Wl. MULTIPURPOSE TECHNOLOGY 
Technology in itself is not a severe limitation to 
industry’s physical ability to perform an operation 
in the ocean. Cost, however, may often be 
prohibitive. Consequently, future technological 
innovations that reduce costs will accelerate the 
utilization of the oceans. Therefore, early develop- 
ment of lower cost technology is required. In 
addition, other innovations may create opportu- 
nities to develop entirely new industries. 
Technology and services that benefit a broad 
sector of present and potential users and which are 
beyond the capability of a given industry tradi- 
tionally have been sponsored by the Government. 
When such programs are necessary they should be 
oriented to scientific and basic engineering prob- 
lems. To insure an industrial base capable of 
supporting accelerating National ocean exploita- 
tion, it is imperative that development projects, 
where practical, be performed by industry under 
appropriate contractual arrangements. 
Recommendation: 
The Federal Government should initiate in the 
near future a program to assure development of 
basic multipurpose technology that will enhance 
the capability of a broad spectrum of users to 
perform useful work on and in the oceans. 
IV. AVAILABILITY OF CAPITAL 
Some ocean industries are so new in areas of ad- 
vanced technology that their potential is not fully 
understood by investors. Nevertheless, many con- 
cepts of profitably using the ocean are sound, and 
the investment community has been intrigued 
zreatly by overall ocean endeavors. It is the feeling 
in this community that raising funds for projects 
with reasonable profit potential will not be a 
problem, and therefore direct Government pecu- 
niary aid will be rarely necessary. 
In view of the National interest in the oceans, 
and lack in most cases of a need for direct 
Government financial aid, the panel feels that 
indirect incentives directed toward establishment 
of a favorable business climate should be em- 
ployed where pertinent. 
Recommendation: 
Government policy should be to develop and 
maintain a business climate encouraging ocean- 
related investments. Special indirect incentives, 
rather than direct financial aid, are advised when a 
well defined National interest exists and the 
private sector’s response is inadequate. 
V. SEASTEADING—A MEANS TO ATTRACT 
ENTREPRENEURIAL INVESTMENT 
The ocean environment has received much 
promotional attention and many ideas have been 
conceived for ocean development. At present, 
however, numerous jurisdictional bodies have no 
procedures at all to convey rights to submerged 
land. Where procedures exist, they are often in the 
form of complicated and expensive leases which 
constitute a particular burden to individuals and 
small companies. Thus, to stimulate the imagina- 
tive development of selected underwater areas, the 
States should adopt a system of simple, attractive 
leasing, which one might refer to as “‘seasteading.” 
The term of the “‘seastead” should be sufficiently 
long to justify large investments that may be 
necessary. Among the possible applications of 
seasteading would be aquaculture and such recrea- 
tional uses as underwater parks and hotels, but not 
development of petroleum and other minerals. 
Recommendation: 
To encourage innovative uses of the ocean 
other than petroleum and hard mineral develop- 
ment, State governments should initiate ex- 
perimental programs for leasing submarine areas 
(“seasteading”) within U.S. territorial waters, con- 
tingent on useful employment of the property. 
Such programs should be a part of a plan for the 
orderly, rational development of offshore regions. 
V-3 
