SBIR & STTR Overview

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The SBIR and STTR programs are a great way to bring innovative new products to market. For small businesses that know about the program, the process and access to funding can be a fantastic resource. We created a short SBIR/STTR Overview to help people get familiar with the programs.

The SBIR program was created in 1983. The STTR program was created in 1994.

SBIR stands for Small Business Innovation Research. STTR stands for Small Business Tech Transfer Research. Tech Transfer is a term associated usually with a university office whose primary responsibility is to take research and commercialize through the sale or licensing to a private entity. Payments and royalties go back to the university and sometimes back to the professor or researcher who worked on the IP, technology, process or innovation.

Every federal agency with an extramural* R&D budget of $100,000,000 is required to participate in the SBIR and STTR programs and set aside 2.8% of their R&D budget for program. This includes 11 agencies, including:

Every federal agency with an extramural* R&D budget of 1,000,000,000 is required to participate in the SBIR and STTR programs and set aside 0.4% of their R&D budget for program. This includes 6 agencies, including:

*Extramural refers to the outside funding budget for research and development.

There are 3 phases of the program:

Phase 1 is for feasibility and proof of concept. Funding ranges from $150,000-225,000 for the 9 month program.

Phase 2 is for prototype development. Funding is in the $1,000,000 range for the 24 month program.

Phase 3 is for commercialization and is usually a form of public private partnership.

Small businesses (businesses with less than 500 employees) who want to apply, must have a technology/innovation/process with protectable IP (Intellectual Property). The first step is to contact the SBIR/STTR department at the appropriate federal agency and find out when topics are announces and the Funding Opportunity Announcements are made. Then the application process will be clearly identified.

Post questions in the comments section and I will do my best to answer them.

 

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