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Dillon-SBIR_STTR_programs Powered By Docstoc
					Pat Dillon, MBA
Wisconsin Entrepreneurs’ Network
Northwest Regional Director
March 9, 2011
The SBIR and STTR Programs are critical set-aside research and development
funding programs for small businesses by awarding federal grants and contracts for
innovative high risk, high payoff research and development efforts that have strong
commercial potential.

Since the enactment of SBIR in 1982, and STTR in 1992, these Programs have
helped thousands of small businesses to research, develop and commercialize
technologies in defense, agriculture, environment, life sciences, energy, education to
include “green” technology development efforts.

SBIR represents a source of high risk capital for small companies to explore their
technological potential and provide the incentive to profit from its

STTR requires small companies and the nation's premier nonprofit research
institutions to foster innovation collaboratively to meet the nation's scientific
technological challenges in the 21st century.
─ Stimulate technological innovation

─ Use small businesses to meet federal research and development (R&D)

─ Encourage the participation of disadvantaged and minority persons in
technological innovation

─ Increase private sector commercialization through federal R&D investment

─ Promote and require, for STTR, that small businesses partner with a
nonprofit research institution such as a university or a federally funded R&D
center to bring innovative technologies to market; for SBIR, the small business
may choose to establish research collaboration with academic organizations or
private sector firms.
– Provide non-dilutive funding for innovative, high risk, high payoff research and
development efforts

–   Retain intellectual property rights of the federally funded R&D effort

–   Retain 100 percent ownership of the small business

– Achieve technological and commercialization credibility for proprietary

          “Supports the American Dream, one small business at a time!”
Small Business Eligibility
─ Organized for profit, with a place of business located in the United States,
which operates primarily within the United States or which makes a
significant contribution to the United States economy through payment of
taxes or use of American products, materials, or labor;

─ Formed as an individual proprietorship, partnership, limited liability
company, corporation, joint venture, association, trust or cooperative, except
that where the form is a joint venture, there can be no more than 49 percent
participation by business entities in the joint venture; and

─ At least 51% owned and controlled be one or more individuals who are
citizens of, or permanent resident aliens in the United States, except in the
case of a joint venture, where each entity to the venture must be 51% owned
and controlled by one or more individuals who are citizens of, or permanent
resident aliens in the United States and has, including affiliates, not more
than 500 employees.
Agencies and Funding

              11 federal agencies

             $2.5 Billion Annually
      (2.8% of the extramural R&D budget)

         Federal Grants and Contracts
Participating Federal Agencies
Department of Agriculture                        Differences Among the Agencies
Department of Commerce                           •    Different missions and goals
Department of Defense *                          •    People and Positions
Department of Education
                                                 •    Funding Amounts
Department of Energy *
Department of Health and Human Services *        •    Solicitations releases and deadlines
Department of Homeland Security*                 •    Proposal preparation instructions
Department of Transportation                     •    Broad and specific research
Environmental Protection Agency                       interests/topics
National Aeronautics and Space                   •    Review evaluation and selection
Administration *                                      criteria
National Science Foundation *                    •    Business practices and processes
                                                 •    Electronic submission processes and
Note: * Participate in the STTR Program
SBIR Threshold - $100M in extramural R&D
STTR Threshold - $1B in extramural R&D funding

               Three Phase Program

           Innovative Idea/Concept/Project

  Long Term Research, Development and Commercialization Process
Critical Program Differences
            SBIR                             STTR
 Phase I – up to $150K            Phase I – up to $100K
 •Feasibility – 6-9 months        • Feasibility – 12 months
 •66% - small business            • 40% - small business
 •33%- subcontracts               • 30% - research institution
 /consultants                     • 30%- subcontractors
 • PI must be employed by the     • PI (Either the small business or the research
 small business at least 51%      institution)

 Phase II – up to $1M             Phase II – up to $750K
 •Prototype – up to 2 years       • Prototype – up to 2 years
 •50% - small business            • 40% - small business ; 30% - research
 •50% - subcontract/consultants   institution; 30% - subcontract
 • PI must be employed by the     • PI (Either SB or RI)
 small business at least 51%
                                  • Phase II Follow-on funding
 •Phase II Follow-on funding
                                  Phase III
 Phase III
                                  •Use of non-SBIR Funds
 •Use of non-SBIR Funds
 (Congressional Plus-Ups)         • Sole-Source contracts
 • Sole-Source contracts
Agency Differences
Contracting Agencies           Granting Agencies
  Agency establishes plans,    Principal Investigator initiates
  protocols, requirements
  Highly focused topics       approach and research project
  Procurement mechanism        Less-specified topics
   for DOD and NASA             Assistance mechanism
  More fiscal requirements     More flexibility

