanding of the universe is intrinsically valuable, process of the ISS U.S. National Laboratory.
the sum total “payoff” of that knowledge is impossible Navigant conducted rigorous, independent due
to predict and likely to take a long time to reveal itself. diligence similar to the work the firm executes in
Conversely, focusing on the many promising lines of support of technology/IP valuations, private equity
application that fizzle out before they rise above the and financial transactions, utilizing its in-house and
surface and make a lasting impact can also distract extended network of engineering, science and
from the steadily growing stream of benefits that technology expertise. Navigant’s approach was to
history indicates will come over time. For example, place each activity in a market context and explore
one of the narrative stories in previous editions of this issues such as market dynamics, technology readiness,
publication focused on an innovative company, mWater, competitive forces, and management depth to assess
which used knowledge derived from ISS systems to and consider potential outcomes.
develop and market a $10 water testing kit. Although Selection of activities for economic evaluation is
the product is sound, it has not gained significant complex. Most early ISS research and development
market share over larger competitors. However, the activities were chosen based on scientific merit rather
accompanying mobile application—mWater Surveyor, than economic value. However, a number of these
which records water testing results and aggregates have economically relevant outcomes as case studies.
that data worldwide—has become the largest such Conversely, R&D activities selected for the U.S. National
database in the world, kept up to date with as many Laboratory on the basis of economic value are more
as 70,000 survey submissions per month from recently flown; therefore, the time for development of
150 countries. According to the mWater website, with economically relevant applications post-flight has not
partners including USAID, UNICEF, WHO, and the been sufficient for measurement. Only a small selection
World Bank Innovation Fund, more than 25,000 NGOs, (40) of the ISS R&D activities could be evaluated due
governments, and researchers are using the mapping to the effort involved in evaluating the development
and monitoring data around the world. of economic value after the flight activity is complete.
The mWater story illustrates how positive benefits Recognizing that less than 2% of all investigations could
can be found, even when a particular product does be evaluated, all international partners were engaged in
not succeed in the marketplace. As a nonprofit, determining which were selected for review. Navigant
mWater was able to work with competitors to improve evaluated the 40 ISS activities on three dimensions
lives around the world through the use of its mobile of value: innovative, humankind/social and economic.
application, while continuing to maintain intellectual Assessment of innovative value was derived by an
property in water filtration and test-kit products, and evaluation of possible impacts research leadership
pursue a sustainable market niche.
may have in a specific area. This evaluation includes
Having defined and illustrated the challenges of considerations on how the research may generate
conducting economic valuation of research and new or improved products, services, processes, or
development activities, the economic valuation knowledge as compared to traditional approaches.
conducted on ISS R&D activities will be described next. Key questions used to drive this dimension of the
The results obtained will follow that description with analysis are “Does the research provide a leadership
several illustrative examples discussed in some detail. position?” and “Does the research provide a critical

Description of Valuation Process
To characterize the impact of the ISS to date,
Navigant Consulting, Inc., was tasked with applying Navigant evaluated the 40 ISS
a value impact methodology customized for space activities on three dimensions of
research based on best practices across federal
laboratories, commercial companies and leading value: innovative, humankind/
nonprofit research organizations. Navigant is global social and economic.
professional services firm with decades of experience
in the evaluation of R&D programs ranging from

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