Small Business Innovation Research SBIR Small Business Technology
Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR) Dennis Gaddis Ohio Dept of Development Technology Division 614 -466 -3887 800 -848 -1300 dgaddis@odod. state. oh. us
SBIR Program Small Business Innovation Research n Federal Program established in 1982 – Stimulate technological innovation – Use small businesses to meet federal R&D needs – Increase private sector commercialization of innovations derived from federal R&D – Encourage participation in technological innovation by disadvantaged, minority and woman-owned businesses
SBIR Program n n 2. 5% of agency’s extramural R&D budget if over $100 M FY 2003 funding over $1. 6 Billion Eleven federal agencies participate Reauthorized through 2008
SBIR Participating Agencies $2 B in funding per year Department of Agriculture - $17. 74 M n Department of Commerce - $7 M n Department of Defense - $1 B n Department of Education - $8. 7 M n Department of Energy - $95 M n Department of Health & Human Services - $574. 2 M n Department of Homeland Security - $19. 6 M n Department of Transportation - $3. 2 M n Environmental Protection Agency - $8 M n National Aeronautics & Space Administration - $107. 5 M n National Science Foundation - $94 M *2005 – Dept of HUD & perhaps Interior & Justice n
How to Get the $$ n the Person with the PROBLEM… n with the MONEY to solve the problem… n and the MEANS with which to give YOU the money to solve the problem. Contract Or Grant
How SBIR/STTR Work n n n Agencies have mission needs and R&D $$ Agencies issue solicitations Small businesses submit 25 page proposals by solicitation closing dates Agencies review proposals, select winning proposals and negotiate agreements within 6 months of the closing date Small business awardees commence R&D efforts
SBIR - Three Phase Process n n n Phase I - Feasibility – Generally 6 month effort – Up to $100 K in SBIR funding – No more than 33% subcontracted Phase II - Full R&D/Prototype – Generally 2 year effort – Up to $750 K in SBIR funding – No more than 50% subcontracted Phase III - Commercialization – No SBIR funding
SBIR Eligibility Requirements At time of award, a business: n Must be organized for profit n Must have less than 500 employees including affiliates & subsidiaries n Must be located in the U. S. n Must be at least 51% owned by U. S. citizens or permanent residents n Must be primary employer of Principal Investigator (>50%)
What SBIR is not n n Not a state funded program Not a loan program Not a quick program (4+ years) Not necessarily a business start-up program, although many businesses are begun with an SBIR award
Benefits of SBIR/STTR to Companies n n n Seed money to fund high-risk projects Not a loan - no repayment required Company retains intellectual property Recognition, validation and visibility Leveraging tool to attract venture capital/other$$$ SBC’s increasingly recognized as source of technology innovation
SBIR Timing n n n If you have an idea but not a business plan, you may be too early. If you already have a product developed, you may be too late. If your technology matches a federal need, if you have the resources necessary to perform high risk research, and if an SBIR project meets your business plan, your timing might be right.
STTR Program Small Business Technology Transfer Program n Cooperative effort between small business and nonprofit research institution n 40% work performed by small business-30% work performed by non profit institution n Employment requirements for Principal Investigator depend on agency - Do. D, HHS, NASA-either. Do. E, NSF- must work for SBC n Reauthorized through 2009
STTR Program n n n Phase I - Feasibility – 1 year effort – Up to $100 K in STTR funding – No more than 30% subcontracted Phase II - Full R&D/Prototype – 2 year effort – Up to $750 K in STTR funding Phase III - Commercialization – No STTR funding
STTR Program n Five participating agencies – – – Dept of Defense (separate solicitations) Dept of Energy (combined solicitation) Dept of Health and Human Services (combined solicitation) – NASA (combined solicitation) – National Science Foundation (combined solicitation)
Evaluation Criteria n n Scientific and Technical Merit Qualifications of PI/other key personnel Soundness of Work Plan Commercial Potential
Types of Awards n Grants: Agency identifies broad research areas. Investigators/Researchers propose specific topics. – USDA, Education, Energy, Health & Human Services, National Science Foundation n Contracts: Agency specifies research topics. – Commerce, Defense, Education, Health & Human Services, Transportation, EPA and NASA
Proprietary Information n Proposal Abstract – Abstracts are released by government – No proprietary information is allowed in the abstract n Proposal – Proprietary information must be clearly marked in the proposal according to the solicitation instructions. – Proprietary information is treated in confidence to the extent permitted by law
Intellectual Property Protection n Agencies will not disclose Proprietary Information, Technical Data, or information on inventions for 4 years after completion of SBIR project – Department of Defense will not disclose information for 5 years – Department of Transportation protects invention information for 2 years – NASA protects invention/patent information for “a reasonable time” n Helpful information!! Iandiorio and Teska, www. iandioro. com “I & T Publications” “New Ideas, Methods and Products Series” Volume XIII
Federal And State Technology Partnership (FAST) n n n Ohio SBIR and SBDCs form “Team SBIR” Focus on Commercialization assistance Coordinate Ohio resources Establish Mentoring Network Build Knowledge Base This U. S. Small Business Administration (SBA) Cooperative Agreement is partially funded by the SBA’s funding is not an endorsement of any products, opinions or services. All SBA funded programs are extended to the public on a nondiscriminatory basis.
