SBIR

Definition

The Small Business Innovation Research (SBIR) program is a competitive federal program that encourages small businesses to engage in research and development (R&D) with the potential for commercialization. It provides funding to stimulate technological innovation, supporting small firms in developing new technologies that can meet federal research and development needs while also promoting economic growth.

5 Must Know Facts For Your Next Test

1. The SBIR program was established in 1982 to support small businesses in developing innovative technologies and creating jobs.
2. The program allocates approximately $3 billion annually across various federal agencies to fund R&D projects in small businesses.
3. SBIR funding is awarded in three phases: Phase I for feasibility studies, Phase II for further development, and Phase III for commercialization efforts.
4. Participating federal agencies include the Department of Defense, the National Science Foundation, and the National Institutes of Health, among others.
5. To qualify for SBIR funding, small businesses must be U.S.-based, independently owned, and have fewer than 500 employees.

Review Questions

• How does the SBIR program support technological innovation within small businesses?
  • The SBIR program supports technological innovation by providing crucial funding to small businesses for research and development projects that may not otherwise receive financing. Through its structured phases, the program enables entrepreneurs to conduct feasibility studies, develop prototypes, and ultimately bring innovative technologies to market. This funding not only aids in advancing specific technological solutions but also stimulates overall economic growth by encouraging entrepreneurship.
• Discuss the differences between the SBIR and STTR programs in terms of collaboration and funding mechanisms.
  • While both the SBIR and STTR programs aim to promote innovation through federal funding, they differ in their collaboration requirements. The SBIR program focuses solely on small businesses, allowing them to pursue R&D independently. In contrast, the STTR program requires collaboration between a small business and a nonprofit research institution, facilitating technology transfer from research environments to commercial applications. This partnership approach in STTR aims to leverage academic research capabilities alongside entrepreneurial efforts.
• Evaluate the impact of SBIR funding on economic growth and technological advancement in the United States.
  • SBIR funding has significantly impacted economic growth and technological advancement by empowering small businesses to innovate and compete in various industries. By investing approximately $3 billion annually in R&D, the program fosters an environment where emerging technologies can thrive, leading to job creation and increased competitiveness. The success stories from SBIR-funded projects demonstrate how federal support can translate into groundbreaking products and services that enhance both national security and everyday life, ultimately driving progress across multiple sectors of the economy.

Related terms

STTR: The Small Business Technology Transfer (STTR) program focuses on collaboration between small businesses and nonprofit research institutions, aimed at enhancing technology transfer and commercialization.

Phase I: The first stage of the SBIR program, where small businesses can receive funding to explore the feasibility of their proposed R&D projects.

Commercialization: The process of bringing new products or technologies to market, which is a key goal of the SBIR program in promoting innovation from small businesses.