Review Of The Sbir And Sttr Programs At The National Science Foundation

The National Science Foundation (NSF) asked the National Academies of Sciences, Engineering, and Medicine to conduct a quadrennial review of the NSF Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, in accordance with a legislative mandate. Drawing on published research plus existing data, Review of the SBIR and STTR Programs at the National Science Foundation analyzes the effectiveness of NSF award selection process and postaward assistance; the effectiveness of the STTR program in stimulating new collaborations; the economic and noneconomic impacts of the programs; effectiveness of the programs in stimulating technological innovation and supporting small, new firms across the technological spectrum; and the role of the programs in providing early capital to firms without other significant sources of support.

The Small Business Innovation Research (SBIR) program is one of the largest examples of U.S. public-private partnerships, and was established in 1982 to encourage small businesses to develop new processes and products and to provide quality research in support of the U.S. government's many missions. The U.S. Congress tasked the National Research Council with undertaking a comprehensive study of how the SBIR program has stimulated technological innovation and used small businesses to meet federal research and development needs, and with recommending further improvements to the program. In the first round of this study, an ad hoc committee prepared a series of reports from 2004 to 2009 on the SBIR program at the five agencies responsible for 96 percent of the program's operations-including the National Science Foundation (NSF). Building on the outcomes from the first round, this second round presents the committee's second review of the NSF SBIR program's operations. Public-private partnerships like SBIR are particularly important since today's knowledge economy is driven in large part by the nation's capacity to innovate. One of the defining features of the U.S. economy is a high level of entrepreneurial activity. Entrepreneurs in the United States see opportunities and are willing and able to assume risk to bring new welfare-enhancing, wealth-generating technologies to the market. Yet, although discoveries in areas such as genomics, bioinformatics, and nanotechnology present new opportunities, converting these discoveries into innovations for the market involves substantial challenges. The American capacity for innovation can be strengthened by addressing the challenges faced by entrepreneurs.

The Small Business Innovation Research (SBIR) program is one of the largest examples of U.S. public-private partnerships. Founded in 1982, SBIR was designed to encourage small business to develop new processes and products and to provide quality research in support of the many missions of the U.S. government, including health, energy, the environment, and national defense. In response to a request from the U.S. Congress, the National Research Council assessed SBIR as administered by the five federal agencies that together make up 96 percent of program expenditures. This book, one of six in the series, reports on the SBIR program at the National Science Foundation. The study finds that the SBIR program is sound in concept and effective in practice, but that it can also be improved. Currently, the program is delivering results that meet most of the congressional objectives, including stimulating technological innovation, increasing private-sector commercialization of innovations, using small businesses to meet federal research and development needs, and fostering participation by minority and disadvantaged persons. The book suggests ways in which the program can improve operations, continue to increase private-sector commercialization, and improve participation by women and minorities.

Since its founding in 1982, the Small Business Innovation Research (SBIR) program has become the largest and most comprehensive public research and development funding program of small business research in the United States. An underlying tenet of the SBIR program, and the related Small Business Technology Transfer (STTR) program, is that small and young firms are an important source of new ideas that provide the underlying basis for technological innovation, productivity increases, and subsequent economic growth. By involving qualified small businesses in the nation's research and development efforts, SBIR/STTR grants stimulate the development of innovative technologies and help federal agencies achieve their missions and objectives. At the request of the Department of Energy (DOE), this report examines the SBIR and STTR programs at DOE, focusing on the effectiveness of DOE's SBIR/STTR processes and procedures on topic and awardee selection; DOE outreach efforts to SBIR and STTR applicants; collaborations created between small businesses and research institutions on account of the programs; a range of direct economic and non-economic impacts to awardees; and the role of SBIR/STTR programs in stimulating technological innovation and contributing to DOE's research and development needs, whether directly from awardees or indirectly through spillovers from other firms.

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs provide federal research and development funding to small businesses. One of the the goals of these programs is to foster and encourage participation by minority and disadvantaged persons in technological innovation. Innovation, Diversity, and Success in the SBIR/STTR Programs is the summary of a workshop convened in February 2013 that focused on the participation of women, minorities, and both older and younger scientists, engineers, and entrepreneurs in the SBIR and STTR programs, with the goal of reviewing current efforts to expand the pool of SBIR/STTR-funded researchers and of identifying mechanisms for improving participation rates. This report is a record of the presentation and discussions of the event.

The Small Business Innovation Research (SBIR) program is one of the largest examples of U.S. public-private partnerships, and was established in 1982 to encourage small businesses to develop new processes and products and to provide quality research in support of the U.S. government's many missions. The Small Business Technology Transfer (STTR) Program was created in 1992 by the Small Business Research and Development Enhancement Act to expand joint venture opportunities for small businesses and nonprofit research institutions by requiring small business recipients to collaborate formally with a research institution. The U.S. Congress tasked the National Research Council with undertaking a comprehensive study of how the SBIR and STTR programs have stimulated technological innovation and used small businesses to meet federal research and development needs, and with recommending further improvements to the programs. In the first round of this study, an ad hoc committee prepared a series of reports from 2004 to 2009 on the SBIR and STTR programs at the five agencies responsible for 96 percent of the programs' operations-including the Department of Energy (DoE). Building on the outcomes from the first round, this second round presents the committee's second review of the DoE SBIR program's operations. Public-private partnerships like SBIR and STTR are particularly important since today's knowledge economy is driven in large part by the nation's capacity to innovate. One of the defining features of the U.S. economy is a high level of entrepreneurial activity. Entrepreneurs in the United States see opportunities and are willing and able to assume risk to bring new welfare-enhancing, wealth-generating technologies to the market. Yet, although discoveries in areas such as genomics, bioinformatics, and nanotechnology present new opportunities, converting these discoveries into innovations for the market involves substantial challenges. The American capacity for innovation can be strengthened by addressing the challenges faced by entrepreneurs.

Today's knowledge economy is driven in large part by the nation's capacity to innovate. One of the defining features of the U.S. economy is a high level of entrepreneurial activity. Entrepreneurs in the United States see opportunities and are willing and able to assume risk to bring new welfare-enhancing, wealth-generating technologies to the market. Yet, although discoveries in areas such as genomics, bioinformatics, and nanotechnology present new opportunities, converting these discoveries into innovations for the market involves substantial challenges. The American capacity for innovation can be strengthened by addressing the challenges faced by entrepreneurs. Public-private partnerships are one means to help entrepreneurs bring new ideas to market. The Small Business Technology Transfer (STTR) and the Small Business Innovation Research (SBIR) program form one of the largest examples of U.S. public-private partnerships. In the SBIR Reauthorization Act of 2000, Congress tasked the National Research Council with undertaking a comprehensive study of how the SBIR program has stimulated technological innovation and used small businesses to meet federal research and development needs and with recommending further improvements to the program. When reauthorizing the SBIR and STTR programs in 2011, Congress expanded the study mandate to include a review of the STTR program. This report builds on the methodology and outcomes from the previous review of SBIR and assesses the STTR program.

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs provide federal research and development funding to small businesses. In 2008, the National Research Council completed a comprehensive assessment of the SBIR and STTR programs. The first-round study found that the programs were "sound in concept and effective in practice." Building on the outcomes from the Phase I study, this second phase examines both topics of general policy interest that emerged during the first phase and topics of specific interest to individual agencies, and provides a second snapshot to measure the program's progress against its legislative goals.