    DOD        HHS/NIH                 HHS/NIH NSF
    NASA       ED                      ED      USDA
    EPA        DOT                     DOE
The 3-T’s

                   Technical Team

  A winning proposal takes a lot of time and effort, so let’s first evaluate…..
                         - Do I have a winning idea?
                 - Can I put together a winning proposal?
Key Definitions
•    Basic Research - Scientific study and experimentation to provide fundamental
     knowledge required for the solution of problems.

•    Exploratory Development - A study, investigation or minor development effort
     directed toward specific problem areas with a view toward developing and
     evaluating the feasibility and practicability of proposed solutions.

•    Advanced Development - Proof of design efforts directed toward projects that have
     moved into the development of hardware for test.

•    Engineering Development - Full-scale engineering development projects for DoD
     use but which have not yet received approval for production.

Commercialization Definition
The process of developing marketable products or services and delivering products or services for
     sale (whether by the originating party or by others) to Government or commercial markets.
Profile of a SBIR/STTR Small Business
Must have an innovative technology
Apply an existing technology in a novel way
Must be able to perform the required percentage of effort in their facilities
Must have a technology fit with SBIR/STTR topic
Possess strong commercial potential

The principal investigator and key individuals participating in the proposed effort must have
    credentials that support their ability to perform the work outlined in the proposal. One or
    more of the following would strengthen the proposal:

 • Having experience as a PI on research proposals in the chosen topic field
 • Project management experience in the chosen topic field
 • Research and development experience in the chosen topic field
 • A track record in commercializing technological innovations in the chosen topic field
 • Holding an advanced degree in the chosen topic field
 • Experience in the topic field of effort
 • Publications in the topic field of effort
 • If the PI lacks strong qualifications, the business can hire consultants who have the credentials that
 strengthen the proposal application.
Go/No Go Criteria – the 3 T’s
Topic – does your innovation/technology respond closely to the specific agency
need?  Compelling Idea + Agency Fit = Impact
(fit involves both a relevant agency topic and the appropriate TRL)

Technology/Technical Approach – does your project idea clearly define the
SOA, the technology need/gap/shortfalls of SOA, how your idea overcomes these
and rationale why you think it will work, and a clear statement of how these
needs gaps will be studied, including the criteria to judge success – Chart the
path All the way to commercial impact

Technical Team – does the team have all the required skills and experience to
thoroughly complete the plan and definitively achieve and judge the success?
Who is the principal investigator? Who are potential customers and
commercialization partners whom we can involve now?
Searching for topics/agencies
•   Know your capabilities and research interests, stay focused, do not chase
    opportunities that do not align with your business or market opportunities
•   Understand the competitive landscape, intellectual property position and
    research environment
•   Search the SBIR/STTR Gateway to find relevant agencies and topics:
•   Use key search terms (government lexicon) to match your research interests
    with the agency topics/funding opportunities
•   Review past SBIR/STTR awards by agency (target your customer)
•   Get to know the customer - establish and build laboratory research
•   Develop a PLAN – be smart, savvy and strategic! This is not a destination, it is
    a journey!
Current SBIR/STTR Research Topics
The Environmental Protection Agency current SBIR broad technology topics are:

A) Green Building;
B) Innovation in Manufacturing;
C) Nanotechnology;
D) Greenhouse Gases;
E) Drinking Water Monitoring Treatment;
F) Wastewater and Sustainable Infrastructure;
G) Air Pollution Monitoring and Control;
H) Biofuels;
I) Waste Monitoring and Management; and
J) Homeland Security.

     DOD, DOE, NSF, NASA, USDA and DOC are interested in green technology
                         innovations and advancements.
Eligible Principal Investigators (PI)

An individual with the skills, knowledge and resources necessary to provide
scientific and financial management of the proposed research effort.

SBIR - the PI must have his/her primary employment (more than 50%) with
the small business at the time of award and for the duration of the project.

STTR - the PI may be employed with the small business or the participating
non-profit research institution as long as he/she has a formal appointment with
or commitment to the applicant small business, which is characterized by an
official relationship between the small business concern and that individual.
Search for Funded SBIR/STTR Projects
TECH-Net is an electronic gateway of technology information and resources for and about
   small high tech businesses. It is a search engine for researchers, scientists, state, federal
   and local government officials, a marketing tool for small firms and a potential "link" to
   investment opportunities for investors and other sources of capital.

