The only projects studied were those where industry specifically sought assistance from the federal laboratories because the laboratories had technologies in hand that could be of commercial value to the company. Therefore, it would be reasonable to expect higher commercialization rates than from the research-driven goals of the SBIR program. The fact that these commercialization rates are similar to those of the SBIR program, and that the federal laboratory technology had already been developed before being approached by the company, speaks well for the SBIR program. I would like to add a perspective on the implications of the success of the SBIR and STTR programs for our national research, innovation and global competitiveness agendas. Small business owners submit proposals to the SBIR program even when they know that they only have one chance in ten of receiving an award.
Many worthy proposals remain unfunded.
Companies are not able to pursue many of their interesting programs if they do not receive SBIR funding. Phase III commercialization efforts usually require outside financing to support the transition from the laboratory to the marketplace. The inescapable conclusion of these statements is that the SBIR program is filling a vital need in the research and innovation process in the United States. As shown in the most recent SBA annual report on the SBIR program, in fiscal year 1993, the funding agencies received 23,640 Phase I proposals and awarded 2,898 Phase I projects. They also received 2,532 Phase II proposals and funded 1,141 Phase II projects.