SBIR/STTR Origins... Small Business Innovation Development Act of 1982 Stimulate technological innovation Meet federal R&D needs Foster and encourage participation by minority and disadvantaged persons in technological innovation Increase private-sector commercialization of innovations derived from Federal R&D Congress designated 4 major goals

… and Reauthorization (until Jan 2011) Quasi-Government Corporations Economic Development Entities Technology Centers University Research Parks Faculty & Graduate Students Technology Incubators Research Foundations Reporting outcomes: public summaries and government evaluations Federal and State (FAST): State-based Business mentoring and assistance Increase some funding ceilings for Phase II awards Results in a richer, broader, more diverse program.

SBIR / STTR Program Mission Supporting scientific excellence and technological innovation through the investment of federal research funds in critical American priorities to build a strong national economy… one small business at a time.

SBIR/STTR Participating Agencies DOD HHS –NIH (~$690M FY2010) NIDCR (~$8.9M FY2010) NASA DOE NSF DHS USDA DOC EPA DOT ED

Addressing Global Objectives with Specific Solutions SBIR/STTR Helps NIH Meet Its Mission Conduct innovative R/R&D that results in product, process, or service that will... Improve human health Improve human health Speed process of discovery Speed process of discovery Reduce cost of medical care/research Reduce cost of medical care/research Improve research tools Improve research tools

What are SBIR and STTR ? Similar Research Programs… SBIR:SBIR: Set-aside program (2.5% of extramural budget) for small business concerns to engage in federal R&D with potential for commercialization. STTR:STTR: Set-aside program (0.3 % of extramural budget) to facilitate cooperative R&D between small business concerns and U.S. research institutions -- with potential for commercialization. … in Three Phases (SBIR/STTR). Phase I:Phase I: Feasibility study ( months, $150K / $100K) Phase II:Phase II: Full R/R&D (2 years, $1M / $750K) Phase IIIPhase III: Commercialization (WITHOUT $$)

SBIR/STTR ELIGIBILITY Organized for-profit U.S. business At least 51% U.S.-owned by individuals and independently operated, OR owned and controlled by one other eligible entity Small business located in and performing the work in the U.S. P.I.s primary employment with small business during the project 500 employees or fewer, including affiliates

CRITICAL DIFFERENCES SBIR vs. STTR : CRITICAL DIFFERENCES SBIR: STTR:Research Partner SBIR: Permits (encourages) research institution partners (~ 33% Phase I and 50% Phase II R&D) STTR: Requires research institution partners (e.g., universities) (40% small business and 30% research institution) SBIR: STTR:Principal Investigator SBIR: Primary (>50%) employment must be with small business STTR: Primary employment not stipulated (research institution and/or small business) AWARD ALWAYS MADE TO SMALL BUSINESS

Getting More from the SBIR/STTR: Leveraging Academic Excellence Owners of small firms (assign someone else as PI) Principal Investigators (with official permission from University) Senior Personnel on SBIR/STTR Consultants on SBIR/STTR Subcontracts on SBIR/STTR Conduits for University facilities to provide analytical and other service support University scientists can be

Entrepreneurial Research Institutions Keys to Success u Develop common goals between faculty-initiated business and mission of research institution u Create entrepreneurial environment while protecting interests of University u Establish policies to manage, reduce or eliminate conflict of interest (COI) u Retain intellectual talent Intellectual Rigor + Hard Work + Passion + Mission

Challenges in Blending Diverse Cultures University u Research to educate, break ground, provide service u Slower Pace u Mission = basic and applied research u Technology transfer is companion to research mission u Fertile ground for economic development Industry u R&D drives toward commercialization u Quick-paced u Solve problems - develop new products - profit u Exploit full potential of science (e.g. capture IP, license) u Direct and indirect economic impact

To become a You must Science Team Application R&D Plan Track record