Small Business Innovation Small Business Innovation Research/Small Business Research/Small Business Technology Transfer Technology Transfer (SBIR/STTR) at the (SBIR/STTR) at the National Science FoundationNational Science Foundation
Ian Bennett, Ph.D.Ian Bennett, Ph.D.Program DirectorProgram Director
Division of Industrial Innovation and PartnershipsDivision of Industrial Innovation and Partnerships
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Division of Industrial Innovation & Partnerships Division of Industrial Innovation & Partnerships (IIP) – Program Organization(IIP) – Program Organization
IIPDivision
Grant Opportunities for Academic Liaison with Industry (GOALI)
Industry/University Cooperative Research
Centers(I/UCRC)
Partnerships for Innovation (PFI)
Small Business Innovation Research/
Small Business Technology Transfer
(SBIR/STTR)
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Industrial Innovation & Partnerships Industrial Innovation & Partnerships (IIP)(IIP)
Program areas include SBIR/STTR, I/UCRC, GOALI and PFI
VisionTo be the pre-eminent federal resource to create high technology through small businesses to stimulate our nation’s innovation leadership and contribute to the U.S. economy and society.
MissionTo accelerate industrial innovation in the U.S. by leveraging fundamental scientific and engineering research through small businesses in alignment with the statutory purpose of the Small Business Innovation Research Program and the NSF Vision.
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DODDOD DefenseDefense HHSHHS HealthHealth NASANASA SpaceSpace DOEDOE EnergyEnergy NSFNSF ~$100 Million~$100 Million DHSDHS HomeLand SecurityHomeLand Security USDAUSDA AgricultureAgriculture DOCDOC CommerceCommerce EPAEPA EnvironmentEnvironment DOTDOT TransportationTransportation DoEDDoED EducationEducation
SBIR/STTR Participating AgenciesSBIR/STTR Participating Agencies
TOTAL ~ TOTAL ~ $2.2B$2.2B Est. FY 2006Est. FY 2006
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DARPADARPADARPA
D E F E N S E A D V A N C E D R E S E A R C H P R O J E C T S A G E N C Y
228M Army
220M Navy
288M Air Force
130M MDA
64M DARPA
4.9M DTRA
13.5M SOCOM
39M OSD
11M CBD
.7M NGA
DoDDoD SBIR FY05 Budget
SBIR FY05 Budget
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Federal Investment
PHASE IFeasibilityResearch
PHASE IIIProduct
Developmentto
CommercialMarket
PHASE IIResearch
towardPrototype
Phase IB; 2:1 matching of private investment, up to $50K
Phase IIB; 2:1 matching of private investment, up to
$500K
No Federal
$
Match Maker Program
Unique to NSF
Private SectorInvestment
Other Supplements
$100K – 6 Months$150K – 12 Months
$500K – 24 Months
Taxes
NSF SBIR/STTR ‘Innovation’ ModelNSF SBIR/STTR ‘Innovation’ Model
Unique to NSF
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SBIR/STTR Awards – DetailsSBIR/STTR Awards – Details
SBIR/STTR Research Award Types
Details
SBIR Phase I 6-month $100K
STTR Phase I 12-month $150K
SBIR/STTR Phase II 24-month $500K
SBIR/STTR Phase IIB $500K during Phase II award
Phase II Supplements – REU, RET, RAHSS, Phase IICC
REU - $3K/undergrad/per summerRET - $10K/teacher/per summerRAHSS - $3K/student/per summerPhase IICC - $40K
Phase IIR (with EEC-ERC Program)
12-month $200K to ERC in collaboration with SBIR/STTR Phase II Grantee
SBIR-I/UCRC (with I/UCRC Program)
$5K I/UCRC membership fee to Phase II Grantee
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SBIR/STTR Program FocusSBIR/STTR Program Focus
Proposed research must demonstrate: High-Payback Innovation High Risk High Commercial Potential Strategic Partnerships - e.g. - Research
Collaborators, Customers and Equity Investors Collaboration with other NSF Programs e.g. ERC , I/UCRC
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69% of awards go to companies with 20 people or less
41% of awards go to companies with 10 people or less
Phase I StatisticsPhase I Statistics
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NSF SBIR/STTR Unique FeaturesNSF SBIR/STTR Unique Features
NSF: • Not an “Operations-Based” agency• Will NOT Purchase any Prototypes
Implications• Broad topic solicitations • NSF SBIR/STTR success metrics
Other NSF Nuances• All proposals are externally-reviewed
Reviewers: Academic, Private Equity, IndustrialTechnology and Commercial reviewers
