1 / 34

Federal R&D Programs Reserved for Small Business

Federal R&D Programs Reserved for Small Business The SMALL BUSINESS INNOVATION RESEARCH PROGRAM (SBIR) and related programs Ronald S. Cooper, Ph.D Office of Technology U.S. Small Business Administration SBIR Program Program structure Evolution and learning Economic impacts

bernad
Download Presentation

Federal R&D Programs Reserved for Small Business

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Federal R&D ProgramsReserved for Small Business The SMALL BUSINESS INNOVATION RESEARCH PROGRAM (SBIR) and related programs Ronald S. Cooper, Ph.DOffice of TechnologyU.S. Small Business Administration

  2. SBIR Program • Program structure • Evolution and learning • Economic impacts • Outreach activities

  3. Small Business Innovation Development Act of 1982 Congress designated 4 major goals of SBIR program: • Stimulate technological innovation • Use small business to meet federal R&D needs • Foster and encourage participation by minorities and disadvantaged persons in technological innovation • Increase private-sector commercialization of innovations derived from federal R&D

  4. SBIR Program • National program providing $1.5 billion each year to small businesses for innovation • Over 1,500 firms receive over 5,000 awards each year • Enables US small businesses to engage in federally-funded R&D—with potential for commercialization • Enables/encourages federal agencies to utilize the innovation advantages of small firms • Established 1982, recently extended through FY 2008

  5. Program Structure Source of Funds for SBIR: • Federal agencies with “extramural” research budgets of over $100 million per year must reserve a percentage for small business through the SBIR program. Amount of R&D budget to be set-aside for SBIR: 1982-861987-921993-941995-961997-present 0.2+% 1.25% 1.5% 2.0% 2.5%

  6. U.S. federally-funded R&DTotal: $70 billion in 2002 $62B

  7. Program Structure • Each participating Federal agency administers its own SBIR program • Solicitations (with technology topic areas) • Proposal review & selection (scientific merit / commercial) • Highly competitive: 16% of proposals accepted - Phase I • SBA has oversight and outreach responsibilities - Policy directive - Monitoring - National conferences - Evaluation - Outreach programs - Reporting to Congress and activities

  8. TOTAL ~ $1.4 B FY 2002 SBIR participating agencies • SBA (oversight) $ millions • Defense (DOD) 600 • Health (HHS,NIH) 487 • Space (NASA) 110 • Energy (DOE) 95 • Science (NSF) 78 • Agriculture (USDA) 17 • Commerce (DOC) 7 • Education (ED) 7 • Environment (EPA) 6 • Transportation (DOT) 6

  9. SBIR’s 3-Phase Structure PHASE I • Feasibility of idea • $100,000 (6-12 months) PHASE II • Full R&D • $750,000 (2 years) • Commercialization plan PHASE III • Commercialization stage • Use of non-SBIR funds (private capital or federal follow-on) • Fed: data rights, and noncompete

  10. SBIR Eligibility—Who may apply? • Organized for-profit U.S. business • At least 51% ownedand controlled by U.S. citizens (individuals) • Small business located in the U.S. • 500 or fewer employees • Principal Investigator’s primary employmentmust be with the small business • Research partners are allowed/encouraged (up to 1/3 of Phase I, up to 1/2 of Phase II)

  11. Key features • Contracts & grants, not loans (high-risk research, no debt burden) • Small business owns intellectual property • Agencies must protect IP for 4 years • Agency retains royalty-free license for government use only of technical data (IP)

  12. SBIR Program • Program structure • Evolution and learning • Economic impacts • Outreach activities

  13. National Policy Context • 1950s, 60s -- Federal role was to support basic research in Federal labs and large businesses • 1970s, 80s -- Policy shift towards: - commercialization of federal R&D - government-industry partnerships - greater role for small business • “Stevenson-Wydler Act” of 1980 • “University and Small Business Patent Procedure Act” of 1980 (Bayh-Dole Act) • “Small Business Innovation Development Act” of 1982 established the SBIR program

  14. Federal Government Small Businesses SBIR/STTR: Historical Relationships 1982 1997

  15. Federal Government State Government  Quasi-Government Corporations  Economic Development Entities  Technology Centers Small Businesses SBIR/STTR: Historical Relationships 1998 1982

  16. Federal Government State Government  Quasi-Government Corporations  Economic Development Entities  Technology Centers Academia Small Businesses  University Research Parks  Faculty & Graduate Students  Technology Incubators  Research Foundations SBIR/STTR: Historical Relationships 2000 1982

