Funding R&D Through the Federal SBIR and STTR Program
The Small Business Innovation Research/Small Business Technology Transfer Program (SBIR/STTR) is a highly competitive federal R&D funding program that encourages small business to explore their technological potential and provides the incentive to profit from commercializing new technology. By enabling qualified small businesses to participate in the nation's R&D activities, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs.
Competitive Opportunity for Small Business
SBIR targets the entrepreneurial sector because that is where most innovation and innovators thrive. However, the risk and expense of conducting serious R&D efforts are often beyond the means of many small businesses. By reserving a specific percentage of federal R&D funds for small business, SBIR enables small business to compete on the same level as larger businesses. SBIR funds critical startup and development stages and encourages the commercialization of the technology, product, or service, which, in turn, stimulates the U.S. economy.
Since enacted in 1982 as part of the Small Business Innovation Development Act, SBIR has helped thousands of small businesses to compete for federal research and development awards. The companies' contributions have enhanced the nation's defense, protected our environment, advanced health care, and improved our ability to manage information and analyze data. In 2005, New York companies received a record $106.2 million through 308 SBIR and STTR awards.
The SBIR System
Each year, 11 federal departments and agencies are required
to reserve a portion of their R&D funds for award to small
business. The agencies listed below independently designate
R&D topics and accept proposals:
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Department of Agriculture
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Department of Health
and Human Services
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Department of Homeland Security
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Department of Transportation
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Environmental Protection
Agency
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National Aeronautics
and Space Administration
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National Science
Foundation
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Three-Phase Program
Following submission of proposals, agencies
make SBIR awards based on small business qualification, degree
of innovation, technical merit, and future market potential. Small
businesses that receive awards or grants then begin a three-phase
program:
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Phase I is the startup
phase. Generally, awards of up to $100,000 for approximately six
months support exploration of the technical merit or feasibility
of an idea or technology.
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Phase II awards of generally up
to $750,000, for as many as two years, expand Phase I
results. During this time, the R&D work is performed
and the developer evaluates commercialization potential.
Only Phase I award winners are considered for Phase II.
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Phase III is the
period during which Phase II innovation moves from the
laboratory into the marketplace. No SBIR funds support
this phase. The small business must find funding in the
private sector or other non-SBIR sources.
SBIR Qualifications
Small businesses must meet certain eligibility criteria to participate
in the SBIR program including:
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American-owned and independently
operated
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Principal researcher
employed by business
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Company size limited
to fewer than 500 employees
NYSTAR: Your SBIR
Partner
The New York State Foundation for Science, Technology and Innovation was created to help make New York a leader in high-technology academic research and economic development. Through a host of innovative programs and initiatives including world-class, state-of-the-art research centers, business outreach centers, technology transfer incentives, and faculty retention initiatives, NYSTAR's programs help support the technology development continuum from cutting-edge research to commercialization of new technologies. |
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