What is the SBIR / STTR Program

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ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

EASTERN NORTH CAROLINA SECTIONENGINEERING MANAGEMENT SOCIETY

TUESDAY 10 FEBRUARY 2004

What is the SBIR / STTR Program ?

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Presented By



Small Business InnovationDevelopment Act of 1982

• 2.5% of Federal R&D Budgets

• 10 Government Agencies

• Fund Small Business Opportunities

“Our Nation is blessed with two important qualities thatare often missing in other societies: our spirit of

entrepreneurship and our capacity for invention andinnovation.”

Ronald ReaganFebruary 22nd, 1982



Tonight’s Presentation

SBIR / STTR Program Overview

How To Get Started



US Scientists & Engineers32.5% Industry & Large Businesses

13.0% Government

18.5% Education & Non-Profit Research

36.0% Small BusinessData from NSF Science Indicators

Dr. Sara B. Nerlove NSF SBIR / STTR Program ManagerPresentation at Louisiana Technology University 12 November 2003



SBIRSmall Business Innovation Research

Allows Small Businesses to Participate in Federal R&Dwith Potential for Commercialization

STTRSmall Business Technology Transfer

Facilitates Cooperative R&Dbetween Small Business & US Research Institutions

with Potential for Commercialization



Supporting Federal AgenciesSBA oversees other Agencies

SBIR only Department of Agriculture (USDA)SBIR only Department of Commerce

National Oceanic and Atmospheric Administration (NOAA)National Institute of Standards & Technology (NIST)

SBIR only Department of Education (ED)SBIR only Environmental Protection Agency (EPA)SBIR only Department of Transportation (DOT)SBIR only *** Department of Homeland Security

Homeland Security Advanced Research Projects Agency (HSARPA)SBIR & STTR National Aeronautics and Space Administration (NASA)SBIR & STTR Department of Energy (DOE)SBIR & STTR National Science Foundation (NSF)SBIR & STTR Department of Health and Human Services (NIH)SBIR & STTR Department of Defense (DOD)

ArmyNavyAir ForceDARPADefense Threat Reduction AgencyMissile Defense Agency (MDA)U.S. Special Operations Command (SOCOM)National Imagery and Mapping Agency (NIMA)



SBIR / STTR Principle Objectives:Stimulate Technological Innovation by Small Business

Increase Small Business in Federal R&D Needs

Increase Commercialization of Federal R&D

Increase Visibility of SBIR / STTRs to Small Business



Idea ProgramCommitment

ManufacturingDiscontinue

ProductAvailability

FuzzyFront-End

New ProductDevelopment

RevenueGeneration

(Time)

New Product LifecycleSBIR / STTR Funding

PhaseI

PhaseII

TechnicalFeasibility Prototyping



SBIR: Small Business Innovation Research

Phase I: 6 to 9 months $75K to $100K

Phase II: Up to 2 years $500 to $750K

Phase I: 0 to 33% (sub-contracted)

Phase II: 0 to 50% (sub-contracted)



STTR: Small business Technology TRansfer

Must have partnership with non-profit research

Phase I: 6 months and up to $100K

Phase II: Up to 2 years and $750K

Research Institution must perform 30% - 60%



SBIR / STTR Process FlowPre-Solicitation

Solicitations FinalProposals Accepted

Proposals ReviewedGrants Awarded



Navy SBIR Statistics

Funding ($M)

Number of Topics

Phase I proposals

Phase I awards

Phase II awards

FY98

108

172

1774

236

117

FY99

110

172

2167

358

98

FY00

* Estimated

125

126

1311

300*

130*

120

120

1300

360

125

FY01*

http://www.navysbir.com/Navy.ppt



NSF FY-2003 Phase I(2,272 submissions and 476 awards)

AK2/2

WA32/5

OR21/5

CA381/75

NV0/0

ID12/1

MT20/7

ND8/3

SD8/3

NE5/3

KS12/4

WY5/4

UT17/3

CO112/28

AZ69/10 NM

39/9

TX126/21

OK10/2

MN56/11 WI

21/10

IA15/4

MO19/7

AR25/7

LA4/1

MI52/6

IL48/9

IN18/6

OH69/11

PA 71/19

KY 6/2

TN 27/5

VA137/14

NC 28/8

SC11/6GA

37/11

FL47/9

AL22/3MS

3/0

WV11/4

NY94/25

ME13/5

NH22/3VT 8/2

RI 2/0CT 273

NJ 112/21DE 15/4

MD 71/13

MA 243/59

HI 6/1

PR 1/1

DC 2/1

Dr. Sara B. Nerlove NSF SBIR/STTR Program ManagerPresenation at Louisiana Technology University 12 November 2003


ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004*FY01 Phase I DOD Award Winners

Firm Size Distribution*

SBIR ParticipantsBusinesses are Typically Small & Hi-TechAbout 1/3 are First-Time Phase I Awardees

From Slide Show Overview for Congressman Lamar Smith (TX)

www.web-services.gov/SBIRJune2003.ppt



What Do You Need?

Small Company

Idea !!!

Proposal

Principal Investigator



Small Company

Incorporate

Federal Tax ID

DUNS

General Contractor Registration



The IdeaInnovation

“A novel combination of art, science, or craftemployed to create the goods or services used

by society.”Innovation Explosion- James Brian Quinn

“Innovation is the specific instrument ofentrepreneurship. The act that endows

resources with a new capacity to create wealth.”- Peter F. Drucker



Risk vs. RewardGet Beyond Invention

Think InnovationThink Research



Typical ProposalProject Summary

Project Description

Principal Investigator Biographies

Budget



Typical Budget Components Direct Costs

Internal Expenses (PIs, Equip., etc.)Contract Expenses

Indirect CostsCompany Overhead

Profit



SBIR / STTR Evaluation Criteria:Significance & Originality

Methodologies

Qualification of the PI(s)

Facilities for Research

Budget Accuracy



Principal InvestigatorRTP Benefits

UniversitiesNon-Profit AgenciesTechnology Synergy

Venture Activity



Think Partnerships

Value to Research InstitutionsAlternate Funding Source

Faster Technology CommercializationAnother Linkage to Industry



Zyn Systems

www.zyn.com/sbir/

• SBIR News• Links to Agency Gateways• Other SBIR Resource Links• SBIR Specific Search Engines



Email Notification

http://www.pnl.gov/edo/sbir.stm



www.sba.gov/sbir/

www.sbtdc.org/Local SBIR Program Specialist

John [email protected]



Two Key SBIR / STTR Statistics 10% of Phase I Proposals are Awarded

40% of Phase I Awards win a Phase II Award



Idea ProgramCommitment

ManufacturingDiscontinue

ProductAvailability

FuzzyFront-End

New ProductDevelopment

RevenueGeneration

(Time)

New Product LifecycleSBIR / STTR Funding

PhaseI

PhaseII

Risk ROI

InvestmentReturn



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Documents

What is the SBIR / STTR Program