Question: What are the SBIR and STTR programs? How do I learn about specific solicitations? How can I apply to either of these programs?
Innovation and technology are two words that capture the essence of enlightened, cutting-edge entrepreneurship. Small businesses oriented toward innovative technological efforts can find financial backing for research through two programs overseen by the Small Business Administration: the Small Business Innovative Research (SBIR) program and the Small Business Technology Transfer Research (STTR) program. The two programs sponsor competitive grant or contract awards in three phases through a variety of federal government agencies to help finance entrepreneurs developing innovative and technologically oriented projects of interest to those agencies. These funds are intended to help cover costs for research and development for such projects. If an SBIR/STTR-funded R&D project is successful, subsequent commercialization of such a project would be dependent on financing from sources outside the SBIR/STTR programs.
The SBIR and STTR programs are similar in many ways. They both offer highly competitive awards for research and development of innovative ideas that can meet the needs of federal programs if those ideas reach the commercial production stage. The two programs divide the research-to-commercialization process into three phases. (Phase I is for feasibility research; Phase II covers "proof of concept" research; Phase III is commercialization, which is not funded by either program.) Also, both programs are overseen but not funded by the U.S. Small Business Administration; funding is derived from the various federal departments seeking innovative solutions to specific needs.
But a significant factor differentiates the two programs: SBIR grants and contracts are issued to "qualified small business concerns;" STTR grants and contracts are issued to "small businesses (collaborating) in partnership with nonprofit research institutions." Details about each program follow.
