The Story of Technology: How We Got Here and What the Future Holds

by Daniel M. Gerstein

Two relatively small federal programs are designed to foster innovation and promote small businesses, the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The SBIR program encourages domestic small businesses to engage in federal R&D that has the potential for commercialization. Competitive awards allow small businesses to conduct focused R&D in topic areas of interest to the government. Twelve departments and agencies in the federal government have SBIR programs, and each has the flexibility to administer their programs based on their needs and the guidelines established by Congress. The SBIR program has three phases tied to the R&D life cycle: (1) establishing the technical merit, feasibility, and commercial potential of the proposed R&D, which is an award of less than $150,000, (2) continuing R&D efforts, not to exceed $1 million, and (3) pursuing commercialization.10 STTR also provides funding for innovative R&D through an expansion of the public/private sector partnership to include the joint venture opportunities for small businesses and nonprofit research institutions.