Legislation Would Fund Small Tech R&D Efforts

Legislation remains pending in both the House and Senate that would re-authorize the Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) Program.  Both programs are set to expire on May 31^st.   The Senate legislation would extend the program through 2019, while the House legislation would extend through 2014.

Even though the core of this legislation is bi-partisan, dealing with proposed amendments has bogged down action, especially in the Senate, where just last week a motion to close debate and proceed to a vote on the bill failed to gain the required 60 votes.  It had been widely anticipated that the Senate would pass this legislation in late March 2011, however, a series of amendments halted the process. 

The goal of both of the SBIR and STTR programs is to promote economic development among small tech companies, while addressing tech needs of the federal government.  Currently, 11 departments of the federal government participate in the SBIR program, while five departments are in the STTR program.

The SBIR Program provides small tech companies with opportunities to provide R&D to the government.  Under a three-phase competitive structure, the program provides as much as $100K during the first phase for a feasibility study to evaluate the scientific and technical merit of an idea.  During the second phase, applicants can apply for as much as $750K to expand upon development of the product or process, while the third phase requires non-SBIR or private funding.  Both the House and Senate bills would increase these limits to $150K and $1 million, respectively.

These programs are an important recognition of the contribution of small tech companies to innovation.  Both programs had been operating under a series of temporary extensions, which hampers long-term planning for many potential small tech applicants.

The House Small Business Committee is scheduled to hold a hearing on the House bill today.  Future action in the Senate is uncertain following failure to gain cloture last week, which would have allowed the bill to go for a floor vote.