The purpose of DoD Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs is to harness the innovative talents of our nation’s small technology companies for U.S. military and economic strength. The program funds over one billion dollars of projects annually and is made up of 12 participating components. The SBIR program plays a critical role in fostering innovation, stimulating economic growth, and enhancing the competitiveness of small businesses in the United States. It provides a pathway for small businesses to access funding, resources, and expertise to develop and commercialize innovative technologies, ultimately contributing to the nation’s scientific and technological advancement.
Definition: The Small Business Innovation Research (SBIR) program is a highly competitive program that encourages small businesses in the United States to engage in federal research and development (R&D) with the potential for commercialization.
Definition: The Small Business Technology Transfer (STTR) program is a competitive federal initiative designed to foster collaboration between small businesses and nonprofit research institutions, such as universities and federal laboratories.
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are competitive funding initiatives administered by various federal agencies in the United States to foster innovation and technology development within small businesses. While both programs share similarities in their objectives, key differences exist in their structure and focus.
Small Business Innovation Research (SBIR) Program:
- Focus: The SBIR program primarily focuses on supporting small businesses in conducting research and development (R&D) with the potential for commercialization. It aims to stimulate technological innovation and address specific R&D needs identified by federal agencies across various sectors.
- Partnership Requirement: Unlike the STTR program, the SBIR program does not require formal collaboration with research institutions. Small businesses are typically the primary performers of the R&D projects funded through SBIR grants, although collaborations with universities, research institutions, or other small businesses are allowed but not mandatory.
- Phases: The SBIR program consists of three phases, with Phase I involving feasibility studies to assess the scientific and technical merit of an idea, Phase II focusing on further development and demonstration of the technology, and Phase III involving commercialization efforts.
- Commercialization Role: While commercialization is an important aspect of the SBIR program, its primary focus is on supporting R&D activities that have the potential to lead to commercialization. SBIR grants fund small businesses to conduct R&D, expecting successful projects to result in commercial products or services.
Small Business Technology Transfer (STTR) Program:
- Partnership Requirement: Central to the STTR program is the formal partnership between small businesses and nonprofit research institutions, including universities and federal laboratories. STTR grants require small businesses to collaborate with research institutions in both Phase I and Phase II of the project.
- Focus: The STTR program aims to bridge the gap between basic science research and commercialization by fostering collaboration between small businesses and research institutions. It emphasizes technology transfer from research institutions to the marketplace through commercialization efforts.
- Phases: Similar to the SBIR program, the STTR program also consists of three phases, with Phase I involving feasibility studies, Phase II focusing on further R&D and prototype development, and Phase III focusing on commercialization activities.
- Commercialization Role: While R&D is a key component of STTR projects, the program’s primary role is to facilitate the commercialization of resulting innovations. By collaborating with research institutions, small businesses gain access to expertise, resources, and infrastructure that can accelerate the commercialization process.
Key Detailed STTR Differences
STTR differs from SBIR in three essential 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% of the R&D and the single partnering research institution to perform at least 30% of the R&D.
- Unlike the SBIR program, STTR does not require the Principal Investigator to be primarily employed by the SBC.
Conclusion
In summary, while the SBIR and STTR programs aim to support innovation and technology development within small businesses, the STTR program distinguishes itself through its emphasis on formal partnerships with research institutions and its focus on bridging the gap between basic science and commercialization. STTR grants require small businesses to collaborate with research institutions throughout the project, intending to facilitate the transfer of technology from research institutions to the marketplace.
