Small Business Innovation Research
Encyclopedia
The Small Business Innovation Research (or SBIR) program is a United States Government program, coordinated by the Small Business Administration
Small Business Administration
The Small Business Administration is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses...

, in which 2.5% of the total extramural research budgets of all federal agencies with extramural research budgets in excess of $100 million are reserved for contracts or grants to small business
Small business
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships...

es. In 2010, that represented over $1Billion in research funds. Over half the awards are to firms with fewer than 25 people and a third to firms of fewer than 10. A fifth are minority or women-owned businesses. A quarter of the companies in FY10 were first-time winners.

History

The program was established with the passing of the Small Business Innovation Development Act in 1982, and must be periodically reauthorized by the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

. Reauthorization is generally included in each new budget. The latest authorization extends the program by continuing resolution
Continuing resolution
A continuing resolution is a type of appropriations legislation used by the United States Congress to fund government agencies if a formal appropriations bill has not been signed into law by the end of the Congressional fiscal year...

 until November 18, 2011.

The SBIR program was created to support scientific excellence and technological innovation through the investment of federal research funds in critical American priorities to build a strong national economy ... one business at a time. In the words of program founder Roland Tibbetts: "to provide funding for some of the best early-stage innovation ideas -- ideas that, however promising, are still too high risk for private investors, including venture capital firms." For the purposes of the SBIR program, the term "small business" is defined as a for-profit business with fewer than 500 employees, owned by one or more individuals who are citizens of, or permanent resident aliens in, the United States of America.

Research grants

The SBIR program agencies award monetary grants
Grant (money)
Grants are funds disbursed by one party , often a Government Department, Corporation, Foundation or Trust, to a recipient, often a nonprofit entity, educational institution, business or an individual. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal...

 in phases I and II of a three-phase program:
  • Phase I, the startup phase, makes awards of "up to $150,000 for approximately 6 months support [for] exploration of the technical merit or feasibility of an idea or technology."
  • Phase II awards grants of "up to $1 million, for as many as 2 years," in order to facilitate expansion of Phase I results. Research and development
    Research and development
    The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...

     work is performed and the developer evaluates the potential for commercialization. Phase II grants are awarded exclusively to Phase I award winners.
  • Phase III is intended to be the time when innovation moves from the laboratory into the marketplace. No additional SBIR funds are awarded for Phase III. "The small business must find funding in the private sector
    Private sector
    In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...

     or other non-SBIR federal
    Federal government of the United States
    The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...

     agency funding."


In 2010, the SBIR program across 11 federal agencies provided over $2 Billion in grants and contracts to small U.S. businesses for research in innovation leading to commercialization. (Note that the $1B in awards stated above in the first paragraph is the amount that only the Department of Defense awarded to small businesses through their SBIR program. All of the other SBIR agencies make up the other $1B.) The company owns the intellectual property and all commercialization rights. Companies such as Symantec, Qualcomm, DaVinci and iRobot were started with R&D funding from this program.

Related programs

A similar program, the Small Business Technology Transfer Program (STTR), uses a similar approach to the SBIR program to expand public/private sector partnerships between small businesses and nonprofit U.S. research institutions, and is funded at present at .3% of the relevant agencies' extramural research budgets. In FY10, that amounted to over $100 Million

The Small Business Technology Council, a member council of the National Small Business Association, hands out the Tibbetts Award
Tibbetts Award
Affectionately referred to as the "Tibbie", these national awards are made annually to those small firms, projects, organizations and individuals judged to exemplify the very best in SBIR achievement....

 annually "to small firms, projects, organizations and individuals judged to exemplify the very best in SBIR achievement."

Federal and State (FAST) is a program of State-based business mentoring and assistance to aid small businesses in the preparation of SBIR proposals and management of the contracts. It is more active in some states than others.

Participating agencies

, SBIR programs are in place at the following agencies:
  • Department of Agriculture
  • Department of Commerce (National Institute of Standards and Technology
    National Institute of Standards and Technology
    The National Institute of Standards and Technology , known between 1901 and 1988 as the National Bureau of Standards , is a measurement standards laboratory, otherwise known as a National Metrological Institute , which is a non-regulatory agency of the United States Department of Commerce...

    and National Oceanic and Atmospheric Administration
    National Oceanic and Atmospheric Administration
    The National Oceanic and Atmospheric Administration , pronounced , like "noah", is a scientific agency within the United States Department of Commerce focused on the conditions of the oceans and the atmosphere...

    )
  • Department of Defense
    United States Department of Defense
    The United States Department of Defense is the U.S...

  • Department of Education
    United States Department of Education
    The United States Department of Education, also referred to as ED or the ED for Education Department, is a Cabinet-level department of the United States government...

  • Department of Energy
    United States Department of Energy
    The United States Department of Energy is a Cabinet-level department of the United States government concerned with the United States' policies regarding energy and safety in handling nuclear material...

  • Department of Health and Human Services (National Institutes of Health
    National Institutes of Health
    The National Institutes of Health are an agency of the United States Department of Health and Human Services and are the primary agency of the United States government responsible for biomedical and health-related research. Its science and engineering counterpart is the National Science Foundation...

    )
  • Department of Homeland Security
  • Department of Transportation
    United States Department of Transportation
    The United States Department of Transportation is a federal Cabinet department of the United States government concerned with transportation. It was established by an act of Congress on October 15, 1966, and began operation on April 1, 1967...

  • Environmental Protection Agency
    United States Environmental Protection Agency
    The U.S. Environmental Protection Agency is an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress...

  • National Aeronautics and Space Administration
  • National Science Foundation
    National Science Foundation
    The National Science Foundation is a United States government agency that supports fundamental research and education in all the non-medical fields of science and engineering. Its medical counterpart is the National Institutes of Health...


See also

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK