# Presentation: 362498

## Small Business Innovation Research (SBIR)Small Business Technology Transfer (STTR)National Science Foundation

**Rosemarie D. Wesson**, Ph.D., P.E.
- SBIR/STTR Program Director
- Industrial Innovation and Partnerships
- National Science Foundation

## Directorate For Engineering

## Slide 3

## SBIR:  Set-aside program for small business concerns to engage in federal R&D -- with potential for commercialization.

STTR: Set-aside program to facilitate cooperative R&D between small business concerns and U.S. research institutions -- with potential for commercialization.

- STTR: Set-aside program to facilitate cooperative R&D between small business concerns _and_ U.S. research institutions -- with potential for commercialization.

**Program Descriptions**

## DOD	SBIR/STTR
HHS	SBIR/STTR
NASA 	SBIR/STTR
DOE 	SBIR/STTR
NSF 	SBIR/STTR ~$104M
DHS	SBIR 
USDA	SBIR
DOC	SBIR
ED		SBIR
EPA	SBIR
DOT	SBIR

**DOD****	****SBIR/STTR**
**HHS****	****SBIR/STTR**
**NASA ****	****SBIR/STTR**
**DOE ****	****SBIR/STTR**
**NSF ****	****SBIR/STTR ****~$104M**
**DHS****	****SBIR**** **
**USDA****	****SBIR**
**DOC****	****SBIR**
**ED****	****	****SBIR**
**EPA****	****SBIR**
**DOT****	****SBIR**

**SBIR / STTR Participating Agencies**

## SBIR Program Eligibility Checkpoints

- Organized for- profit U.S. business
- At least 51% U.S.-owned and
-        independently operated
- Small Business located in the U.S.
- P.I.’s primary employment with small
-       business during project
-  500 or fewer employees

**SBIR Program Eligibility Checkpoints**

## Partnerships Opportunities in SBIR/STTR

**Partnerships Opportunities in SBIR/STTR**

- Partnership Optional in SBIR
- Small Business Prime
- In Phase I up to 1/3rd can be other
- In Phase II up to 1/2lf can be other
- Partnership Mandatory in STTR
- 40% to 70% can be Small Business
- 30% to 60% can be Academia
- AWARD ALWAYS MADE TO SMALL BUSINESS

## Primary Objective NSF SBIR/STTR Program

- To increase the incentive and opportunity for small firms to undertake **cutting-edge, high risk, high quality scientific, engineering, or science/engineering** education research that would have a high potential economic payoff if the research is successful.

## NSF SBIR/STTR Innovation Model

**STTR Now**
**$150K/12 mos**

## Doing Business with NSF

- NSF is not the Final Customer
- NSF is not buying your product/process/software or your intellectual property
- NSF has broad market driven technology topics:
**you identify the opportunity**
**pose the research problem**
**propose novel/unique solution**
- NSF wants to see you successfully **commercialize** your high-tech research
- You need investment dollars beyond NSF SBIR/STTR

## Faculty Partnership in Small Businesses

- Faculty members may own small firms
- Faculty members may be “Senior Personnel” on a grant budget
- Faculty members may consult
- Faculty members may be Principal Investigators (with official leave from the university)
- Faculty members may be part of a university subcontract
- Universities laboratories may perform analytical and other service support

## Market DrivenInvestment Focused Solicitation Topics

- Biotechnology
- Chemical-Based Technology
- Emerging Opportunities
- Advanced Materials and Manufacturing
- Electronics
- Information-Based Technologies
- Manufacturing Innovation

## Market DrivenInvestment Focused Solicitation Topics

**Solicitation Released every 6 Months**
**Topics rotate 12-18 months**
**Current Topics – proposals under review**
**Manufacturing Innovation (MI)**
**Advanced Materials (AM)**
**Information Technology (IT)**
**Emerging Opportunities (EO)**

## Next Cycle - Topics

**Proposal Due Date: ****December 4, 2006 (Must be submitted by 5:00 p.m. proposer's or submitter's time.)**
**Topics for this Round include: (Topic descriptions found in the solicitation.) **
**Biotechnology (BT)**
**Electronics (EL)**
**Information Technology (IT)**
**Emerging Opportunities (EO)**
**Electronic (via the NSF FastLane Submission System)**
**Register company**
**Submit at least 3 to 5 days before the deadline**

