About: Small Business Innovation Research   Sponge Permalink

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The Small Business Innovation Development Act of 1982 established Small Business Innovation Research (SBIR) programs within the major federal research and development (R&D) agencies. The program is designed to increase the participation of small, high technology firms in the federal R&D endeavor. SBIR has four purposes: meet federal R&D needs; stimulate technological innovation; increase commercialization (e.g., sales) of innovations based on federal R and encourage participation in innovation by small businesses owned by disadvantaged individuals and women.

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  • Small Business Innovation Research
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  • The Small Business Innovation Development Act of 1982 established Small Business Innovation Research (SBIR) programs within the major federal research and development (R&D) agencies. The program is designed to increase the participation of small, high technology firms in the federal R&D endeavor. SBIR has four purposes: meet federal R&D needs; stimulate technological innovation; increase commercialization (e.g., sales) of innovations based on federal R&D; and encourage participation in innovation by small businesses owned by disadvantaged individuals and women.
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  • The Small Business Innovation Development Act of 1982 established Small Business Innovation Research (SBIR) programs within the major federal research and development (R&D) agencies. The program is designed to increase the participation of small, high technology firms in the federal R&D endeavor. SBIR has four purposes: meet federal R&D needs; stimulate technological innovation; increase commercialization (e.g., sales) of innovations based on federal R&D; and encourage participation in innovation by small businesses owned by disadvantaged individuals and women. Congressional support for the initiative was predicated upon the belief that while technology-based companies under 500 employees tended to be highly innovative, and innovation is essential to the economic well-being of the United States, these businesses were underrepresented in government R&D activities. Agency SBIR programs guarantee this sector a portion of the government’s R&D budget to compensate for what was viewed as a preference for contracting with large firms. Government agencies with R&D budgets of $100 million or more are required to set aside a portion of these funds to finance the SBIR activity. A set percentage of that agency’s applicable extramural research and development budget — originally at 1.25%, now at 2.5% — is to be used to support mission-related work in small companies. Through FY2009, over 112,500 awards had been made totaling more than $26.9 billion.
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