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: ibennett@nsf.gov