Between 2017 and 2021, 23 percent of proposals submitted to NASA for Phase I SBIR/STTR funding were approved (1,887 awards from 8,360 proposals). The acceptance rate for Phase II proposals, which are generally encouraged or discouraged based on Phase I outcomes, was 58 percent (791 of 1,359 approved).
This edition of Useful Stats presents an SSTI analysis for the number of SBIR/STTR awards from 2011 to 2020 (the most recently available complete data), examining which agencies make the most awards in each state and how each state’s composition of awards compares to the national profile.
This edition of Useful Stats presents an SSTI analysis for the number of SBIR/STTR awards from 2011 to 2020 (the most recently available complete data), examining which agencies make the most awards in each state and how each state’s composition of awards compares to the national profile.
Two federal agencies made the greatest number of SBIR/STTR awards in nearly every state. The U.S. Department of Defense (DoD) accounted for the greatest number of SBIR/STTR awards in 35 states (including the District of Columbia), growing from 29 states as identified in a previous SSTI analysis for the 10-year period from 2009-2018. The U.S. Department of Health and Human Services (HHS) made the most awards in 15 states over the 10-years from 2011 to 2020, decreasing from the 22 states for the previously examined 10-year period, while the National Science Foundation made the most total awards in two states/territories for the combined 10-year period from 2011 to 2020.
Despite the shutdown of many business and government activities during the first year of the COVID-19 pandemic, the total number of SBIR/STTR awards made to innovation-focused companies continued to increase over record-breaking 2019 levels, rising 3.7 percent. This edition of SSTI’s Useful Stats examines the total number of SBIR/STTR awards and the top awarding agency by state in 2020.
Despite the shutdown of many business and government activities during the first year of the COVID-19 pandemic, the total number of SBIR/STTR awards made to innovation-focused companies continued to increase over record-breaking 2019 levels, rising 3.7 percent. This edition of SSTI’s Useful Stats examines the total number of SBIR/STTR awards and the top awarding agency by state in 2020.
This week, the House science committee met to discuss the Small Business Innovation Research (SBIR) Program and Small Business Technology Transfer (STTR) program. The hearing comes as SBIR/STTR is both about to celebrate its 40th anniversary and is set to expire in less than six months without reauthorizing legislation. Members and witnesses focused the conversation on SBIR/STTR’s role in generating economic growth and on recommendations for improvements.
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs of the National Institutes of Health (NIH) supported the development of 99 drugs from 1996-2020 — a total that includes 16 percent of all such treatments that made a “significant” advance over available medicines.
SSTI and the Small Business Technology Council circulated a letter to Congress calling for reauthorization of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The letter has been signed by more than 100 organizations, including the U.S. Chamber of Commerce, Angel Capital Association, Association of University Research Parks and dozens of SSTI members. Without congressional action, the programs will expire at the end of the current fiscal year.
In an effort to bring together entrepreneurship and innovation leaders from around the country and raise the collective success potential of American small businesses, the U.S. Small Business Administration (SBA) hosted its first innovation ecosystem summit last month. In her welcome message, SBA Administrator Isabel Guzman reinforced the Innovation Ecosystem Summit’s goal of reimagining the economy, leveraging the nation’s diversity, removing inequities, and building an economic future where ideas have a chance to flourish.
The U.S. Small Business Administration is hosting its first innovation ecosystem summit, a free virtual event that is open to all. The summit is expected to connect entrepreneurial support organizations (ESOs) that work with startups and small businesses — particularly those serving underrepresented communities — that are trying to build out and commercialize their technologies. The three-day summit takes place next week, Nov. 15-17.
ESS Inc., a company that closed a deal to go public earlier this month, was able to leverage public capital at its early stages to accelerate its success as a startup. Founded in 2011, the Wilsonville, Oregon, based company manufactures batteries for long-duration energy storage applications. In 2012, ESS Inc.
ESS Inc., a company that closed a deal to go public earlier this month, was able to leverage public capital at its early stages to accelerate its success as a startup. Founded in 2011, the Wilsonville, Oregon, based company manufactures batteries for long-duration energy storage applications. In 2012, ESS Inc. received a Phase I Small Business Innovation Research (SBIR) award from ARPA-E, and additional grant support from the Oregon Nanoscience and Microtechnologies Institute (ONAMI), an SSTI member. ONAMI is an Oregon-based non-profit that provides grants, equity funding and business development guidance to startups engaged in research-based scientific innovation. It receives funding from Business Oregon, also an SSTI member.
