The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are both federal initiatives designed to support small businesses in conducting research and development (R&D) with commercial potential. While they share many similarities, there are key differences you should understand when deciding which program to pursue.
1. Basic Purpose
SBIR: Encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) with the potential for commercialization.
STTR: Facilitates cooperative R&D between small businesses and research institutions, with potential for commercialization.
2. Partnering Requirements
SBIR: The small business may work with consultants and subcontractors, but this is not required.
STTR: Requires the small business to formally collaborate with a research institution (such as a university or federal laboratory).
3. Principal Investigator's Primary Employment
SBIR: The Principal Investigator's (PI) primary employment must be with the small business at the time of award and for the duration of the project.
STTR: The PI may be primarily employed by either the small business or the research institution.
4. Allocation of Work
SBIR: The small business must perform at least 2/3 of the work in Phase I and at least 1/2 in Phase II.
STTR: The small business must perform at least 40% of the work, and the research institution must perform at least 30%.
5. Participating Agencies
SBIR: Eleven federal agencies participate, including NIH, NSF, DoD, DOE, and NASA.
STTR: Only five agencies participate: DoD, DOE, NASA, NIH, and NSF.
6. Funding Allocation
SBIR: Larger program with more total funding available (3.2% of extramural research budget for participating agencies with over $100 million in R&D).
STTR: Smaller program (0.45% of extramural research budget for participating agencies).
7. Intellectual Property (IP)
SBIR: The small business retains the rights to any IP developed through the program.
STTR: Requires an intellectual property agreement detailing the allocation of IP rights between the small business and research institution.
8. Commercialization Focus
SBIR: Strong emphasis on the eventual commercialization of the developed technology.
STTR: Also emphasizes commercialization, but with a focus on transferring technology from research institutions to the market through small businesses.
9. Application Process
While the application processes are similar, there may be slight differences in required documentation and emphasis. For example, STTR applications typically require more information about the research partnership.
10. Eligibility
The basic eligibility requirements for the small business (U.S.-based, for-profit, 500 or fewer employees) are the same for both programs. However, STTR has the additional requirement of partnering with a non-profit research institution.
Which Program Should You Choose?
Consider SBIR if:
- You have the necessary expertise in-house or can subcontract as needed
- You prefer more control over the project
- Your PI wants to work primarily for the small business
Consider STTR if:
- You want to leverage the resources and expertise of a research institution
- Your technology originated in a university or federal lab
- Your PI may prefer to stay primarily employed by a research institution
Remember, some agencies offer both programs, so you may have a choice. Always review the specific solicitation for the most up-to-date information, as program details can change.
For more detailed guidance on preparing your SBIR or STTR application, check out our other help center articles or consider seeking professional assistance.
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