Suggestions for Companies n n n n Get to know agency customers Understand agency missions and needs Read solicitation and follow instructions Do not depend solely on SBIR funding Don’t go it alone (Use Ohio’s FAST Team!) Have an outcome Be persistent
Federal Focus n n n Commercialization Outside investment Cost Reductions
Where Ohio Stands in SBIR Awards n n n In 2002, Ohio ranked 6 th in SBIR awards 220 SBIR awards totaling $63. 5 M 152 Phase I, 68 Phase II awards Rankings : CA, MA, VA, MD, CO, OH, NY, PA, TX, NJ, WA, AZ, AL, FL, MN, MI, CT, NC, NM, NH, OR, IL, UT, WI, GA, TN, IN, DC, NV, MO, NT, SC, RI, IA, KS, OK, KY, ID, HI, LA, MS, WY, DE, ME, VT, SD, AR, NE, ND, WV, PR, AK
Services offered by Ohio’s SBIR Outreach Program n n n n One to one consultations targeted to the company’s needs Regional workshops and conferences www. odod. state. oh. us/tech/sbir Proposal writing strategies and guidelines Administrative proposal review Post award support Referrals to SBDC network, economic development Research Commercialization Grant Program
How to contact Ohio’s SBIR Program On the World Wide Web: http: //www. odod. state. oh. us/tech/sbir Phone: 800 -848 -1300 ext. 63887 614 -466 -3887 Fax: 614 -644 -5758 Email: ohsbir@odod. state. oh. us
Incentives for Tech Companies www. connectohio. com/bus_resources/ n Technology Investment Tax Credit (TITC) – Company has < $2. 5 M in Gross Revenue or Net Book Value – Ohio equity investors receive 25% tax credit n Ohio Job Creation Tax Credit (JCTC) – Create 25 jobs @ 150% of minimum or 10 jobs @ 400% n Net Worth Tax Exemption for High-Tech Start-up Companies – Exempts <3 year old Tech company from Corporate Franchise Tax www. state. oh. us/tax/Business. html n Research and Development Sales Tax Exemption – Unit Exemption Certificate www. state. oh. us/tax/business_forms_sales. html n Ohio Investment in Training Program – Provides financial assistance and technical resources for customized training involving employees of new and expanding Ohio businesses.
Helpful Information n Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) – www. odod. state. oh. us/tech/sbir – SBIR Gateway: www. zyn. com/sbir – SBIR World: www. sbirworld. com n Grants. gov www. grants. gov – Electronic Storefront for Federal Grants n State Science and Technology Institute – SSTI Weekly Digest – Subscribe www. ssti. org n SBIR Alert – Pacific Northwest National Laboratory – http: //lyris. pnl. gov/cgi-bin/? enter=sbir-alert
Department of Defense n Defense Technical Information Center (DTIC) http: //www. dtic. mil/dticorg/regional/mw_regional. html “The Rosetta Stone for dealing with the Defense Department” Debie Francis Midwestern Regional Office at Dayton ATTN: DTIC-BPD Building 29, Area B, Room 103 2245 Monahan Way Wright-Patterson AFB, OH 45433 -7022 Phone: (937) 255 -7905 x 249 FAX: (937) 656 -7002 Email: dfrancis@dtic. mil Office hours: Monday-Friday 7: 30 a. m. to 4: 30 p. m. Eastern
Sources of Assistance n Small Business Development Center Program www. ohiosbdc. org – Small Business Development Centers (SBDC) – Manufacturing, Defense and Technology Small Business Development Centers (MSBDC) – International Trade Assistance Centers (ITAC) – Ohio Procurement Technical Assistance Centers (PTAC)
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