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SBIR vs. STTR
What's the difference?
The federal Small Business Innovation Research (SBIR) program encourages entrepreneurs to engage in R&D for potential new product commercialization. Launched in 1982, research grant awards through 2009 have exceeded $26.9 billion. Many U.S. researchers, scientists, and inventors are familiar with SBIR, but less is known about SBIR's sister program, Small Business Technology Transfer (STTR). STTR aims to expand public/private partnerships through a requirement for small businesses to formally collaborate with a nonprofit research institution. There are other differences too; this article explores the differences between these two early stage seed capital programs.
Federal agencies with an extramural R&D budget exceeding $100 million are required by law to participate in SBIR. Currently, eleven agencies participate. For STTR, federal agencies with an extramural budget exceeding $1 billion participate. Currently, five agencies participate. Combined, SBIR and STTR have contributed about $21 billion dollars in R&D funding to small businesses. While better known, SBIR is the largest of the two programs, awarding about $2.15 billion per year. STTR awards about $250 million per year. Source: SBA.gov
Both programs operate within a three-phase model that extends from three to four years. Research takes time; neither program provides fast or easy money. The objective of Phase I is to prove technical feasibility. That is, "Does this idea have a chance of success?" Phase II allows for more in-depth research and commercial feasibility, answering two questions, 1) Is the technology viable? And, 2) Is there a commercial market for the product? Phase III is where the rubber meets the road. Those awarded Phase I and Phase II funding are now able, during Phase III, to pursue commercialization of the products created under their SBIR/STTR awards. There is no federal funding available in Phase III, but some agencies offer production contracts for products intended for use by the U.S. government. In some cases, follow-on non-SBIR/STTR funding may be available.
Funding and timeline per phase is about the same for both SBIR and STTR. Phase I is capped at $225,000 over 6-9 months and Phase II is capped at $1.5 million over two years. Both programs require that the small business has 500 or fewer employees, and is 51% owned by the individual or another for-profit small business concern (SBC).
The biggest difference is seen in who completes the work and how intellectual property rights are assigned. With both programs, the Principal Investigator's primary employment must be with the SBC. STTR requires that at least 40% of the investigation be carried out by the SBC and at least 30% by the partnering institution. With SBIR, the SBC retains all rights to any IP generated in the project. With STTR, an IP agreement must be struck between the SBC and the research institution.
SBIR and STTR operate differently but share the same goal; commercializing technology. This article highlighted some of the key differences and similarities. More information on the two programs can be found in a comparative Quick Learn Factsheet created by MTIP and located on its website. MTIP staff and counselors are also available to meet with you, free of charge, to discuss which option might be best for your company.
For no-cost individualized counseling regarding SBIR/STTR, fill out a Request for Services form on MTIP's website.
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SBIR/STTR Program Announcements
EPA FY2013 Phase I SBIR Solicitation
Opened: June 27, 2013
Closes: August 13, 2013
http://www.epa.gov/ncer/rfa/2014/2014_sbir_phase1.html
The Environmental Protection Agency's mission is protecting human health and the environment. EPA SBIR supports research by small businesses in advanced technologies that address priority environmental issues. This year there are six general areas:
- Safe and Sustainable Water Resources (Topic A. Water),
- Chemical Safety for Sustainability (Topic B. Innovation in Manufacturing),
- Sustainable and Healthy Communities (Topic C. Waste),
- Air/Climate/Energy (Topic D. Air Quality),
- Homeland Security (Topic E), and
- People, Prosperity, and the Planet (P3) Special Funding Opportunity (Topic F).
HHS National Institutes of Health (NIH plus CDC, FDA and ACF)
Non-AIDS Related
2013 Omnibus Grant Solicitation
Closes: August 5, 2013
http://grants.nih.gov/grants/funding/sbir.htm
HHS Reissued PHS 2013-02 SBIR and STTR Omnibus Grant Solicitations Implementing Venture Capital Provision and SBA Company Registry Requirement of the SBIR/STTR Reauthorization Act of 20. See NIH Guide Notice NOT-OD-13-071 for details.
USDA FY-2014 Administered by the National Institute of Food and Agriculture (NIFA)
Opened: June 19, 2013
Closes: September 26, 2013
http://www.csrees.usda.gov/fo/sbir.cfm
Projects dealing with agriculturally related manufacturing and alternative and renewable energy technologies are encouraged across all SBIR topic areas. USDA SBIR flexible research areas ensure innovative projects consistent with USDA's vision of a healthy and productive nation in harmony with land, air, and water.
HHS National Institutes of Health (NIH plus CDC, FDA and ACF)
2013 Omnibus Grant Solicitation
Closes for AIDS related opportunities on September 7, 2013
http://grants.nih.gov/grants/funding/sbir.htm
HHS Reissued PHS 2013-02 SBIR and STTR Omnibus Grant Solicitations Implementing Venture Capital Provision and SBA Company Registry Requirement of the SBIR/STTR Reauthorization Act of 20. See NIH Guide Notice NOT-OD-13-071 for details.
