The secret laser-toting Soviet satellite that almost was
arstechnica.com
arstechnica.com
[1] http://www.amazon.com/The-Dead-Hand-Untold-Dangerous /dp/0307387844/
[2] http://en.wikipedia.org/wiki/Sary_Shagan
[3] http://en.wikipedia.org/wiki/Terra-3
Disclaimer: at age 20 I was born as these events drew to a close so my knowlege of this subject is restricted to the historical material I've read in incredulity that we stood on the brink for 50 years and came out alive.
http://steveblank.com/secret-history/
I find his blog posts better than the video.
But there was. It wasn't a classic arms race with actual vehicles parading down the street, but money was spent, research was done.
Two things we have as a result are adaptive optics, and the anti-ballistic missile defense systems now coming on line.
NASA, faced with the problem, designed high-tech and fragile ceramics. Rutan, same problem, designed a craft that emulates a badminton birdie.
It's not that simple, but you get the idea.