Transcript SBIR/STTR Overview
A Quick Overview of SBIR/STTR
Dr. Fritz Grupe Email: [email protected]
, or [email protected]
775-813-7407
Made Possible Through Funding From
Show Me The Money!!!
Research Opportunities Reserved for Small Business
2.5%
•
Small Business Innovation Research (SBIR) Set-aside for small businesses to engage in federal R&D -- with potential for commercialization.
•
0.30% Small Business Technology Transfer (STTR) Set-aside to facilitate cooperative R&D between small business concerns and U.S. research institutions -- with potential for commercialization.
SBIR Program Eligibility
Organized for- profit U.S. business At least 51% U.S.- owned by individuals and independently operated
Small business located in the U.S. 500 or fewer employees P.I.’s primary employment with small business during project
STTR Program Eligibility
Applicant is a small business Formal cooperative R&D effort
Minimum 40% by small business
Minimum 30% by U.S. research institution U.S. research institution
College or university; other non-profit research organization; Federal R&D center Intellectual property agreement follow-on R&D and commercialization
SBIR/STTR: Critical
Differences
•
Research Partner SBIR: partners Permits research institution [Outsource ~ 33% Phase I and 50% Phase II R&D] STTR: Requires research institution partners (e.g., universities) [40% small business concerns (for-profit) and 30% U.S. research institution (non-profit)] Award Is Always Made To Small Business
•
SBIR/STTR: Critical Differences
Principal Investigator SBIR: STTR: Primary (>50%) employment must be with small business Primary employment not stipulated [PI can be from research institution and/or from small business concern*] *DISCUSS WITH AGENCIES
What is Funded Under SBIR/STTR?
• Innovation through the use of emerging technologies • • Novel application of existing technologies – a new area of application New capabilities or major improvements to existing technologies in efficiency, effectiveness, simplicity, …
Not all great ideas are funded.
Advantages of SBIR/STTR Programs
• • • • • • • A specific “shopping list” for small firms describing what the government agencies need/fund Significant amounts of R&D money reserved for small, innovative firms Funding for early-stage feasibility and prototype studies- the type of R&D for which private firms and financing groups won’t provide investment A simplified route to obtaining federal R&D funds Does not penalize a firm for being small or isolated Provides valuable credibility to winning companies Efficient use of federal R&D funds
SBIR/STTR’s 3-Phases
PHASE I
Feasibility study $100K and 6-month (SBIR) or 12-month (STTR) Award PHASE II
Full research/R&D $750K and 2-year Award (SBIR/STTR) PHASE III
Commercialization stage Use of non-SBIR/STTR funds
Variations
• • Fast Track (Phase I and II combined) Phase II B (NSF will match 1:1)
The SBIR/STTR Timeline
• • • • The SBIR/STTR Phase I/Phase II completion timeline is from 3 to 5 years (best case).
Can your company survive during this time?
Will the marketplace for your idea survive this timeline?
Who is your competition? How are they funded? Where will they be after 3 to 5 years?
Proposal 1 Phase I 2 3 Phase II 4 Years Source: PCB, Inc.
Phase III Funders
• • • • Governmental agencies Corporations Venture capitalist firms/individual Angel investors
Performance of Research Activities
• All R&D must be performed in its entirety in the U.S.
– Rare cases to conduct testing of specific patient populations outside of the U.S.
– Travel to scientific meetings in foreign countries is allowable – Foreign consultants/collaborators are allowable, but must perform consulting in the U.S.
What Does SBIR Pay For?
• Direct Costs – Including fringe benefits • • Indirect Costs Fee/Profit – Up to 7% of the total direct and F&A costs.
– Must be requested in the proposal to be eligible.
• Not all costs are allowable
SBIR / STTR Participating
TOTAL ~ $2.0 + B FY 2004
Agencies
• • • • • • • • • • •
DOD HHS NASA DOE NSF DHS USDA DOC ED EPA DOT SBIR/STTR SBIR/STTR SBIR/STTR SBIR/STTR SBIR/STTR SBIR SBIR (Dropping) SBIR SBIR SBIR SBIR
Don’t Judge an Agency’s Interests by Its “Name ”
FACT: Many research areas of interest span across agencies
Avoid inaccurate assumptions about agency research missions (e.g., DOT is interested in “safety” NOT “economy”)
Maximize opportunities for funding by submitting proposals to as many relevant agencies as possible
Identical research Complementary research
Understand Each Agency’s Culture
What are its distinct missions and needs ?
Is the agency program budget –
centralized or de-centralized ?
relationship to “topic authors”
Understand Each Agency’s Culture
What are the lines of communication ?
when (when not) to call…
who to call… why to call…
How does the review and award process
operate?
