A Look at the NIH SBIR and STTR Programs
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, also known as America’s Seed Fund, are one of the largest sources of early-stage capital for technology commercialization in the United States. These programs allow US-owned and operated small businesses to engage in federal research and development that has a strong potential for commercialization. In Fiscal Year 2017, NIH’s SBIR and STTR programs will invest over $925 million into health and life science companies that are creating innovative technologies that align with NIH’s mission to improve health and save lives. A key objective is to translate promising technologies to the private sector and enable life-saving innovations to reach consumer markets.
About the SBIR Program
The NIH SBIR program funds early stage small businesses that are seeking to commercialize innovative biomedical technologies. This competitive program helps small businesses participate in federal research and development, develop life-saving technologies, and create jobs.
The SBIR program allows and encourages research partnerships, within these parameters:
- Phase I: The small business typically performs a minimum of 67% of the work supported by the award.
- Phase II: The small business typically performs a minimum of 50% of the work supported by the award.
For the SBIR program, the Program Director/Principal Investigator must be primarily employed (greater than half time) with the small business at the time of award and for the duration of the project period.
About the STTR Program
Though similar in overall objectives and structure to SBIR, the STTR program aims to facilitate cooperative research and development between small business entities and U.S. non-profit research institutions. To do so, the STTR program requires the small business applicants to formally collaborate with a research institution.
The STTR program also allows and encourages research partnerships, within these parameters:
- The small business must perform at least 40% of the work.
- The research institution must perform at least 30% of the work.
- The remaining 30% may be done by the small business concern, the non-profit research institution partner, or an additional third party.
For the STTR program, the PD/PI may be primarily employed either by the small business concern or the collaborating non-profit research institution.
Both the SBIR and STTR programs include three phases.
Phase I: Feasibility and Proof of Concept
The objective of Phase I (R41 or R43) is to establish the technical merit, feasibility, and commercial potential of the proposed R&D efforts and to determine the quality of performance of the small business awardee organization prior to providing further federal support in Phase II.
Phase II: Research and Development
The objective of Phase II (R42 or R44) is to continue the R&D efforts initiated in Phase I to develop the project’s commercial viability. Funding is based on the results achieved in Phase I and the scientific and technical merit and commercial potential of the project proposed in Phase II.
Phase III: Commercialization
The objective of Phase III, where appropriate, is for the small business to pursue commercialization objectives resulting from the Phase I/II R/R&D activities. The NIH SBIR/STTR programs do not fund Phase III.
The NIH has a fast-track application option that allows small businesses to submit one application for Phase I and Phase II. It also offers a pilot Direct-to-Phase-II SBIR solicitation that permits small businesses to receive a Phase II award even if they have not previously received a Phase I award for the research/research and development of their technology.
To learn more about the NIH grants and contracts, statistics and success stories, visit bit.ly/2td7CWu.
Source: sbir.nih.gov