HTBC - STTR Program Description

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STTR Program Description

As part of the 1992 Act that reauthorized the SBIR Program, the Small Business Technology Transfer (STTR) Pilot Program was created by Congress. The STTR program has been reauthorized through fiscal year 2001. The STTR Program is a cooperative research partnership between small business concerns and research institutions. The purpose of this partnership is to stimulate technological innovation through the research, development, and commercialization of new products, processes, and systems that meet the needs of a participating federal agency.

Under the STTR Program, research and development is to be conducted jointly by a small business concern and a non-profit research institution. At least 40% of the work must be performed by the small business and the research institution must perform at least 30%. Research institutions cannot apply directly, but act as partners in the projects and receive funding through the small business.

Phase I awards can be up to $100,000 and the duration is usually one year. Phase II provides awards up to $500,000 for two-year projects. In 2001, approximately $65M is available under the STTR program.

STTR Program Highlights

It is a Federal R&D grant/contract program, a .15% funding set-aside from R&D budgets
For Profit, U.S.-Owned Companies with fewer than 500 Employeesare eligible to participate
It provides funding for early-stage feasibility and prototype research, typically over a six-month period
The process is competitive
Phases:

STTR Eligibility

Participation in the STTR Program is limited to small business concerns and research institutions. A small business must be the applicant and must meet the same criteria defined in the SBIR Program – U.S. owned, privately-held business with fewer than 500 employees. The Principal Investigator must be employed by either the small business or the research institution. The research institutions eligible to participate are:

1. contractor-operated, federal-funded research and development centers;
2. non-profit research institutions; and
3. non-profit colleges or universities, such as University of Rochester and Rochester Institute of Technology.

Participating Agencies in STTR

Agencies with extramural research or research and development budgets exceeding $1 billion in FY 98, 99, or 2000 are authorized to establish STTR Pilot Programs. Five federal agencies make awards under the STTR program:

Similarities between SBIR and STTR programs

Eligibility for each program is similar, and in either case, the proposal will be submitted by the small business concern. The proposal format is similar, as is the review process, and the agency program managers are typically the same for both programs. Additionally, both programs emphasize commercialization, and offer the Fast Track application option.

Differences between SBIR and STTR programs

Under SBIR, the principal investigator must be employed more than 50% by the small business doing the research. No more than one-third of the work can be contracted externally. SBIR however offers the larger phase II award of up to $750,000, and being a larger program more more agencies participating, significantly more funding is available through the SBIR program than the STTR program.

Under STTR, the principal investigator may be employed by either the research institution or the small business. Between 30-60% of the work must be contracted to the research institution, and the maximum phase II award is up to $500,000.