Who are the reviewers – internal, external, or both ?
Who makes the final award selection ?
Understand Each Agency’s
Culture
What are the t ypes of awards (contract or grant) ?
Are there “funding gap” programs ?
Does the agency offer a “technical assistance” program ?
How can the agency support a firm’s “commercialization” program ?
as a Phase III “customer” by providing external “contacts”
•
Contracting vs. Granting Agencies
Contracting Agencies – Agency establishes plans, protocols and requirements – Highly focused topics – More fiscal requirements • Granting Agencies – Investigator initiates an idea – Less well-specified topics – More flexibility
DOD HHS/NIH NASA ED EPA DOT DOC HHS/NIH NSF ED USDA DOE
Grants vs. Contracts
Grants – You are selling your idea against other ideas
Contracts – You are selling your solution to their idea
Agency SBIR Differences
• • • • • • • • •
Number and Timing of Solicitations R&D Topic Areas -- (Broad vs. Focused) Dollar Amount of Award (Phase I and II) Proposal Preparation Instructions Financial details (e.g., Indirect Cost Rates, Gap Funding) Receipt Dates Proposal Review Process Proposal Success Rates Type of Award (Contract or Grant)
Approximate Number of Awards
Department of Agriculture Department of Commerce Department of Defense Department of Education Department of Energy Department of Health & HS Dept. of Homeland Security (04) Department of Transportation Environment Prot. Agency NASA National Science Foundation Nuclear Reg. Commission 90 50 1800 35 200 1030 100 20 45 310 250 0
SBIR Success Ratios
• Phase I – Historically, 1 out of 10 proposals are funded – Recently, 1 out of 7 proposals were funded – Last year, it was back to 1 out of 10 proposals funded • Phase II – Between 1 out of 2 to 1 out of 3 – Some Phase IIs become contracts (Phase III)
For more information…..
Contact individual agency websites
Cross-agency website: http://www.sbir.gov
Conferences / workshops Topic search engine for all agencies Partnering Opportunities State Newsletters
Other Helpful Sites
• • • • www.sba.gov/sbir www.zyn.com/sbir www.pbcinc.com
http://www.cnytdo.org/files/SBIR_guide.pdf
– (for a helpful manual that summarizes the contents of this workshop) • http://www.niaid.nih.gov/ncn/sbir/pres.htm
Who Participates in SBIR?
Firms are typically small and new to the program.
About 1/3 are first-time Phase I awardees.
Small hi-tech firms from across the country.
Firm Size Distribution*
*FY01 Phase I DOD Award Winners
Faculty Opportunities
• • • • • • Own small firms (assign
someone else
PI) Principal investigator (with official permission from university) Senior personnel on SBIR/STTR Consultants on SBIR/STTR Subcontracts on SBIR/STTR University facilities provide analytical and other service support
Getting Help With STTR
1. Federal Laboratory Consortium http://www.federallabs.org/ See Technology Locator 2. University technology transfer officer (if there is one) 3. Techmatch http://www.dodtechmatch.com/DOD/inde x.aspx
Current Issues
• • • • • • • Reauthorization Majority venture capital group ownership and control Raising award amounts Changing the set aside % and linkage from extramural to the full R&D budget Lowering the $100m participation threshold to include smaller agencies Providing agencies with administrative funds out of the SBIR pool Increasing the percentage (ratio of work) allowed to subcontractors/universities
• • • • • • Commercialization assistance programs out of the SBIR pool (awardee's $$$) Federal and State Technology Partnership (FAST) outreach to new entities Rural Outreach Program (ROP) SBIR Mentor/Protégé program STEM (Science, Technology, Engineering and Mathematics) incentives Energy Focus Area (similar in construction to the manufacturing clause)
Some Problems and Issues
• • • • • • Intellectual property Time and effort to write, wait for, account for a grant Distractions Do you have enough horses to do the job?
– Partners?
– Equipment Funding gaps Funding is specific
SBIR National Conferences
April 21 -23, 2010 Hartford, Connecticut
Is it a Good Idea?
Top 6 Reasons to Seek SBIR / STTR Funding Opportunities 1. Over $2.3
Billion available 2.
NOT A LOAN - no repayment 3. Provides recognition, verification and visibility 4. Fosters partnerships (e.g., large corporations, academia)
Top 6 Reasons to Seek SBIR / STTR Funding Opportunities 5. Provides seed money to fund high risk projects 6.
Intellectual property rights are normally retained by the business
Award Process
Congratulations!
The check is “in the mail…”