Small Business Technology Transfer (STTR)

Definition

Small Business Technology Transfer (STTR) is a federal program that promotes collaboration between small businesses and research institutions to foster technology commercialization. This initiative is aimed at supporting innovation by providing funding for small businesses to develop and transfer new technologies, ensuring that cutting-edge research translates into practical applications in the marketplace.

5 Must Know Facts For Your Next Test

1. STTR grants are specifically designed to encourage collaboration between small businesses and nonprofit research institutions, such as universities and federal laboratories.
2. To qualify for STTR funding, small businesses must partner with a research institution and the joint project must focus on technology development and commercialization.
3. STTR provides a significant opportunity for small businesses to access federal funding for innovative projects, helping them overcome financial barriers during the early stages of technology development.
4. This program requires that at least 40% of the research work be conducted by the small business while a minimum of 30% must be performed by the research institution.
5. STTR has been instrumental in advancing technologies in sectors such as healthcare, energy, and defense by enabling small businesses to leverage academic expertise and federal resources.

Review Questions

• How does the STTR program facilitate collaboration between small businesses and research institutions?
  • The STTR program facilitates collaboration by requiring small businesses to partner with nonprofit research institutions for their projects. This structure encourages the sharing of resources, expertise, and knowledge between entities that might otherwise operate independently. By combining the innovative capabilities of small businesses with the research strength of established institutions, STTR aims to accelerate the development of new technologies and their eventual commercialization.
• Discuss the key requirements for small businesses seeking funding through the STTR program and why these requirements are important.
  • To receive STTR funding, small businesses must meet specific criteria: they must collaborate with a qualified research institution, conduct at least 40% of the project work, and ensure that a minimum of 30% is carried out by the research partner. These requirements are crucial because they promote effective partnerships that leverage both practical business insights and advanced scientific research. This collaborative approach not only enhances innovation but also increases the likelihood of successful commercialization of new technologies.
• Evaluate the impact of STTR funding on innovation within small businesses and its broader implications for technology advancement.
  • STTR funding significantly impacts innovation by providing small businesses with critical financial resources needed to develop new technologies. This support allows them to take risks on innovative projects that may not attract traditional investment due to high uncertainty. As these small businesses succeed in commercializing their technologies, it fosters economic growth, job creation, and advancement in critical sectors like healthcare and defense. The successful outcomes from STTR projects also contribute to a more dynamic innovation ecosystem by encouraging further investment in research and development.

Related terms

Research and Development (R&D): The systematic investigation and innovative activities aimed at developing new products, processes, or services to enhance existing technologies or create new market opportunities.

Grants: Financial awards provided by government bodies or private organizations that do not require repayment, often used to fund projects with specific objectives, including research, development, and technology transfer.

Commercialization: The process of bringing new products or services to market, turning ideas or innovations into viable business offerings that generate revenue.