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Technology Spillovers from the Final Frontier: A Long-Run View of U.S. Space Innovation

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Abstract

Recent studies suggest that space activities generate significant economic benefits. This paper attempts to quantify these effects by modeling both business cycle and long-run effects driven by space sector activities. We develop a model in which technologies are shaped by both a dedicated R&D sector and spillovers from space-sector innovations. Using U.S. data from the 1960s to the present day, we analyze patent grants to distinguish between space and core sector technologies. By leveraging the network of patent citations, we further examine the evolving dependence between space and core technologies over time. Our findings highlight the positive impact of the aerospace sector on technological innovation and economic growth, particularly during the 1960s and 1970s.

Suggested Citation

  • Luisa Corrado & Stefano Grassi & Aldo Paolillo, 2025. "Technology Spillovers from the Final Frontier: A Long-Run View of U.S. Space Innovation," CEIS Research Paper 609, Tor Vergata University, CEIS, revised 07 Aug 2025.
    • Handle: RePEc:rtv:ceisrp:609
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    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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