Editor's note: SSTI discovered that NASA updated their data which was used in this article after its publication. Specifically, the update included previously omitted 2020 application and awards data for Kentucky, Maine, Mississippi, and Nevada; and 2014 data for Iowa. While the changes to the data were minute, we strive to provide the most accurate and reliable data available. As such, the article and the interactive graphic below have been updated to reflect these changes.
Alabama is the latest state that is embracing innovation as a way to grow the state’s economy. On May 19, Alabama Gov. Kay Ivey signed legislation that grew from two top priority measures of the Alabama Innovation Commission — proposals discussed between SSTI and commission members in a meeting earlier this year.
An SSTI data analysis finds that in FY 2020, small businesses were less successful in obtaining Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding from the Department of Health and Human Services (HHS) — particularly from the National Institutes of Health (NIH) — than they were in FY 2019.
An SSTI data analysis finds that in FY 2020, small businesses were less successful in obtaining Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding from the Department of Health and Human Services (HHS) — particularly from the National Institutes of Health (NIH) — than they were in FY 2019. NIH provides more funding to the SBIR/STTR program in total than the other participating civilian agency combined, and is also the top funder of the program within most states among the civilian agencies. As such — and with the approaching June 4 deadline for applications to the Federal And State Technology (FAST) Partnership Program — organizations dedicated to supporting technology startups and bolstering local innovation economies should consider how to better assist companies prepare and submit quality SBIR/STTR applications to NIH while designing outreach, education, technical assistance, mentorship, and other entrepreneurial support programs.
The most recent annual report from the Small Business Administration (SBA) concludes that a majority of participating federal agencies did not comply with the mandated minimum spending requirements for the Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) programs.
States often estimate their participation in the Small Business Innovation Research (SBIR) program by counting the number of awards made, total of award value, or (when available) the success rate of applications in their state. In this edition of SSTI Useful Stats, we attempt to go beyond these measures to estimate states’ untapped potential for capturing future SBIR awards. This creates a baseline proxy for tailoring and assessing a state’s outreach and support activities.
States often estimate their participation in the Small Business Innovation Research (SBIR) program by counting the number of awards made, total of award value, or (when available) the success rate of applications in their state. In this edition of SSTI Useful Stats, we attempt to go beyond these measures to estimate states’ untapped potential for capturing future SBIR awards. This creates a baseline proxy for tailoring and assessing a state’s outreach and support activities.
SBA efforts to reign in abuse of the Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) program continue, yet companies that seem to use SBIR awards as a primary revenue stream rather than a means to creating future revenue paths through new product and process innovations persist, based on SSTI’s review of award data. Known as “SBIR mills” many of these companies appear to be clustered geographically in specific metropolitan areas, many of which house major federal labs or research centers, the analysis of SBIR data reveals.
SBA efforts to reign in abuse of the Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) program continue, yet companies that seem to use SBIR awards as a primary revenue stream rather than a means to creating future revenue paths through new product and process innovations persist, based on SSTI’s review of award data. Known as “SBIR mills” many of these companies appear to be clustered geographically in specific metropolitan areas, many of which house major federal labs or research centers, the analysis of SBIR data reveals. This suggests, from a policy perspective, that the federal agencies could be doing much more to curtail the mills and redirect awards into companies more consistently focused on turning innovation into products, profits and jobs.
The data reveals the extent of abuse by the small number of SBIR mills among all awardees is not insignificant: awards made to potential mills account for more than 21 percent of all awards made during the period from 2009 to 2019.
Consideration of a state’s trends in the distribution of SBIR awards by federal agency may help program leaders and policy makers optimize the design and performance for state and regional support of innovation-based startups. For instance, knowing which federal agencies provide the dominant share of awards in a state can inform a program’s marketing and outreach efforts, and, more importantly for the startups being assisted, it can guide recruiting the right mix of mentors and knowledge assets to a program’s technical assistance capabilities.