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NSF is not the final customerNSF is not buying a product/process/software
or intellectual propertyNSF wants to see the grantee successfully
commercializecommercialize the innovationCompany needs investment dollars beyond
NSF SBIR/STTR
Doing Business with NSFDoing Business with NSF
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NSF Merit Review ProcessNSF Merit Review Process
NSF Merit Review Typically reviewed by panel meetings Panelists come from
Academia/Industry/Investment/Government Labs Phase I – all proposals receive a minimum of 3
expert technical reviews & increasingly commercial
Phase II – all proposals receive in-depth Phase II – all proposals receive in-depth extensive reviewsextensive reviews A minimum of 3 expert technical reviews A minimum of 3 expert technical reviews A minimum of 3 expert commercial reviewsA minimum of 3 expert commercial reviews
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Intellectual Merit Does the proposal reflect state-of-the-art in the major
research activities proposed? Is the proposed plan a sound approach for establishing
technical and commercial feasibility? How well qualified is the team (the PI, other key staff,
consultants, and subawardees)? Is there sufficient access to resources (materials,
supplies, analytical services, equipment, facilities, etc.)?
NSF Merit Review CriteriaNSF Merit Review Criteria
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Broader Impact What may be the commercial and societal benefits of the
proposed activity? Does the proposal lead to enabling technologies
(instrumentation, software, etc.) for further discoveries? Does the outcome of the proposed activity lead to a
marketable product or process? Evaluate the competitive advantage of this technology vs.
alternate technologies that can meet the same market needs. How well is the proposed activity positioned to attract
funding from non-SBIR sources once the SBIR project ends?
NSF Merit Review CriteriaNSF Merit Review Criteria
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Company Commercialization Company Commercialization History – Very Important Part History – Very Important Part of the Review!of the Review!
Revenue from SBIR/STTR FundingPrevious SBIR/STTR Phase II AwardsFollow-on-Funding from Government and
Private SectorTotal Sales Revenues from
Commercialization of Phase II Projects
What’s the Government’s Return on Investment?What’s the Government’s Return on Investment?
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Doing Business with NSF (part 2)Doing Business with NSF (part 2)
Ideas do NOT equal business opportunities Do your HOMEWORK, describe the opportunity
Remember the time component to value of money
Get some market validation BEFORE you come to NSF SBIR/STTR
Consider proposal as ADVOCATE at the table Proposal as “selling” document
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Most Proposals Fail Because …Most Proposals Fail Because …
Lack of identified business opportunity (science projects)
Lack of clarity Poor work plan
Other issues IP ownership and landscape No clear technology advantage Competitive landscape Path/Time to market
Didn’t read the directions
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NSF SBIR/STTR TakeawayNSF SBIR/STTR Takeaway
Many SBIR/STTR programs out there!At NSF ~$100M/year granted primarily for
seed-stage development: AM, BT, EL, EO, IT
Program to mitigate technical risk and bridge the “Valley of Death”
Investment in Country’s Innovation CapacityRead the Directions (Solicitation)!
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Next Topics (All topicsNext Topics (All topics))
Advanced MaterialsBiotechnologyElectronicsInformation TechnologyEmerging Opportunities
Closes ~ December 04, 2007
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Emerging Opportunities (EO)Emerging Opportunities (EO)
Increasing Emphasis on Commercial Potential
3 Year window for time to market 3-5 Pages of Commercial Potential
Technology Team Market
Letter(s) of Support Communication with Program Manager
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Useful Links:Useful Links:
http://www.zyn.com/sbir/
http://www.sbirworld.comhttp://www.sbirworld.comhttp://www.nsf.gov/eng/iip/sbir/
Ian Bennett: Ian Bennett: [email protected]