  17. Small Business Technology Transfer Program (STTR)Promoting Small Business-University Collaboration • Set-aside program to facilitate cooperative R&D between small businesses and U.S. research institutions • Established 1992, recently extended through 2009 • Similar structure to SBIR, administered by SBIR offices • Funding: • Set-aside = 0.3 % of extramural R&D → $200 million • Agencies with extramural R&D > $1B must participate • FY2002: 356 Phase I awards 114 Phase II awards

  18. SBIR/STTR participating agencies Extramural Budget ($B) • Defense (DOD) SBIR/STTR 25.4 • Health (HHS) SBIR/STTR 16.8 • Space (NASA) SBIR/STTR 4.2 • Energy (DOE) SBIR/STTR 3.5 • Science (NSF) SBIR/STTR 2.8 • Agriculture (USDA) SBIR .6 • Commerce (DOC) SBIR .3 • Education (ED) SBIR .3 • Environment (EPA) SBIR .2 • Transportation (DOT) SBIR .1 >$1 B/yr

  19. STTR - SBIR Differences • STTR requires research institution partner University or college / non-profit research org. / FFRDC • Research partner share: min.= 30% max.= 60% (SBIR: permits/encourages partners: Phase I: max. 33% Phase II: max. 50%) • Award always goes to small business • Requires written agreement allocating IPRs • Principal Investigator’s primary employment can be with research institution or small business SBIR: Primary (>50%) employment must be with small business

  20. SBIR Program • Program structure • Evolution and learning • Economic impacts • Outreach activities

  21. SBIR program impacts • Is often only source of funding available • Enables new startups, spin-offs • Induces entrepreneurial activity (“demonstration effect”) • Enables small firms to develop innovative capacity • Complements private ventures (reduces risk) • “Success rate”: 39% of projects had sales attributable to SBIR (55% had sales or additional investment) • Addresses gap in innovation financing

  22. SBIR addresses innovation finance gap Dimensions of the gapSBIR program 1. Information Certification effect, outreach 2. Short timeframe  Awards/grants (no payback)

  23. US Venture Capital Investmentsby Stage, 2002 Expansion Late Stage Early Stage Start Up Source: MoneyTree Survey—PricewaterhouseCoopers, Thompson Venture Economics, NVCA.

  24. SBIR addresses innovation finance gap Dimensions of the GapSBIR program 1. Information Certification effect, outreach 2. Short timeframe  Awards/grants--no payback 3. Size of financing  Small grants (< $1m)

  25. SBIR addresses innovation finance gap Dimensions of the GapSBIR program 1. Information Certification effect, outreach 2. Short Timeframe  Awards/grants--no payback 3. Size of financing  Small grants (< $1m) 4. Few technology areas  Wide range of technologies 5. Geographic specialization  Broad geographic coverage

  26. Funding Sources for Early-stage Technology Development in U.S. Lower estimate: $5.4 Bil. Upper estimate: $35.6 Bil. Note: Proportional distribution is similar regardless of restrictive or inclusive definitions. [Source: Philip Auerswald, Lewis Branscomb, Between Invention and Innovation]

  27. Improving SBIR Program evaluation • Integrating commercialization reporting into on-line application • National Research Council (NRC) 3-year review

  28. SBIR Program • Program structure • Evolution and learning • Economic impacts • Outreach activities

  29. Outreach & assistance initiatives: “63% of SBIR projects need assistance with commercialization activities” • SBIR & STTR outreach to low-income communities, women-owned businesses, and socially/ economically disadvantaged • Federal & State Technology Partnership (FAST) • Rural Outreach Program • Coordinate with other programs (SBIC, VC/AC networks)

  30. Federal and State Technology Partnership (FAST) Program • Purpose: to provide support to state-level organizations that help small businesses in, or interested in, the SBIR program • Mentoring networks: Business advice & counseling • Matching grants to state-level organizations • incentive for states with lower levels of SBIR participation • administered by SBA • Target: All states eligible, one grant per state • Funding = FY 2001: $3 million, 30 grants FY 2002: $3 million, 27 grants FY 2004: $2 million, 10 grants(Grant size: $100K)

  31. Rural Outreach Program • Purpose: to geographically expand competition for SBIR awards by supporting outreach efforts in states with low levels of program participation. • Target: 25 rural states • Matching 5-year grants: one per state, 1:2 (state:federal) • Funding level: FY 2001: $1.5 million, 25 awards FY 2002: $500K, 10 awards FY 2004: $250K 5 awards • Grant sizes:$40K, $52K, $80K

  32. SBIR & STTR ProgramsOffice of Technology U.S. Small Business Administration For more information • Contact individual agency websites • Cross-agency websites: www.sba.gov/sbirwww.sbirworld.com Ronald S. Cooper ronald.cooper@sba.gov (202) 205-6455

More Related