WASHINGTON, D.C. — Today Congressman David Wu led the U.S. House in passing legislation that supports the development of innovative technologies by small high-tech companies.  The bill, H.R. 5819, reauthorizes the Small Business Innovation Research (SBIR) program and Small Business Technology Transfer Research (STTR) program.

Together, SBIR and STTR comprise the largest source of federal support for private-sector technological innovation, providing over $2.3 billion annually to small, high-tech entrepreneurial companies that are creating revolutionary new technologies.

SBIR provides funds to small high-tech firms conducting innovative research that is relevant to federal agencies’ missions and may have significant commercialization potential.  STTR provides similar funding for small businesses that are working cooperatively with universities or nonprofit research institutions.

“These two programs are critical to the competitiveness of the U.S.,” said Congressman Wu.  “Small companies are where a lot of innovation happens, and we need to support these businesses to remain successful in the competitive global economy.”

Last week, Congressman Wu led the House Committee on Science and Technology’s Subcommittee on Technology and Innovation in passing legislation that also would have reauthorized SBIR and STTR.  That bill, the Science and Technology Innovation Act of 2008, was introduced by Congressman Wu and included essential provisions that the Science Committee deemed critical to the continued success of SBIR and STTR.

“For more than 20 years, these programs have provided federal funding for companies with innovative ideas seeking to bring their products to market,” Wu said.  “Today’s global economy necessitated that we restructure both programs to ensure their continued effectiveness in promoting and commercializing new products.”

The legislation passed today contains many provisions from Congressman Wu’s bill, including:

1.    Reauthorizes the SBIR and STTR programs through 2010, putting both programs on the same reauthorization cycle and giving Congress time to examine how well both programs are working;

2.    Increases the Phase I awards from $100,000 to $300,000 and Phase II awards from $750,000 to $2.2 million to better reflect the actual costs of doing high-tech research;

3.    Increases the flexibility of the SBIR program by allowing cross-agency awards and allowing applicants to apply directly for Phase II funding;

4.    Allows small businesses backed by venture capital to apply for awards, and defines eligibility requirements;

5.    Expands requirements for agency databases of award recipients and requires interoperability and accessibility between databases to allow for improved oversight by Congress;

6.    Establishes an Interagency Committee, co-chaired by the director of the Office of Science and Technology Policy and the director of the National Institute of Standards and Technology, to report to Congress on the best practices for commercialization of SBIR- and STTR-funded research.

“By passing this bill, Congress has once again demonstrated a commitment to promoting innovation,” said Wu.

H.R. 5819 now will go to the Senate for consideration.