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NEVADA. SBIR/STTR Introductory Workshop. Dr. Fritz Grupe Email: [email protected] , or [email protected] 775-813-7407. Made Possible Through Funding From. Workshop Agenda. What are SBIR and STTR? The phases Eligibility Agency differences What do they pay for? University participation

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sbir sttr introductory workshop

SBIR/STTR Introductory Workshop

Dr. Fritz Grupe

Email: [email protected], or [email protected]


Made Possible Through

Funding From

workshop agenda
Workshop Agenda
  • What are SBIR and STTR?
  • The phases
  • Eligibility
  • Agency differences
  • What do they pay for?
  • University participation
  • Resources you can draw on
  • Summary of characteristics of successful proposals
  • Summary of why you might consider applying
why sbir
Why SBIR????

Small Business Innovation Development Act of 1982

Congress designated 4 major goals

  • Stimulate technological innovation
  • Use small business to meet federal R&D needs
  • Increase private-sector commercialization innovations derived from federal R&D
Research Opportunities

Reserved for Small Business

  • Small Business Innovation Research (SBIR)

Set-aside for small businesses to engage in federal R&D -- with potential for commercialization. (will be increasing to 3.2% over 6 yrs.)

  • Small Business Technology Transfer (STTR)

Set-aside to facilitate R&D between small business concerns and U.S. research institutions (increasing to .45% over 5 yrs.)



sbir program eligibility
SBIR Program Eligibility
  • Organized for- profit U.S. business
  • At least 51% U.S.- owned and independently operated OR at least 51% U.S.-owned and controlled by another for-profit business that is at least 51% U.S. owned and independently operated
  • Small business located in the U.S.
  • 500 or fewer employees
  • P.I.’s primary employment with small businessduring project
sttr program eligibility
STTR Program Eligibility
  • Applicantis a small business
    • Formal cooperative R&D effort
  • Minimum 40% by small business

- Minimum 30% by U.S. research institution

  • U.S. research institution
    • College or university; other non-profit research organization; Federal R&D center
  • Intellectual property agreement
    • Allocation of rights in IP and rights to carry out follow-on R&D and commercialization
sbir sttr c ritical differences
SBIR/STTR: Critical Differences
  • Research Partner

SBIR:Permits research institution partners

[Outsource ~ 33% Phase I and 50% Phase II R&D]

STTR:Requiresresearch institution partners (e.g., universities)

[40% small business concerns (for-profit) and

30% U.S. research institution (non-profit)]

Award Is Always Made To Small Business

sbir sttr critical differences
SBIR/STTR: Critical Differences
  • Principal Investigator

SBIR: Primary (>50%) employment must be with small business

STTR: Primary employment not stipulated

[PI can be from research institution and/or

from small business concern*]


Questions as to Eligibility?
  • Contact the SBA size specialists
  • Request an eligibility determination
sbir sttr participating agencies
TOTAL ~ $2.0 + B

FY 2004

SBIR / STTR Participating Agencies
  • DHS SBIR (Dropping)
what is funded under sbir sttr
What is Funded Under SBIR/STTR?
  • Innovation through the use of emerging technologies
  • Novel application of existing technologies – a new area of application
  • New capabilities or major improvements to existing technologies in efficiency, effectiveness, simplicity, …
advantages of sbir sttr programs
Advantages of SBIR/STTR Programs
  • A specific “shopping list” for small firms describing what the government agencies need/fund
  • Significant amounts of R&D money reserved for small, innovative firms
  • Funding for early-stage feasibility and prototype studies--the type of R&D for which private firms and financing groups won’t provide investment
  • Asimplified route to obtaining federal R&D funds
  • Does not penalize a firm for being small or isolated
  • Provides valuable credibility to winning companies
  • Efficient use of federal R&D funds
sbir sttr s 3 phases
SBIR/STTR’s 3-Phases