Consideration of a state’s trends in the distribution of SBIR awards by federal agency may help program leaders and policy makers optimize the design and performance for state and regional support of innovation-based startups. For instance, knowing which federal agencies provide the dominant share of awards in a state can inform a program’s marketing and outreach efforts, and, more importantly for the startups being assisted, it can guide recruiting the right mix of mentors and knowledge assets to a program’s technical assistance capabilities. The data also can inform efforts to attract investors and potential customers with similar alignment of interests with companies in a state’s SBIR portfolio. SSTI’s focus this week on the agency distribution of SBIR awards by state over the past decade reveals some interesting insights. Next week we will take a deeper dive into the data and examine awardee distribution trends at the regional level.
An exclusive SSTI analysis reveals that for the 10-year period from 2009 to 2018, two federal agencies were the top contributors to SBIR/STTR spending in every state and the District of Columbia. The Department of Defense (DoD) accounted for the greatest SBIR/STTR spending in 29 states while the Department of Health and Human Services (HHS) was the greatest funder in 22 states. This trend remains the same when including 2019 award data, although it is important to note that as of the writing of this article, DoD’s complete 2019 SBIR/STTR data was not available.
A recent report by the National Women’s Business Council (NWBC) and the Small Business Administration (SBA) found that participation rates in the Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) programs by women-owned small businesses (WOSB) has essentially remained flat since 2011. Although participation rates vary by awarding agency, the report highlights several barriers faced by women entrepreneurs.
A recent report by the National Women’s Business Council (NWBC) and the Small Business Administration (SBA) found that participation rates in the Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) programs by women-owned small businesses (WOSB) has essentially remained flat since 2011. Although participation rates vary by awarding agency, the report highlights several barriers faced by women entrepreneurs. Despite the gloomy findings, the report features promising practices from entrepreneurial support organizations (ESOs) that may “right the ship” in supporting women entrepreneurs through the SBIR/STTR program.
As discussion of innovation ecosystems remains near the front of science, technology, and innovation policy discussions — and resources are spent providing environments for creative exchange between researchers, industry, government, and entrepreneurs — substantive and empirical research is still lagging. However, a recent study sheds new light on the mechanisms and types of interactions that may contribute to the desired outcomes of promoting innovation ecosystems.
Since 2005, the One North Carolina Small Business Program has made 423 SBIR/STTR matching awards worth nearly $26 million to more than 250 businesses throughout the state. A new assessment, which updates an earlier report, provides academic rigor to a standard program review. The results indicate that even beyond survey-based attestations to the program’s value, there is a statistically-significant impact of North Carolina’s funding for the competitiveness of recipients.
The Small Business Administration (SBA) recently rolled out a new website for the SBIR/STTR program which SBA administers. Reorganized and including new landing pages for entrepreneurs, support organizations, and federal agencies, the new page provides quicker and easier access to the right information.
In this week’s edition of Useful Stats, we take a look at NIH’s SBIR/STTR program by state, including the success rate of applications, the share SBIR awards make up of NIH funding to for-profit companies by state, and the total number of awards by state. It should be noted that SSTI was able to prepare this information because of the excellent transparency of information that NIH offers on its website, a model that should be replicated by other federal agencies.
The Federal and State Technology Partnership (FAST) is intended to increase innovation-based small business awareness and participation in the SBIR and STTR programs in places and populations that are underrepresented in the programs’ award portfolios. Through FAST, the Small Business Administration (SBA) makes small, matching one-year awards to state programs on a competitive basis.
The U.S. Small Business Administration announced 24 grants to organizations working to increase SBIR/STTR awards and commercialization outcomes in their states. The Federal and State Technology Partnership program (FAST) emphasizes initiatives focusing on underrepresented regions and entrepreneurs.
Congratulations to the SSTI members receiving FAST awards in the 2019 cycle:
Are you looking to increase the success rate of your state’s SBIR/STTR proposals? If so, a reminder that applications for the Small Business Administration’s Federal and State Technology (FAST) Partnership Program are due next Friday, June 28, at 4 p.m. EDT. This program provides one-year funding to organizations executing programs related to SBIR/STTR outreach, technical assistance, or financial support.
Federal agencies fail, on average, 24 percent of the time to notify applicant small businesses of award decisions within required deadlines. A small business has a zero percent chance of being able to plan to start an innovation project within six months if they apply to ARPA-E (the Department of Energy’s Advanced Research Projects Agency) or the Defense Threat Reduction Agency, both of which never met the deadline.