Small Business Innovation Research

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The Small Business Innovation Research (or SBIR) program is a United States Government program, coordinated by the Small Business Administration, in which a portion of the research budgets of several government agencies are reserved for contracts to small businesses. Started with the passing of the Small Business Innovation Development Act in 1982, the goal of the program is to assist small businesses, providing competitive opportunities and stimulating innovation.

For the purposes of the SBIR program, the term "small business" is defined as an American-owned for-profit business with fewer than 500 employees.

A similar program, the Small Business Technology Transfer Program (STTR), uses a similar approach to the SBIR program to expand public/private sector partnerships between small businesses and nonprofit U.S. research institutions.

[edit] Award Procedure

Small Business Innovation Research contracts, or grants, are awarded competitively, with the participating federal agencies releasing solicitations for research proposals.

Interested firms submit proposals in response to the solicitations, which are reviewed by the agency (or a peer-review process), with a small number of proposals accepted based upon technical merit, company background, and commercialization potential. In practice, some of the solicitations are put together with a specific awardee in mind. Therefore, if possible, contact with insiders in the Small Business Administration is advisable for applicants, to avoid the needless expense of preparing hopeless proposals.

Typically, SBIR Programs utilize a three-phase development approach:

  • In Phase I, a small amount of funding (typically less than $100,000) is given to the company to demonstrate the feasibility of their proposed project.
  • Successful Phase I efforts are invited to submit proposals for a $750,000 Phase II effort, which is expected to develop the Phase I technology to the point of commercialization
  • Phase III is designed to move the results of the Phase II research to actual commercial production (this phase is funded directly by interested clients and commercial partners, and not the SBIR program). Note that sales to government agencies (outside of the SBIR program) is considered to be "commercial production", too.

[edit] Participating Agencies

Currently, SBIR programs are in place at the following agencies:

[edit] References