  • Feasibility study
  • $150K+ and 6-month (SBIR)

or 12-month (STTR) Award

    • Full research/R&D
    • $1M+ and 2-year Award


    • Commercialization stage
    • Use of non-SBIR/STTR funds
  • Fast Track (Phase I and II combined)
  • NSF
    • Phase IB (1:2 match to $30K)
    • Phase IIB (NSF will match 1:3 to $500K)
  • Commercialization assistance
    • Department of Defense
    • National Institutes of Health
    • National Science Foundation
    • Department of Energy
  • Sole source status
  • Up to 25% may be made available to larger companies



Another Look at the Phases

Phase I

Phase II

Phase III

Phase IV

the sbir sttr timeline
The SBIR/STTR Timeline
  • The SBIR/STTR Phase I/Phase II completion timeline is from 3 to 5 years (best case).
  • Can your company survive during this time?
  • Will the marketplace for your idea survive this timeline?
  • Who is your competition? How are they funded? Where will they be after 3 to 5 years?


Phase I

Phase II






Source: PCB, Inc.

phase iii funders
Phase III Funders
  • Governmental agencies
  • Corporations
  • Venture capitalist firms/individual
  • Angel investors
some facts to remember
Some Facts to Remember
  • Eligibility is determined at time of award
  • The PI is not required to have a Ph.D.
  • The PI is required to have expertise to oversee

project scientifically and technically

  • Applications may be submitted to different

agencies for similar work

  • Awards may not be accepted from different

agencies for duplicative projects

performance of research activities
Performance of Research Activities
  • All R&D must be performed in its entirety in the U.S.
    • Rare cases to conduct testing of specific patient populations outside of the U.S.
    • Travel to scientific meetings in foreign countries is allowable
    • Foreign consultants/collaborators are allowable, but must perform consulting in the U.S.
what does sbir pay for
What Does SBIR Pay For?
  • Direct Costs
    • Including fringe benefits
  • Indirect Costs
  • Fee/Profit
    • Up to 7% of the total direct and F&A costs.
    • Must be requested in the proposal to be eligible.
  • Not all costs are allowable
Don’t Judge an Agency’s Interests by Its “Name ”

FACT: Many research areas of

interest span across agencies

  • Avoid inaccurate assumptionsabout

agency research missions

(e.g., DOT is interested in “safety” NOT “economy”)

  • Maximize opportunities for funding by

submitting proposals to as many

relevant agencies as possible

  • Identical research
  • Complementary research
Understand Each Agency’s Culture
  • What are its distinct missions and needs ?
  • Is the agency program budget –

centralized or de-centralized ?

    • relationship to “topic authors”
Understand Each Agency’s Culture
  • What are the lines of communication?
    • when (when not) to call…
    • who to call…
    • why to call…
  • How does the review and award process


    • Who are the reviewers – internal, external, or both ?
    • Who makes the final award selection ?
Understand Each Agency’s Culture
  • What are the types of awards

(contract or grant) ?

  • Are there “funding gap” programs ?
  • Does the agency offer a

“technical assistance” program ?

  • How can the agency support a firm’s

“commercialization” program ?

    • as a Phase III “customer”
    • by providing external “contacts”
contracting vs granting agencies
Contracting Agencies

Agency establishes plans, protocols and requirements

Highly focused topics

More fiscal requirements

Granting Agencies

Investigator initiates an idea

Less well-specified topics

More flexibility

Contracting vs. Granting Agencies








Grants vs. Contracts
  • Grants – You are selling your idea against other ideas
  • Contracts – You are selling your solution to their idea
agency sbir differences
Agency SBIR Differences
  • Number and Timing of Solicitations
  • R&D Topic Areas -- (Broad vs. Focused)
  • Dollar Amount of Award (Phase I and II)
  • Proposal Preparation Instructions
  • Financial Details (e.g., Indirect Cost Rates, Gap Funding)
  • Receipt Dates
  • Proposal Review Process
  • Proposal Success Rates
  • Type of Award (Contract or Grant)
relative sbir agency sizes
Relative SBIR Agency Sizes
  • Dept. of Defense
  • National Instit. Health
  • National Sci. Foundation
  • Dept. of Energy
  • NASA
  • All Others


