U.S. Defense Department officials would prefer that industry share the cost of developing a new rocket main engine, but are well aware of the possibility that companies will not be able to justify a substantial investment amid uncertainty about the future payoff.

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Mike Gruss is the chief content and strategy officer at SpaceNews. From 2013 to 2016 he was a senior reporter at SpaceNews covering military space. Previously, he was editor in chief of Sightline Media Group and worked as a reporter and columnist for...