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The International Traffic in Arms Regulations (ITAR) are used to protect United States (U.S.) military technologies. However, changes to ITAR export controls regarding space technologies have had a major impact to the U.S. space industry. The literature mentions a concern for the health of lower-tier firms because they are a major source of innovation, but there is no additional information considering the effects of ITAR on space innovation at those lower tiers. The purpose of this thesis was to explore the implications of continuing the current ITAR restrictions with regard to innovation in the space industry. This research used a three-part approach: Part I used personal interviews to explore perceptions from the space enterprise. Part II was a secondary analysis of previously collected data. Part III compared the results of Parts I and II to assess the relationship between ITAR and innovation in the space industry.