  • $1.3 billion
  • $680 million
  • $161 million
  • $154 million
  • $130 million
  • $82 million

$2.5 billion

sbir success ratios
SBIR Success Ratios
  • Phase I
    • Historically, 1 out of 10 proposals are funded
    • Recently, 1 out of 7 proposals were funded
    • Last year, it was back to 1 out of 10 proposals funded
  • Phase II
    • Between 1 out of 2 to 1 out of 3
    • Some Phase IIs become contracts (Phase III)
For more information…..
  • Contact individual agency websites
  • Cross-agency website:

  • Conferences / workshops
  • Topic search engine for all agencies
  • Partnering Opportunities
  • State Newsletters
sba technet http tech net sba gov tech net public dsp search cfm
SBA Technet
other helpful sites
Other Helpful Sites
  • (for a helpful manual that summarizes the contents of this workshop)
Firm Size Distribution*

*FY01 Phase I DOD Award Winners

Who Participates in SBIR?

  • Firms are typically small and new to the program.
  • About 1/3 are first-time Phase I awardees.
  • Small hi-tech firms from across the country.
Advice from Awardees
  • Don’t judge an agency’s interests by

its “name ”

  • Understand agency’s mission and


  • Get to know your agency program


  • Read solicitation and follow


Advice from Awardees
  • Don’t depend solely on SBIR funding
  • Don’t go it alone - use support systems
  • Have an outcome
  • Win or lose - get and review evaluations
proposal framework




(Phase III)







Legend for Criteria




o Scientific/Technical Approach

o Ability to Carry out Project

o Impact





Proposal Framework

CourtesyDr. Robert Berger, former Department of Energy SBIR-STTR Program Manager and MS-FAST Consultant

commercialization planning
Commercialization Planning
  • For most agencies, you determine the customer, define the market
  • For DoD and NASA, perhaps others, the agency is the customer, ultimate user
    • Usually down to program level
    • Procurement channels often complex
  • For DoD, “commercialization” means “transition”
intellectual property
Intellectual Property
  • To retain rights to IP, the company:
    • Must report invention to the agency within 2 months
    • Elect rights within 2 years
    • File application within 1 year
  • US Gov. may “march in” if contractor fails to report or elect, or if it is not commercialized, or for health/safety reasons
  • Must be substantially manufactured in U.S. (waivers possible)
  • A recent court case (Stanford v. Roche) emphasized the need for all organizations to be clear on employee/consultant contracts (ex. If a university employee is on loan to a company, to whom does an invention belong?)
university business partnership opportunities
University-Business Partnership Opportunities
  • Own small firms (assign someone else PI)
  • Principal investigator

(with official permission from university)

  • Senior personnel on SBIR/STTR
  • Consultants on SBIR/STTR
  • Subcontracts on SBIR/STTR
  • University facilities provide analytical

and other service support

university and industry two different cultures
University and Industry:Two Different Cultures

Industry researchers

are from MARS

University researchers

are from Venus

getting help with sttr
Getting Help With STTR

1. Federal Laboratory Consortium

See Technology Locator

2. University technology transfer officer (if there is one)

3. Techmatch

nv tech transfer people
NV Tech Transfer People
  • Richard Bjur, UNR/DRI, Special Asst To VP Graduate School Ms 0321, Reno, Nevada 89557, (775) 784-4116, [email protected]
  • Elda Luna Sidhu, Assist. General CounselUNLV, 4505 Maryland Parkway, Box 451085, Las Vegas, Nevada  89154-1085, Ph: (702) 895-5185, [email protected]
nsbdc s sbir assistance
NSBDC’s SBIR Assistance:
  • Enhancing communication with agencies
    • Possible future agency representatives in the state
    • There are some local contacts
  • Agency Searches
  • Guidanceand assistance
  • Reactions to proposals
  • Location of potential partners
  • Location of local proposal writers
  • Suggestion of alternative funding sources such as EPSCOR, MAP, etc.
http nsbdc org how we can help technology innovation1
  • Funding, Marketing, Patenting, Etc
  • Sample Proposals
  • Links To Search Engines
  • Past Award Winners
  • Nevada University Research Centers
sbir national conferences
SBIR National Conferences