TECH-Net is an Internet-based database of information containing Small Business
   Innovation Research (SBIR) awards, Small Business Technology Transfer (STTR)
   awards. It is a free service for those seeking small business partners, small business
   contractors and subcontractors, leading edge technology research, research partners
   (small businesses, universities, federal labs and non-profit organizations),
   manufacturing centers and investment opportunities.

Businesses profiled on the TECH-Net system can be searched by a variety of data elements
   such as: location; company name, phase, agency, branch, award year, etc.

To search TECH-Net visit:
  SBIR/STTR Information/Links
Main SBIR/STTR Website:

Links to the federal agencies:

Search for SBIR/STTR solicitations:

Search for SBIR/STTR research topics:

Search for funded SBIR/STTR Phase I and II Projects:
WEN Technology Team
WEN’s Technology Team focus on impacting the startup and growth of technology
  businesses by leveraging a wide variety of programs, services, tools and resources to
  help them start, grow and expand. The WEN Technology Team provides:

Expertise, coaching, and guidance with respect to technology assessment and
   commercialization, business planning, raising capital, and securing State and Federal
   grants including Small Business Innovation Research (SBIR) and Small Business
   Technology Transfer (STTR) Programs, as well as other federal research and
   development opportunities.

Strategic connections to resources, information, human and financial capital, advisers, and
    potential strategic partners.

Technology transfer assistance between the Wisconsin Alumni Research Foundation
   (WARF) and its subsidiary, WiSys Technology Foundation, and other technology
   transfers offices.
WEN and its numerous Wisconsin partners from government, academia, and the private sector
involved in promoting entrepreneurship, innovation and economic development aim to assist
and strengthen Wisconsin’s pursuit of federal SBIR and STTR awards by its tech-based small
business sector. WEN and its collaborating partners provide SBIR/STTR assistance that

    Up-to-date information
    Education and Training
    Expert advice and coaching
    Electronic registrations
    proposal preparation and submission
    pre-submission proposal reviews
    establishment of research partnerships with academia/non-profit research
     institutions and technology transfer opportunities for the commercialization of
    selection of appropriate federal agencies and research topics of interests/needs that fit with the
     small business strategy
    development of commercialization strategies and Phase II Commercialization Plans
    intellectual property management in federal grants and contracts
    Other
Get Help With Your Research Proposal
Technology Assistance Grant – a small grant of up to $3,000; of which 25
percent is matched by the small business to hire an approved private sector
service provider (consultant) to help prepare a federal SBIR/STTR research

This is a one-time grant application.

Go to for more information.
Getting Started
Have you performed a self assessment?

Are you a good candidate for federal funding?

Do you have the internal or external resources to support a research and
development effort?

Are you willing to collaborate with others?

Call us to start the journey?
Advance Power and Energy Cluster
Mission: The Advanced Power & Energy Cluster (ADT Cluster)
will be a catalyst to provide innovative technology for the nation’s warfighters
while accelerating regional economic development.

Goals: The Defense Alliance (Contractor) ADT Cluster is focused on Department
of Defense (DoD) Advanced Power & Energy needs to support our military
men and women.

Collaboration: The ADT Cluster will collaboratively leverage the industry
academic, nonprofit, governmental and other assets of the region to bring
innovative solutions more rapidly to the nation’s defense needs, while
contributing to the technology-based economic development – particularly for
 high technology jobs – of the region.

Government Opportunities: Connecting private sector businesses with
Department of Defense procurement opportunities.

For more information, visit:
Benefits of the Cluster

 The Department of Defense (DoD) actively seeks innovative technology and
 service answers to challenging issues for its current and future power and
 energy needs.

 Members accepted to the ADT Cluster have access to R&D and direct contract
 solicitations, DoD agency and prime defense contractor points of contact, as
 well as updates with regard to DoD power and energy needs.
National SBIR/STTR Conference
April 10-13, 2011, Madison, WI
Monona Terrace and Community Center
Early Bird Registration - $395 until March 10th
After March 10th – registration is $495

Great opportunity to meet with federal agency
  representatives, learn more about SBIR/STTR, hear
  from the experts, etc.

Visit for more details!
Contact Information
Ms. Pat Dillon, MBA
UW-Extension, Division of Entrepreneurship and Economic Development
WEN Regional Director