DOE FY 2014 SBIR and STTR
FY 2014 Phase 1, Release 1
Opened: July 15, 2013
Letter of Intent Due: September 3, 2013
Closes: October 15, 2013
http://science.energy.gov/sbir/funding-opportunities/
The Department of Energy's work includes advancing a clean energy agenda through basic research on energy production, storage, transmission, and use; advancing our understanding of the Earth's climate through basic research in atmospheric and environmental sciences and in climate modeling; supporting DOE's missions in national security.
COMING SOON
DoD 2013.3 SBIR
DoD 2013.B STTR
Expected September 25, 2013
http://www.acq.osd.mil/osbp/sbir/
DOT FY13.2
Expected July 2013
http://www.volpe.dot.gov/sbir/sbirnews.html
All announcements courtesy of SBIR Gateway, at www.zyn.com and www.wisconsinsbir.org
MTIP has prepared agency specific guides for potential applicants. The guides identify unique aspects of each agency's SBIR/STTR program, describe the nature of its topics, and link readers to additional agency resources. The guides are located on MTIP's Training Materials webpage.
More information on the SBIR/STTR opportunity can be found on MTIP's website: http://www.sbir.mt.gov/default.mcpx or call (406) 994-3885. |
MTIP SUCCESS STORY:
Montana Emergent Technologies
(BUTTE, MT) - Congratulations to Montana Emergent Technologies (MET) on the Department of Energy's STTR Phase I award! MET is located in Butte, Montana, and has four experienced engineers on their team. All four engineers have advanced degrees in metallurgical, mechanical, and chemical engineering. Two of the four engineers are registered professional engineers. Strategic Partners in Montana include relationships with: the Center for Advanced Mineral and Metallurgical Processing (CAMP); Montana Tech in Butte; and the Center for Biofilm Engineering at Montana State University in Bozeman.
The STTR award will build on research at MSU to develop the biomineralization sealing technology for environments significantly different than currently targeted. This consists of sealing CO2 leakage pathways in a fractured shale environment and in the presence of petroleum hydrocarbons.
Project I is exploring the use of polymer cement nanocomposites to seal unwanted leakage pathways while Project II has a similar focus based on the use of pH sensitive gels as the sealing agent. The specific leakage pathways targeted in these two projects consist of cracks in well bore cement and/or delaminations between well casing, cement and surrounding formation.
This project is the result of cooperative research with MSU, and a partnership with TechLink, who provided leadership on proposal development services to MET. MTIP provided assistance in areas of commercialization planning, initial market research, contracted accounting services, and Phase II strategic guidance.
For more information about Montana Emergent Technologies, visit their website at www.mt-emergent.com.
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Key Resources
 SBDC Offices
Montana's Small Business Development Centers (SBDCs) are a statewide business assistance network that provides low-cost training and excellent resources on financing opportunities.
Superb electronic newsletter for those 
engaged in economic development and tech-based businesses. Click the link to sign up, or access archives.
Excellent electronic newsletter targeting SBIR/STTR.
Access to SBIR/STTR agency solicitations (past, present and future), and an electronic newsletter for SBIR/STTR-related events nationwide.
Addresses key issues of confidentiality, invention records, patents and patenting, and resources for additional assistance.
SBIR/STTR Fact Sheet
Facts about SBIR/STTR, including a good candidate profile explaining the attributes common to most successful SBIR/STTR companies.
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Current Events
MTIP Has Moved!
Effective July 1, 2013, MTIP will be based out of Bozeman, MT at Montana State University!
Find updated contact information below.
Find Events in your Area!
The SBA has a searchable events calendar online. Search for events by area or by date to find a small business event in your area.
www.sba.gov/events
Baucus Economic Development Summit
September 16-17, 2013
This two-day event will feature world-class keynote speakers, networking events, a business tradeshow, and offers more than 40 breakout sessions designed to target specific Montana interests.
Butte, Montana
www.MontanaJobsSummit.com
MEDA Fall Conference
October 2-4, 2013
Meet EDA Secretary Erskine, obtain professional development, learn of new programs or updates, and network with other economic development service providers.
Sidney, Montana
Annual NIH SBIR/STTR Conference
October 28-30, 2013
Learn what NIH is funding through SBIR/STTR and gain first-hand knowledge about how to effectively compete. Keynote speaker is Dr. Lawrence Tabak, NIH, Principal Deputy Director. Enjoy educational breakout sessions and the opportunity for one-on-one meetings with NIH program managers.
Sioux Falls, SD
Contact Information
Location:
2310 University Way
Building 2, Suite 1
Bozeman, MT 59715
Mailing Address:
PO BOX 174255
Montana State University
Bozeman, MT 59717-4255
Phone/Fax:
Phone: (406) 994-3885
Fax: (406) 994-3391
Email:
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