## Key Web Sites

**http://www.sbirworld.com**
**http://www.nsf.gov/eng/sbir**

## Appendix Slides

## Chemical Based Technology Focus

-  Alignment with ENG Focus
- New Frontiers in Nanotechnology
- Manufacturing Frontiers
-  Synergisms and Collaborations
- CT Topic synergistic with CTS and DOE
-  Emerging Areas
- Fuel Cells
- Hydrogen
- Energy

## CT Example

- NanoScale Materials, Inc.
- PI-Kenneth Klabunde
- Research began as NSF MPS award (CHE)
- SBIR Phase I, II, IIB Awards
- Currently, commercial toxic chemical adsorbent, FAST-ACTTM

**www.nsf.gov/discoveries/disc_summ.jsp?cntn_id=104102&org=NSF&from=news**

## Bridging the Gap

- Phase I		$100,000 	SBIR	6months
- Phase I		$150,000	STTR	12months
- Phase II		$500,000	SBIR/STTR 24 months
**Phase IIB - Supplemental Research to fit the investors’ needs**** **
**NSF: $50,000 to $500,000 **
**Investor: $100,000 to >$1,000,000**
- Phase III Commercial Application Private funding

## 2004 NSF SBIR/STTR Phase I Awards

## 2005 NSF SBIR/ Phase I Proposals

**AK**
**2/****0**

**WA**
**23/****1**

**OR**
**13/****3**

**CA**
**244/****25**

**NV**
**10/****2**

**ID**
**7/****0**

**MT**
**9/****2**

**ND**
**5/****0**

**SD**
**3/****1**

**NE**
**3/****1**

**KS**
**12/****1**

**WY**
**2/****1**

**UT**
**23/****5**

**CO**
**59/****7**

**AZ**
**48/****4**

**NM**
**17/****3**

**TX**
**85/****5**

**OK**
**9/****1**

**MN**
**26/****5**

**WI**
**13/****3**

**IA**
**10/****1**

**MO**
**20/****1**

**AR**
**19/****3**

**LA**
**9/****0**

**MI**
**75/****10**

**IL**
**41/****2**

**IN**
**17/****1**

**OH**
**82/****10**

**PA 64/****11**

**KY 3/****1**** **

**TN 15/****3**

**VA**
**63/****7**
** **

**NC 21/****1**

**SC**
**14/****2**

**GA**
**40****/7**

**FL**
**42/****4**

**AL**
**7/****1**

**MS**
**3/****0**

**WV**
**6/****0**

**NY**
**62/****9**

**ME**
**3/****1**

**NH**
**10/****3**

**VT 7/****1**

**RI 2/****0**** **

**CT 19/****3**

**NJ 40/****2**** **

**DE 14/****1**** **

**MD 58/****8**** **

**MA 143/****17**** **

**HI**
**3/****0**

**PR 6/****0**

**DC 3/****0**

**US VI**
**0/****0**

**Guam 0/****0**

**Red** = ESPCoR State
**Green** = Awards
- Black = Total Submitted Proposals

**2005 NSF SBIR/ Phase I Proposals**

**Total Submitted = 1534**
** ****Total Awards = 180**

## Commercialization Survey, March 2006 

- Project success rate is 44% over 240 past projects reviewed.
- Success criteria ranges from
-  Any product sales for 1 year post-completion projects
- To $1M sales for 6 year old projects.
- No "credit" was given for the impact of the technology on other projects, although this factor was often cited.
- Companies with 10 or less personnel at time of award constitute about 40% of the awardees
- Appear to have success rates at least as high as their larger counterparts.
- Smaller companies make very frequent use of collaborations with industry leaders.
- Success rates per topic
- IT projects have the highest success rates (56%)
- Biotech the lowest (31%)
- Electronics (46%)
- Advanced Materials and Manufacturing (40%).
- IT products appear to have smaller sales and shorter lifetimes than the other products.

## Commercialization Survey, March 2006

- Among the unsuccessful projects, marketing failures (57%) predominates.
- The most commonly cited reason, " the market disappeared as the project was ending".
- Failure to achieve certain cost or product performance goals are frequently cited for technical failures.
- The successful projects are heavily patented (56%) except in the IT area where copyright and trade secrets predominate.
- In the other three fields the strong patent positions are well above the overall 56% figure.
- Almost 60% of the successful projects are "in-bed" with an industry leader
- About one-third have close ties with academic groups.

## NSF Phase IIB Matching Funds Trends

## OII- Supplements

- REU-RET
- Phase IIB
- Phase IIA
- Phase IICC
- Phase IB
- RAHSS

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