Small Business Technical Transfer Program

Although similar in structure to SBIR, the Small Business Technical Transfer Program (STTR) funds cooperative R projects involving a small business and a non-profit research institution (i.e., a university, federally funded R center, or non-profit research institution). Established by Congress in 1992, the purpose of STTR was to create an effective vehicle for moving ideas from the nation's research institutions to the market, where they can benefit both private sector and government customers. The government SBIR and STTR programs were funded for $2.5 billion in Fiscal Year 2011.

The STTR program is administered by the following five federal agencies:

• Department of Defense
• Department of Energy
• National Aeronautics and Space Administration
• Department of Health and Human Services
• National Science Foundation

Just like the SBIR, there are three phases to the program. Phase I is the startup phase for the exploration of the scientific, technical and commercial feasibility of an idea or technology. Awards for Phase I are for up to one year and up to $100,000. Phase II is the expansion phase of Phase I results. During this period, the R work is performed and the developer begins to consider commercialization potential. Awards for Phase II are for up to two years and up to $500,000. Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace; there is no STTR funding of this phase.

Example Historically, about 15 percent of SBIR and STTR proposals are awarded a Phase I contract, and approximately 40 percent of Phase I projects are subsequently awarded a Phase II contract. However, in recent solicitations, a much higher percentage of STTR Phase I proposals was awarded a Phase I contract.

The qualifications for companies applying for STTR are similar to those for STIR. Only small for-profit businesses can apply under the program. In addition, the business must be American-owned and independently operated, with size limited to 500 employees. Although a company does not have to be an established business when it bids, it must be an established business when the award is made.

There is no size limit for the research institution partner. In other words, small businesses can team up with some rather large operations to work along with them to get an idea to market.

Since this program consists of developing and bringing a new idea or technology to market, it is important that the future rights to projects are determined at an early stage. The small business and the research institution must develop a written agreement prior to a Phase I award. This agreement must then be submitted to the awarding agency if requested.

For more information on the SBIR and STTR programs, contact your local PTAC office or:

Small Business Administration Office of Technology
409 Third Street, SW
Washington, DC 20416
(202) 205-6450

Getting Started in SBIR and STTR

To get started in the SBIR or STTR programs, you must first obtain the current solicitation, which lists all the research topics under which government agency is seeking Phase I proposals and contains detailed information on how to submit a proposal.

The DoD issues two SBIR solicitations and one STTR solicitation each year. The first SBIR solicitation is issued in May and closed in August. The second SBIR solicitation is issued in October and closed in January of the following year. The STTR solicitation is issued in January and closed in April.

To receive hard copies of current and future SBIR and STTR solicitations, place your name and address on the SBIR/STTR mailing list by registering online. You can also access the SBIR and STTR solicitations electronically through this web site.

After receiving the solicitation, resolve any questions you may have. If you have a technical question about a specific research topic listed in the solicitation, you can talk by telephone with the Topic Author, whose name and phone number will be listed in the solicitation topic. (Keep in mind that Topic Authors will be listed, and telephone questions will be accepted, only during the two months following public release of the solicitation on the web site and before the government begins accepting proposals.) Or you can submit a written question through the SBIR/STTR Interactive Topic Information System (SITIS), in which the questioner and respondent remain anonymous and all questions and answers are posted electronically for general viewing until the solicitation closes.