Businesses who are awarded SBIR grants typically progress through three phases of R&D:
· Phase I In this introductory phase, small businesses must demonstrate the technical merit, feasibility and commercial potential of their proposed R&D.
· Phase II Based on their Phase I performance, participating organizations may receive additional funding to continue their research.
· Phase III Small businesses begin to commercialize the results of their R&D activities, albeit without direct SBIR funding.