Small Business Innovation Research-Small Business Technology

Small Business Innovation Research/Small Business Technology Transfer (SBIR/STTR) at the National Science FoundationIan Bennett, Ph.D.Program DirectorDivision of Industrial Innovation and Partnerships2Division of Industrial Innovation & Partnerships (IIP) –Program Organization IIPDivisionGrant 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) 3Industrial Innovation & Partnerships (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 accelerateindustrial 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.4DODDefenseHHSHealthNASASpaceDOEEnergyNSF~$100 MillionDHSHomeLand SecurityUSDAAgricultureDOCCommerceEPAEnvironmentDOTTransportationDoEDEducationSBIR/STTR Participating AgenciesTOTAL ~ $2.2BEst. FY 20065DARPADARPAD 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 EC T S A G E N C Y228M Army220M Navy288M Air Force130M MDA64M DARPA4.9M DTRA13.5M SOCOM39M OSD11M CBD.7M NGADoDDoDSBIR FY05 BudgetSBIRFY05 Budget6Federal InvestmentPHASE IFeasibilityResearchPHASE IIIProductDevelopmenttoCommercialMarketPHASE IIResearchtowardPrototypePhase IB; 2:1 matching of private investment, up to $50KPhase IIB; 2:1 matching of private investment, up to $500KNo Federal $Match Maker ProgramUnique to NSFPrivate SectorInvestmentOther Supplements$100K –6 Months$150K –12 Months$500K –24 MonthsTaxesNSF SBIR/STTR ‘Innovation’ ModelUnique to NSF7SBIR/STTR Awards –DetailsSBIR/STTR Research Award TypesDetailsSBIR Phase I 6-month $100KSTTR Phase I12-month $150KSBIR/STTR Phase II24-month $500KSBIR/STTR Phase IIB$500K during Phase II awardPhase II Supplements –REU, RET, RAHSS, Phase IICC REU -$3K/undergrad/per summerRET -$10K/teacher/per summerRAHSS -$3K/student/per summerPhase IICC -$40KPhase IIR (with EEC-ERC Program)12-month $200K to ERC in collaboration with SBIR/STTR Phase II GranteeSBIR-I/UCRC (with I/UCRC Program)$5K I/UCRC membership fee to Phase II Grantee8SBIR/STTR Program FocusProposed 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/UCRC969% of awards go to companies with 20 people or less41% of awards go to companies with 10 people or lessPhase I Statistics10NSF 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-reviewedReviewers: Academic, Private Equity, IndustrialTechnology and Commercial reviewers11NSF is not the final customerNSF is not buying a product/process/software or intellectual propertyNSF wants to see the grantee successfully commercializethe innovationCompany needs investment dollars beyond NSF SBIR/STTRDoing Business with NSF12NSF 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 extensive reviewsA minimum of 3 expert technical reviews A minimum of 3 expert commercial reviews13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 Criteria14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 Criteria15Company Commercialization History –Very Important Part of the Review!Revenue from SBIR/STTR FundingPrevious SBIR/STTR Phase II AwardsFollow-on-Funding from Government and Private SectorTotal Sales Revenues from Commercialization of Phase II ProjectsWhat’s the Government’s Return on Investment?16Doing 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” document17Most Proposals Fail Because …Lack of identified businessopportunity (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 directions18NSF 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 CapacityRead the Directions (Solicitation)!19Next Topics (All topics)Advanced MaterialsBiotechnologyElectronicsInformation TechnologyEmerging OpportunitiesCloses ~ December 04, 200720Emerging 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 Manager21Useful Links:http://www.zyn.com/sbir/http://www.sbirworld.comhttp://www.nsf.gov/eng/iip/sbir/Ian Bennett: ibennett@nsf.gov