“But failure has to be an option.”

Conference paper https://www.researchgate.net/publication/264346445_The_Microsat_Way_in_Canada%5D Stibrany, P. and Carroll, K.A., "The Microsat Way in Canada," in Proc. ASTRO 2000 - 11th CASI Conference on Astronautics, Ottawa, Canada, 6-9 Nov. 2000.
The quote is a play on the title of Gene Kranz's autobiography, "Failure Is Not An Option". (See the Discussion page for further contextual information.)
The quote gained immediate currency within the MOST https://en.wikipedia.org/wiki/MOST_(satellite) development team. It started to spread when one of the MOST team members, Henry Spencer (one of the fathers of the open-source movement, a well-known long-time contributor to the sci.space newsgroups, and also MOST's Software Architect) began using this quote as his Usenet newsgroups .sig ( this being one example https://groups.google.com/forum/#!topic/sci.space.history/Sl54b83g0jk%5B1-25%5D). The quote has gained wider currency since then, for example in this 2005 blog post by Rand Simberg. http://www.transterrestrial.com/archives/005132.html More recently, the quote has been stated numerous times by Chris Lewicki, the CEO of the asteroid mining company Planetary Resources https://en.wikipedia.org/wiki/Planetary_Resources (e.g., here https://singularityhub.com/2017/08/17/space-startups-see-a-future-when-millions-of-people-live-and-work-in-space/?utm_content=buffer52ee3&utm_medium=social&utm_source=twitter-su&utm_campaign=buffer), as well as by that company's Chairman, Peter Diamandis https://en.wikipedia.org/wiki/Peter_diamandis (e.g., here http://www.diamandis.com/blog/entrepreneurs-not-government-drive-innovation-heres-why), with others subsequently requoting them, such as here http://www.diamandis.com/blog/entrepreneurs-not-government-drive-innovation-heres-why and here http://vladdit.com/exponential-wisdom-episode-15-notes-driving-innovation/.

Address http://www.ted.com/talks/james_cameron_before_avatar_a_curious_boy.html/ to the 2010 TED conference (13 February 2010)
Context: Imagination is a force that can actually manifest a reality. … Don’t put limitations on yourself. Other people will do that for you. Don’t do that to yourself. Don’t bet against yourself. And take risk. NASA has this phrase that they like, "Failure is not an option." But failure has to be an option. In art and exploration, failure has to be an option. Because it is a leap of faith. And no important endeavour that required innovation was done without risk. You have to be willing to take those risks. … In whatever you are doing, failure is an option. But fear is not.

Speech to the House Republican Conference http://georgewbush-whitehouse.archives.gov/news/releases/2007/01/20070126-3.html (January 26, 2007)
2000s, 2007

The Ticket That Exploded (1962)
Context: The 'Other Half' is the word. The 'Other Half' is an organism. Word is an organism. The presence of the 'Other Half' is a separate organism attached to your nervous system on an air line of words can now be demonstrated experimentally. One of the most common 'hallucinations' of subject during sense withdrawal is the feeling of another body sprawled through the subject's body at an angle... yes quite an angle it is the 'Other Half' worked quite some years on a symbiotic basis. From symbiosis to parasitism is a short step. The word is now a virus. The flu virus may have once been a healthy lung cell. It is now a parasitic organism that invades and damages the central nervous system. Modern man has lost the option of silence. Try halting sub-vocal speech. Try to achieve even ten seconds of inner silence. You will encounter a resisting organism that forces you to talk. That organism is the word.

1981

Songs of the Soul (1971)

Source: The Myth of Male Power (1993), Part 1: The Myth of Male Power, p. 52.

2001