Research Funding
Small Business Innovation Research (SBIR) program
Small Business Technology Transfer (STTR) program
What is the SBIR program?
The Small Business Innovation Research (SBIR) program was created in 1982 with the enactment of the Small Business Innovation Development Act. In 1992, it was strengthened and reauthorized by Congress to continue until the year 2000 when it was reauthorized again until 2008. This eight-year cycle is possible because the SBIR/STTR programs have no budgets of their own. SBIR is funded as a fixed percentage-a tax if you will-of the extramural R&D budgets of the largest federal agencies. In 2004, this SBIR "tax" will amount to more than $2 billion and will likely be used to fund more than 5,000 projects.
SBIR was designed to stimulate technological innovation and growth among small, private-sector businesses while simultaneously providing the government new, cost-effective, technical and scientific solutions to challenging problems. Under the SBIR program, qualified small businesses (see below) are provided a competitive opportunity to propose innovative concepts for meeting the R&D needs of the federal government. Although this may initially sound like a research program, it is actually an economic development program, specifically designed to stimulate the U.S. economy by encouraging small businesses to develop marketable products and services based upon SBIR technologies. Over the years, the SBIR program has compiled an enviable record of win-win success stories for both the government and small businesses all across the country and is now beginning to provide pretty hefty returns (tax revenues) on this Congressional investment.
What is the STTR program?
The Small Business Technology Transfer (STTR) program was authorized in 1992 by Congress as a pilot program to fund cooperative R&D projects. In 2001, Congress placed STTR on approximately the same footing as SBIR (reauthorized until 2009 and given the same Phase I and II financing limits), although the total budget is about 1/8 that of SBIR. The requirements for participation and winning are the same as those for SBIR. In fact, STTR is almost a clone of SBIR, with just a few notable differences.
STTR is designed to join two powerful forces for technological progress: 1) the entrepreneurial talent of the high-tech small business and 2) the innovative ideas, science and engineering expertise, and facility resources of the nations' universities and research institutes. Although modeled substantially after SBIR, the STTR program is a separately funded program of the federal government. The goals of STTR are the same as SBIR. For most agencies, the Program Managers for the STTR Program are also the exact same persons that manage the SBIR Program.
Under STTR, contracts are competitively awarded to small businesses for research and development projects to be conducted under heavy collaboration with non-profit research institutions. While a primary goal of this cooperative effort is to develop innovative solutions to challenging scientific and engineering problems, those proposals having the greatest potential for commercialization are of particular interest to the STTR program and are given priority.
STTR was established to provide a strong incentive for small businesses and technical experts at research institutions to join forces in commercially tapping into the vast storehouse of research already accomplished at universities and independent research institutions. Congress felt that this powerful combination of entrepreneurial drive and technical talent could team up to move ideas from the laboratory to the marketplace and make our nation more competitive in world markets.
How much money can I get through these programs?
Generally, the SBIR and STTR programs can generate as much as $850,000 per project (not just per company or per year). This money is awarded over the course of a three-phase process.
For a list of participating SBIR/STTR agencies, futher description of the proposal process, sample proposals and more, click here.
For more information on assistance available to early stage tech firms interested in pursuing SBIR/STTR, vist www.cit.org or contact:
Robert Brooke
Director, Federal Funding Programs
Center for Innovative Technology
rbrooke@cit.org
703-689-308
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RESEARCH
