Small Business Innovation Research (SBIR)
- A set-aside program for small business to engage in Federal R&D — with potential for commercialization
- 2.6% of the extramural research budget (> $2 billion) for all agencies with a budget greater than $100M per year.
Small Business Technology Transfer (STTR)
- A set aside program to facilitate cooperative R&D between small business concerns and U.S. research institutions—with potential for commercialization.
- 0.35% of the extramural research budget (>$250 million) for all agencies with a budget greater than $1B per year.
SBIR/STTR Phases
Phase I: Technical Feasibility
- Establish technical, scientific merit and commercial potential
- Demonstrate strong team potential
- Up to $150,000 award
- Six months to one year
Phase II: Prototype
- Continued R&D efforts
- Generally only Phase I awardees receive Phase II awards
- Up to $1,000,000 awarded
- Up to two years
Phase III: Commercialization
- Moves the innovation from laboratory to marketplace
- Privately funded through personal financing and/or strategic partners
Are you eligible for SBIR?
- American-owned, independently operated, for-profit business
- 500 employees or less
- Principal investigator is employed at least 51% at time of award
Are you eligible for STTR?
- Applicant is organized, for-profit small business based in the U.S.
- Must partner with a non-profit research institution:
- Minimum 40 percent by small business
- Minimum 30 percent by a U.S. research institution
- Principal investigator can be with small business OR the non-profit research institution
- Five federal agencies participate
- Phase I project duration is approx. one year
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STTR Differs from SBIR in Three Important Aspects:
- The SBC and its partnering institution are required to establish an intellectual property agreement detailing the allocation of intellectual property rights and rights to carry out follow-on research, development or commercialization activities.
- STTR requires that the SBC perform at least 40 percent of the R&D and the single partnering research institution to perform at least 30 percent of the R&D.
- Unlike the SBIR program, STTR does not require the Principal Investigator to be primarily employed by the SBC.
Special Requirements
Scientific and technical quality and innovativeness of the idea, plus significance of the scientific or technical challenge are keys to success.
Additionally, the qualifications of the main researcher, key personnel, adequacy of facilities and equipment and soundness of the work plan are all critical.