Small Business Technology Transfer (STTR)

Definition

Small Business Technology Transfer (STTR) is a federal program that encourages small businesses to engage in research and development (R&D) projects in collaboration with research institutions. This program aims to bridge the gap between basic science and commercialization by facilitating the transfer of technology from research entities to the marketplace, ultimately enhancing innovation and economic growth.

5 Must Know Facts For Your Next Test

1. STTR grants require small businesses to partner with nonprofit research institutions, which is unique compared to other funding programs.
2. The STTR program is designed to promote technological innovation and increase the commercialization of federal R&D results.
3. Eligible small businesses can receive funding up to $1 million for their STTR projects during the initial phases.
4. STTR is managed by the Small Business Administration (SBA) but funded through various federal agencies such as the Department of Defense and the National Institutes of Health.
5. Participation in the STTR program can significantly enhance a small business's credibility, making it easier to attract additional funding from angel investors or venture capitalists.

Review Questions

• How does the STTR program facilitate collaboration between small businesses and research institutions?
  • The STTR program requires small businesses to collaborate with nonprofit research institutions on R&D projects. This partnership allows businesses to leverage the expertise, facilities, and resources of research institutions while conducting innovative projects. By working together, both parties can share knowledge and technologies that lead to successful commercialization of new products or services.
• What role does STTR play in promoting innovation within the U.S. economy?
  • STTR plays a crucial role in promoting innovation by providing funding and support for small businesses engaged in R&D. By fostering partnerships between small companies and research institutions, STTR encourages the development of new technologies that can be commercialized. This process not only enhances competitiveness in the marketplace but also stimulates economic growth by creating jobs and attracting further investment in innovative sectors.
• Evaluate the impact of STTR on small businesses' ability to secure additional funding from alternative sources.
  • STTR has a positive impact on small businesses' ability to secure additional funding because it enhances their credibility and showcases their commitment to innovation. By successfully obtaining STTR grants, these businesses demonstrate their capacity to manage government-funded projects effectively. This track record can attract interest from angel investors and venture capitalists who are looking for promising startups with validated technology and potential for commercialization. As a result, businesses that engage with STTR are often better positioned to secure further investments.

Related terms

Research and Development (R&D): Activities that companies undertake to innovate and introduce new products or services, which can include basic research and applied research.

Commercialization: The process of bringing new products or services to the market, including development, marketing, sales, and distribution.

Grant: A sum of money given by an organization, especially a government, for a particular purpose, such as funding R&D projects or supporting innovation.