November 2012

Portland, OR

some problems and issues
Some Problems and Issues
  • Intellectual property
  • Time and effort to write, wait for, account for a grant
  • Distractions
  • Do you have enough horses to do the job?
    • Partners?
    • Equipment
  • Funding gaps
  • Funding is specific
levels of review
Levels of Review
  • Administrative - Does the proposal meet formating and other technical requirements (10-15% are rejected)
  • Manager – Is it a reasonable submission, responsive, etc.
  • Panel/merit review – How does it compare to the other proposals
  • Agency selection – How many from each area will be funded?
dod format

(1) Identification and Significance of the

Problem or Opportunity

(2) Phase I Technical Objectives

(3) Phase I Work Plan

(4) Related Work

(5) Relationship with Future Research or

Research and Development

· State the anticipated results of the proposed

approach if the project is successful

· Discuss the significance of the Phase I effort in

providing a foundation for Phase II research

(6) Commercialization Strategy

(7) Key Personnel

(8) Facilities/Equipment

(9) Subcontractors/Consultants

Lack of experience with essential methodologies
  • Unrealistically large amount of work proposed
  • Over budget, over page limit, incorrect format
  • P.I. credentials weak, weak team
  • Milestones not detailed
from here
From Here
  • Keep up on solicitations for new topics
  • Keep your innovation current
  • Keep looking for people and companies to help
  • Decide whether you have to rely on SBIR for funding
get help from others
Get Help From Others
  • Incubator/Accelerator Executives
  • Centers of Innovation
  • National Laboratories
  • Small Business Development Centers
  • Non-competitive Small Business Innovation Research Program Awardees
top reasons to seek funding
Top Reasons to Seek Funding
  • $2.5 Billion Available
  • Not a loan or an investment – no repayment
  • Provides recognition and validation
  • Fosters partnerships
  • Seed money funds risky projects
  • IP stays with the company
  • Offers an advantaged sole source position
the challenge from the sbir coach fred patterson
The Challenge(From the SBIR Coach, Fred Patterson)
  • The game is very competitive
  • The rules are hard to interpret
  • Good proposals are hard to write
  • Proposals are somewhat objective
  • Agency priorities trump your ideas
  • The money doesn’t flow quickly
  • Subject to scrutiny, audits, etc.
otto rohwedder s path to commercialization
Otto Rohwedder’s Path to Commercialization
  • Milestones:1912 Otto Rohwedder toys with the idea of producing a machine to slice bread1916 Rohwedder begins to design a machine to slice bread1917 fire destroys his factory, prototype machine and the blueprints1926 Toastmaster begins selling pop-up toasters1927 Rohwedder finally saves enough money to begin again to build a bread slicer1928 Rohwedder files patent application for a single step bread slicing machine1928 forms a company Mac-Roh Sales & Manufacturing to build and sell the bread slicer machine1928 first mechanical pre-sliced bread goes on sale to the public in Chillicothe, Missouri1929 St. Louis, Missouri baker, Gustav Papendick, adds improvements to Rohwedder's machine. 1930 Wonder Bread begins selling pre-sliced bread, most bakeries follow suit1932 toaster sales skyrocketed, thanks to the standardized size of sliced bread1933 American bakeries were turning out more sliced than unsliced bread 1933 Rohwedder sells patent rights to and goes to work for Micro-Westco, Inc.1934 Patent 1,970,379 issued August 14, 1934 for Slicing Machine assigned to Papendick, Inc.sliced bread, bread slicer, bread slicing and wrapping machine, toaster, Otto Rohwedder, Gustav Papendick, M. Frank Bench, wonder bread, invention, history, inventor of, history of, who invented, invention of, fascinating facts.
Award Process

Congratulations!The check is “in the mail…”