The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards are federal government programs that provide funding opportunities for small businesses. The SBIR program encourages small businesses to engage in research while the STTR program funds collaborative efforts between small businesses and research institutions within the U.S. and fosters technology transfer between these two entities. Both programs aim to foster the meaningful integration of innovation and business acumen from academic and industrial communities. The ultimate goal of these awards is to facilitate the evolution of a technological innovation or intellectual property into a viable, marketable, and profitable product.

In order to be eligible to apply for an SBIR award, the applicant must be a small (500 or fewer employees), for-profit business concern that is located and operational in the US. The primary investigator must primarily be an employee of the small business concern at the time of the award and for the duration of the project period. An applicant to the STTR program must be a small business concern that has established a formal research and development collaboration (including an Intellectual Property Agreement) with a research institution (college, university, federal research organization, or any other non-profit establishment) within the U.S.

The SBIR and STTR programs are administered by more than 10 federal agencies including, among others, the National Science Foundation, the Department of Defense, and the Department of Health and Human Services. Funds are awarded in two phases: Phase I grants are provided for a 6 -12 month period and are meant for conducting feasibility or proof of concept studies; Phase II awards provide 2-year funding for full-scale research expansion. It is anticipated that companies will seek and secure alternate funding resources, including venture capital money, when they enter into the final commercialization phase.

The SBIR and STTR programs differ with respect to the proposal review process, subject areas they focus on, the number and timing of solicitations, financial aspects (e.g., type of award, dollar amount of award, indirect cost rates, and gap funding), and proposal success rates. More information about both award categories and key solicitation dates for each program may be obtained online at http://www.zyn.com/sbir/.